Travel Agencies & Services
Brief Excerpt from Industry Overview Chapter:
Companies in this industry arrange travel and traveler accommodations and include travel agents, tour operators, and other travel services like time-share exchanges, visitors' bureaus, and ticket offices. Major companies include American Express Travel, Booking Holdings, CWT, Expedia Group, and Sabre (all based in the US), as well as BCD Travel (the Netherlands), China International Travel Service (China), HIS Co Ltd (Japan), and TUI Group (Germany).
Demand is driven by business and leisure travel, which depends on the economy. The profitability of individual companies depends on marketing. Large companies have an advantage in being able to provide a wider range of services, especially to corporate customers, and to afford sophisticated websites. Small companies can compete effectively by providing service to a few large customers, specializing in a service niche, or serving a local market. The US industry is concenrated: the 50 largest companies account for about 55% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include packaged tours with accommodation (accounts for 25% of industry revenue), reservation services for airline flight (about 20%), and event ticket sales (15%). Other services include lodging reservation services, trip planning services, automobile club services, and reservation for cruises, which all account for roughly 10% each. Companies in the industry also offer customized tours with accommodation.
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