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US travel agency market to increase at a CAGR of 3.1%

Press Release   •   Aug 29, 2012 09:48 BST

The US travel agency market saw revenue increase at a compound annual growth rate of 2.4% over the five years to 2012, with the industry's value hitting $19.5 billion by the end of the year.

Over the next five years, US travel agency revenue is forecast to increase further at a CAGR of 3.1% to be worth $22.7 billion by 2017.

After a tough period in 2009, when revenue declined 13.5% and brick-and-mortar travel agencies lost sales to internet businesses, the US travel agency has slowly but surely begun its recovery and appears to be on the up once again.

In 2009, the decline of the domestic economy and increase in the unemployment rate forced people to become more selective regarding how they spent their disposable income; consumer spending fell 1.9% during the year.

However, a number of factors, including the state of the economy and other travel-related trends are now driving growth within the US travel agency market.

Additionally, internet technology will drive revenue growth, as consumers increasingly choose online travel agencies for flexibility and efficiency.

Airline travel reservations are the largest source of industry revenue (34.8%), with international travel making up 22.0% of industry revenue and domestic travel making up 12.8% of industry revenue.

For more information on the US travel agency market, see the latest research: US Travel Agency Market Report

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