Travel Agency and Tour Arrangement Services in Australia - Industry Research Report

All aboard: Revenue to soar due to easing domestic and international travel restrictions

The Travel Agency and Tour Arrangement Services industry has undergone significant structural changes over the past decade. The rapid uptake of online booking platforms has challenged the traditional shop front travel agency revenue model, which typically has high commission rates and service fees. Online-only booking facilities like Expedia have become more popular, placing downward pressure on commission rates. In response, major players have introduced their own online platforms or acquired existing online platforms. Other online platforms, including metasearch websites, have also been a strong source of competition. These sites allow consumers to compare prices among accommodation and airline providers, with links directly to their websites. These technologies allow consumers to bypass travel agents and book directly with providers, further threatening commission rates.

Industry firms primarily provide travel information, reservation and booking services for transport (e.g. planes, ships and rental cars), accommodation (e.g. hotels, motels and serviced apartments) and tourist attractions (e.g. theme and amusement parks and museums) to individuals and business travellers. The industry also includes internet travel-booking services.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.