Travel Agency and Tour Arrangement Services in New Zealand - Industry Market Research Report

Back up in the air: As tourism soars and operators move further online, revenue returns to growth

The Travel Agency and Tour Arrangement Services industry comprises many different players along the travel supply chain. Travel consolidators, shopfront travel agencies, online travel agencies, travel management companies and inbound tour operators (ITOs) all sell travel packages to consumers, businesses and government departments. Travel consolidators act as wholesalers, selling travel products to retail travel agencies. Online and shopfront travel agencies sell leisure travel products to consumers, which typically include transport, accommodation and other services. ITOs package New Zealand tour products to onsell to overseas travel agencies. Recently, tourist activity in New Zealand was slashed by the COVID-19 pandemic, leading to a revenue crash. Restrictions imposed by the Central Government (Te Kawanatanga o Aotearoa) dismantled demand for travel packages across the board, as inbound and outbound travel was essentially halted by the closure of New Zealand's international border. Overall, the industry has slumped by 10.5% to $658.3 million over the five years to 2022-23. However, this decline includes a recovery-leading upturn of 63.1% in 2022-23, as the international border reopened and demand from both domestic and international tourists continues to return.

Industry players primarily assist individual customers and businesses with booking travel, which typically includes accommodation, transport and tour services. The industry also includes tour wholesalers and operators, and both online and bricks-and-mortar travel agencies.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.