Kahala Travel - Competitors

Kahala Travel Competition

Now Viewing Kahala Travel's competition in: Travel Agencies and Services

Recent Developments

Financial Crisis Grounds Business Travelers - More than 25 percent of companies are cutting travel budgets in response to the global financial crisis, according to the Business Travel Coalition (BTC). Of those companies that have implemented emergency travel cutbacks, 34.4 percent say that their firms have imposed a total travel freeze; 18.8 percent say that their companies have mandated budget cuts.

New Legislation should Reverse Negative International Travel Trend - The Travel Industry Association (TIA) applauds the recent passage of the 2009 Homeland Security Appropriations bill. The legislation intends to improve US airport security and help revive travel to the US, which has been declining since 9/11. Some 2 million fewer overseas tourists and business travelers visited the US in 2007 than in 2000, mostly due to negative impressions of the country's entry experience. The decline in overseas travel since 9/11 has cost the US 46 million visitors, $140 billion in visitor spending, and $23 billion in tax revenue, according to the TIA.

2009 Travel Forecast Mixed - Airfares will climb an average 6 to 8 percent in 2009 compared to 2008, according to Advito. The "unbundling" of services and the resulting fees are rising, which will likely add another 3 to 5 percent to the total cost of air travel. Rental car rates are projected to increase 3 to 4 percent. Conversely, Advito predicts softening demand in the hotel industry that could strengthen buyers' negotiation power.

Competitive Landscape

Demand is driven by business and tourist 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 or by serving a local market. Despite automation, the industry remains labor-intensive; average annual revenue per employee at traditional travel agencies is just $75,000.

Full Industry Overview For Travel Agencies and Services

Travel Agencies and Services Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US transportation services, which is a driver for travel agencies and services, is forecast to increase at an annual compounded rate of 7.7 percent between 2008 and 2013.

Transportation Services Growth Strong and Even

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.