Industry Analysis & Industry Trends
The Tour Operators industry includes firms 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 may specialise in certain destinations, activities or experiences.
Industry revenue fell substantially during the first half of the past five years, as a result of recessionary contraction. Tightened disposable income, a weakened pound and a lack of consumer confidence all hampered demand for holidaying. Although an increase in stay-at-home holidays cushioned the blow, tour operators were significantly hindered by a sharp fall in the number of UK residents booking tours overseas and the number of foreign tourists booking UK tours... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a moderate degree of capital intensity, but this is more to do with low wage costs than particularly high capital expenditure. Capital intensity also varies considerably within the industry depending on the type of tours a business offers and the extent to which the organisation owns or leases equipment. In recent years, operators have invested in developing their online presence and booking systems, which has substantially increased depreciation expenses. Wage costs remain greater than industry depreciation expenses, but labour needs are limited for tour operators. Guides are needed to lead tours and administrative staff are required to take bookings, but many other roles are contracted out, easing pressures on the industry stemming from labour expense... purchase to read more