Round-trip ticket: Increased per capita disposable income will encourage more Canadians to travel

The Tour Operators industry in Canada has performed well over the five years to 2019. As the economy has experienced steady growth since 2014, improving consumer confidence and financial stability, Canadians have subsequently increased their spending on domestic and international travel, thus increasing demand for industry services. The Tour Operators industry is anticipated to continue growing over the five years to 2024. Along with minor annualized growth in the amount of leisure time available to Canadians, an increase in per capita disposable income is projected to encourage Canadians to travel domestically and internationally, and boost industry more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Global economic volatility is expected to affect revenue growth
  • International tourism to Canada has endured a long-term decline over the past decade
  • The amount of leisure time available to Canadians is expected to increase
  • Industry Report - Starting a New Business Chapter

    Barriers to entry into the Tour Operators industry in Canada are relatively low, with low essential start-up capital costs. While larger companies make use of substantial office space, tour buses and other expensive capital equipment in their operations, small industry operators only require computer hardware and software required to organize and plan tours. Moreover, the increasing use of the internet as a booking and research tool reduces capital and marketing costs for smaller operators. However, despite low initial capital costs, entrants into the industry may find it difficult to source the specialized labour required to manage tour planning. Due...purchase to read more.

    Additional Insights for the Tour Operators Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tour Operators Industry are

  • Access to multiskilled and flexible workforce
  • Experienced workforce
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Consumer Confidence Index and Inbound international travel in the Tour Operators industry impact industry performance..

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    What's in this report

    What is the Tour Operators Industry?

    Businesses in this industry primarily arrange, market and conduct tours, including wholesale tours, of cities, museums, natural attractions and other places of interest. The industry excludes companies that primarily provide travel information on an area’s attractions (IBISWorld report 56159), as well as travel agencies (IBISWorld report 56151).

    Industry Products
  • International prepackaged tours
  • Domestic prepackaged tours
  • International customized tours
  • Domestic customized tours
  • Industry Activities
  • Arranging, marketing and conducting tours
  • Arranging and marketing tours
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer Confidence Index
  • Inbound international travel
  • Leisure time
  • Per capita disposable income

  • Current Performance
  • Increasing domestic travel buoys the industry
  • Foreign visitation rises
  • External challenges
  • Internal challenges
  • Chart: Revenue Growth

  • Industry Outlook
  • Consistent Canadian travel growth
  • Increasing foreign visits to Canada
  • Premium travel
  • Mounting pressures
  • Table: Tour Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tour Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Travel Agencies in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Amusement Parks & Arcades in Canada
  • Hotels & Motels in Canada
  • Ski & Snowboard Resorts in Canada

  • Products & Services
  • International prepackaged tours
  • Domestic prepackaged tours
  • International customized tours
  • Other
  • Domestic customized tours
  • Chart: Tour Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • $150,000 and over
  • $100,000 to $149,999
  • Under $50,000
  • $70,000 to $99,999
  • $50,000 to $69,999
  • Chart: Major Market Segmentation for the Tour Operators Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Tour Operators

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tour Operators Industry

  • Industry Globalization
    Flight Centre Travel Group Ltd., Transat AT Inc.,
  • Table: Flight Centre Travel Group Ltd. - financial performance
  • Table: Transat AT Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tour Operators Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tour Operators Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Per Capita Disposable Income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Tour Package
  • A complete trip that can be paid in one lump sum and includes costs for fare, accommodation, meals, ground transportation, tour guides and taxes.
  • Tour Wholesaler
  • A company that, like tour operators, creates and arranges tours, but does not usually conduct the tours themselves, leaving this job to a third-party company.
  • Visitor Bureau
  • An organization that provides information services to tourists and undertakes general promotional tourism activities for a state or city.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tour Operators market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tour Operators:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tour Operators market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tour Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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