Travel Agencies & Services
Companies in this industry arrange travel and traveler accommodations and include travel agents, tour operators, and other travel services like time-share exchanges, visitors' bureaus, and ticket offices. Major companies include American Express Travel, Booking Holdings, CWT, Expedia Group, and Sabre (all based in the US), as well as BCD Travel (the Netherlands), China International Travel Service (China), HIS Co Ltd (Japan), and TUI Group (Germany).
Annual revenue from worldwide tourism, which includes travel agency is expected to reach about $720 billion by the end of 2022, according to Statista. According to the United Nations Conference on Trade and Development, the global economy could lose more than $4 trillion due to the effects of COVID-19 on tourism.
The US travel services industry includes about 21,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $55 billion.
Demand is driven by business and leisure travel, which depends on the economy. The profitability of individual companies depends on marketing. Large companies have an advantage in being able to provide a wider range of services, especially to corporate customers, and to afford sophisticated websites. Small companies can compete effectively by providing service to a few large customers, specializing in a service niche, or serving a local market. The US industry is concentrated: the 50 largest companies account for about 50% of revenue.
Two major factors have shaped the industry in recent years: sophisticated pricing schemes developed by the airlines to maximize profitability, and the emergence of online travel information and booking services. The continued growth of alternative lodging services such as Airbnb could reduce demand for travel agencies that focus on booking hotel rooms.
Products, Operations & Technology
Major services include packaged tours with accommodation, which accounts for about 30% of the industry revenue. This is followed by reservation services
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms