Turbulent times: Revenue has been volatile, but a rising number of firms supported growth

The Corporate Travel Services industry provides travel services for employers and employees travelling for business purposes. The industry is expected to perform relatively well over the five years through 2018-19, with revenue projected to grow at a compound annual rate of 2.1% to £5.6 billion. However, revenue has been highly volatile over the past five years owing to the fact that corporate travel is a discretionary service. Corporate travel can be expensive and it is expected that firms will only pay for this service if they feel confident about their financial position and future earning potential. Demand for the industry's services fluctuates greatly with firms' willingness and ability to invest in corporate travel...read more.

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

Industry Threats & Opportunities

  • Strong demand from banking, financial service and insurance firms has supported growth
  • Rising business profit at the beginning of the period supported an overall increase in industry margins
  • Business confidence is expected to be weak in the short term, limiting growth
  • Industry Report - Industry Key Buyers Chapter

    The industry is highly fragmented with only two firms expected to hold a market share of over 5% in 2018-19. These firms are travel giants, not specialists in business travel in particular. The four largest firms in the industry are estimated to account for 21.7% of revenue in the current year.The vast majority of establishments are expected to have fewer than 10 employees and focus on serving their local markets. This highlights the large number of independent and owner-operated firms in the industry. This is despite a number of acquisitions made by the two major players in recent years, which has increased their dominance. Such firms are better able to employ extensive marketing to increase consumers' brand awareness and encourage brand loyalty...purchase to read more.

    Additional Insights for the Corporate Travel Services Industry

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

  • Ability to alter goods and services produced in favour of market conditions
  • Ability to effectively communicate and negotiate
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Number of businesses in the Corporate Travel Services industry impact industry performance..

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    What's in this report

    What is the Corporate Travel Services Industry?

    Operators in the industry provides travel services for employers and employees who are travelling for business purposes.

    Industry Products
  • Making overseas travel arrangements
  • Making domestic travel arrangements
  • Making overseas accommodation arrangements
  • Making domestic accommodation arrangements
  • Advisory services
  • Industry Activities
  • Booking flights and accommodation
  • Selling travel packages to corporate clients
  • Arranging airport pickups and drop offs
  • Booking train journeys
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Number of businesses
  • National unemployment rate
  • Fuel prices
  • Real effective exchange rate

  • Current Performance
  • City drivers
  • Margins travel south
  • Regulatory revival
  • Chart: Revenue Growth

  • Industry Outlook
  • Passporting problems
  • In it for the long haul
  • Direction of the economy
  • Profits soar
  • Table: Corporate Travel Services Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Banks
  • Investment Trusts
  • General Insurance

  • Key Selling Industries
  • Advertising Agencies
  • Car Rental & Leasing
  • Office Equipment Rental & Leasing

  • Products & Services
  • Making overseas travel arrangements
  • Making domestic travel arrangements
  • Making overseas accommodation arrangements
  • Making domestic accommodation arrangements
  • Other
  • Advisory services
  • Chart: Corporate Travel Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Banking, financial services and insurance firms
  • Government institutions and bodies
  • Oil and gas sector
  • Charities and foundations
  • Chart: Major Market Segmentation for the Corporate Travel Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Corporate Travel Services

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Corporate Travel Services Industry

  • Industry Globalization
    TUI Travel Ltd, Thomas Cook Group plc,
  • Table: TUI Travel Ltd - financial performance
  • Table: Thomas Cook Group plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Corporate Travel Services 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 Corporate Travel Services Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Association of British Travel Agents.
  • Bfsi
  • Banking, financial services and insurance industries.
  • Hub
  • A major airport where an airline has many flights leaving to a large number of destinations.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Corporate Travel Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Corporate Travel Services:
    • 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 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 Corporate Travel Services 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 Corporate Travel Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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