Tour Operators Continue to Lose Market Share
Thursday, July 30th, 2009
The U.S. packaged travel market is not only much smaller than its European counterparts, but is also experiencing a steady decline in the wake of the recession. PhoCusWright Market Research, a consumer research company, reports that online travel agencies in the United States have captured a significant share of the market from independent tour operators in the past decade, and many tour operators are seeing a significant decrease in demand for travel services as fewer people are booking travel overall.PhoCusWright Research reports that many travelers simply find it more convenient to book travel packages online where they can purchase their flight, hotel, car and attractions in one place. Others are turning to online travel agencies and websites to purchase their attraction tickets because these often promote better savings and significant discounts off retail travel prices.
Tour operators and travel planners have been hit hard with this emerging trend as they cannot always offer similar discounts or packages that will attract the budget-conscious traveler. Tour operators that operate in the major vacation destination markets such as the Caribbean, Las Vegas and Orlando are finding it increasingly difficult to book even simple flight and hotel packages because many people are booking their travel independently through online travel portal sites.
Some tour operators are taking the initiative to attract more travelers even during the rough economy by offering themed vacation packages, concierge services or focusing on a specific destination so that they can win the market share as a specialist for that area.
Still, as fewer people cut back on their travel plans for the year and take the time to book their itinerary independently online, tour operators and planners around the country are experiencing a steady drop in business and will need to come up with creative ways to attract more business during the recession.
Image via