Pent-up demand to account for revenue gains from both business and leisure travelers
CLEVELAND, Aug. 18, 2022 /PRNewswire/ — US travel service industry revenues are forecast to increase 5.6% per year in nominal dollars through 2026, according to Travel Services: United States, a report recently released by Freedonia Focus Reports. Travel service providers will benefit from the release of pent-up demand among leisure travelers following travel delays and cancellations amidst the COVID-19 pandemic. Further gains will be supported by rising disposable personal income (DPI) levels both in the US and abroad. Recovering demand from business travelers – supported by the expanding number of companies operating over geographically dispersed areas (a function of ongoing economy-wide consolidation) – will further support gains. However, the widespread adoption of teleconferencing will prevent further gains, as business travel is reduced or eliminated for many companies. Even so, the increasing ease with which travelers can book transport or accommodations directly with the providers of such services and through alternative services will restrain faster advances. Further, inflation may stymie gains over the forecast period, particularly in the short term, as rising fuel costs drive increases in travel costs. However, consumers are likely to be willing to bear the cost increases after years of social distancing amid the COVID-19 pandemic.
In 2022, US travel service industry revenues are expected to see 11% growth from 2021 levels. Gains will stem from the relaxation of COVID-19 restrictions, such as the April 2022 lifting of the mask mandate on public transportation. Revenue growth will be tempered by increasing prices for consumers, amid inflation and rising fuel costs. Nevertheless, consumers are less likely to be deterred by such cost increases than in a typical year – an effect of “cabin fever” experienced by many following a lack of travel during the pandemic.
These and other key insights are featured in Travel Services: United States. This report forecasts to 2022 and 2026 US travel services revenue in nominal US dollars. Total revenues are segmented by service in terms of:
- commission
- tours
- trip planning
- other travel services such as insurance, travel documents, and currency exchange
- other sources such as advertising and sales of goods
Total commission revenues are further segmented by source as follows:
- lodging
- event tickets
- airline seats
- cruises
- other commission such as fees from the booking of guided tours, miscellaneous forms of transport, and reservation system rentals to third parties
Total revenues are also segmented by market as follows:
- leisure
- business
To illustrate historical trends, total revenue and the various segments are provided in annual series from 2011 to 2021.
For the purpose of this report, commissions refer to remittances made by other travel companies (e.g., airlines, hotels, tour operators), such as those made for the referral of customers. Fees paid directly to the travel service provider by the customer for arranging services (e.g., accommodations, entertainment, transport) are included in trip planning revenue. US travel service revenues include income from all domestic establishments primarily engaged in providing travel services. The revenues of both employer and nonemployer firms are included.
More information about the report is available at:
https://www.freedoniafocusreports.com/Travel-Services-United-States-FF95038/?progid=91541
About Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Services & Industries reports can be purchased at Freedonia Focus Reports or MarketResearch.com.
Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:
- total historical market size and industry output
- segmentation by products and markets
- identification of market drivers, constraints, and key indicators
- segment-by-segment outlook in five-year forecasts
- a survey of the supply base
- suggested resources for further study
Press Contact:
Corinne Gangloff
+1 440.842.2400
[email protected]
SOURCE The Freedonia Group
