Sunny outlook: Industry growth continues as incomes and demand for package holidays rise

The Travel Agencies industry is composed of agencies that provide booking, reservation and information services to UK residents travelling domestically and internationally. Leisure travel is influenced by trends in disposable income, consumer confidence and current exchange rates. The industry has performed well over the past five years as people continue to prioritise holidays, despite consumer confidence dipping and the pound falling in value following the EU referendum in June 2016. Revenue is expected to rise at a compound annual rate of 2.5% over the five years through 2019-20 to reach £33.7 billion, with current-year revenue expanding by more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • People are bypassing agencies by booking online, putting pressure on industry operators
  • The integration of physical stores and online operations slowed the closure of travel agencies
  • Online services and increasing tech-savviness are anticipated to intensify industry competition
  • Industry Report - Industry Investment Chapter

    The industry is moderately labour intensive due to the high level of personal contact with customers and the importance of agents knowing travel products well so they can market them to customers effectively. Computerised reservation systems (CRS), or global distribution systems continue to remain a feature of the industry, as does ticketless travel. Despite increasing investment in technology, labour costs have increased over recent years due to changes to the minimum wage. The National Living Wage was introduced in April 2016 and has been increased four times since this date. In 2019-20, for every £1.00 invested in capital, an estimated £7.60 is spent on wages...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
  • Changing demand
  • Online bookings
  • Niche business
  • Industry disruption
  • Turbulent profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Destination online
  • Traveller trends
  • Flying high
  • 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
  • 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
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • 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 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 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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