Tour Operators in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
NAICS 56152Revenue
$11.0bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
47,685
Businesses
6,024
Wages
$X.Xbn
Tour Operators in the US industry analysis
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.
Trends and Insights
- Intensifying competition from mobile apps and websites has aided consumers in finding lower travel options. Tour operators seeking to compete with online resources have reduced prices.
- 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 more unique than packaged tours.
- Areas where most tourists arrive or depart from and where they spend most of their time and money are popular for tour operators.
- Most tour operators are regionally or locally based, and over half of industry establishments are nonemployer establishments.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.3 % over the past five years, to reach an estimated $11.0bn in 2024.
Trends and Insights
Declines in travel during the pandemic and political instability caused revenue to plunge
- Travel restrictions were put in place in 2020 in the US and globally to curb the spread of the virus, hurting operators as trips by non-US residents and domestic trips by US residents plummeted.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Travel grows alongside rising disposable income
- Domestic trips taken by US residents are set to rise over the next five years, broadening the pool of potential industry clients. As disposable income rises, residents are expected to travel across the United States more frequently.
Biggest companies in the Tour Operators in the US
| Company | Market Share (%)
2024 | Revenue ($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 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Tour Operators in the US
Products & Services
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.
Trends and Insights
Packaged tours remain the top attraction as they appeal to customers with lower pricing
- Both domestic and international packages include accommodation, meals, sightseeing and transportation. Tour prices also include the services of a professional tour manager or guide that ensures that all aspects of the tour run smoothly and that the guests are satisfied with the services.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Travel Agencies in the US
- Sightseeing Transportation in the US
Complementors
- Domestic Airlines in the US
- Hotels & Motels in the US
International industries
- Global Travel Agency Services
- Tour Operators in Canada
- Travel Agency and Tour Arrangement Services in Australia
- Travel Agency and Tour Arrangement Services in New Zealand
- Tour Operators in the UK
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Arranging and assembling their own tour packagesOperating travel tours Operating wholesale toursCompanies
Apple Leisure GroupFlight Centre Travel Group Ltd.Purchase this report to view all 2 major companies in this industry.
Related Terms
TOUR PACKAGESYSTEMS MANAGEMENTPROCESS MANAGEMENTIndustry Code
NAICS 56152 - Tour Operators in the US
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
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...
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
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...
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
Areas where most tourists arrive or depart from and where they spend most of their time and money are popular for tour operators.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, 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
Most tour operators are regionally or locally based, and over half of industry establishments are nonemployer establishments.
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
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.
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 Apple Leisure Group's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Flight Centre Travel Group Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Apple Leisure Group, and factors influencing its performance in the industry
- Description and key data for Flight Centre Travel Group Ltd., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
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...
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
Tour operators have reduced prices to attract more customers following the pandemic. This has diminished profit at the same time.
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
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- 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 the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade 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 Tour Operators in the US industry in United States in 2024?
The market size of the Tour Operators in the US industry in United States is $11.0bn in 2024.
How many businesses are there in the Tour Operators in the US industry 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.
Has the Tour Operators in the US industry in United States grown or declined over the past 5 years?
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.
What is the forecast growth of the Tour Operators in the US industry in United States over the next 5 years?
Over the next five years, the Tour Operators in the US industry in United States is expected to grow.
What are the biggest companies in the Tour Operators in the US market in United States?
The biggest companies operating in the Tour Operators market in United States are Apple Leisure Group and Flight Centre Travel Group Ltd.
What does the Tour Operators in the US in United States include?
Arranging and assembling their own tour packages and Operating travel tours are part of the Tour Operators in the US industry.
Which companies have the highest market share in the Tour Operators in the US in United States?
The company holding the most market share in United States is Apple Leisure Group.
How competitive is the Tour Operators in the US industry in United States?
The level of competition is high and increasing in the Tour Operators in the US industry in United States.
