$11.0bn
$XX.Xbn
47,685
6,024
$X.Xbn
Tour operators encountered growth over most of the five years to 2023 and immense volatility in recent years. The industry is highly susceptible to geopolitical and global health events, which can dampen demand for tour packages in specific countries or regions. The pandemic led to mandatory government lockdowns and travel restrictions to curb the spread of the virus. This resulted in consumer confidence declining severely and inbound trips by non-US residents and domestic trips by US residents to plunge, causing revenue to plummet. Operators have encountered intensifying competition from mobile apps and websites that assist consumers in finding lower travel options and planning their vacation itineraries. As tour operators seek to compete with online resources, many have lowered prices, resulting in significant price-based competition and downward pressure on profit. Overall, revenue has fallen at a CAGR of 3.4% to $10.3 billion over the five years to 2023, including a rise of 19.4% in 2023 alone. Industry profit, measured as earnings before interest and taxes, accounts for 6.6% of revenue in 2023. Moving forward, both domestic and international travel will rebound from the lows endured because of the pandemic, encouraging customers to purchase tour packages. More consumers will also seek luxurious travel options as disposable income levels rise. Niche operators will enter the market to satisfy and appeal to consumers with specialized interests. Overall, revenue will rise at a CAGR of 3.5% to $12.2 billion over the next five years.
Industry revenue has declined at a CAGR of 2.3 % over the past five years, to reach an estimated $11.0bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Apple Leisure Group | 1,902.6 | 75.3 | 4.0 | |
Flight Centre Travel Group Ltd. | 29.7 | 3.5 | 11.8 |
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Industry revenue is measured across several distinct product and services lines, including International packaged tours, Domestic packaged tours and International customized tours. International packaged tours is the largest segment of the Tour Operators in the US.
Packaged tours remain the top attraction as they appeal to customers with lower pricing
Businesses in this industry are engaged primarily in assembling and arranging tour packages. This industry also includes travel and wholesale tour operators, which means industry operators may include travel and accommodations within the package of their provided tours. However, businesses that primarily provide accommodations are not included in the industry and travel agencies that sell tour packages, but do not provide the actual tours themselves are not included in this industry.
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NAICS 56152 - Tour Operators in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Intensifying competition from mobile apps and websites has aided consumers in finding lower travel options. Tour operators seeking to compete with online resources have reduc...
Learn about an industry's products and services, markets and trends in international trade.
Customers have chosen to book customized tours to stray outside of more tourist-centric activities. Operators can charge a premium for these tours as they are smaller and mor...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Areas where most tourists arrive or depart from and where they spend most of their time and money are popular for tour operators.
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.
Most tour operators are regionally or locally based, and over half of industry establishments are nonemployer establishments.
Learn about the performance of the top companies in the industry.
Larger tour operators seek to grow market share by expanding client portfolios and regions of operations. This makes niche operators a primary target for acquisition.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
The federal government is concerned with fraud that takes place within the industry. Guides that give tours that operators arrange are required to pass a background check and...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Tour operators have reduced prices to attract more customers following the pandemic. This has diminished profit at the same time.
Including values and annual change:
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Key data sources in the US include:
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These sources include:
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The market size of the Tour Operators in the US industry in United States is $11.0bn in 2024.
There are 6,024 businesses in the Tour Operators in the US industry in United States, which has declined at a CAGR of 13.9 % between 2019 and 2024.
The market size of the Tour Operators in the US industry in United States has been declining at a CAGR of 2.3 % between 2019 and 2024.
Over the next five years, the Tour Operators in the US industry in United States is expected to grow.
The biggest companies operating in the Tour Operators market in United States are Apple Leisure Group and Flight Centre Travel Group Ltd.
Arranging and assembling their own tour packages and Operating travel tours are part of the Tour Operators in the US industry.
The company holding the most market share in United States is Apple Leisure Group.
The level of competition is high and increasing in the Tour Operators in the US industry in United States.