Travelling along: Rising demand boosts revenue, but strong competition affects profit margins

The Travel Agency and Tour Arrangement Services industry comprises many different players along the travel supply chain. Travel consolidators, shopfront travel agencies, online travel agencies, travel management companies and inbound tour operators (ITOs) sell travel packages to consumers, businesses and government departments. Travel consolidators act as wholesalers, selling travel products to retail travel agencies. Online and shopfront travel agencies sell leisure travel products to consumers, which typically include transport, accommodation and other services. ITOs package New Zealand tour products to onsell to overseas travel agencies.Industry revenue is expected to grow at an annualised 5.5% over the five years through 2019-20, to reach $1.1 billion...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 15-20
5.5%
Forecast Growth 20-25
Profit
Employment
8,870
Businesses
2,408
Market Share of Companies

Industry Threats & Opportunities

  • Increased competition from metasearch websites has contributed to falling profit margins
  • Competition from metasearch websites has contributed to falling industry profit margins
  • Demand for New Zealand tourism is anticipated to remain strong over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Travel Agency and Tour Arrangement Services industry exhibits low market share concentration. The four largest players are expected to account for less than 40% of total industry revenue in 2019-20. Flight Centre, Helloworld and House of Travel have the largest market shares in the outbound leisure and corporate market, targeting domestic businesses and travellers. However, the industry also comprises many inbound tour operators that cater for foreign tourists. These operators usually provide personalised travel packages, often with multilingual tour guides, which are tailored towards customers wishing to travel with a degree of familiarity. Other operators focus on specific travel experiences, such as extreme sports, backpacker tours, older travellers or niche activities. The...purchase to read more.

    Additional Insights for the Travel Agency and Tour Arrangement Services Industry

    IBISWorld has determined the most important Key Success Factors for the Travel Agency and Tour Arrangement Services are:

  • Aggressive marketing/franchising - given the high level of competition
  • Having a wide and expanding product range
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and International travel to New Zealand in the Travel Agency and Tour Arrangement Services industry impact industry performance..

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    What's in this report

    What is the Travel Agency and Tour Arrangement Services in New Zealand Industry?

    Industry players primarily assist individual customers and businesses with booking travel, which typically includes accommodation, transport and tour services. The industry also includes tour wholesalers and operators, and both online and bricks-and-mortar travel agencies.

    Industry Products
  • Leisure travel arrangement services
  • Corporate and government travel arrangement services
  • Inbound tour arrangement services
  • Travel consolidating services
  • Industry Activities
  • Tour retailing
  • Tour wholesaling
  • Travel consolidating
  • Travel agency operations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • International travel to New Zealand
  • Real household discretionary income
  • Total tourist visitor days

  • Current Performance
  • Industry structure
  • Inbound tour operators
  • Industry participation
  • Online and shopfront travel agencies
  • Chart: Revenue Growth

  • Industry Outlook
  • Leisure tourism
  • Structural change
  • Industry participation
  • Corporate and government market
  • Table: Travel Agency and Tour Arrangement Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Travel Agency and Tour Arrangement Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in New Zealand

  • Key Selling Industries
  • Airlines in New Zealand
  • Hotels and Resorts in New Zealand
  • Scenic and Sightseeing Transport in New Zealand
  • Water Passenger Transport in New Zealand

  • Products & Services
  • Inbound tour arrangement services
  • Leisure travel arrangement services
  • Corporate and government travel arrangement services
  • Travel consolidating services
  • Chart: Travel Agency and Tour Arrangement Services Industry Products and Services Segmentation

  • Demand Determinants
  • Macro-economic factors
  • Global trends

  • Major Markets
  • International tourists
  • Households
  • Businesses and government
  • Chart: Major Market Segmentation for the Travel Agency and Tour Arrangement Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Travel Agency and Tour Arrangement Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Travel Agency and Tour Arrangement Services Industry

  • Industry Globalization
    Flight Centre (NZ) Limited,
  • Table: Flight Centre (NZ) Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Travel Agency and Tour Arrangement Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Travel Agency and Tour Arrangement Services Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Total Transaction Value
  • The value of all travel packages sold by a travel agency, which is equivalent to the amount paid by consumers. Travel agencies typically derive revenue from a certain percentage of this value.
  • Travel Consolidators
  • A wholesaler that onsells accommodation, transport or tour services to retail travel agents.
  • Travel Service Providers
  • A downstream business that provides a service directly to consumers, such as accommodation, transport or tours.
  • What Our Customers Say

    Why buy this report?

    The Travel Agency and Tour Arrangement Services in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Travel Agency and Tour Arrangement Services in New Zealand:
    • 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 Travel Agency and Tour Arrangement Services in New Zealand 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 Travel Agency and Tour Arrangement Services in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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