Archive for the ‘Travel Agencies’ Category

postheadericon The Current Economic Climate’s Effect on Travel Agencies

Many travel agencies worry that the state of the economy will have a direct impact on their industry. All over the world, especially in the most popular tourism destinations, travel and tourism are among the world’s most important industries regarding the impact they have on national and global economies. There is no question about the impact that the U.S. recession has had on travel agencies.

Recession Delays Economic Impact on Tourism Industry

In trying economic times, people reduce their spending on non-essential or luxury items. During the height of the recession, people may have been more willing to alter their travel plans. In 2009, A.D. Little published a report for Travel Viewpoint. His analysis focused on identifying ways that the travel industry could get itself out of the global economic crisis.

At the time that Little published his findings, the U.S. was dealing with a recession the likes of which the country hadn’t seen in many decades. On a global level, he thought that the economic downturn could become “the most severe crisis the industry has ever seen.”

He predicted that as travel demand in all sectors of the industry decreased, the recession would threaten all travel companies’ growth potential. While things may have been bad for travel agencies during the height of the recession, the economy has rebounded and is now showing signs of new growth.

Statistics on Global Tourism Industry Point to Excellent Outlook for Travel Agencies

Statista, the Statistics Portal, released data regarding the travel industry, which is one of the world’s largest and most economically important industries. The information they gathered showed that in 2013 alone, the industry contributed roughly seven trillion dollars to the global economy.

Travel Agencies Must Adapt to Sharing Economy suggests that in the aftermath of the 2008 recession, a sharing economy and social travel are affecting the travel agency business. The site goes on to explain that Airbnb and HomeAway, as well as other similar sites, have fostered the emergence of a different type of traveler. Agencies are having to answer a grueling line of questions that harken back to 20-years ago when online travel agencies first sprung up.

The recession prompted economic sharing models to become more visible, and therefore, more popular. Travelers are looking for access to “things,” not ownership of them. The social-oriented travel scenario has made it possible for travel agencies to work together with places like Airbnb for mutual growth.

What 2015 Meant for Travel Agencies

At the end of 2014, Travel Technology and Solutions predicted that travel agencies could look forward to better things in 2015. The website noted that world travel for 2014 rose by 4.7 percent. At the time of their report, the site anticipated that 2015 growth would increase by 3 to 4 percent above the 2014 rate of growth.

For U.S. travel agencies, the news was even better because the strongest travel growth was seen in North and South America. The growth spurt is giving global economies a huge boost, aiding recovery in the tourism industry.

Whether you want to become a home based travel agent, expand your local travel agency, or become an independent contractor for one of the most successful travel companies in the industry, MTravel can help you accomplish your career and business goals. Contact us today!