|SIC Codes:||4724 4725 4729 7389|
|NAICS Codes:||711410 561591 561520 561510 561599|
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 Carlson Wagonlit, Expedia, Priceline, and Sabre Holdings (all based in the US), as well as BCD Travel (the Netherlands), Kuoni Travel (Switzerland), Thomas Cook (UK), and TUI Travel (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 industry is concentrated: the 50 largest companies account for about 60% of revenue.
Major services are reservations or tickets for airline flights and lodging, as well as leisure cruises and packaged tours. Commissions and fees for reservation and travel services -- including domestic and international airline reservations, hotel reservations, and tickets for cruise ships -- account for about 55% of industry revenue. Other major revenue-generating services include tour arrangement, event tickets, and trip planning, each of which accounts for about 15% of revenue.Buy Now