General Travel Industry

This industry encompasses businesses that offer selling, booking, and arranging of travel, tour, and other accommodation services for clients. Within the subsection of the travel and hospitality industry, the travel agency is divided into two different categories — online travel websites and brick and mortar travel agencies. However, actual brick and mortar agencies have increasingly become a thing of the past as online travel agencies offer more convenience and are cheaper. This market is dominated by Expedia, an online travel website that focuses on booking flights and currently has the largest market share of the industry. The travel agency industry is a $30 billion market with over 60,000 active industries.

Travel & Hospitality Industry Trends

This larger industry has struggled significantly due to the pandemic and resulting lockdown, and even as the economy begins to reopen most people remain wary of traveling in fear of being exposed to the virus. Furthermore, many states have mandated hotels and other hospitality institutions to enforce stringent restrictions, such as requiring a negative COVID test and banning the use of certain facilities, leading to a decline in revenue. The travel and hospitality industry is heavily dependent on revenue from large group events such as weddings or bachelor parties, something that has been heavily discouraged due to the virus. While some more established sectors of the travel and hospitality industry are expected to make a rebound once the pandemic subsides and vaccine rollout continues, other small scale establishments within this industry are not expected to survive.