The tailor-made travel market - Italy (2025)

1.2 The global market

The customized travel market is a booming industry. Globally, it reached a value of $***.* billion in **** and is expected to grow to $***.* billion by ****, with a compound annual growth rate (***) of *.* percent. This growth is driven by increasing demand for exclusive and personalized travel experiences, which are increasingly sought after by travelers looking for tailored solutions that meet their specific needs.

Global bespoke travel market forecast World, ****-****, US$ billion MMR

1.3 The local market

The local market analysis focuses on travel agency turnover trends in Italy, highlighting recent dynamics and future projections. The data show the impact of the pandemic crisis and the subsequent recovery of the industry, with a significant recovery from **** onward. In addition, observation of the service turnover index provides a detailed picture of monthly fluctuations, highlighting seasonality and changes in demand for tourism services.

The turnover of travel agencies in Italy grew between **** (***), signaling a return to pre-crisis levels and possible expansion of the sector.

Travel agencies and tour operators turnover Italy, ****-****, € billion Il Sole ** Ore, TTG

This growth is also reflected in the trend of the travel agency services turnover index, which shows a marked seasonality. After a winter decline between December **** (***). Thereafter, the index begins to decline gradually in the fall months, closing in November with a value of ***.*. This pattern confirms how the sector's recovery is strongly influenced by the seasonality of tourism demand, with activity particularly intense in the summer months.

Services Turnover Index-Travel agency, tour operator and reservation services activity and activity Italy, ****-****, base **** = *** - monthly data Istat

1.4 The impact of the Covid-19 pandemic on tourism

In **** , tourism accounted for ** percent of global GDP, worth nearly $* trillion, so that the sector was almost three times larger than agriculture. However, the value chain of tourism suppliers and intermediaries (***) that make up much of the sector. Governments have generally played a limited role in the sector, with partial oversight and "light" management, providing market autonomy.

With the spread of the Covid-** pandemic, an unprecedented crisis for the tourism industry has been attested to; in fact, a **-**% drop in international tourist arrivals compared to **** is noted, recording a reduction in tourism spending compared to pre-pandemic levels and putting as many as *** million jobs at risk. Reopening tourism-related businesses and managing their recovery in a way that is safe, attractive to consumers and economically viable required coordination at a level never seen before.[***]

In Italy, the tourism sector has been characterized by a steady expansion, touching the figure of ***.* million arrivals and ***.* million departures in accommodations in ****; this growth, in line with the global market, was abruptly interrupted in ****, due to the effects caused by the global pandemic. In fact, it is possible to see a **% reduction in the number of active businesses between **** and ****.[***]

As documented in the Istat ...

1.5 The impact of the Russian-Ukrainian conflict on the tourism sector

Russia's military offensive in Ukraine, in addition to being a global issue from the standpoint of loss of life, has resulted in the emergence of negative risks for international tourism; by exacerbating already high oil prices and transportation costs, it has increased uncertainty, causing travel to Eastern Europe to be disrupted. Specifically, if Russia and Ukraine are excluded, the most affected destinations so far are: the Republic of Moldova (***).[***]

European countries with the largest decline in the number of flights from Feb. ** to May **, **** World, ****, % change from **** UNWTO

Despite the conflict, there is an increase in air traffic from mid-March to early May, heavily influenced by the easing of travel restrictions imposed to contain the effects of the Covid-** pandemic. The conflict, however, continues to pose a serious threat to the total recovery of the tourism sector and, consequently, to the travel agency and tour operator market. In ****, Russian spending on foreign travel reached $** billion, while Ukraine spent $*.* billion. In ****, these figures dropped to $*.* billion and $*.* billion, respectively. As tourism destinations, Russia and Ukraine account for * percent of international tourist arrivals in Europe, but only* percent of Europe's international tourism revenues . The importance of both markets is significant for neighboring countries, ...

2.1 Demand characteristics

The analysis of tourism demand shows a clear preference for long vacations, that is, stays of four nights or more, which record a total of **,*** presences, representing the main component of holiday tourism. In contrast, short vacations, lasting one to three nights, count **,*** presences, a significantly lower number. Overall, the total number of vacation trips amounts to **,*** presences. Most tourists choose longer stays, probably to have more immersive and relaxing travel experiences. The relatively lower demand for short vacations suggests the desirability of developing targeted offers and packages to incentivize this type of stay, responding to the needs of those who have less time or seek short escapes from routine. In general, the distribution of data reflects a trend that points to seasonal adjustment and the search for more in-depth tourism experiences.

People who have traveled for vacation Italy, ****, in thousands Istat

The main reasons why people over the age of ** choose not to go on vacation are mainly economic, work or related to personal habits. The most prominent reason is economic hardship, which affects **.* percent of respondents, highlighting the importance of the cost of travel as a determining factor in the decision to forgo a vacation. This is followed by ...

2.2 Factors influencing demand

Trends in the average number of trips per person in Italy between **** and **** show a dynamic influenced by economic, social and, most importantly, the impact of the COVID-** pandemic. In the pre-pandemic period, average trips per capita remained relatively stable, fluctuating between *.* and *.* trips per person. The highest value is recorded in **** (***). The year **** marks a dramatic drop, with an average of *.* trips per person, as a result of travel restrictions and the global health emergency. The slow recovery begins in ****, when the value rises to *.*, and then reaches *.* trips per person in **** and ****, but without returning to pre-pandemic levels. It can be seen that tourism contracted sharply during the health crisis, with effects lingering in subsequent years. Although there has been a recovery from the **** lows, the average number of trips per capita in **** still remains lower than the values recorded between **** and ****, suggesting a transformation in travel habits and possible structural changes in the behavior of Italian tourists.

Average trips per capita Italy, ****-****, average per person Istat

In ****, average daily spending per trip in Italy and abroad showed a significant difference. Those who traveled within the country spent an average of ** euros per day, while for travel abroad ...

2.3 New demand trends

Globally, the strong recovery after the previously mentioned pandemic period is being confirmed; in this sense, travel agencies present a preponderant role, dominating ** percent of bookings globally. It is predominantly tourists who rely on agencies to explore different cultures, learn about local history and culture, and discover hidden and less-traveled destinations. Beyond that, there is also a growing consumer preference for booking travel through online channels; personalization and the use of social networks and websites for research and booking are crucial aspects.[***]

In recent years, there is an increasing trend among Millennials to prefer "Anywhere Travel"; specifically, unusual destinations are sought that enhance the experience rather than the specific destination. This target audience is estimated to increase per capita spending by **% in the next * years. This must be considered as Millennials travelers represent a segment consisting of about *.* billion people, surpassing, by now, boomers (***). Another determining trend in demand is that related to sustainability, which has become increasingly important during the past few years. Following the United Nations Climate Change Conference, the climate issue has become an increasingly central element, also implying a greater awareness on the part of the younger generation; in fact, while the generalist tourist only in **% of ...

3.1 Market structure and dynamics

The trend of active enterprises in the travel agency sector has shown moderate growth in recent years, with some fluctuations due to the economic environment and global events. In ****, the number of active enterprises was *,***, growing to *,*** in ****. In ****, despite the impact of the COVID-** pandemic, the sector saw a slight increase with *,*** active enterprises. However, in ****, there was a contraction, with a decline to *,***, likely due to economic difficulties related to the post-pandemic recovery. In ****, the latest available data, the number of businesses returned to growth, reaching *,***, signaling a recovery in the sector and renewed interest in the tourism industry.

Number of active businesses - Travel agency activity Italy, ****-****, in thousands Istat

The number of employees in active enterprises in the travel agency sector has changed significantly in recent years, reflecting market trends and the effects of the pandemic crisis. In ****, there were **,*** employees, increasing to **,*** in ****, a sign of an expansionary phase in the industry. However, in ****, with the impact of COVID-** and travel restrictions, the number of employees fell to **,***. The contraction continued in ****, when the lowest figure for the period was recorded at **,*** employees, highlighting the difficulties of enterprises in retaining staff. In ****, the latest available ...

3.2 Value Chain

The value chain in the travel agency market can be divided into several main stages:

research and development: includes the identification of new tourism destinations, travel trends and innovative services. Agencies export and evaluate new market opportunities. resource acquisition and management: covers the negotiation and purchase of services from suppliers such as airlines, hotels, and local operators. It also includes staff training and management. marketing and sales: agencies promote their services through various marketing strategies, including online advertising, social media, and partnerships. distribution: travel agencies distribute their products and services through various channels, such as physical offices, websites, and online platforms. customerservice and support: providing customer support before, during, and after travel is crucial. This includes handling reservations, support in case of problems during the trip, and post-trip feedback. evaluation and feedback: the stage where feedback from customers is received and analyzed to continuously improve services and adapt to changing market needs.

3.3 Distribution chain of tourism services

Travel agents play a central role in the distribution of tourism services;

Wholesalers: wholesalers operate upstream in the distribution chain of tourism services. Specifically, they purchase large quantities of tourism products, such as travel packages from tour operators, and resell them to retailing agencies. This modus operandi allows the retailing agencies to obtain competitive prices and access to a wide range of services. RetailingAgencies: retailing agencies focus exclusively on the activity of tourism intermediation. Thus, they are not involved in producing tour packages or arranging travel, but only sell the services of other companies, such as: flights, accommodations, and tours. Retail companies play a crucial role in connecting travelers and tourism service providers. TourOrganizer: tour organizer travel agencies produce and organize tailor-made trips. These are, therefore, customized tour packages. TourOperators: tour operators are companies that specialize in producing and organizing complete trips. They are in the business of creating tour packages that include flights, accommodations, ground transportation, excursions and other activities. They often specialize in specific destinations or certain types of experiences (***).

Note well that a travel agency could perform all of the above tasks. Dwelling on travel agency management approaches, there are two types of agency classifications:

Incoming: this type ...

3.4 Main actors

To identify the main players in the travel agency market in Italy, you can consult the Aziebde Registry using ATECO code **.**.** (***). This code groups all businesses operating in the sector, including services such as booking tickets, organizing tour packages, travel consulting and itinerary planning. Through such a search, an up-to-date list of active businesses can be obtained, including data on their location and size.[***]

4.1 Type of Offering

Travel agencies offer a wide range of services to meet the needs of modern travelers, with a focus on tailor-made trips. These customized proposals make it possible to create unique itineraries tailored to individual preferences, ensuring authentic and unforgettable experiences.

Travel and tourism agencies are businesses that perform different activities:

travelorganization : choosing the destination, attempting to provide the best advice to the consumer; intermediation: agencies perform the task of intermediation between consumers and the main facilities where reservations are to be made; booking and selling tickets: for travel and stays.

The travel agency's job is to organize and sell customized trips, focused on the customer's needs and available offers. Typically, travel agencies offer customers package options or products offered by tour operators. The latter are responsible for planning the travel packages or tours, with all ancillary services attached, while the agency is responsible for selling the proposed package.[***] The individual packages represent the offerings of the various agencies, offerings that are particularly changeable depending on the following factors:

type of vacation envisioned by the consumer; region of departure; type of agency selected.

Pros and cons of booking through an agency

By booking your trip through an agency, you are interfacing with ...

4.2 Prices

Travel agency prices are highly changeable depending on the type of service offered. Some travel agencies deal only with booking, others with complete travel packages. Where reservations are made in advance, some agencies may offer discounts. In general, a very wide price range is expected, ranging from €*** to even more than €*,***. The final price will depend on the destination, the duration of the trip, and the number of people leaving. If you choose to take advantage of the complete package offered by some agencies, the final price will be higher.

How to save money

Certainly prices will be lower more where you book well in advance, however to save money, it is essential to make a comparison of different travel agencies, taking advantage of discounts or offers from the agencies themselves.[***]

Examples of price quotes

The following is an overview of some price quotes found in some well-known channels in the industry:

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4.3 New supply trends: travel bloggers

Travel bloggers represent increasingly influential players in the tourism industry and online consumer community. Thanks to their ability to offer advice and stories, they combine their firsthand experiences with knowledge of different cultures, offering virtual guides and transporting their followers to the places they have experienced, inspiring them to explore the world. Their influence on the travel market is considerable; in fact, they not only tell and describe the places visited, but also influence the opinions of stakeholders and are used as effective marketing tools to raise awareness of tourism products and destinations. Beyond that, social networks and blogs also present a central role in the travel industry, with bloggers and influencers motivating their followers to choose specific places, facilities or itineraries. These strongly influence the dynamics of perception of an area, deeply affecting travelers' choices and replacing traditional promotional logic with the power of storytelling from experience, a marketing lever that creates empathy and loyalty. There are different categories of travel bloggers:

Luxury Travel Bloggers: one of the most well-known and followed categories is the luxury travel bloggers. These focus on sponsoring exclusive destinations, such as luxury hotels, gourmet restaurants and high ivlevel travel experiences. BudgetTravel Bloggers: low-cost travel bloggers, ...

5.1 Rules and regulations

In Italy, the regulation of travel agencies is governed by a set of laws and legislative decrees that have evolved over time:

Framework Law No. ***/****: This law, called the "Framework Law for Tourism and Interventions for the Enhancement and Qualification of the Tourist Offer," established the general principles regarding tourism and the hotel industry, defining the system for developing tourism and ensuring the proper enhancement of the sector, which is considered to be of social and economic importance to the country. Although repealed by Law No. ***/****, some of its principles continue to influence the regulation of travel agencies, providing a basis for subsequent laws. [***] Law No. ***/****: This law reformed the previous **** legislation, defining the tourism sector as central and strategic to the development of the Italian economy. It identified and defined tourism enterprises, establishing that they are those engaged in organized economic activities for the production, marketing, intermediation and management of tourism products and services. [***] Law No. ***/****: This law transferred functions and responsibilities related to tourism to the regions, following the abolition of the Ministry of Tourism in ****. The aim was to decentralize tourism competencies, entrusting them to regional administrations. [***] Legislative Decree No. ***/****: This decree further delineated the state's responsibilities for ...

5.2 Conclusion

The customized travel market is undergoing a profound transformation, driven by changing consumer preferences and global economic dynamics that are influencing its performance. Internationally, demand for customized experiences is growing steadily, driven by a desire for uniqueness and authenticity in travel. This trend is also reflected in Europe and Italy, where the sector has shown significant recovery after the pandemic crisis, thanks to digitization and increased use of online channels for booking and organizing itineraries. However, the Italian market is in an ambivalent position: on the one hand, its extraordinary cultural and scenic offerings make it a natural destination for tailor-made tourism; on the other hand, the fragmentation of operators and the increasing competition with digital platforms impose a structural reorganization to ensure competitiveness and sustainability in the long run.

Travelers' preferences are undergoing a major evolution. People are no longer looking only for the destination, but for the experience itself, which must be immersive, exclusive and possibly in less touristy and more authentic places. This aspect leads to an increased demand for highly personalized services and the integration of elements of sustainability and environmental responsibility, which are increasingly relevant to new generations of tourists. Another emerging factor is the combination ...

6.1 Segmentation

• Idee Per Viaggiare
• Gattinoni Travel Network
• Italcamel
• BCD Travel
• Alpitour
• Musement