Touching down: The weak pound has dented demand for overseas tours, limiting growth

The Tour Operators industry includes operators that arrange, assemble and conduct tours both domestically and internationally. Tours may incorporate transportation, accommodation, food, and visits to select locations or special events. Niche tour operators specialise in certain destinations, activities or experiences. Economic conditions in the United Kingdom have a significant effect on industry demand, as spending on travel and tourism is considered to be a luxury and therefore consumers cut back on this type of spending when their finances are constrained.Though consumer confidence has declined for the majority of the past five-year period, industry revenue has grown year on year, benefiting from growth in disposable income...read more.

Industry Statistics & Market Size
Revenue
£14.4bn
Annual Growth 14-19
3.8%
Forecast Growth 19-24
Profit
Employment
29,557
Businesses
2,035

Industry Threats & Opportunities

  • Despite falling consumer confidence, rising disposable income has supported growth
  • The ease of comparing prices online has put pressure on tour operators to lower their prices
  • Investment in online booking systems is expected to help control costs, allowing firms to offer lower prices
  • Industry Report - Industry SWOT Analysis Chapter

    The Tour Operators industry is in the growth stage of its life cycle. Over the 10 years through 2023-24, industry value added, which measures the industry's contribution to GDP, is forecast to grow at a compound annual rate of 3.9%. In comparison, GDP is forecast to rise at a compound annual rate of 1.7% over the same period. A strengthened consumer backdrop and a strong pound over the first half of the past five-year period supported demand for holiday packages, causing revenue to increase in each year of the period, despite the weak pound over the second half of the period. Revenue growth over the next five years is expected to attract a number of new enterprises to the industry, while larger operators are expected to undertake merger and acquisition activity...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

  • Ability to alter goods and services produced in favour of market conditions
  • Having a good reputation
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Outbound tourism by UK residents and Consumer confidence index in the Tour Operators industry impact industry performance..

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    What's in this report

    What is the Tour Operators Industry?

    Operators in the industry arrange, assemble and conduct tours in the United Kingdom and in other countries around the world. These tours can be sold directly by the operators or via travel agencies. Tours may include a combination of transportation, accommodation, food and visits to events or locations.

    Industry Products
  • Tours for UK residents to the rest of the world
  • Tours for UK residents to Europe
  • Domestic tours for overseas visitors
  • Domestic tours for UK residents
  • Industry Activities
  • Taking bookings
  • Devising and assembling tour packages
  • Conducting tours
  • Providing other customer services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Outbound tourism by UK residents
  • Consumer confidence index
  • Demand from travel agencies
  • Real effective exchange rate
  • Total domestic tourism
  • Real household disposable income

  • Current Performance
  • Travel trends
  • Unforeseen events
  • Tapping into online markets
  • Profit challenges
  • Chart: Revenue Growth

  • Industry Outlook
  • Turbulent costs
  • Domestic versus overseas
  • Adventurous assistance
  • Emerging markets
  • 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

  • Key Selling Industries
  • Hotels
  • Non-Scheduled Passenger Air Transport
  • Performing Arts
  • Sports Facilities

  • Products & Services
  • Tours for UK residents to Europe
  • Domestic tours for UK residents
  • Tours for UK residents to the rest of the world
  • Domestic tours for overseas visitors
  • Chart: Tour Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged between 35 and 49
  • People aged 34 and under
  • People aged between 50 and 64
  • People aged 65 and over
  • 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
    ProfitPurchasesWagesDepreciationOther costs
  • 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
    TUI Travel Ltd, Thomas Cook Group plc, Virgin Holidays Limited,
  • Table: TUI Travel Ltd - financial performance
  • Table: Thomas Cook Group plc - financial performance
  • Table: Virgin Holidays Limited - 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
    Includes:
  • 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
    Package Holiday
  • A holiday where multiple components are provided at an inclusive price.
  • Staycation
  • A holiday spent in the holidaymaker's own country.
  • Toms
  • The Tour Operators’ Margin Scheme. The margin between the cost of tour components and the price charged to the consumer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tour Operators 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 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 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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