Industry Analysis & Industry Trends
The Tour Operators industry includes enterprises that arrange, assemble and conduct tours both domestically and internationally. Tours may incorporate transportation, accommodation, food and visits to events or locations. The industry has faced both structural and economic challenges over the five years through 2013-14. As a result, industry revenue has fallen substantially. With significant economic uncertainty, fewer UK residents booked tours overseas, while the number of foreign tourists booking UK tours also fell. A combination of weak household disposable income growth and plummeting consumer confidence led to fewer trips being made abroad and a switch to cheaper destinations... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a moderate degree of capital intensity, although the level varies considerably by business according to the type of tours it offers, and the extent to which the organisation owns or leases equipment such as vehicles. As the majority of industry revenue is directed to purchases. The capital intensity of the industry is low in terms of the overall cost structure. In recent years, operators have invested in developing their online presence and booking systems, which has increased depreciation expenses slightly.
Wage costs are the greater expense for most tour operators, as guides are needed to lead tours and admin staff are required to take bookings. Labour costs are in fact understated due to the widespread use of contracting within the industry... purchase to read more