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20,000 Companies Occupy The $25 Billion Travel Service Industry in The US

Posted on: Thursday, 27 April 2006, 15:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c36211) has announced the addition of Travel Agencies and Services - Industry Profile to their offering.

Brief Excerpt from Industry Overview Chapter:

The US travel service industry includes about 20,000 companies with combined annual revenue of $25 billion. Large companies include Navigant, Travelocity, and Expedia. The industry is fragmented: the 50 largest companies account for about 50 percent of industry revenue. A typical traditional agency office has 12 employees and $1 million of annual revenue.

Travel agencies frequently mention their sales volume or 'bookings' the value of the tickets they purchase for customers, a figure much higher than the actual revenue they receive in commissions.

COMPETITIVE LANDSCAPE

Demand is driven by business and tourist travel, which depends on the economy. The profitability of individual companies depends on marketing to produce volume, as most costs are fixed. 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.

Two major factors have shaped the industry in recent years: sophisticated pricing schemes developed by the airlines to maximize profitability, and the emergence of the Internet as a widely available tool.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are reservations or tickets for airline flights, tours, hotels, and entertainment.

Our easy-to-use, quarterly industry profiles provide you with the industry analysis you need to better understand any particular business. We synthesize information from hundreds of sources into an easy to digest format, giving you invaluable information about your target market, highlighting critical industry statistics and issues, changes that have taken place since the last quarterly update and key concerns that can have negative or positive impacts on investments. Utilizing the financial and forecasting data while simultaneously learning from educational business overviews can help you and your customers plan more effectively and invest wisely.

Our industry reports will educate your sales team on critical industry trends in target markets, empowering them to create more strategic proposals. These industry reports are also essential for professional organizations that want make savvy, educated business decisions. We provide industry reports that are simple to use and help you understand the most important facets of industry trends and developments.

This profile is updated quarterly. At time of ordering, you will receive the most recent edition.

Topics Covered

-- Industry Overview

-- Quarterly Industry Update

-- Business Challenges

-- Trends and Opportunities

-- Call Preparation Questions

-- Financial Information

-- Industry Forecast

-- Website and Media Links

-- Glossary of Acronyms

For more information visit http://www.researchandmarkets.com/reports/c36211

Source: Business Wire

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