Travel Agencies

BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor. IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $ 0.333 of capital to $ 1 of labor; medium is $ 0.125 to $ 0.333 of capital to $ 1 of labor; low is less than $ 0.125 of capital for every $ 1 of labor.

CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry.

AMERICAN SOCIETY OF TRAVEL ADVISORS (ASTA)
The world's largest association of travel professionals, whose members include travel agents and the companies of the products they sell.

BRICK-AND-MORTAR
A business that possesses buildings, production facilities, or store for operations.

GLOBAL DISTRIBUTION SYSTEM
A computerized system for agents, including details on international and domestic travel product.

PERSON-TRIP
A trip that involves one person traveling 50 miles or more (one way) from home and possibly staying overnight.

The industry prospered prior to the pandemic, which can be attributed to sizable increases in consumer confidence, as it is a major driver for industry performance. The rise of online travel websites, such as Expedia.com and Priceline.com, has completely revolutionized the industry. This trend has been amplified with the rise of mobile computing since consumers are more likely to do their own travel research and seek affordable travel packages online. Consequently, many of the traditional brick-and-mortar travel agencies have been forced to find new markets or reinvent their business practices to effectively compete. In conjunction with these innovative business practices, the widespread distribution of the coronavirus vaccine and the subsequent economic reopening, industry revenue is expected to increase 25.6% in 2022 alone. However, revenue in 2022 is not expected to return to pre-pandemic levels as the economy takes time to adjust and the fear of new coronavirus cases is still a prominent concern. Nonetheless, industry profit is expected to increase due to a substantial reduction in purchase and miscellaneous
costs.