Round-trip ticket: Rising travel expenditures will increase demand for tour packages

The Tour Operators industry in Canada has performed well over the five years to 2018. As the economy has experienced steady growth since 2013, improving consumer confidence and financial stability, Canadians have subsequently increased their spending on domestic and international travel, increasing demand for industry services. The Tour Operators industry is anticipated to continue growing over the five years to 2023. Along with minor annualized growth in the amount of leisure time available to Canadians, growing per capita disposable income is projected to encourage Canadians to travel domestically and internationally. Developments that are already threatening the industry are expected to further hinder more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Improving consumer confidence and financial stability have enabled Canadians to increased their spending on travel
  • Foreign tourist expenditures have had a substantial effect on industry growth
  • As Canadians travel more, demand for tours is forecast to increase as well
  • Industry Report - Industry Analysis Chapter

    The Tour Operators industry in Canada has performed well over the past five years. Leisure travel is a discretionary expenditure; therefore, consumer demand for tour packages is largely dependent on disposable income levels and consumer confidence. Industry revenue grew during the period, as the domestic economy continued to expand and Canadians booked a greater number of more expensive tours with industry operators. In addition, global economic growth and greater international exposure for the Canadian tourism industry encouraged more foreigners to visit and book tours in Canada, further boosting industry revenue. How...purchase to read more.

    Additional Insights for the Tour Operators Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tour Operators Industry are

  • Access to multiskilled and flexible workforce
  • Experienced workforce
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Consumer Confidence Index and Inbound international travel in the Tour Operators industry impact industry performance..

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    What's in this report

    What is the Tour Operators Industry?

    Businesses in this industry primarily arrange, market and conduct tours, including wholesale tours, of cities, museums, natural attractions and other places of interest. The industry excludes companies that primarily provide travel information on an area’s attractions (see IBISWorld report 56159), as well as travel agencies (see IBISWorld report 56151).

    Industry Products
  • International prepackaged tours
  • Domestic prepackaged tours
  • International customized tours
  • Domestic customized tours
  • Industry Activities
  • Arranging, marketing and conducting tours
  • Arranging and marketing tours
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer Confidence Index
  • Inbound international travel
  • Leisure time
  • Per capita disposable income

  • Current Performance
  • Increasing domestic travel buoys the industry
  • Foreign visitation rises
  • External challenges
  • Internal challenges
  • Chart: Revenue Growth

  • Industry Outlook
  • Consistent Canadian travel growth
  • Increasing foreign visits to Canada
  • Premium travel
  • Mounting pressures
  • Table: Tour Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tour Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Travel Agencies in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Amusement Parks & Arcades in Canada
  • Hotels & Motels in Canada
  • Ski & Snowboard Resorts in Canada

  • Products & Services
  • International prepackaged tours
  • Domestic prepackaged tours
  • International customized tours
  • Other
  • Domestic customized tours
  • Chart: Tour Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • $150,000 and over
  • $100,000 - $149,999
  • Under $50,000
  • $70,000 - $99,999
  • $50,000 - $69,999
  • Chart: Major Market Segmentation for the Tour Operators Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Tour Operators

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tour Operators Industry

  • Industry Globalization
    Flight Centre Travel Group Ltd., Transat A.T. Inc.,
  • Table: Flight Centre Travel Group Ltd. - financial performance
  • Table: Transat A.T. Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tour Operators Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tour Operators Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Domestic trips (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Tour Package
  • A complete trip that can be paid in one lump sum and includes costs for fare, accommodation, meals, ground transportation, tour guides and taxes.
  • Tour Wholesaler
  • A company that, like tour operators, creates and arranges tours, but does not usually conduct the tours themselves, leaving this job to a third-party company.
  • Visitor Bureau
  • An organization that provides information services to tourists and undertakes general promotional tourism activities for a state or city.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tour Operators market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tour Operators:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tour Operators market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tour Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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