|SIC Codes:||4724 4725 4729 7389|
|NAICS Codes:||561510 561520 561591 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 Expedia, Priceline, and Sabre Holdings (all based in the US), as well as 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 percent of revenue.
Major services are reservations or tickets for airline flights and lodging, as well as leisure cruises and packaged tours. Domestic and international airline reservations account for about 20 percent of industry revenue, hotel reservations another 20 percent, packaged tours more than 10 percent, and tickets for cruise ships about 5 percent. Other services include entertainment and event tickets, time-share exchange services, automobile clubs, convention and sightseeing services, and car rental reservations.Buy Now