Travel Agency and Tour Arrangement Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: January 2024
ANZSIC N7220Revenue
$8.3bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
31,102
Businesses
8,763
Wages
$X.Xbn
Travel Agency and Tour Arrangement Services in Australia industry analysis
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.
Trends and Insights
- Travel arrangement providers are seeking to capitalise on a resurgence in outbound and inbound tourism. Demand collapsed when the Federal Government closed Australia's international border from March 2020 to February 2022.
- In 2022-23, high inflation constrained the recovery of tourism activity in Australia. Government and business travel services were quicker to rebound than leisure travel because demand tends to be less price sensitive.
- Most travel agents are located in major cities. This means that the vast majority of businesses are located on Australia’s eastern seaboard.
- Customers are increasingly using travel aggregator websites. These offer a cheaper alternative to travel agents, without commission fees.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 5.8 % over the past five years, to reach an estimated $8.3bn in 2024.
Trends and Insights
Pandemic-related restrictions heavily disrupted downstream demand resulting in very high revenue volatility
- Industry revenue collapsed following the outbreak of the pandemic, driven largely by the closure of Australia's international border from March 2020 to February 2022. Domestic travel restrictions, including prolonged city-wide lockdowns and state border closures, also contributed to a sustained period of depressed demand.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Improved downstream demand drives an industry-wide recovery
- Travel volumes will recover and expand beyond pre-pandemic levels over the coming years, allowing travel agents to boost commissions and service fees and generating an increase in industry-wide revenue over the next five years.
Biggest companies in the Travel Agency and Tour Arrangement Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Flight Centre Travel | 1,487.0 | |
Helloworld | 759.3 | |
Expedia Australia | 552.9 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Leisure travel services, Travel consolidating services and Inbound tour services. Leisure travel services is the largest segment of the Travel Agency and Tour Arrangement Services in Australia.
Trends and Insights
Travel agents that offer leisure travel services benefited from the easing of pandemic-related travel restrictions
- Travel agents provide leisure travel services to customers, by acting as an intermediary between travel service providers (transport, tour and accommodation suppliers) and the buying public. This service segment is exceptionally competitive.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- International Airlines in Australia
- Domestic Airlines in Australia
- Airport Operations in Australia
- Tourism in Australia
International industries
- Global Travel Agency Services
- Travel Agencies in the US
- Tour Operators in the US
- Travel Agencies in Canada
- Tour Operators in Canada
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Booking service provision Arranging and assembling toursTicket selling Tour retailingTour wholesalingTravel agency operationCompanies
Flight Centre TravelHelloworldExpedia AustraliaPurchase this report to view all 6 major companies in this industry.
Related Terms
SHOPFRONTTOTAL TRANSACTION VALUE (TTV)METASEARCH WEBSITESTRAVEL SERVICE PROVIDERSTRAVEL CONSOLIDATORSINBOUND TOUR OPERATOR (ITO)ONLINE TRAVEL AGENCY (OTA)Industry Code
ANZSIC 7220 - Travel Agency and Tour Arrangement Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Travel arrangement providers are seeking to capitalise on a resurgence in outbound and inbound tourism. Demand collapsed when the Federal Government closed Australia's intern...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
In 2022-23, high inflation constrained the recovery of tourism activity in Australia. Government and business travel services were quicker to rebound than leisure travel beca...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Most travel agents are located in major cities. This means that the vast majority of businesses are located on Australia’s eastern seaboard.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Customers are increasingly using travel aggregator websites. These offer a cheaper alternative to travel agents, without commission fees.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major travel agents, like Flight Centre and Helloworld, have shifted their business mode. They are moving away from in-person retail networks and increasing their online pres...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Flight Centre Travel's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Helloworld's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Expedia Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Flight Centre Travel, and factors influencing its performance in the industry
- Description and key data for Helloworld, and factors influencing its performance in the industry
- Description and key data for Expedia Australia, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
International travel by Australians is soaring. The reopening of Australia’s international border and the easing of COVID-19 restrictions globally has allowed Australians to ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profitability collapsed when Australia’s international border closed. Tourists have gradually returned to Australia and prices are high, fostering a rebound in profit margins...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Travel Agency and Tour Arrangement Services industry in Australia in 2024?
The market size of the Travel Agency and Tour Arrangement Services industry in Australia is $8.3bn in 2024.
How many businesses are there in the Travel Agency and Tour Arrangement Services in Australia industry in 2024?
There are 8,763 businesses in the Travel Agency and Tour Arrangement Services industry in Australia, which has grown at a CAGR of 1.8 % between 2019 and 2024.
Has the Travel Agency and Tour Arrangement Services industry in Australia grown or declined over the past 5 years?
The market size of the Travel Agency and Tour Arrangement Services industry in Australia has been declining at a CAGR of 5.8 % between 2019 and 2024.
What is the forecast growth of the Travel Agency and Tour Arrangement Services industry in Australia over the next 5 years?
Over the next five years, the Travel Agency and Tour Arrangement Services industry in Australia is expected to grow.
What are the biggest companies in the Travel Agency and Tour Arrangement Services market in Australia?
The biggest companies operating in the Travel Agency and Tour Arrangement Services market in Australia are Flight Centre Travel, Helloworld and Expedia Australia
What does the Travel Agency and Tour Arrangement Services in Australia include?
Booking service provision and Arranging and assembling tours are part of the Travel Agency and Tour Arrangement Services industry.
Which companies have the highest market share in the Travel Agency and Tour Arrangement Services in Australia?
The company holding the most market share in Australia is Flight Centre Travel.
How competitive is the Travel Agency and Tour Arrangement Services industry in Australia?
The level of competition is high and increasing in the Travel Agency and Tour Arrangement Services industry in Australia.
