Analysis of Tourism Industry

2078 Words Jun 9th, 2011 9 Pages
Travel Agency & Services Industry Analysis Report

Introductory Paragraph engulfing entire summary of paper The Travel Agency and Services Industry comprises of businesses that are primarily engaged in acting as agents in selling travel, tour, and accommodation services to the general public and commercial clients. The products and services that are primarily sold in this industry are travel accommodations such as domestic and international airline, railroad, vehicle, and cruise reservation; packaged tour experiences and activities; and lodging reservations in hotels and various types of resorts.[i] The first travel agency was established in 1758, with the first modern agency that packaged tours and had relationships with the individual
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The online travel agency area is very competitive. The barriers to entry for this area are very low and the level of regulation is very light, so there a ton of companies in this market. The top six competitors make up 67% of the market share, some of which will be discussed and analyzed further; the remaining 33% of the market share is comprised of the various other websites. The top players in order are: American Express Company, Carlson Companies, Expedia Inc., Inc., Sabre Holdings Inc., and Travelport. [v] American Express is a global travel, financial and network services company. The Global Travel Services segment of the company operates their travel services through American Express Business Travel, which has a focus on corporate clients of any size. In 2009, they had 26 billion dollars in global travel sales. They have their own network and partnerships links with other companies. Their travel solutions are offered online and offline, with about half of their sales through each. American Express has grown from commission-based fee model to a fee-for-service model.[vi] Information technology has helped them to enhance their customer service greatly. They
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