On the move: Industry revenue is expected to expand as online travel agents take off

Over the past five years, the industry has become increasingly dominated by online travel agents, which are expected to account for over half the industry's total revenue in 2018-19. The customers served by the industry are mostly UK residents travelling abroad. Nevertheless, nearly one-fifth of industry revenue is generated from business travellers, while international visitors and domestic travel by UK residents are also important market segments. Leisure travel is influenced by trends in disposable income, consumer confidence and current exchange rates. The industry has performed well over the five years through 2018-19, growing in most years of the period, and revenue is expected to rise at a compound annual rate of 1.8% over the five years through 2018-19 to reach £32.6...read more.

Industry Statistics & Market Size
Revenue
£32.6bn
Annual Growth 14-19
1.8%
Forecast Growth 19-24
Profit
Employment
69,671
Businesses
4,948

Industry Threats & Opportunities

  • High-street travel agencies have faced rising competition from online booking services
  • There has been a distinct change in the advice and information now being sought from travel agents
  • Volatile and rising oil prices are expected to put pressure on operators’ profit margins
  • Industry Report - Industry Key Buyers Chapter

    The Travel Agencies industry is highly fragmented. The vast majority of establishments have few employees, with an estimated 90% employing fewer than 10 people. This highlights the large number of independent and owner-operated agencies in the industry. Despite this, there are a number of large international operators, including Thomas Cook and TUI, that operate bricks-and-mortar outlets. These operators are improving their position in the industry through acquisitions and by tapping into the growing online travel bookings segment. In 2018-19, industry concentration is projected to remain low, with the top four companies accounting for an estimated 20.1% of industry revenue...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

  • Ability to quickly adopt new technology
  • Use of high volume/low margin strategy
  • Development of new products
  • IBISWorld analysts also discuss how external factors such as Outbound tourism by UK residents and Real household disposable income 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 is composed of agencies that provide booking, reservation and information services to UK residents travelling domestically and internationally. This includes agencies that are solely or partially online or shop-front operators. Operators generate their income from commissions.

    Industry Products
  • Travel agency services
  • Online booking services
  • Industry Activities
  • Providing travel-related online booking services
  • Providing travel information
  • Making travel arrangements
  • Booking flights and accommodation
  • Selling travel packages
  • 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
  • Real household disposable income
  • Real effective exchange rate
  • Total domestic tourism
  • Consumer confidence index

  • Current Performance
  • Online competition
  • Niche markets
  • Come fly with me
  • Travel charges
  • Chart: Revenue Growth

  • Industry Outlook
  • Intrepid travellers
  • Reasonable skies
  • Soaring online bookings
  • 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
  • Crude Petroleum & Natural Gas Extraction
  • Management Consultants
  • Consumers

  • Key Selling Industries
  • Intercity Passenger Rail Transport
  • Scheduled Passenger Air Transport
  • Sea & Coastal Passenger Water Transport
  • Tour Operators

  • Products & Services
  • Online booking services
  • Travel agency services
  • Chart: Travel Agencies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • UK residents travelling abroad
  • UK residents travelling domestically
  • International visitors
  • 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
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Travel Agencies

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Travel Agencies 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 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 (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
    Amadeus
  • A global travel distribution system used by UK travel agents.
  • Global Distribution System
  • A computerised reservation system used by travel agents to help them with information, bookings, reservations and payments.
  • Staycation
  • A vacation spent in one's home country rather than abroad, or one spent at home and involving day trips to local attractions.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Travel Agencies market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 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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