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Tour Operators in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Tour Operators Market Research Report | SIC N79.120 | Jun 2017

Losing altitude: Industry revenue has declined recently, following a period of steady growth

IBISWorld’s Tour Operators market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
Thomas Cook Group plc Thomas Cook Group plc market share
TUI Travel plc TUI Travel plc market share
Virgin Holidays Limited Virgin Holidays Limited market share
Industry Statistics & Market Size
Annual Growth 13-18
Annual Growth 18-23
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Industry Threats & Opportunities
  • The recent depreciation of the pound has led to reduced demand for outbound tours
  • Online booking platforms have become a source of significant competition
  • Specialisation in a particular destination or activity can help firms add value to their services
  • ... purchase to read more

Industry Analysis & Industry Trends

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 may specialise in certain destinations, activities or experiences.

Revenue fell prior to the five-year period through 2017-18, as households continued to rein in holiday expenditure following the downturn. However, the industry rebounded just prior to the start of the period and has continued to grow for many of the past five years, benefiting from the economic recovery and an increase in spending on tourism... purchase to read more

Industry Report - Industry Locations Chapter

The geographic distribution of tour operators across the United Kingdom is determined by the distribution of major tourist attractions, the population, disposable income and businesses in the wider travel industry.


London accounts for approximately 29.1% of industry establishments. The area has the second highest share of the population, residents generally have high disposable incomes, and the region also contains five international passenger airports. It is therefore an attractive location for tour operators organising overseas travel. Many larger tour operators that have offices across the United Kingdom have their headquarters in London. Mor.. 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... purchase to read more


    Industry ProductsRelated Reports

    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 worldTours for UK residents to EuropeDomestic tours for overseas visitorsDomestic tours for UK residents
    Industry Activities
    Taking bookingsDevising and assembling tour packagesConducting toursProviding other customer services

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Weekend breaks
  • Worldwide worries
  • Tapping into the online market
  • Profit challenges
  • Chart: Revenue Growth
  • Industry Outlook
  • High flyers
  • Home and away
  • Political turbulence
  • Emerging markets
  • Table: Tour Operators Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tour Operators Industry Lifecycle vs The Economy
  • Products & Markets
    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 34 and under
  • People aged between 35 and 49
  • 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
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Marketing
  • Wages
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Tour Operators
  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tour Operators Industry
  • Industry Globalization
    Major Companies
    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
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the Tour Operators Industry
  • Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
    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 margin between the cost of tour components and the price charged to the consumer

  • Why Buy this Report?
    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 of 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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