Staying home: The industry has struggled due to the rise of internet travel booking

The Travel Agencies industry has struggled over the past five years, as the traditional core services of the industry have been negated by the rise of internet travel booking. The industry has been tipped on its head, as consumers have increasingly flocked to online travel websites to research and book travel. For this reason, many agents have sought to specialize in certain destinations or forms of travel to showcase the value they provide to travelers. Growth in per capita income and declining unemployment over the next five years will fail to contribute any substantial boost for the Travel Agencies industry because many consumers are used to making their own travel reservations and will be aided by improved web interfaces and seamless transactions...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
1.9%
Forecast Growth 18-23
Profit
Employment
5,382
Businesses
3,278

Industry Threats & Opportunities

  • The industry has struggled over the past five years due to the rise of internet travel booking
  • Internet technology has been implemented to reduce the labour intensity of the industry
  • Increased use of the internet to book travel will cause the industry to become more price driven
  • Industry Report - Industry Locations Chapter

    The Travel Agencies industry in Canada is consumer led, meaning the geographic distribution of industry establishments is highly reliant on the population spread. For this reason, Ontario (42.5% of industry establishments) and Quebec (18.8%) are the regions with the highest number of industry establishments. Also, these regions all have above-average household incomes, meaning consumers have a greater ability to pay for upmarket travel services.Tourism spending and visitor numbers are also important to where travel agents locate themselves, as this is their major market. However, because most tourism planning, booking and spending is made prior to departure, the origin of the tourist is more important than their destination. Sti...purchase to read more.

    Additional Insights for the Travel Agencies Industry

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

  • Being part of a group buying, promotion and marketing scheme
  • Having a clear market position
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Corporate profit in the Travel Agencies industry impact industry performance..

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    What's in this report

    What is the Travel Agencies Industry?

    This industry acts as agents for tour operators, transportation companies and accommodation establishments in selling travel, tour and accommodation services to the general public and commercial clients.

    Industry Products
  • International and domestic airline bookings
  • Tour and packaged travel bookings
  • Accommodation bookings
  • Cruise bookings
  • Car rental
  • Other services
  • Industry Activities
  • Travel tickets and reservations
  • Tour, reservations and packaging
  • Accommodation and reservations
  • Providing online tour information, booking, reservation and payment systems
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Corporate profit
  • Number of fixed broadband connections
  • Inbound international travel
  • International trips by Canadian residents

  • Current Performance
  • Industry structure
  • Challenges and opportunities
  • International travel remains mixed
  • Reduced reliance on labour
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising travel
  • Steady profit
  • Shifting industry landscape
  • Table: Travel Agencies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Travel Agencies Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Amusement Parks & Arcades in Canada
  • Hotels & Motels in Canada
  • International Airlines in Canada
  • Ocean & Coastal Transportation in Canada
  • Rail Transportation in Canada
  • Scheduled Air Transportation in Canada

  • Products & Services
  • Other services
  • International and domestic airline bookings
  • Tour and packaged travel bookings
  • Accommodation bookings
  • Cruise bookings
  • Car rental
  • Chart: Travel Agencies Industry Products and Services Segmentation

  • Demand Determinants
  • Household income
  • The airline industry
  • Technology
  • Business travel

  • Major Markets
  • Leisure - international travel
  • Leisure - domestic travel
  • Corporate - unmanaged
  • Corporate - managed
  • Other
  • Chart: Major Market Segmentation for the Travel Agencies Industry

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

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Travel Agencies Industry

  • Industry Globalization
    Expedia Group Inc., Booking Holdings Inc.,
  • Table: Expedia Group Inc. - financial performance
  • Table: Booking Holdings Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Travel Agencies 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 Travel Agencies Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Brick And Mortar
  • A company that possesses buildings, production facilities or stores for operations.
  • Global Distribution System
  • A computerized system for agents, comprising details on international and domestic travel product.
  • Travel Website
  • A website on the internet that is dedicated to travel and may be focused on travel reviews, the booking of travel or a combination of both.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Travel Agencies 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 Travel Agencies:
    • 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 Travel Agencies 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 Travel Agencies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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