key success factors in travel agency industry

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Keys to Success for New Travel Agents

Maybe it’s because you love to travel and helping people facilitate their own adventure. Maybe you thought being a work at home travel agent was the right career move. Or maybe you thought it sounded glamourous. Is it all that you imagined? Or has running your business been difficult?

A part of you wonders…

Do you need to cut your losses or be patient?

Or maybe it’s that you don’t have a roadmap for success [thereby making it a constant struggle to grow your travel agency], and with it you could become a top travel agent in no time! Keeping reading to find out what the keys to success are for new travel agents.

10 Keys to Success for New Travel Agents

Be Confident

If you want to become a successful travel agent, you need the confidence to do so. Why? Because customers are more likely to trust someone who breathes, walks, and talks travel; someone who won’t flinch when asked a question about this or that industry regulation. Clients will trust that you know what you are doing and will get them the best deal possible. Remember, people want to work with those who are confident in their abilities. It’s the groundwork for building trusting and lasting relationships.

Have Passion

It’s believed that Confucius said, “Choose a job you love, and you will never have to work a day in your life.” If you love what you do, it won’t seem like work. You’ll be a happy travel entrepreneur who looks forward to each day with a smile on your face. When you’re passionate about what you do, your authenticity shines through you – people and can see and feel it. And you won’t ever have to work a day in your life!

Most travel agents realize the importance and power of focusing on a niche. Whether you specialize in all-inclusive travel or luxury vacations, the more focused you are on who you want to serve, the easier will be for you to brand yourself and dive deeper into the right education to serve your clients on the various partner product offerings. If you don’t know what your message is, you won’t be able to reach your ideal customers through digital and offline marketing. Define your niche and you can determine your success.

Build Your Network

Networking, when done right, can bring in leads and sales. Research different groups and organizations and interview current and past members – make an educated decision as to whether or not a group is right for you. Like it or not, some networking opportunities are nothing more than social gatherings. There’s nothing wrong with this but time spent in these types of groups may not help you build and grow your travel agency.

Get Educated

Always continue your education! You can take online courses and read industry related news. Did you know that TPI provides members with educational opportunities? For example, at this years’ TPI Extravaganza Conference the program was packed with business experts who have ‘been there, done that’ – they shared those game-changing experiences to help agents grow their bottom line. In 2016 TPI is taking the show on the road! Members will have the chance to connect with like-minded individuals and learn from them. Educational opportunities are all around you – just look for them!

Embrace Marketing

For whatever reason, some travel agents have fear marketing. The sooner you embrace and budget for it the better. Think about this. How will clients find you if you don’t market your travel agency? In the beginning, it’s okay to book travel for family and friends. But you don’t want them to be your only clients, do you? When you use email or social media marketing, you have the potential to reach thousands of people who could turn into first-time and repeating clients. Not only will this provide you with a better ROI but it will help you grow your business.

Be Service Oriented

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Determine which path is right for you

Keep in mind that growing your business means that you put your customer first. Come from a place of ‘servant leadership’, a term coined by Robert K. Greenleaf. This means you follow practices that enrich the lives of your clients while building a better travel agency so you may create a more caring world. If you solely focus on earning money, you may make it. However, you can easily lose it as well.

Become an Authority

A new buzzword is ‘authority’. If you’re familiar with Google Authorship, you’ll know that it was meant to link your Google + profile to content you created. While Google ended support for authorship this does not imply that authority does not matter. Build authority in your travel niche and you can position yourself as the ‘go to’ travel agent and attract new clients to your agency while retaining current ones.

Work with a Host Travel Agency

With 27 years in the business, TPI has learned that independent agents value flexibility and yearn for education and desire independence, but they don’t want to be alone. This is why we develop tools to

help agents meet their professional and financial goals. With a host travel agency such as TPI, you can take advantage of a free consumer website, full back office support, cutting edge technology and a dedicated business development team to assist you in growing your travel business.

Do the Work

Being a work at home travel agent doesn’t mean you can sit back and do nothing. Even though you may work out of a home office, you are responsible for developing your business. Set your hours and stick to them. Create a weekly schedule and follow it. Write down sales goals and create a plan to reach them. Building and establishing a successful business takes effort and time – you must do the work to get the results you want!

Visualize your travel agency 3-5 years from now. Instead of being disappointed and on the verge of giving up, you grew your travel agency and today it’s a thriving small business!

No longer are you begging for leads and referrals. You are on the fast track to becoming one of the top travel agents in the industry.

All of this happened because you learned the keys to success for new travel agents and put your agency on the road to success.

You’re enjoying speaking with clients and finding them the best cruise or adventure vacation. They even call you when they return and tell you how much fun they had and want to plan their next excursion.

Impossible? It’s not.

Have confidence in your ability as a travel agent and provide the best possible service.

Do the work and believe that you can have a winning business.

You’ve have the keys to success – all you need to do is implement them right now.

Call us today to find out more about getting started with Travel Planners International

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What successful Travel Agents are doing everyday

What are some keys to being a successful travel agent? You may be looking for an agent or you may be in training to become one and want to know some tools of the trade. In either case, the same rules apply to both. You might have even heard that travel agents are a thing of the past but nothing could be further from the truth.

What are successful travel agents’ habits?

Travel agents’ success is due in large part to a resurgence in business from the millennial generation. While it is true we can all use self-booking sites, there is a social aspect to a travel agent that many young travelers find appealing. For starters, it is nice to have someone else do the research into potential destinations for you. Maybe your travel agent has already gone there himself and can give you a first-hand account of the area. It is this personal touch as well as having someone be a personal advocate that young people find attractive when deciding to book with a travel agent over self-booking.

This is the 21st century and the days of a travel agent merely being behind the desk while describing exotic places to clients are in the past. Being mobile lets travel agents do more in more places. For instance, as a travel agent, you can meet a customer at his favorite coffee shop and discuss travel plans. You can even set up, reserve, and book his trip all from your tablet with apps like Travelport Mobile Agent .

This greater flexibility will make your life as an agent much easier because you can meet customers on their terms. Maybe they don’t have a car or just can’t get to your office during so-called normal business hours, but with your mobile ability, you can still work with them if either you or they need something unique. It is this willingness to embrace flexibility that is a defining feature of successful travel agents.

Saving time

Another key factor in your travel agents’ success and something you should always consider is how well you can use your own time. Think about it from your client’s standpoint: if an agent is not very good at managing his own time or his own information then why should you assume they will be more careful with your schedule or information? Nothing puts a damper on a trip like an agent who planned your trip or vacation in a haphazard way.

So how can an agent get more organized, save time, and master self-management? A big key will be if you are using analytic software like Agentivity . These programs do a lot of your traditional work for you by constantly going through data to present reports, savings, and other tasks. Another plus is that if you know how to use these tools, you will be more proficient with similar analytic tools that can help save your customers money as well.

Outside the box thinking

Your client may be looking at a trip traveling from point A to point B and thinking the only way to get there is by plane or a rental car. However successful travel agents know that you need a wider variety of options to make good travel choices. This is where you as a travel agent can really shine. By offering your customers different packages than traditional ones, it allows you to be more competitive.

For instance, your customer may be thinking of traveling by plane and the ticket is $200, but you come along and offer your customer a non-traditional option like a train with a price of $100 for the ticket. By having the ability to offer these kinds of outside the box plans and options, it allows travel agents to be more competitive. So don’t be scared to offer these packages since a lot of customers, particularly millennials, prefer the road less traveled anyway.

Proactive professionals

You might have a small travel agency and be thinking that it is harder to compete than if you were part of a bigger group, but that’s simply not true. Always present yourself as a tried and true professional. Take as much pride in your office of four as others do in offices of fifty.

Also, don’t give in to the lie that if you’re not big you can’t leverage the same deals as your larger competitor. With solutions like TTS Consolidator , agents who are not accredited by the International Air Transport Association (IATA) can still offer the same affordable rates and prices as their much larger accredited counterparts. Just because a travel agency is small doesn’t mean that you don’t have the tools or the ability to save your customers’ money or compete with bigger firms.

Focus on being a travel agent

Perhaps you want to grow your agency, or are planning an ad campaign, or updating your profiles but the fact is the more time you spend working on your business, the less time you are working in it. Customers want an agent who is dedicated to them, not thinking about their vacation package one moment and planning a marketing strategy the next.

A major tool for travel agents’ success is if you know how to farm out your branding work to others so you can do the most important job of being a travel agent, namely helping your customer get where they are going. How can you do this? One way is through solutions like TTS Corporate Managed Services.

TTS Corporate Managed Services is a branding and marketing solution geared directly towards travel agents: they will make a company profile, update users, help with your branding, and do some of your marketing for you. It also saves you money as it enables you to not have to take time away from helping customers while your marketing is being done.

Tools like those offered by TTS make it possible for you to grow your agency and still serve your customers every day. They make it possible for you to become a successful travel agent, too.

—–

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6 Keys for Success as a Travel Entrepreneur

Following is the first in a series of columns by travel agent, entrepreneur and business strategist Tammy Levent

During nearly two decades in the travel industry I – probably like most of you – have experienced setbacks. The road has not always been easy but it has been, and continues to be, a lifelong education on what it truly takes to be a successful travel entrepreneur. Here are some of the key things I have learned in my years in the travel business. 1. Always maintain good relationships with your customers, employees and colleagues The reasons behind my employee retention, repeat customer base, and strong relationships are the same: Care, respect, and honesty. That means not just telling the truth and doing business with integrity, but being genuine with everyone. 2. Realize what people want and then give it to them Shortly into the creation of my travel business it seemed as though the odds were stacked against me. Airlines were cutting commissions then 9/11 and the subsequent recession occurred, public morale regarding travel was down, and luxury vacations took a back seat to the real problems Americans were facing. So I took a step back and thought about what potential clients were still going to need. I realized that almost everyone would keep getting married so it only made sense to reinvent my company as a destination weddings and honeymoons expert and that’s just what I did. 3. Real service matters more than savings I’m not saying that you should be charging fees and doing everything you can to make a profit, but people will choose you over your competitors when you step up and offer them real service that shows you actually care about them. I call and email my clients to check in on them. My company is there and able to answer the phone in the event something goes wrong or they have a concern. I also offer a price match guarantee that if any price is available to the public before my clients give me final payment I will make sure they get that price too. It’s helped me in the travel agent war with online travel sites and even helped me earn clients that may have considered working with someone else. 4. You don’t have to spend money to make money I started my business not only with no money, but with close to $200,000 in debts. How? I am a strong proponent of strategic partnerships! A strategic partnership is one in which two related businesses choose to support each other by building their brands together. For example, when I needed to promote my honeymoon packages I reached out to a honeymoon resort and convinced them to give me a free honeymoon to give away. I then created a website honeymoongiveaway.com to capture leads and then not only did I give away that trip, I had an awesome list of people to pitch my services to. This free trip didn’t cost me or the resort anything and got both of us a tremendous amount of promotion. 5. Anything is possible if you just believe Not to sound like a Disney movie here, but it’s true. If you believe you can make something happen, you can! I always say that first you claim it and once you claim that, you own it and then you go after it to make it yours. My grandparents arrived in this country with little more than the hope of a new life and the willingness to work to make it possible. They never complained or gave up when life didn’t go as easily as planned, and they never stopped chasing their dreams. In fact, my early vision for entrepreneurship was imprinted on me in early childhood by my family, because they are living proof that ideals like honesty, hard work, and faith give life meaning and purpose. My mother and my grandmother especially impressed upon me that the confidence that comes from self-reliance would help me take the steps necessary to make my dreams happen, regardless of hardship or sorrow. They taught me to follow my heart against odds and adversity. 6. You have to have passion to create your dream job If you are doing what you love then you will never work a day in your life and the money will follow with ease. I’m very passionate about my work as a travel entrepreneur. I’ll never forget how I found my calling to be a travel entrepreneur either. My kids had been in a horrific car accident that took my grandmother’s life and as they lay in their hospital beds in the ICU a nurse asked me what I would do if money weren’t an issue. I told her I would travel the world and now that is what my business is built around. So now I want to pose that same question to you that I was asked: What would you do if money weren’t an issue? Once you have your answer you can then turn it into a job and voila. You have created your dream career. Tammy Levent is the CEO of Elite Travel , an award winning full-service travel agency that has been in business for 20 years. She is also the founder of the Travel Agent’s Success Kit that teaches the agents of today how to succeed in being travel entrepreneurs. Contact her at: [email protected]

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Travel agency industry - statistics & facts

The biggest players of the ota market, the travel agency and tour operator retail market, key insights.

Detailed statistics

Online travel market size worldwide 2017-2028

U.S. travel agency industry market size 2012-2022

U.S. tour operator industry market size 2012-2022

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Current statistics on this topic.

Tour Operators & Travel Agencies

Market size of the travel agency services industry worldwide 2011-2024

Online Travel Market

Revenue of leading OTAs worldwide 2019-2022

Online travel companies

Booking Holdings Inc.
Expedia Group, Inc.
Tripadvisor

Travel agency and tour operator market

Travel agencies in the United Kingdom (UK)
Package travel in Japan

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Industry overview.

Premium Statistic Market size of the tourism sector worldwide 2011-2024
Premium Statistic Online travel market size worldwide 2017-2028
Premium Statistic Key information on the global travel agency industry January 2024
Basic Statistic Market cap of leading online travel companies worldwide 2023
Premium Statistic Leading travel companies worldwide 2022, by sales
Premium Statistic Number of employees at leading travel companies worldwide 2022

Market size of the tourism sector worldwide 2011-2024

Market size of the tourism sector worldwide from 2011 to 2023, with a forecast for 2024 (in trillion U.S. dollars)

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Key information on the global travel agency industry January 2024

Key data on the travel agency industry worldwide as of January 2024

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Leading travel companies worldwide 2022, by sales

Leading travel companies worldwide in 2022, by gross sales (in billion U.S. dollars)

Number of employees at leading travel companies worldwide 2022

Number of employees at selected leading travel companies worldwide in 2022

Online travel agencies (OTAs)

Premium Statistic Revenue of leading OTAs worldwide 2019-2022
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Basic Statistic Revenue of Booking Holdings worldwide 2007-2023
Premium Statistic Revenue of Expedia Group, Inc. worldwide 2007-2023
Premium Statistic Airbnb revenue worldwide 2017-2023
Premium Statistic Total revenue of Trip.com Group 2012-2022
Premium Statistic Revenue of Tripadvisor worldwide 2008-2023
Premium Statistic Despegar: revenue 2015-2022

Leading online travel agencies (OTAs) worldwide from 2019 to 2022, by revenue (in million U.S. dollars)

Marketing expenses of leading OTAs worldwide 2019-2022

Marketing expenses of leading online travel agencies (OTAs) worldwide from 2019 to 2022 (in million U.S. dollars)

Marketing/revenue ratio of leading OTAs worldwide 2019-2022

Marketing to revenue ratio of leading online travel agencies (OTAs) worldwide from 2019 to 2022

Revenue of Booking Holdings worldwide 2007-2023

Revenue of Booking Holdings worldwide from 2007 to 2023 (in billion U.S. dollars)

Revenue of Expedia Group, Inc. worldwide 2007-2023

Revenue of Expedia Group, Inc. worldwide from 2007 to 2023 (in billion U.S. dollars)

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Total revenue of Trip.com Group 2012-2022

Total revenue of Trip.com Group Ltd. in China from 2012 to 2022 (in billion yuan)

Revenue of Tripadvisor worldwide 2008-2023

Revenue of Tripadvisor, Inc. worldwide from 2008 to 2023 (in million U.S. dollars)

Despegar: revenue 2015-2022

Revenue of Despegar.com, Corp. from 2015 to 2022 (in million U.S. dollars)

Travel websites and apps

Premium Statistic Most popular travel and tourism websites worldwide 2024
Premium Statistic Total visits to travel and tourism website booking.com worldwide 2021-2024
Premium Statistic Total visits to travel and tourism website tripadvisor.com worldwide 2020-2024
Premium Statistic ACSI - U.S. customer satisfaction with online travel websites as of 2024
Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
Premium Statistic Number of aggregated downloads of leading online travel agency apps in the U.S. 2023
Premium Statistic Leading travel apps in the U.S. 2022, by market share
Premium Statistic Leading travel apps in Europe 2022, by market share

Most popular travel and tourism websites worldwide 2024

Most visited travel and tourism websites worldwide as of April 2024 (in million visits)

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Total visits to travel and tourism website tripadvisor.com worldwide 2020-2024

Estimated total number of visits to the travel and tourism website tripadvisor.com worldwide from August 2020 to March 2024 (in millions)

ACSI - U.S. customer satisfaction with online travel websites as of 2024

U.S. customer satisfaction with online travel websites from 2000 to 2024 (index score)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Number of aggregated downloads of leading online travel agency apps in the U.S. 2023

Number of aggregated downloads of selected leading online travel agency apps in the United States in 2023 (in millions)

Leading travel apps in the U.S. 2022, by market share

Market share of leading travel apps in the United States in 2022

Leading travel apps in Europe 2022, by market share

Market share of leading travel apps in Europe in 2022

Travel agencies and tour operators

Premium Statistic U.S. travel agency industry market size 2012-2022
Premium Statistic U.S. tour operator industry market size 2012-2022
Premium Statistic Revenue of TUI AG worldwide 2004-2023
Premium Statistic Leading travel agents ranked by number of outlets in the UK 2024
Premium Statistic Leading ATOL-licensed tour operators in the UK 2024, by passengers licensed
Premium Statistic Turnover of Hays Travel Limited in the UK 2008-2023

Market size of the travel agency sector in the United States from 2012 to 2022 (in billion U.S. dollars)

Market size of the tour operator sector in the United States from 2012 to 2022 (in billion U.S. dollars)

Revenue of TUI AG worldwide 2004-2023

Revenue of TUI AG worldwide from 2004 to 2023 (in billion euros)

Leading travel agents ranked by number of outlets in the UK 2024

Leading travel agencies in the United Kingdom (UK) as of February 2024, by number of travel shops

Leading ATOL-licensed tour operators in the UK 2024, by passengers licensed

Leading ATOL-licensed tour operators in the United Kingdom as of February 2024, ranked by number of passengers licensed

Turnover of Hays Travel Limited in the UK 2008-2023

Turnover of Hays Travel Limited in the United Kingdom from 2008 to 2023 (in million GBP)

Cruise companies

Premium Statistic Worldwide cruise company market share 2022
Premium Statistic Revenue of Carnival Corporation & plc worldwide 2008-2023
Premium Statistic Revenue of Royal Caribbean Cruises worldwide 1988-2023
Premium Statistic Revenue of Norwegian Cruise Line worldwide 2011-2023
Premium Statistic TUI cruise brand revenue worldwide 2015-2023, by brand
Premium Statistic Percentage change in revenue of leading cruise companies worldwide 2020-2023

Worldwide cruise company market share 2022

Worldwide market share of leading cruise companies in 2022

Revenue of Carnival Corporation & plc worldwide 2008-2023

Revenue of Carnival Corporation & plc worldwide from 2008 to 2023 (in billion U.S. dollars)

Revenue of Royal Caribbean Cruises worldwide 1988-2023

Revenue of Royal Caribbean Cruises Ltd. worldwide from 1988 to 2023 (in billion U.S. dollars)

Revenue of Norwegian Cruise Line worldwide 2011-2023

Revenue of Norwegian Cruise Line Holdings Ltd. worldwide from 2011 to 2023 (in billion U.S. dollars)

TUI cruise brand revenue worldwide 2015-2023, by brand

Revenue of TUI cruise brands worldwide from 2015 to 2023, by brand (in million euros)

Percentage change in revenue of leading cruise companies worldwide 2020-2023

Percentage change in revenue of leading cruise companies worldwide from 2020 to 2023 (compared to 2019)

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Understanding the Travel and Tourism Sector: A Business Perspective

The world of business is inextricably linked with the realm of travel and tourism. From corporate travel arrangements to the operation of hospitality giants, this sector plays a pivotal role in the global economy.

The travel and tourism industry is not merely about vacations and leisure; it encompasses a diverse array of activities, services, and businesses that fuel economies, create jobs, and shape the way we explore the world.

In this article, we will embark on a journey to understand the intricacies of the travel and tourism sector from a business standpoint. We will explore its significance in the global economy, delve into the core components of the industry, examine the economic impact, and discuss emerging trends and challenges.

Moreover, we will shed light on the business aspects of travel, highlighting the key players, revenue streams, and marketing strategies that drive success.

But why should business professionals, beyond those directly involved in tourism, care about this sector? The answer lies in the fact that travel and tourism intersect with nearly every industry. Whether you're in finance, technology, healthcare, or any other field, understanding how this sector operates can unlock opportunities for growth, collaboration, and innovation.

So, fasten your seatbelts and prepare for a journey through the multifaceted world of travel and tourism, where business meets exploration and economic growth meets wanderlust.

Travel and Tourism

Travel and tourism refer to the activities, services, and industries associated with people traveling to and staying in places outside their usual place of residence for leisure, business, or other purposes.

The Core Components of Travel and Tourism

At its heart, the travel and tourism sector comprises several key components, each playing a unique role in the industry's ecosystem. Understanding these components is crucial for any business professional aiming to navigate this dynamic sector effectively.

Here are the primary elements:

1. Accommodation: Accommodation providers are the backbone of the tourism industry. They include hotels, resorts, vacation rentals, and even unconventional options like Airbnb. These establishments cater to travelers by offering a place to stay, ranging from budget to luxury.

2. Transportation: Travel relies heavily on transportation. This segment encompasses airlines, cruise lines, railways, car rental services, and public transportation systems. Efficient transportation networks are vital for connecting travelers to their destinations.

3. Food and Beverage: Dining experiences are an integral part of any trip. This category includes restaurants, cafes, food trucks, and bars. Culinary tourism, where travelers explore local cuisine, has become a significant trend within this segment.

4. Travel Agencies: Travel agencies and tour operators serve as intermediaries between travelers and service providers. They help plan itineraries, book accommodations, and arrange transportation, making the travel process more convenient.

5. Attractions and Entertainment: Tourist destinations offer various attractions, from historical sites and museums to theme parks and natural wonders. Entertainment options such as theaters and music venues also contribute to the overall travel experience.

6. Travel Technology: In the digital age, technology has transformed the way people plan and experience travel. Online booking platforms, travel apps, and services like TripAdvisor have reshaped the industry's landscape.

7. Tourism Services: This category includes a range of services such as travel insurance, currency exchange, and visa assistance. These services ensure that travelers are prepared for their journeys and can navigate any unforeseen challenges.

8. Destination Management: Local governments and organizations play a pivotal role in managing and promoting tourist destinations. They invest in infrastructure, marketing, and sustainability efforts to attract visitors.

The Economic Impact of Travel and Tourism

From a business perspective, it's essential to grasp the significant economic impact of the travel and tourism sector. This industry is a global economic powerhouse that generates jobs, fosters investment and drives economic growth.

Here are some key statistics to illustrate the significance of travel and tourism :

Job Creation: Travel and tourism directly support over 330 million jobs worldwide, accounting for 1 in 10 jobs globally.
Contribution to GDP: In 2022, the travel and tourism sector contributed 7.6% to global GDP, highlighting its substantial economic footprint.
Investment Magnet: This sector attracts investments in infrastructure, hotels, transportation, and more, further stimulating economic activity.
Foreign Exchange Earnings: Tourism often serves as a vital source of foreign exchange earnings for many countries, boosting their balance of payments.
SME Growth: Small and medium-sized enterprises (SMEs) play a significant role in the sector, benefiting from the opportunities created by tourism-related businesses.

The economic interplay between tourism and other industries is intricate.

For instance, the hospitality sector relies on agriculture for food supplies, airlines depend on the aerospace industry for aircraft and tourist destinations often collaborate with local artisans and businesses to promote cultural experiences.

In the business world, recognizing the economic clout of travel and tourism can open doors for collaboration, investment, and innovation. Many companies, even those seemingly unrelated to tourism, can find ways to tap into this lucrative market.

Emerging Trends and Challenges

The travel and tourism sector is continuously evolving, driven by changing consumer preferences, technological advancements, and global events. Business professionals must stay attuned to these trends and challenges to adapt and thrive in this dynamic industry.

Here are some notable developments:

1. Sustainable Tourism: Travelers increasingly prioritize eco-friendly and sustainable practices. Businesses that adopt green initiatives not only reduce their environmental footprint but also attract environmentally conscious travelers.

2. Digital Transformation: The digitalization of travel services has reshaped how consumers plan and book trips. Online platforms, artificial intelligence, and data analytics are instrumental in personalizing travel experiences.

3. Health and Safety: Recent global health crises have heightened travelers' concerns about safety and hygiene. Businesses must implement robust health and safety measures to regain consumer trust.

4. Shifts in Travel Behavior: The pandemic has brought about changes in travel behavior, with a focus on remote and nature-based destinations. Companies need to adapt their offerings to cater to these evolving preferences.

5. Regulatory Challenges: Navigating complex regulations, including visa requirements and health protocols, can be a challenge for travel businesses. Staying informed and compliant is crucial.

6. Geopolitical Factors: Political instability and international relations can significantly impact the tourism industry. Businesses must be prepared to adapt to changing geopolitical landscapes.

The Business of Travel and Tourism

Understanding how businesses operate within this sector is essential for both industry insiders and entrepreneurs looking to tap into this thriving market.

Role of Businesses in the Travel Sector

Businesses play a pivotal role in shaping the travel and tourism landscape. Whether you're a hotel chain, an airline, a tour operator, or a travel agency, your role is multifaceted, encompassing everything from customer service to marketing and sustainability initiatives.

Customer-Centric Approach : At the heart of every successful travel and tourism business is a deep commitment to customer satisfaction. Travelers today expect exceptional service and unique experiences. From the moment a traveler starts planning their trip to the time they return home, businesses must focus on providing top-notch services, personalized recommendations, and seamless experiences.
Innovation and Adaptation : The travel industry is highly competitive and constantly evolving. Successful businesses in this sector are those that innovate and adapt to changing trends. This could mean embracing digital technology, offering eco-friendly options, or creating new and exciting travel packages.

Business Models and Revenue Streams

To thrive in the travel and tourism sector, businesses employ various revenue models tailored to their specific niches. Here are a few common business models:

Hospitality and Accommodation : Hotels, resorts, and vacation rentals rely on room bookings and additional services such as dining, spa treatments, and event hosting to generate revenue.
Airlines and Transportation : Airlines make money through ticket sales, baggage fees, in-flight services, and partnerships with other travel-related businesses. Transportation services like taxis, trains, and cruise lines have similar revenue structures.
Tour Operators and Travel Agencies : These businesses profit from organizing and selling travel packages, tours, and experiences. Commissions, booking fees, and tour sales are primary income sources.
Online Travel Agencies (OTAs) : OTAs like Expedia and Booking.com aggregate information from various travel service providers and earn commissions on bookings made through their platforms.

Customer Experience and Service Excellence

In the digital age, the travel and tourism sector is driven by customer reviews and recommendations. Travelers share their experiences online, influencing the choices of others. Therefore, providing exceptional customer service is paramount. Here are some strategies to achieve service excellence:

Personalization : Tailor recommendations and services to individual preferences.
Seamless Booking and Travel : Make the booking process simple and provide support throughout the journey.
Feedback and Improvement : Collect customer feedback and use it to enhance services continually.
Crisis Management : Be prepared to handle unexpected situations, such as flight cancellations or health emergencies, with professionalism and empathy.

Marketing and Promotion Strategies

Effective marketing is essential for attracting travelers to your business. Here are some strategies commonly used in the travel and tourism industry:

Digital Marketing : Utilize online channels such as social media, search engine optimization (SEO), email marketing, and paid advertising to reach a global audience.
Content Marketing : Create engaging content, including blog posts, videos, and travel guides, to inspire and inform potential travelers.
Partnerships : Collaborate with influencers, other businesses, and tourism boards to expand your reach and access new markets.
Sustainability Promotion : Highlight your commitment to sustainable and responsible travel practices, as eco-conscious travelers seek eco-friendly options.

The business of travel and tourism is a multifaceted realm that demands a relentless focus on customer satisfaction, innovation, and responsible practices.

Success in this sector requires a deep understanding of your niche, a commitment to service excellence, and strategic marketing efforts. As the travel industry continues to evolve, businesses that can adapt and offer unique, memorable experiences will undoubtedly thrive in this exciting and ever-changing market.

Key Players in the Travel and Tourism Industry

As we dive deeper into the business of travel and tourism, it's crucial to recognize the key players that shape this industry. These players, ranging from airlines to accommodation providers and travel agencies, contribute to the diverse ecosystem of travel and tourism.

Understanding their roles and significance is essential for anyone interested in this dynamic sector.

Airlines and Aviation

Airlines are the lifelines of global travel. They provide the means for travelers to reach their destinations quickly and efficiently. Here's an overview of their role in the industry:

Passenger Transportation : Airlines transport millions of passengers daily, connecting cities and countries across the globe. They generate revenue through ticket sales, baggage fees, and in-flight services.
Cargo Services : Airlines also play a pivotal role in transporting goods and cargo, contributing significantly to international trade and logistics.
Global Networks : Major airlines operate extensive global networks, allowing travelers to reach virtually any corner of the world.

Hotel Chains and Accommodation Providers

The hospitality sector, including hotels, resorts, and vacation rentals, is another cornerstone of the travel and tourism industry. Here's how they contribute:

Lodging : These businesses offer lodging options, from budget-friendly to luxury, catering to diverse traveler preferences.
Dining and Services : Many hotels provide dining options, spa services, event hosting, and recreational facilities, enhancing the guest experience and generating additional revenue.
Destination Attraction : Iconic hotels and resorts often become attractions in themselves, drawing travelers to specific destinations.

Tour Operators and Travel Agencies

Tour operators and travel agencies specialize in creating and selling travel packages and experiences. Their roles include:

Curating Experiences : They design itineraries and packages that offer unique and immersive travel experiences, from adventure tours to cultural excursions.
Booking and Logistics : These businesses handle the logistics of travel, including accommodations, transportation, and activities, streamlining the process for travelers.
Expertise : Tour operators and travel agencies provide expert guidance, helping travelers navigate complex travel decisions.

Destination Management Companies

Destination management companies (DMCs) focus on specific regions or destinations. Their roles encompass:

Local Expertise : DMCs have in-depth knowledge of their respective destinations, enabling them to offer specialized services and experiences.
Customized Services : They work closely with travel planners and agencies to tailor experiences for groups and individuals.
Sustainability : DMCs often play a vital role in promoting responsible tourism practices within their destinations.

Online Travel Agencies (OTAs)

Online travel agencies have become a dominant force in the industry, leveraging digital platforms to connect travelers with various travel services. Here's what they do:

Aggregation : OTAs aggregate information from airlines, hotels, and other travel service providers, offering a wide array of choices to travelers.
Booking Platforms : They provide convenient booking platforms, allowing travelers to book flights, accommodations, and more in one place.
Reviews and Recommendations : OTAs often feature user reviews and recommendations, influencing traveler decisions.

Understanding the roles of these key players in the travel and tourism industry is essential for anyone considering entering this sector.

Each player contributes uniquely to the travel experience, from transportation to accommodation and beyond. Successful businesses often collaborate with multiple stakeholders to offer comprehensive and memorable travel experiences to their customers.

Travel and Tourism Post-COVID-19

The travel and tourism industry, like many others, faced unprecedented challenges during the COVID-19 pandemic. Lockdowns, travel restrictions, and health concerns brought international travel to a standstill. However, the industry has displayed remarkable resilience and adaptability.

Let's explore how the sector is recovering and adapting in a post-pandemic world.

Impact of the Pandemic on the Industry

Travel Restrictions : Stringent travel restrictions, including border closures and quarantine requirements, severely impacted international travel. Airlines faced a sharp decline in passenger numbers.
Hospitality Struggles : Hotels and accommodation providers experienced a dramatic drop in occupancy rates. Many temporarily closed or adapted to offer quarantine and isolation services.
Cruise Industry Challenges : Cruise lines faced significant setbacks due to onboard outbreaks. The industry had to reimagine health and safety protocols.
Shift to Domestic Travel : With international travel restrictions, many travelers turned to domestic and regional destinations, boosting local tourism.
Digital Transformation : The pandemic accelerated the adoption of digital technologies for contactless bookings, health monitoring, and communication.

Recovery and Adaptation Strategies

The travel and tourism industry is rebounding, thanks to a combination of factors:

Vaccination Campaigns : Widespread vaccination campaigns have increased traveler confidence, making international travel safer.
Health and Safety Protocols : Airlines, hotels, and other businesses have implemented robust health and safety measures to reassure travelers.
Flexible Booking Policies : Many travel companies introduced flexible booking and cancellation policies to accommodate changing travel plans.
Sustainability Focus : There's a growing emphasis on sustainable and responsible tourism, with businesses integrating eco-friendly practices.
Digitalization : The industry continues to embrace digital technologies, offering contactless experiences and personalized services.
Collaboration : Stakeholders across the industry are collaborating to rebuild and promote destinations.

Future Outlook and Resilience

The travel and tourism industry is poised for recovery and growth in the coming years. Here's what the future may hold:

Pent-Up Demand : Many travelers postponed their plans during the pandemic, leading to pent-up demand for leisure and business travel.
Sustainable Travel : Sustainable and eco-conscious travel is gaining momentum. Travelers are increasingly choosing destinations and businesses committed to environmental responsibility.
Tech Integration : Technology will continue to play a significant role, with advancements in AI, mobile apps, and data analytics enhancing the travel experience.
Health and Safety : Health and safety measures will remain a priority, with businesses maintaining rigorous protocols.
Remote Work and Travel : Remote work trends may encourage a blend of work and leisure travel, with more extended stays in diverse locations.
Resilience Planning : The industry is developing resilience plans to better handle future crises and disruptions.

The travel and tourism industry's ability to adapt and innovate in the face of adversity demonstrates its resilience. As it recovers and evolves, it offers promising opportunities for businesses and travelers alike.

The key to success lies in embracing change, prioritizing safety, and delivering exceptional experiences that meet the evolving needs of travelers in a changing world.

Sustainable Tourism and Responsible Business Practices

In a world increasingly concerned about the environment and social responsibility, the travel and tourism industry is under scrutiny to adopt more sustainable and responsible practices.

Let's delve into the importance of sustainable tourism and how businesses can contribute to a greener and more ethical travel sector.

Environmental and Social Responsibility

Reducing Carbon Footprint : The travel industry is a significant contributor to greenhouse gas emissions. Airlines, for example, are exploring biofuels and more fuel-efficient aircraft to reduce their carbon footprint.
Preserving Natural Resources : Eco-conscious travelers seek destinations that protect and preserve natural resources. Businesses can contribute by implementing eco-friendly initiatives like energy-efficient facilities and waste reduction programs.
Conservation Efforts : Supporting local conservation projects and wildlife protection initiatives can be a part of responsible tourism. This can involve financial contributions or active participation.
Respecting Local Cultures : Responsible tourism respects and celebrates local cultures and traditions. It involves engaging with local communities in a respectful and sustainable manner.
Community Involvement : Businesses can support the communities they operate in through job creation, fair wages, and community development projects.

Sustainable Tourism Certifications and Initiatives

Eco-Certifications : Numerous certifications, such as EarthCheck and Green Key , help businesses showcase their commitment to sustainability. These certifications often involve rigorous audits of a company's environmental practices.
Zero-Waste Initiatives : Some hotels and resorts aim to become zero-waste establishments, recycling and repurposing nearly all their waste.
Wildlife Conservation : Tour operators and businesses can partner with wildlife conservation organizations to promote ethical wildlife experiences.
Local Sourcing : Restaurants and hotels can prioritize local sourcing of food and materials, reducing transportation-related carbon emissions.
Plastic Reduction : Many businesses are eliminating single-use plastics and opting for sustainable alternatives.

Benefits of Responsible Tourism for Businesses

Competitive Advantage : Travelers increasingly seek sustainable and responsible options. Businesses that embrace these practices gain a competitive edge.
Cost Savings : Sustainable practices often lead to cost savings through reduced energy and resource consumption.
Enhanced Reputation : Businesses committed to responsible tourism build a positive reputation and attract like-minded customers.
Legal Compliance : Adhering to eco-friendly and ethical standards ensures compliance with evolving environmental and social regulations.
Long-Term Viability : By protecting the environment and supporting local communities, businesses contribute to the long-term viability of their destinations.
Guest Satisfaction : Eco-conscious travelers appreciate businesses that share their values, leading to higher guest satisfaction and loyalty.

The travel and tourism sector's future hinges on sustainable and responsible practices. Businesses that prioritize environmental and social responsibility not only contribute to a healthier planet but also position themselves for long-term success in an industry undergoing profound changes.

As a business professional, understanding and adopting these practices can be a strategic advantage in a world where ethical considerations increasingly influence consumer choices.

Hostile Takeovers

In a hostile takeover, the acquiring company pursues the target company despite the target's resistance. Hostile takeovers often involve aggressive tactics, such as tender offers directly to shareholders or attempts to replace the target's board of directors.

Case Studies: Successful Businesses in Travel and Tourism

To gain deeper insights into the strategies and approaches that have propelled certain businesses to success in the travel and tourism sector, let's examine a few notable case studies.

These examples showcase how innovation, adaptability, and a customer-centric approach can make a significant impact in this dynamic industry.

Airbnb: Revolutionizing Accommodation

Airbnb, founded in 2008, has transformed the hospitality sector. This online marketplace connects travelers with unique accommodations offered by hosts worldwide. What sets Airbnb apart?

Key Success Factors:

Platform Model : Airbnb operates as a platform, allowing hosts to list their properties and travelers to book them. This asset-light model means Airbnb doesn't own properties, reducing capital requirements.
User Reviews : User-generated reviews and ratings build trust among users. Travelers can make informed choices based on the experiences of previous guests.
Personalization : Airbnb's recommendation engine suggests accommodations based on user preferences, enhancing the customer experience.
Diverse Offerings : From treehouses to castles, Airbnb offers a wide range of unique accommodations, appealing to travelers seeking authentic experiences.
Host Community : Airbnb invests in building a strong host community, providing support and resources to hosts.

Cross-Border Mergers and Acquisitions: Global Expansion

Cross-border M&A transactions involve companies from different countries coming together. These deals offer opportunities for global expansion but also present unique challenges.

Booking.com: Data-Driven Booking

Booking.com, founded in 1996, is a global online travel agency. It leverages technology and data to simplify travel booking.

Vast Inventory : Booking.com offers a wide range of accommodation options, from hotels to vacation rentals. This extensive inventory caters to diverse traveler preferences.
User Experience : The platform's user-friendly interface and transparent booking process contribute to its popularity.
Data Analytics : Booking.com uses data analytics to understand traveler behavior, enabling personalized recommendations and pricing strategies.
Global Reach : With a presence in over 220 countries and territories, Booking.com serves a global audience.
Instant Confirmation : Providing real-time booking confirmation enhances the customer experience.

Delta Air Lines: Customer-Centric Air Travel

Delta Air Lines, a major U.S. carrier founded in 1924, is known for its customer-centric approach.

Reliability : Delta prioritizes operational reliability, minimizing flight cancellations and delays.
Fleet Upgrades : Investing in a modern and efficient fleet enhances the passenger experience and reduces operating costs.
Customer Service : Delta emphasizes excellent customer service, and its efforts are reflected in high customer satisfaction ratings.
Global Alliances : Participation in global airline alliances expands route networks and offers travelers more choices.
Innovation : Delta embraces innovation, introducing features like biometric boarding and in-flight entertainment options.

These case studies highlight the diverse strategies and approaches that have driven success in the travel and tourism sector. From disruptive online marketplaces to data-driven booking platforms and customer-centric airlines, businesses that prioritize innovation, customer experience, and adaptability are well-positioned for growth.

By studying these examples, business professionals can gain valuable insights into the industry's evolving landscape and identify opportunities to innovate and excel in their own travel and tourism endeavors.

Lessons Learned from Industry Leaders

The travel and tourism sector offers a treasure trove of lessons for business professionals across various industries. Let's distill some key takeaways from the successes and innovations of industry leaders:

1. Customer-Centricity Is Paramount

Whether you're running an airline, hotel, or travel agency, prioritizing the customer experience is non-negotiable. Happy and satisfied customers become loyal patrons and brand advocates. Invest in personalized services, efficient booking processes, and responsive customer support.

2. Embrace Technology and Data

Technology is a game-changer in the travel industry. From data analytics that inform pricing strategies to mobile apps that enhance on-the-go experiences, leveraging technology can set your business apart. Be open to adopting new tools and systems that improve efficiency and customer satisfaction.

3. Diversity and Choice Matter

Offering a diverse range of products or services can attract a broader audience. In the travel sector, this means providing various accommodation types, transportation options, and tour packages. Embrace diversity to meet the unique preferences of your customers.

4. Transparency Builds Trust

Transparency in pricing, policies, and terms and conditions builds trust with customers. Hidden fees and ambiguous policies can lead to dissatisfaction. Clear communication and honesty go a long way in establishing credibility.

5. Sustainability Is the Future

Sustainability and responsible tourism are becoming central to the industry's ethos. Travelers are increasingly conscious of their environmental impact. Consider eco-friendly practices and promote responsible tourism. It's not only good for the planet but also a selling point for your business.

6. Innovate or Stagnate

Innovation is the lifeblood of the travel and tourism sector. Whether it's introducing new services, improving efficiency, or enhancing the customer journey, staying ahead requires a commitment to innovation. Monitor industry trends and be open to creative solutions.

7. Globalization Expands Reach

Participating in global networks and alliances can expand your business's reach. Collaborate with international partners to offer customers a wider range of options. Globalization also provides resilience in the face of economic fluctuations.

8. Resilience Is Crucial

The industry has weathered numerous storms, from economic crises to health emergencies. Building resilience into your business plans, such as having contingency measures for crises, is essential. Flexibility and adaptability are key.

9. Community and Culture Matter

Embrace the culture and communities where your business operates. Engage with local communities, respect their traditions, and contribute positively. This fosters goodwill and can lead to meaningful partnerships.

10. Continuous Learning Is a Competitive Advantage

The travel and tourism sector is ever-evolving. Continuous learning and staying informed about industry trends and regulations are essential. Attend conferences, workshops, and industry events to network and gain insights.

Incorporating these lessons into your business strategy can set you on a path to success in the dynamic and rewarding world of travel and tourism. By combining innovation, customer focus, and a commitment to sustainability, you can thrive in an industry that promises new horizons and unforgettable experiences for travelers worldwide.

The travel and tourism sector represents a dynamic and resilient industry with a significant impact on the global economy. As a business professional, understanding the nuances and opportunities within this sector is paramount. In this comprehensive guide, we've explored the multifaceted world of travel and tourism, delving into its significance, components, trends, and challenges.

We've seen how the industry intersects with business, offering a wide array of opportunities for entrepreneurs and established enterprises alike. Whether you're considering venturing into travel-related ventures or seeking to enhance an existing business through tourism, the sector holds immense potential.

Key takeaways from this exploration include:

The Economic Powerhouse : Travel and tourism contribute significantly to GDP, job creation, and foreign exchange earnings in many countries. This sector's resilience is evident through its ability to rebound from crises.
Diverse Components : The industry encompasses hospitality, transportation, attractions, travel services, and more, creating a rich tapestry of business opportunities.
Trends and Challenges : Emerging trends like sustainable tourism and digital transformation offer avenues for innovation. Yet, challenges such as health concerns and environmental responsibility must be addressed.
The Business of Tourism : Customer-centricity, technology adoption, transparency, and sustainability are vital principles for success in this sector.
Key Players : Airlines, hotel chains, tour operators, and online travel agencies are among the key players shaping the industry's landscape.
Post-COVID-19 Era : The pandemic prompted significant shifts in travel behavior. Recovery strategies and adaptability are critical for businesses in the post-COVID-19 world.
Sustainable Tourism : Responsible practices not only benefit the environment but also appeal to conscious travelers and can drive business success.
Lessons from Industry Leaders : Customer-centricity, innovation, transparency, and resilience are valuable takeaways from successful travel and tourism businesses.

As the world evolves, so do the travel and tourism opportunities. By staying informed, embracing innovation, and aligning with sustainability, you can position your business for success in an industry that promises both profitability and the chance to create unforgettable experiences for travelers around the globe.

Now, armed with insights from this guide, you're better equipped to navigate the exciting and ever-changing world of travel and tourism, contributing to its growth and shaping its future. Bon voyage!

United Nations World Tourism Organization (UNWTO). (2022). Tourism Highlights 2022 Edition. Link
World Travel & Tourism Council (WTTC). (2022). Economic Impact Reports. Link
International Air Transport Association (IATA). (2022). IATA Economics. Link
Deloitte. (2022). Travel, Hospitality, and Leisure Reports. Link
Statista. (2022). Statistics and Market Data on Travel and Tourism. Link
McKinsey & Company. (2022). Travel, Logistics & Transport Infrastructure. Link
Booking.com. (2023). Link
TripAdvisor. (2023). GreenLeaders. Link
The New York Times. (2023). Travel and Tourism. Link
National Geographic. (2023). Sustainable Travel. Link
The World Bank. (2023). Tourism. Link
World Tourism Organization (2022). Global Code of Ethics for Tourism. Link

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5 keys to success for travel agents in 2016 and beyond.

by Nick Ostdick , on Apr 19, 2016 9:00:00 AM

Which do you choose? Tuesday night dinner aside, a similar scenario plays out time and time again in the travel and tourism industry, particularly between OTAs - as well as tour operators and TMCs - and traditional travel agencies.

OTAs offer customers a wide array of products and services from a number of different suppliers. Travel options can easily be combined into dynamic packages and sold to consumers at discounted pricing or with special offers. On the other hand, travel agencies can offer customers more niche travel bookings and curate potentially more individualized travel experiences through getting to know their customers on a more intimate level.

Conventional thought on the state and fallout of the OTA boom is somewhat divided - some travel insiders believe the boom is behind us while others believe it’s identity has simply morphed or evolved. Whatever the case, travel agencies have seen a resurgence in recent years after the travel industry labeled them a dying breed, and travelers are slowly returning to travel agencies to help plan and execute their travel plans.

With that in mind, here are 5 key drivers travel agents can leverage to ensure continued success in 2016 and beyond.

Embrace Transparency

Travel review websites, tourism blogs, social media platforms, and even OTAs themselves have helped make more information available to would-be travelers than ever before. With very little work, travelers can research and investigate everything from suppliers - hotels, airlines, rental cars, etc - to the actual destinations themselves. This results in a much more informed and knowledgeable traveler, which one could argue lends itself to the convenience, speed and, flexibility surrounding web-based bookings and packaging.

But travel agents should embrace the transparency these forms of technology have provided and use them as building blocks to create dialogues between themselves and customers. The preponderance of travel information and feedback, while at once leveling the playing field, can also be overwhelming for even the seasoned traveler, and travel agents who leverage this transparency as a way to help customers sort through the wealth of information will not only create relationships with customers, but will also build trust for future bookings.

Traveler Engagement

One of the core drivers OTAs and other big-box-like travel companies have at their disposal is the ability to engage with customers long after a booking is complete and the traveler’s bags are unpacked. This capability to touch base allows travel companies to create and distribute targeted messaging based on a customer’s profile and purchase history, but also allows for the mass dissemination of special offers, news, updates, and so on. Travel agencies must incorporate this strategy into their marketing and outreach efforts to continue that positive, intimate connection created when the customers initially made contact. Email marketing campaigns, social media posts, and blogs are relatively inexpensive ways to sustain communication with customers, engender loyalty, and increase your ROI without much capital investment.

Operational Efficiency

Let’s face it: Delays and cancellations are simply part and parcel of doing business in the travel industry. Weather events, natural disasters, regional unrest, mechanical issues, and other disruptions can severely plague a traveler’s experience and catch travel agencies off-guard when it comes to response. Travel agency’s must employ advanced ERP and booking software and solutions to create E2E visibility and agility to successfully facilitate interactions between suppliers and customers. Imagine a flight from Cleveland to Cancun is delayed due to a snow storm in Ohio. The capacity to mediate communication and information between an airline and customer to complete a rebooking or alter hotel accommodations is a crucial driver in retaining that customer and establishing operational efficiency across all points of the value chain.

Too Few Players?

As we discussed earlier, some travel industry analysts believe the OTA boom has resulted in too few players in the market - the fallout has left the industry with just a handful of survivors who more or less corner the entire tourism market. Think websites like Expedia and others. However, others argue the OTA boom has merely shifted in it’s composition to include slightly less traditional OTAs like AirBnB and its competitors. But too few players in the travel industry may not be a negative proposition for travel agencies who can use this perceived vacuum to differentiate themselves by creating a strong, unique brand or story. Travel agencies should view the current landscape as value-added when it comes to positioning themselves as a viable alternative to OTAs and other online booking portals who prioritize speed over care - who view a customer as a number, not an individual.

Target Millennials

We’ve heard the same story many times over: Millennials live online - they exist on social media and in an instant-gratification bubble, which can spell death for travel agencies and other traditional modes of tourism and destination booking. But it’s also true milliennials crave unique, personalized travel experiences, and travel agencies are perhaps best positioned to offer this sought-after demographic what they desire. In fact, according to MMGY Global’s 2015 Portrait of American Travelers, the number of millennial travelers who said using traditional travel agents to book vacations jumped from 9 percent in 2014 to 13 percent in 2015. This data clearly shows millennial travelers feel travel agencies are a value-added proposition in their destination planning, and travel agencies should seize this data as a way to leverage tailored marketing and messaging to further entice millennials to ditch their travel apps for a travel experience curated by an individual.

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Creating the Perfect Business Plan for Your Travel Agency

Writing an effective e-commerce business plan for a travel agency is an important step in the success of the business. This blog post will provide insight into the key components of an effective business plan, and the necessary steps to create the perfect plan for your travel agency. Additionally, the blog will provide tips on how to write an effective business plan, and how to make sure it sets your company apart from the competition.

When reading this blog post, you will learn:

How to understand the purpose of a business plan
Strategies for researching the travel industry
Techniques for outlining the goals and objectives of your business
Tactics for understanding your target market
Steps for setting up your financial plan
Tips for analyzing your competitors
Approaches for crafting a marketing strategy
Ways to identify your business strengths and weaknesses
Processes for creating an operational plan
Strategies for establishing a risk management plan
Steps for writing a summary of your business plan
How to finalize your business plan

Introduction: Understanding the Purpose of a Business Plan

Writing an effective e-commerce business plan is essential to the success of any online business. A business plan outlines the goals and objectives of your e-commerce business, as well as how you plan to achieve them. It is also a great way to get investors and potential partners on board with your business.

Researching the Travel Industry

Before you begin writing your plan, it is important to do some research on the travel industry. Consider factors like the current state of the industry, trends, and potential challenges that you may face. This will give you a better understanding of what you need to do to succeed in the industry.

Outlining the Goals and Objectives of Your Business

Once you have done your research, you can begin outlining the goals and objectives of your business. This is an important step, as it will help you determine your strategy and give potential investors a clear understanding of what you are trying to accomplish.

Understanding Your Target Market

In order to create an effective e-commerce business plan, you need to have a clear understanding of who your target market is. Consider factors like age, gender, location, and interests. Knowing your target market will help you create a more targeted marketing strategy.

Setting Up Your Financial Plan

The next step is to set up your financial plan. This includes determining how much money you will need to get your business off the ground, as well as creating a budget and forecasting your financial needs for the future.

Analyzing Your Competitors

Analyzing your competitors is an important part of creating your e-commerce business plan. Look at what they are doing right and wrong, and use this information to create a competitive advantage for your business.

Crafting a Marketing Strategy

Once you have a clear understanding of your target market and your competitors, you can begin crafting a marketing strategy. This should include a combination of online and offline marketing tactics that will help you reach your desired audience.

Identifying Your Business Strengths and Weaknesses

Before you begin writing your business plan, it is important to identify the strengths and weaknesses of your e-commerce business. This will help you create a comprehensive plan that takes advantage of your strengths and addresses your weaknesses.

Creating an Operational Plan

An operational plan is a key part of any e-commerce business plan. This plan outlines how your business will run on a daily basis, including tasks, roles, and responsibilities.

Establishing a Risk Management Plan

No business plan is complete without a risk management plan. This plan should include steps to minimize risk and mitigate potential losses.

Writing a Summary of Your Business Plan

Once you have created your plan, you should write a summary that outlines the main points of your business plan. This should include a brief description of your goals, objectives, target market, financial plan, and marketing strategy.

Finalizing Your Business Plan

The final step is to review and finalize your business plan. Make sure that it is clear, concise, and contains all the necessary information. Once you are happy with your plan, you can begin taking action to get your e-commerce business up and running. Below we answer common questions entrepreneurs have about these topics.

1. Introduction: Understanding the Purpose of a Business Plan

What is the purpose of a business plan.

The purpose of a business plan is to inform the startup and growth planning process, which is in turn meant to inform the eventual go/no-go decision. This is the purpose of the business plan, and it's the purpose that matters.

Business plans don't exist to predict the future or to be a crystal ball of perfect knowledge. They exist to provide the best-possible information to the founder to inform their decision. If the business plan provides that information, then it has served its purpose.

How can a business plan help entrepreneurs reach their goals?

A business plan helps an entrepreneur reach their goals by creating a roadmap that provides a clear direction. A business plan outlines the key components of a company, including its mission, vision and values, as well as its goals and objectives. It also provides a detailed description of how the company will operate, along with a time frame for achieving its goals. An entrepreneur can use a business plan to keep track of their company's progress and make necessary adjustments along the way.

2. Researching the Travel Industry

What are the most popular destinations for travelers in the industry.

When you answer this question, keep in mind that your strategy shouldn't be to just list travel destinations. Instead, you want to use the opportunity to demonstrate your expertise and knowledge. You can do this by sharing travel tips and insights, as well as discussing the benefits and attractions of these travel destinations. You can also provide suggestions for itineraries or activities to make the most of a trip to these destinations. By doing this, you'll be able to demonstrate your expertise, and you'll also be able to position yourself as an authority in your industry.

What types of services or amenities do travelers in the industry expect?

Whether you're an entrepreneur in the travel industry or not, a great way to think about this question is to picture your ideal customer. What services would you like to have if you were traveling? Think about what you value the most when you're on the go, and translate that into your business. A great way to stand out is to provide things that your customers would enjoy. Think about the little things that can make a big difference, like wifi and charging stations. Those things can make a big difference when you're on the road and trying to get things done.

3. Outlining the Goals and Objectives of Your Business

What are the long-term goals of your business.

In order to answer the question, "What are the long-term goals of your business?" an entrepreneur should consider their company's vision and mission statement. An entrepreneur should also consider the direction their company is heading and how they plan to get there. In addition, an entrepreneur should think about how their business will evolve over time and what they hope to achieve as a business owner.

What are the short-term objectives you want to achieve?

As an entrepreneur, short-term objectives are all about aligning your short-term goals with your long-term vision. For example, if you want to create a sustainable business that will last for decades, then you need to think about how you're going to take the first steps toward that goal. Likewise, if you want to grow your business rapidly in the next two years, then you need to determine how you're going to scale your operations to meet that goal.

The short-term objectives you want to achieve should align with your long-term vision for the business. For example, if your long-term vision is to create a sustainable business, then your short-term objectives should be focused on building sustainable practices in your business. If your long-term vision is to grow rapidly, then your short-term objectives should be focused on aggressive growth goals.

4. Understanding Your Target Market

Who is your target customer.

Every business needs to have a target audience, in order to succeed. An entrepreneur needs to identify what the core values are, what the business is offering, and who would be interested in it.

As a business owner, you should take a moment to think about your different marketing efforts, and how they are targeting different audiences. If you want to reach more customers, you should be thinking about what different demographics you are not reaching, and how you can target them.

What are the needs and wants of your target customer?

Entrepreneurs should think about answering the question, "What are the needs and wants of your target customer?" by considering the following: are you trying to create a product for a niche audience or for a larger audience? If you're making a product for a niche audience, then you'll want to pay closer attention to their needs and wants. If, on the other hand, you're making a product for a larger audience, then you'll want to look at trends and gather data from a wider group of people.

5. Setting Up Your Financial Plan

What are your financial goals for the next 5 years.

I would suggest that entrepreneurs think about what they want to achieve in the next 5 years, then set goals that will help them achieve these. For example, you may want to create a new product, or expand your business to another market. Once you've decided what you want to achieve, you can then set milestones that will help you reach these goals. For example, you may want to develop a prototype of the new product within 12 months, then launch it within 18 months. Setting goals and milestones will help you get where you want to be in five years time.

How much money do you need to save each month to reach your goals?

An entrepreneur should be honest and realistic when answering this question. It's important to remember that you can't save money if you don't have any coming in, so make sure to take that into account. You should also take monthly expenses into account, such as your rent or mortgage, utilities, and food. Finally, remember to account for any unexpected expenses that may come up during the month. By being realistic and honest about your monthly expenses, you will be able to figure out how much you need to save each month in order to reach your goals.

6. Analyzing Your Competitors

What are the strengths and weaknesses of your competitors.

Competitors are not just the competition but also the source of inspiration. If you can't find any competitive edge, look at your competitors' flaws and work on them. Weaknesses are just areas that need improving'they're opportunities.

What strategies do your competitors use to reach their target customers?

One strategy competitors use is to have a social media presence. Many businesses have active Instagram and Facebook accounts that they use to market their brand and reach new customers. This is a great strategy because it's free and easy to use. If you're competing with a business that uses this strategy, you need to find a way to reach your target customers in the same way. One way to do this is to create a Facebook or Instagram account for your business and post regularly. This will help you reach the same audience as your competitors and help you get your brand out there.

7. Crafting a Marketing Strategy

What are our target markets and how can we reach them.

For entrepreneurs, it is important to have a clear vision of the business and where it is headed. This can help them determine who their target customers will be. Once they know this, they can begin to develop a marketing strategy to reach those customers. This may include advertising, social media, or other types of outreach. By having a clear vision and a plan for reaching customers, entrepreneurs can successfully grow their business.

What resources do we have to support our marketing strategy and how can we best utilize them?

Entrepreneurs should think about their customer personas. What do their customers want, and how will they get them there? The best resources are the ones that help you achieve your marketing goals. In my business, I am able to utilize my customer service team as a resource for my marketing efforts. I can ask them for testimonials and quotes for blog posts and social media posts, for example. They are a great resource for customer service questions and can help you achieve your marketing goals.

8. Identifying Your Business Strengths and Weaknesses

What are your business's top 3 strengths.

As an entrepreneur, you should always focus on your business's strengths and not its weaknesses. This is the best way to lure in potential customers and investors. If you have a weak spot, you can always try to improve upon it later, but if you focus too much on what's wrong with your business, you'll scare off any potential buyers.

What are your business's top 3 weaknesses?

Being a small business, our top three weaknesses are lack of diversity in our marketing, the inability to be everywhere at once, and the small pool of talent. As a small business, we need to do everything ourselves, and there's only so many hours in the day. When it comes to marketing, we know we can improve in a variety of ways, but we only have so many hours in the day. We are always looking for ways to improve and diversify our marketing, but it takes time.

The second weakness is that we can't be everywhere at once. We do our very best to be in as many places as possible, but we know there are still places where people can't find us. It's difficult being a small business because there are always things you can improve on.

9. Creating an Operational Plan

How will the operational plan be structured and organized.

An entrepreneur should think about answering the question, "How will the operational plan be structured and organized?" by creating a detailed and organized plan. An entrepreneur should always have a detailed and organized plan for their business. This will help them stay on track and reach their goals. They should also be ready to explain this plan to others. This will help them gain support and momentum for their business.

What steps need to be taken to ensure effective implementation of the operational plan?

The operational plan is the roadmap that takes you from the current state to where you want to be. The key to implementing the plan is to break it down into small, achievable milestones. Once you have those milestones, you want to make sure you track progress so that you can make mid-course corrections as needed.

10. Establishing a Risk Management Plan

What strategies should be used to identify and assess potential risks.

An entrepreneur should think about answering the question, What strategies should be used to identify and assess potential risks? by asking themselves, To whom do I owe money? It is important to know who you owe money to in order to assess the risk of not being able to pay them back. This is a serious risk that you need to identify and assess. You could get sued or go bankrupt if you don't pay back what you owe.

How should resources be allocated to mitigate identified risks?

A great way to mitigate risk is to diversify your portfolio. The more you can invest in different areas, be it products and services, or even geographically, the less volatile your business will be in the event something goes wrong. To put it in terms of a financial investment, if you have only $10,000 in stocks, and one of them drops by 50%, then you've lost half of your money. If, on the other hand, you have $10,000 invested in ten different stocks, and one of them drops in value by 50%, then you've only lost 5% of your money. By diversifying, you're spreading out your risk, and making it much less likely that any one event will be able to tank your business.

11. Writing a Summary of Your Business Plan

How does your summary accurately reflect the contents of your business plan.

The question of how a summary reflects the business plan is a pretty common question. The summary is the first thing people will read, and it's important that the summary is engaging and that it gives a good idea about the contents of the plan.

My advice is to start with a draft of the summary and then create a draft of the plan. Compare the two drafts and see where your summary is too long, where it doesn't quite get to the point, and where it is not as clear as it could be. Then, trim down your summary until it gets to the point quicker while still capturing the essence of the plan. You can also show this to people who are familiar with the industry or your specific idea.

What key points should you focus on when summarizing your business plan?

The key points you include in your business plan summary should be the same as the key points you include in your business plan. Instead of writing a summary, just write the plan. It's a good rule of thumb to follow because it forces you to make a plan that is clear, concise, and effective. It's easy to get lazy and write a summary, but it's always better to take the time to write a good full plan and then include a summary.

12. Finalizing Your Business Plan

Have you considered the potential risks and rewards of your proposed business plan.

No matter how well prepared you are, there will always be some risk involved in any business venture, but that doesn't mean you shouldn't pursue it. As you strive towards success, there will always be moments of doubt, but most of them will result from your own insecurities, not from your business plan. The best thing you can do when asked about the risks involved in your business plan is to stress how prepared you are for them, and how you've made sure to mitigate them.

What type of feedback have you received from potential investors or advisers?

I'm always looking for opportunities to hear from potential investors and advisers, as I have something very specific in mind for my business. I'm looking for the best way to build a solid foundation that supports my current business, and also provides room for growth. When potential investors or advisers respond, I'm looking to see which methods they're suggesting that might help my business reach the next stage of growth. I'm also looking to see if they've suggested anything that might prevent my business from growing, or that might be harmful in some way. I'm always looking for the best feedback to help me continue to make my business the best it can be.

Key Takeaways:

A business plan is an essential document for any business, outlining the goals and objectives of the venture.
Research into the travel industry should be conducted to gain a better understanding of the market.
A well-defined target market should be identified and tailored to as part of the business plan.
A financial plan should be established that outlines potential sources of income and expenditure.
Analyzing competitors and identifying business strengths and weaknesses should be done to craft an effective marketing strategy.

Creating a business plan is an essential part of starting and growing a successful business. By following the steps outlined above, you can create a well-structured business plan that outlines your goals and objectives and provides direction for your business. A business plan is not just a document, but a living tool that helps to keep your business on track and guide its growth. By taking the time to research, plan, and analyze your industry, target market, competitors, and financials, you can develop an effective business plan that will be the foundation of your business.

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Travel Agencies in the US - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

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Travel Agencies in the US

Industry Revenue

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Market size is projected to over the next five years.

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About this industry, industry definition, what's included in this industry, industry code, related industries, domestic industries, competitors, complementors, international industries, performance, key takeaways, revenue highlights, employment highlights, business highlights, profit highlights, current performance.

What's driving current industry performance in the Travel Agencies in the US industry?

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Industry Volatility vs. Revenue Growth Matrix

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Major Markets

Major Market Segmentation

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International Trade

Industry Concentration of Imports by Country
Industry Concentration of Exports by Country
Industry Trade Balance by Country

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Geographic Breakdown

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Share of Total Industry Establishments by Region ( )

Data Tables

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Competitive Forces

Concentration.

Combined Market Share of the Four Largest Companies in This Industry ( )
Share of Total Enterprises by Employment Size

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Barriers to Entry

What challenges do potential entrants in the Travel Agencies in the US industry?

Substitutes

What are substitutes in the Travel Agencies in the US industry?

Buyer and Supplier Power

Upstream Buyers and Downstream Suppliers in the Travel Agencies in the US industry

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Share of Economy vs. Investment Matrix
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3-4 Industry Multiples (2018-2023)
15-20 Income Statement Line Items (2018-2023)
20-30 Balance Sheet Line Items (2018-2023)
7-10 Liquidity Ratios (2018-2023)
1-5 Coverage Ratios (2018-2023)
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3-5 Operating Ratios (2018-2023)
5 Cash Flow and Debt Service Ratios (2018-2023)
1 Tax Structure Ratio (2018-2023)

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Frequently Asked Questions

What is the market size of the travel agencies industry in the us.

The market size of the Travel Agencies industry in the US is measured at in .

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Over the next five years, the Travel Agencies in the US market is expected to . See purchase options to view the full report and get access to IBISWorld's forecast for the Travel Agencies in the US from up to .

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Top companies in the Travel Agencies industry in the US, based on the revenue generated within the industry, includes .

How many people are employed in the Travel Agencies industry in the US?

The Travel Agencies industry in the US has employees in United States in .

How concentrated is the Travel Agencies market in the United States?

Market share concentration is for the Travel Agencies industry in the US, with the top four companies generating of market revenue in United States in . The level of competition is overall, but is highest among smaller industry players.

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Achieve Financial Freedom: A Guide to Earning High Commissions as a Travel Agent

April 30, 2024

Introduction to a Profitable Career Path

Dreaming of a career that combines your love for travel with the opportunity to earn well? As a travel agent, tapping into high commissions is key to your financial success. This guide will explore the lucrative world of the travel agency industry, providing insights into how you can maximize your earnings.

Gateway Travel: Your Partner in Success

At Gateway Travel, we are dedicated to helping travel agents succeed. Our platform is equipped with essential tools, resources, and support, enabling you to earn high commissions by leveraging our industry connections and expertise.

Understanding Commission Structures in Travel Agency Work

In the travel industry, commissions are based on a percentage of the sales you make. Travel agents earn by booking flights, hotels, tours, cruises, and other travel-related services.

The Role of a Host Agency

As a host agency, Gateway Travel offers access to a wide range of travel suppliers and higher commission tiers—not easily accessible to individual agents—helping you get better deals for your clients and increase your earnings.

Strategies to Maximize Your Earnings

Specialize in a Niche

Become an expert in a specific travel niche, like luxury travel or cruises, to differentiate yourself and capture more targeted market segments. This specialization can lead to higher sales and commission rates.

Utilize Technology

Take advantage of the tools and technology provided by your host agency. Gateway Travel offers advanced booking systems that simplify your reservations, increase your efficiency, and boost your client capacity.

Build Client Relationships

Fostering strong relationships with clients encourages repeat business and referrals, significantly increasing your revenue sources.

Stay Informed and Adapt

The travel industry is constantly changing. Staying informed through ongoing education helps you adapt your offerings and maintain a competitive edge.

Crafting a Successful Business

Develop a clear business plan, identify your target market, and implement effective marketing strategies. Gateway Travel supports its agents with marketing tools and insights that help attract and retain clients.

The Path to Financial Freedom

While financial freedom in travel agency work requires commitment and the right strategy, partnering with a supportive host agency like Gateway Travel can make it more achievable through significant earning potential from high commissions.

Why Choose Gateway Travel?

Choosing Gateway Travel means becoming part of a community focused on success. Our comprehensive support system and competitive commissions create a clear path to financial freedom.

Conclusion: Start Your Journey Today

The travel agency industry offers a bright future for those seeking a rewarding career with dynamic earning potential. This guide is your first step toward capitalizing on the opportunities high commissions provide.

Ready to turn your passion for travel into a lucrative career? Join Gateway Travel and start on your path to financial freedom, enhancing your potential to earn high commissions and enjoy a successful, rewarding career as a travel agent. Embark on this exciting journey today and craft the life you’ve envisioned.

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40 Facts About Elektrostal

Written by Lanette Mayes

Modified & Updated: 02 Mar 2024

Reviewed by Jessica Corbett

Elektrostal is a vibrant city located in the Moscow Oblast region of Russia. With a rich history, stunning architecture, and a thriving community, Elektrostal is a city that has much to offer. Whether you are a history buff, nature enthusiast, or simply curious about different cultures, Elektrostal is sure to captivate you.

This article will provide you with 40 fascinating facts about Elektrostal, giving you a better understanding of why this city is worth exploring. From its origins as an industrial hub to its modern-day charm, we will delve into the various aspects that make Elektrostal a unique and must-visit destination.

So, join us as we uncover the hidden treasures of Elektrostal and discover what makes this city a true gem in the heart of Russia.

Key Takeaways:

Elektrostal, known as the “Motor City of Russia,” is a vibrant and growing city with a rich industrial history, offering diverse cultural experiences and a strong commitment to environmental sustainability.
With its convenient location near Moscow, Elektrostal provides a picturesque landscape, vibrant nightlife, and a range of recreational activities, making it an ideal destination for residents and visitors alike.

Known as the “Motor City of Russia.”

Elektrostal, a city located in the Moscow Oblast region of Russia, earned the nickname “Motor City” due to its significant involvement in the automotive industry.

Home to the Elektrostal Metallurgical Plant.

Elektrostal is renowned for its metallurgical plant, which has been producing high-quality steel and alloys since its establishment in 1916.

Boasts a rich industrial heritage.

Elektrostal has a long history of industrial development, contributing to the growth and progress of the region.

Founded in 1916.

The city of Elektrostal was founded in 1916 as a result of the construction of the Elektrostal Metallurgical Plant.

Located approximately 50 kilometers east of Moscow.

Elektrostal is situated in close proximity to the Russian capital, making it easily accessible for both residents and visitors.

Known for its vibrant cultural scene.

Elektrostal is home to several cultural institutions, including museums, theaters, and art galleries that showcase the city’s rich artistic heritage.

A popular destination for nature lovers.

Surrounded by picturesque landscapes and forests, Elektrostal offers ample opportunities for outdoor activities such as hiking, camping, and birdwatching.

Hosts the annual Elektrostal City Day celebrations.

Every year, Elektrostal organizes festive events and activities to celebrate its founding, bringing together residents and visitors in a spirit of unity and joy.

Has a population of approximately 160,000 people.

Elektrostal is home to a diverse and vibrant community of around 160,000 residents, contributing to its dynamic atmosphere.

Boasts excellent education facilities.

The city is known for its well-established educational institutions, providing quality education to students of all ages.

A center for scientific research and innovation.

Elektrostal serves as an important hub for scientific research, particularly in the fields of metallurgy, materials science, and engineering.

Surrounded by picturesque lakes.

The city is blessed with numerous beautiful lakes, offering scenic views and recreational opportunities for locals and visitors alike.

Well-connected transportation system.

Elektrostal benefits from an efficient transportation network, including highways, railways, and public transportation options, ensuring convenient travel within and beyond the city.

Famous for its traditional Russian cuisine.

Food enthusiasts can indulge in authentic Russian dishes at numerous restaurants and cafes scattered throughout Elektrostal.

Home to notable architectural landmarks.

Elektrostal boasts impressive architecture, including the Church of the Transfiguration of the Lord and the Elektrostal Palace of Culture.

Offers a wide range of recreational facilities.

Residents and visitors can enjoy various recreational activities, such as sports complexes, swimming pools, and fitness centers, enhancing the overall quality of life.

Provides a high standard of healthcare.

Elektrostal is equipped with modern medical facilities, ensuring residents have access to quality healthcare services.

Home to the Elektrostal History Museum.

The Elektrostal History Museum showcases the city’s fascinating past through exhibitions and displays.

A hub for sports enthusiasts.

Elektrostal is passionate about sports, with numerous stadiums, arenas, and sports clubs offering opportunities for athletes and spectators.

Celebrates diverse cultural festivals.

Throughout the year, Elektrostal hosts a variety of cultural festivals, celebrating different ethnicities, traditions, and art forms.

Electric power played a significant role in its early development.

Elektrostal owes its name and initial growth to the establishment of electric power stations and the utilization of electricity in the industrial sector.

Boasts a thriving economy.

The city’s strong industrial base, coupled with its strategic location near Moscow, has contributed to Elektrostal’s prosperous economic status.

Houses the Elektrostal Drama Theater.

The Elektrostal Drama Theater is a cultural centerpiece, attracting theater enthusiasts from far and wide.

Popular destination for winter sports.

Elektrostal’s proximity to ski resorts and winter sport facilities makes it a favorite destination for skiing, snowboarding, and other winter activities.

Promotes environmental sustainability.

Elektrostal prioritizes environmental protection and sustainability, implementing initiatives to reduce pollution and preserve natural resources.

Home to renowned educational institutions.

Elektrostal is known for its prestigious schools and universities, offering a wide range of academic programs to students.

Committed to cultural preservation.

The city values its cultural heritage and takes active steps to preserve and promote traditional customs, crafts, and arts.

Hosts an annual International Film Festival.

The Elektrostal International Film Festival attracts filmmakers and cinema enthusiasts from around the world, showcasing a diverse range of films.

Encourages entrepreneurship and innovation.

Elektrostal supports aspiring entrepreneurs and fosters a culture of innovation, providing opportunities for startups and business development.

Offers a range of housing options.

Elektrostal provides diverse housing options, including apartments, houses, and residential complexes, catering to different lifestyles and budgets.

Home to notable sports teams.

Elektrostal is proud of its sports legacy, with several successful sports teams competing at regional and national levels.

Boasts a vibrant nightlife scene.

Residents and visitors can enjoy a lively nightlife in Elektrostal, with numerous bars, clubs, and entertainment venues.

Promotes cultural exchange and international relations.

Elektrostal actively engages in international partnerships, cultural exchanges, and diplomatic collaborations to foster global connections.

Surrounded by beautiful nature reserves.

Nearby nature reserves, such as the Barybino Forest and Luchinskoye Lake, offer opportunities for nature enthusiasts to explore and appreciate the region’s biodiversity.

Commemorates historical events.

The city pays tribute to significant historical events through memorials, monuments, and exhibitions, ensuring the preservation of collective memory.

Promotes sports and youth development.

Elektrostal invests in sports infrastructure and programs to encourage youth participation, health, and physical fitness.

Hosts annual cultural and artistic festivals.

Throughout the year, Elektrostal celebrates its cultural diversity through festivals dedicated to music, dance, art, and theater.

Provides a picturesque landscape for photography enthusiasts.

The city’s scenic beauty, architectural landmarks, and natural surroundings make it a paradise for photographers.

Connects to Moscow via a direct train line.

The convenient train connection between Elektrostal and Moscow makes commuting between the two cities effortless.

A city with a bright future.

Elektrostal continues to grow and develop, aiming to become a model city in terms of infrastructure, sustainability, and quality of life for its residents.

In conclusion, Elektrostal is a fascinating city with a rich history and a vibrant present. From its origins as a center of steel production to its modern-day status as a hub for education and industry, Elektrostal has plenty to offer both residents and visitors. With its beautiful parks, cultural attractions, and proximity to Moscow, there is no shortage of things to see and do in this dynamic city. Whether you’re interested in exploring its historical landmarks, enjoying outdoor activities, or immersing yourself in the local culture, Elektrostal has something for everyone. So, next time you find yourself in the Moscow region, don’t miss the opportunity to discover the hidden gems of Elektrostal.

Q: What is the population of Elektrostal?

A: As of the latest data, the population of Elektrostal is approximately XXXX.

Q: How far is Elektrostal from Moscow?

A: Elektrostal is located approximately XX kilometers away from Moscow.

Q: Are there any famous landmarks in Elektrostal?

A: Yes, Elektrostal is home to several notable landmarks, including XXXX and XXXX.

Q: What industries are prominent in Elektrostal?

A: Elektrostal is known for its steel production industry and is also a center for engineering and manufacturing.

Q: Are there any universities or educational institutions in Elektrostal?

A: Yes, Elektrostal is home to XXXX University and several other educational institutions.

Q: What are some popular outdoor activities in Elektrostal?

A: Elektrostal offers several outdoor activities, such as hiking, cycling, and picnicking in its beautiful parks.

Q: Is Elektrostal well-connected in terms of transportation?

A: Yes, Elektrostal has good transportation links, including trains and buses, making it easily accessible from nearby cities.

Q: Are there any annual events or festivals in Elektrostal?

A: Yes, Elektrostal hosts various events and festivals throughout the year, including XXXX and XXXX.

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Electric light commercial vehicles
Electric truck and bus sales
Electric heavy-duty vehicle model availability
Charging for electric light-duty vehicles
Charging for electric heavy-duty vehicles
Battery supply and demand
Battery prices
Electric vehicle company strategy and market competition
Electric vehicle and battery start-ups
Vehicle outlook by mode
Vehicle outlook by region
The industry outlook
Light-duty vehicle charging
Heavy-duty vehicle charging
Battery demand
Electricity demand
Oil displacement
Well-to-wheel greenhouse gas emissions
Lifecycle impacts of electric cars

Cite report

IEA (2024), Global EV Outlook 2024 , IEA, Paris https://www.iea.org/reports/global-ev-outlook-2024, Licence: CC BY 4.0

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Nearly one in five cars sold in 2023 was electric.

Electric car sales neared 14 million in 2023, 95% of which were in China, Europe and the United States

Almost 14 million new electric cars 1 were registered globally in 2023, bringing their total number on the roads to 40 million, closely tracking the sales forecast from the 2023 edition of the Global EV Outlook (GEVO-2023). Electric car sales in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase. This is more than six times higher than in 2018, just 5 years earlier. In 2023, there were over 250 000 new registrations per week, which is more than the annual total in 2013, ten years earlier. Electric cars accounted for around 18% of all cars sold in 2023, up from 14% in 2022 and only 2% 5 years earlier, in 2018. These trends indicate that growth remains robust as electric car markets mature. Battery electric cars accounted for 70% of the electric car stock in 2023.

Global electric car stock, 2013-2023

While sales of electric cars are increasing globally, they remain significantly concentrated in just a few major markets. In 2023, just under 60% of new electric car registrations were in the People’s Republic of China (hereafter ‘China’), just under 25% in Europe, 2 and 10% in the United States – corresponding to nearly 95% of global electric car sales combined. In these countries, electric cars account for a large share of local car markets: more than one in three new car registrations in China was electric in 2023, over one in five in Europe, and one in ten in the United States. However, sales remain limited elsewhere, even in countries with developed car markets such as Japan and India. As a result of sales concentration, the global electric car stock is also increasingly concentrated. Nevertheless, China, Europe and the United States also represent around two-thirds of total car sales and stocks, meaning that the EV transition in these markets has major repercussions in terms of global trends.

In China, the number of new electric car registrations reached 8.1 million in 2023, increasing by 35% relative to 2022. Increasing electric car sales were the main reason for growth in the overall car market, which contracted by 8% for conventional (internal combustion engine) cars but grew by 5% in total, indicating that electric car sales are continuing to perform as the market matures. The year 2023 was the first in which China’s New Energy Vehicle (NEV) 3 industry ran without support from national subsidies for EV purchases, which have facilitated expansion of the market for more than a decade. Tax exemption for EV purchases and non-financial support remain in place, after an extension , as the automotive industry is seen as one of the key drivers of economic growth. Some province-led support and investment also remains in place and plays an important role in China’s EV landscape. As the market matures, the industry is entering a phase marked by increased price competition and consolidation. In addition, China exported over 4 million cars in 2023, making it the largest auto exporter in the world, among which 1.2 million were EVs. This is markedly more than the previous year – car exports were almost 65% higher than in 2022, and electric car exports were 80% higher. The main export markets for these vehicles were Europe and countries in the Asia Pacific region, such as Thailand and Australia.

In the United States, new electric car registrations totalled 1.4 million in 2023, increasing by more than 40% compared to 2022. While relative annual growth in 2023 was slower than in the preceding two years, demand for electric cars and absolute growth remained strong. The revised qualifications for the Clean Vehicle Tax Credit, alongside electric car price cuts, meant that some popular EV models became eligible for credit in 2023. Sales of the Tesla Model Y, for example, increased 50% compared to 2022 after it became eligible for the full USD 7 500 tax credit. Overall, the new criteria established by the Inflation Reduction Act (IRA) appear to have supported sales in 2023, despite earlier concerns that tighter domestic content requirements for EV and battery manufacturing could create immediate bottlenecks or delays, such as for the Ford F-150 Lightning . As of 2024, new guidance for the tax credits means the number of eligible models has fallen to less than 30 from about 45, 4 including several trim levels of the Tesla Model 3 becoming ineligible. However, in 2023 and 2024, leasing business models enable electric cars to qualify for the tax credits even if they do not fully meet the requirements, as leased cars can qualify for a less strict commercial vehicle tax credit and these tax credit savings can be passed to lease-holders. Such strategies have also contributed to sustained electric car roll-out.

In Europe, new electric car registrations reached nearly 3.2 million in 2023, increasing by almost 20% relative to 2022. In the European Union, sales amounted to 2.4 million, with similar growth rates. As in China, the high rates of electric car sales seen in Europe suggest that growth remains robust as markets mature, and several European countries reached important milestones in 2023. Germany, for example, became the third country after China and the United States to record half a million new battery electric car registrations in a single year, with 18% of car sales being battery electric (and another 6% plug-in hybrid).

However, the phase-out of several purchase subsidies in Germany slowed overall EV sales growth. At the start of 2023, PHEV subsidies were phased out, resulting in lower PHEV sales compared to 2022, and in December 2023, all EV subsidies ended after a ruling on the Climate and Transformation Fund. In Germany, the sales share for electric cars fell from 30% in 2022 to 25% in 2023. This had an impact on the overall electric car sales share in the region. In the rest of Europe, however, electric car sales and their sales share increased. Around 25% of all cars sold in France and the United Kingdom were electric, 30% in the Netherlands, and 60% in Sweden. In Norway, sales shares increased slightly despite the overall market contracting, and its sales share remains the highest in Europe, at almost 95%.

Electric car registrations and sales share in China, United States and Europe, 2018-2023

Sales in emerging markets are increasing, albeit from a low base, led by southeast asia and brazil.

Electric car sales continued to increase in emerging market and developing economies (EMDEs) outside China in 2023, but they remained low overall. In many cases, personal cars are not the most common means of passenger transport, especially compared with shared vans and minibuses, or two- and three-wheelers (2/3Ws), which are more prevalent and more often electrified, given their relative accessibility and affordability. The electrification of 2/3Ws and public or shared mobility will be key to achieve emissions reductions in such cases (see later sections in this report). While switching from internal combustion engine (ICE) to electric cars is important, the effect on overall emissions differs depending on the mode of transport that is displaced. Replacing 2/3Ws, public and shared mobility or more active forms of transport with personal cars may not be desirable in all cases.

In India, electric car registrations were up 70% year-on-year to 80 000, compared to a growth rate of under 10% for total car sales. Around 2% of all cars sold were electric. Purchase incentives under the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme, supply-side incentives under the Production Linked Incentive (PLI) scheme, tax benefits and the Go Electric campaign have all contributed to fostering demand in recent years. A number of new models also became popular in 2023, such as Mahindra’s XUV400, MG’s Comet, Citroën’s e-C3, BYD’s Yuan Plus, and Hyundai’s Ioniq 5, driving up growth compared to 2022. However, if the forthcoming FAME III scheme includes a subsidy reduction, as has been speculated in line with lower subsidy levels in the 2024 budget, future growth could be affected. Local carmakers have thus far maintained a strong foothold in the market, supported by advantageous import tariffs , and account for 80% of electric car sales in cumulative terms since 2010, led by Tata (70%) and Mahindra (10%).

In Thailand, electric car registrations more than quadrupled year-on-year to nearly 90 000, reaching a notable 10% sales share – comparable to the share in the United States. This is all the more impressive given that overall car sales in the country decreased from 2022 to 2023. New subsidies, including for domestic battery manufacturing, and lower import and excise taxes, combined with the growing presence of Chinese carmakers , have contributed to rapidly increasing sales. Chinese companies account for over half the sales to date, and they could become even more prominent given that BYD plans to start operating EV production facilities in Thailand in 2024, with an annual production capacity of 150 000 vehicles for an investment of just under USD 500 million . Thailand aims to become a major EV manufacturing hub for domestic and export markets, and is aiming to attract USD 28 billion in foreign investment within 4 years, backed by specific incentives to foster investment.

In Viet Nam, after an exceptional 2022 for the overall car market, car sales contracted by 25% in 2023, but electric car sales still recorded unprecedented growth: from under 100 in 2021, to 7 000 in 2022, and over 30 000 in 2023, reaching a 15% sales share. Domestic front-runner VinFast, established in 2017, accounted for nearly all domestic sales. VinFast also started selling electric sports utility vehicles (SUVs) in North America in 2023, as well as developing manufacturing facilities in order to unlock domestic content-linked subsidies under the US IRA. VinFast is investing around USD 2 billion and targets an annual production of 150 000 vehicles in the United States by 2025. The company went public in 2023, far exceeding expectations with a debut market valuation of around USD 85 billion, well beyond General Motors (GM) (USD 46 billion), Ford (USD 48 billion) or BMW (USD 68 billion), before it settled back down around USD 20 billion by the end of the year. VinFast also looks to enter regional markets, such as India and the Philippines .

In Malaysia, electric car registrations more than tripled to 10 000, supported by tax breaks and import duty exemptions, as well as an acceleration in charging infrastructure roll-out. In 2023, Mercedes-Benz marketed the first domestically assembled EV, and both BYD and Tesla also entered the market.

In Latin America, electric car sales reached almost 90 000 in 2023, with markets in Brazil, Colombia, Costa Rica and Mexico leading the region. In Brazil, electric car registrations nearly tripled year-on-year to more than 50 000, a market share of 3%. Growth in Brazil was underpinned by the entry of Chinese carmakers, such as BYD with its Song and Dolphin models, Great Wall with its H6, and Chery with its Tiggo 8, which immediately ranked among the best-selling models in 2023. Road transport electrification in Brazil could bring significant climate benefits given the largely low-emissions power mix, as well as reducing local air pollution. However, EV adoption has been slow thus far, given the national prioritisation of ethanol-based fuels since the late 1970s as a strategy to maintain energy security in the face of oil shocks. Today, biofuels are important alternative fuels available at competitive cost and aligned with the existing refuelling infrastructure. Brazil remains the world’s largest producer of sugar cane, and its agribusiness represents about one-fourth of GDP. At the end of 2023, Brazil launched the Green Mobility and Innovation Programme , which provides tax incentives for companies to develop and manufacture low-emissions road transport technology, aggregating to more than BRA 19 billion (Brazilian reals) (USD 3.8 billion) over the 2024-2028 period. Several major carmakers already in Brazil are developing hybrid ethanol-electric models as a result. China’s BYD and Great Wall are also planning to start domestic manufacturing, counting on local battery metal deposits, and plan to sell both fully electric and hybrid ethanol-electric models. BYD is investing over USD 600 million in its electric car plant in Brazil – its first outside Asia – for an annual capacity of 150 000 vehicles. BYD also partnered with Raízen to develop charging infrastructure in eight Brazilian cities starting in 2024. GM, on the other hand, plans to stop producing ICE (including ethanol) models and go fully electric, notably to produce for export markets. In 2024, Hyundai announced investments of USD 1.1 billion to 2032 to start local manufacturing of electric, hybrid and hydrogen cars.

In Mexico, electric car registrations were up 80% year-on-year to 15 000, a market share just above 1%. Given its proximity to the United States, Mexico’s automotive market is already well integrated with North American partners, and benefits from advantageous trade agreements, large existing manufacturing capacity, and eligibility for subsidies under the IRA. As a result, local EV supply chains are developing quickly, with expectations that this will spill over into domestic markets. Tesla, Ford, Stellantis, BMW, GM, Volkswagen (VW) and Audi have all either started manufacturing or announced plans to manufacture EVs in Mexico. Chinese carmakers such as BYD, Chery and SAIC are also considering expanding to Mexico. Elsewhere in the region, Colombia and Costa Rica are seeing increasing electric car sales, with around 6 000 and 5 000 in 2023, respectively, but sales remain limited in other Central and South American countries.

Throughout Africa, Eurasia and the Middle East, electric cars are still rare, accounting for less than 1% of total car sales. However, as Chinese carmakers look for opportunities abroad, new models – including those produced domestically – could boost EV sales. For example, in Uzbekistan , BYD set up a joint venture with UzAuto Motors in 2023 to produce 50 000 electric cars annually, and Chery International established a partnership with ADM Jizzakh. This partnership has already led to a steep increase in electric car sales in Uzbekistan, reaching around 10 000 in 2023. In the Middle East, Jordan boasts the highest electric car sales share, at more than 45%, supported by much lower import duties relative to ICE cars, followed by the United Arab Emirates, with 13%.

Strong electric car sales in the first quarter of 2024 surpass the annual total from just four years ago

Electric car sales remained strong in the first quarter of 2024, surpassing those of the same period in 2023 by around 25% to reach more than 3 million. This growth rate was similar to the increase observed for the same period in 2023 compared to 2022. The majority of the additional sales came from China, which sold about half a million more electric cars than over the same period in 2023. In relative terms, the most substantial growth was observed outside of the major EV markets, where sales increased by over 50%, suggesting that the transition to electromobility is picking up in an increasing number of countries worldwide.

Quarterly electric car sales by region, 2021-2024

From January to March of this year, nearly 1.9 million electric cars were sold in China, marking an almost 35% increase compared to sales in the first quarter of 2023. In March, NEV sales in China surpassed a share of 40% in overall car sales for the first time, according to retail sales reported by the China Passenger Car Association. As witnessed in 2023, sales of plug-in hybrid electric cars are growing faster than sales of pure battery electric cars. Plug-in hybrid electric car sales in the first quarter increased by around 75% year-on-year in China, compared to just 15% for battery electric car sales, though the former started from a lower base.

In Europe, the first quarter of 2024 saw year-on-year growth of over 5%, slightly above the growth in overall car sales and thereby stabilising the EV sales share at a similar level as last year. Electric car sales growth was particularly high in Belgium, where around 60 000 electric cars were sold, almost 35% more than the year before. However, Belgium represents less than 5% of total European car sales. In the major European markets – France, Germany, Italy and the United Kingdom (together representing about 60% of European car sales) – growth in electric car sales was lower. In France, overall EV sales in the first quarter grew by about 15%, with BEV sales growth being higher than for PHEVs. While this is less than half the rate as over the same period last year, total sales were nonetheless higher and led to a slight increase in the share of EVs in total car sales. The United Kingdom saw similar year-on-year growth (over 15%) in EV sales as France, about the same rate as over the same period last year. In Germany, where battery electric car subsidies ended in 2023, sales of electric cars fell by almost 5% in the first quarter of 2024, mainly as a result of a 20% year-on-year decrease in March. The share of EVs in total car sales was therefore slightly lower than last year. As in China, PHEV sales in both Germany and the United Kingdom were stronger than BEV sales. In Italy, sales of electric cars in the first three months of 2024 were more than 20% lower than over the same period in 2023, with the majority of the decrease taking place in the PHEV segment. However, this trend could be reversed based on the introduction of a new incentive scheme , and if Chinese automaker Chery succeeds in appealing to Italian consumers when it enters the market later this year.

In the United States, first-quarter sales reached around 350 000, almost 15% higher than over the same period the year before. As in other major markets, the sales growth of PHEVs was even higher, at 50%. While the BEV sales share in the United States appears to have fallen somewhat over the past few months, the sales share of PHEVs has grown.

In smaller EV markets, sales growth in the first months of 2024 was much higher, albeit from a low base. In January and February, electric car sales almost quadrupled in Brazil and increased more than sevenfold in Viet Nam. In India, sales increased more than 50% in the first quarter of 2024. These figures suggest that EVs are gaining momentum across diverse markets worldwide.

Since 2021, first-quarter electric car sales have typically accounted for 15-20% of the total global annual sales. Based on this observed trend, coupled with policy momentum and the seasonality that EV sales typically experience, we estimate that electric car sales could reach around 17 million in 2024. This indicates robust growth for a maturing market, with 2024 sales to surpass those of 2023 by more than 20% and EVs to reach a share in total car sales of more than one-fifth.

Electric car sales, 2012-2024

The majority of the additional 3 million electric car sales projected for 2024 relative to 2023 are from China. Despite the phase-out of NEV purchase subsidies last year, sales in China have remained robust, indicating that the market is maturing. With strong competition and relatively low-cost electric cars, sales are to grow by almost 25% in 2024 compared to last year, reaching around 10 million. If confirmed, this figure will come close to the total global electric car sales in 2022. As a result, electric car sales could represent around 45% of total car sales in China over 2024.

In 2024, electric car sales in the United States are projected to rise by 20% compared to the previous year, translating to almost half a million more sales, relative to 2023. Despite reporting of a rocky end to 2023 for electric cars in the United States, sales shares are projected to remain robust in 2024. Over the entire year, around one in nine cars sold are expected to be electric.

Based on recent trends, and considering that tightening CO 2 targets are due to come in only in 2025, the growth in electric car sales in Europe is expected to be the lowest of the three largest markets. Sales are projected to reach around 3.5 million units in 2024, reflecting modest growth of less than 10% compared to the previous year. In the context of a generally weak outlook for passenger car sales, electric cars would still represent about one in four cars sold in Europe.

Outside of the major EV markets, electric car sales are anticipated to reach the milestone of over 1 million units in 2024, marking a significant increase of over 40% compared to 2023. Recent trends showing the success of both homegrown and Chinese electric carmakers in Southeast Asia underscore that the region is set to make a strong contribution to the sales of emerging EV markets (see the section on Trends in the electric vehicle industry). Despite some uncertainty surrounding whether India’s forthcoming FAME III scheme will include subsidies for electric cars, we expect sales in India to remain robust, and to experience around 50% growth compared to 2023. Across all regions outside the three major EV markets, electric car sales are expected to represent around 5% of total car sales in 2024, which – considering the high growth rates seen in recent years – could indicate that a tipping point towards global mass adoption is getting closer.

There are of course downside risks to the 2024 outlook for electric car sales. Factors such as high interest rates and economic uncertainty could potentially reduce the growth of global electric car sales in 2024. Other challenges may come from the IRA restrictions on US electric car tax incentives, and the tightening of technical requirements for EVs to qualify for the purchase tax exemption in China. However, there are also upside potentials to consider. New markets may open up more rapidly than anticipated, as automakers expand their EV operations and new entrants compete for market share. This could lead to accelerated growth in electric car sales globally, surpassing the initial estimations.

More electric models are becoming available, but the trend is towards larger ones

The number of available electric car models nears 600, two-thirds of which are large vehicles and SUVs

In 2023, the number of available models for electric cars increased 15% year-on-year to nearly 590, as carmakers scaled up electrification plans, seeking to appeal to a growing consumer base. Meanwhile, the number of fully ICE models (i.e. excluding hybrids) declined for the fourth consecutive year, at an average of 2%. Based on recent original equipment manufacturer (OEM) announcements, the number of new electric car models could reach 1 000 by 2028. If all announced new electric models actually reach the market, and if the number of available ICE car models continues to decline by 2% annually, there could be as many electric as ICE car models before 2030.

As reported in GEVO-2023, the share of small and medium electric car models is decreasing among available electric models: in 2023, two-thirds of the battery-electric models on the market were SUVs, 5 pick-up trucks or large cars. Just 25% of battery electric car sales in the United States were for small and medium models, compared to 40% in Europe and 50% in China. Electric cars are following the same trend as conventional cars, and getting bigger on average. In 2023, SUVs, pick-up trucks and large models accounted for 65% of total ICE car sales worldwide, and more than 80% in the United States, 60% in China and 50% in Europe.

Several factors underpin the increase in the share of large models. Since the 2010s, conventional SUVs in the United States have benefited from less stringent tailpipe emissions rules than smaller models, creating an incentive for carmakers to market more vehicles in that segment. Similarly, in the European Union, CO 2 targets for passenger cars have included a compromise on weight, allowing CO 2 leeway for heavier vehicles in some cases. Larger vehicles also mean larger margins for carmakers. Given that incumbent carmakers are not yet making a profit on their EV offer in many cases, focusing on larger models enables them to increase their margins. Under the US IRA, electric SUVs can qualify for tax credits as long as they are priced under USD 80 000, whereas the limit stands at USD 55 000 for a sedan, creating an incentive to market SUVs if a greater margin can be gathered. On the demand side, there is now strong willingness to pay for SUVs or large models. Consumers are typically interested in longer-range and larger cars for their primary vehicles, even though small models are more suited to urban use. Higher marketing spend on SUVs compared to smaller models can also have an impact on consumer choices.

The progressive shift towards ICE SUVs has been dramatically limiting fuel savings. Over the 2010-2022 period, without the shift to SUVs, energy use per kilometre could have fallen at an average annual rate 30% higher than the actual rate. Switching to electric in the SUV and larger car segments can therefore achieve immediate and significant CO 2 emissions reductions, and electrification also brings considerable benefits in terms of reducing air pollution and non-tailpipe emissions, especially in urban settings. In 2023, if all ICE and HEV sales of SUVs had instead been BEV, around 770 Mt CO 2 could have been avoided globally over the cars’ lifetimes (see section 10 on lifecycle analysis). This is equivalent to the total road emissions of China in 2023.

Breakdown of battery electric car sales in selected countries and regions by segment, 2018-2023

Nevertheless, from a policy perspective, it is critical to mitigate the negative spillovers associated with an increase in larger electric cars in the fleet.

Larger electric car models have a significant impact on battery supply chains and critical mineral demand. In 2023, the sales-weighted average battery electric SUV in Europe had a battery almost twice as large as the one in the average small electric car, with a proportionate impact on critical mineral needs. Of course, the range of small cars is typically shorter than SUVs and large cars (see later section on ranges). However, when comparing electric SUVs and medium-sized electric cars, which in 2023 offered a similar range, the SUV battery was still 25% larger. This means that if all electric SUVs sold in 2023 had instead been medium-sized cars, around 60 GWh of battery equivalent could have been avoided globally, with limited impact on range. Accounting for the different chemistries used in China, Europe, and the United States, this would be equivalent to almost 6 000 tonnes of lithium, 30 000 tonnes of nickel, almost 7 000 tonnes of cobalt, and over 8 000 tonnes of manganese.

Larger batteries also require more power, or longer charging times. This can put pressure on electricity grids and charging infrastructure by increasing occupancy, which could create issues during peak utilisation, such as at highway charging points at high traffic times.

In addition, larger vehicles also require greater quantities of materials such as iron and steel, aluminium and plastics, with a higher environmental and carbon footprint for materials production, processing and assembly. Because they are heavier, larger models also have higher electricity consumption. The additional energy consumption resulting from the increased mass is mitigated by regenerative braking to some extent, but in 2022, the sales-weighted average electricity consumption of electric SUVs was 20% higher than that of other electric cars. 6

Major carmakers have announced launches of smaller and more affordable electric car models over the past few years. However, when all launch announcements are considered, far fewer smaller models are expected than SUVs, large models and pick-up trucks. Only 25% of the 400+ launches expected over the 2024-2028 period are small and medium models, which represents a smaller share of available models than in 2023. Even in China, where small and medium models have been popular, new launches are typically for larger cars.

Number of available car models in 2023 and expected new ones by powertrain, country or region and segment, 2024-2028

Several governments have responded by introducing policies to create incentives for smaller and lighter passenger cars. In Norway, for example, all cars are subject to a purchase tax based on weight, CO 2 and nitrogen oxides (NO x ) emissions, though electric cars were exempt from the weight-based tax prior to 2023. Any imported cars weighing more than 500 kg must also pay an entry fee for each additional kg. In France, a progressive weight-based tax applies to ICE and PHEV cars weighing above 1 600 kg, with a significant impact on price: weight tax for a Land Rover Defender 130 (2 550 kg) adds up to more than EUR 21 500, versus zero for a Renault Clio (1 100 kg). Battery electric cars have been exempted to date. In February 2024, a referendum held in Paris resulted in a tripling of city parking fees for visiting SUVs, applicable to ICE, hybrid and plug-in hybrid cars above 1 600 kg and battery electric ones above 2 000 kg, in an effort to limit the use of large and/or polluting vehicles. Other examples exist in Estonia, Finland, Switzerland and the Netherlands. A number of policy options may be used, such as caps and fleet averages for vehicle footprint, weight, and/or battery size; access to finance for smaller vehicles; and sustained support for public charging, enabling wider use of shorter-range cars.

Average range is increasing, but only moderately

Concerns about range compared to ICE vehicles, and about the availability of charging infrastructure for long-distance journeys, also contribute to increasing appetite for larger models with longer range.

With increasing battery size and improvements in battery technology and vehicle design, the sales-weighted average range of battery electric cars grew by nearly 75% between 2015 and 2023, although trends vary by segment. The average range of small cars in 2023 – around 150 km – is not much higher than it was in 2015, indicating that this range is already well suited for urban use (with the exception of taxis, which have much higher daily usage). Large, higher-end models already offered higher ranges than average in 2015, and their range has stagnated through 2023, averaging around 360-380 km. Meanwhile, significant improvements have been made for medium-sized cars and SUVs, the range of which now stands around 380 km, whereas it averaged around 150 km for medium cars and 270 km for SUVs in 2015. This is encouraging for consumers looking to purchase an electric car for longer journeys rather than urban use.

Since 2020, growth in the average range of vehicles has been slower than over the 2015-2020 period. This could result from a number of factors, including fluctuating battery prices, carmakers’ attempts to limit additional costs as competition intensifies, and technical constraints (e.g. energy density, battery size). It could also reflect that beyond a certain range at which most driving needs are met, consumers’ willingness to pay for a marginal increase in battery size and range is limited. Looking forward, however, the average range could start increasing again as novel battery technologies mature and prices fall.

More affordable electric cars are needed to reach a mass-market tipping point

An equitable and inclusive transition to electric mobility, both within countries and at the global level, hinges on the successful launch of affordable EVs (including but not limited to electric cars). In this section, we use historic sales and price data for electric and ICE models around the world to examine the total cost of owning an electric car, price trends over time, and the remaining electric premium, by country and vehicle size. 7 Specific models are used for illustration.

Total cost of ownership

Car purchase decisions typically involve consideration of retail price and available subsidies as well as lifetime operating costs, such as fuel costs, insurance, maintenance and depreciation, which together make up the total cost of ownership (TCO). Reaching TCO parity between electric and ICE cars creates important financial incentives to make the switch. This section examines the different components of the TCO, by region and car size.

In 2023, upfront retail prices for electric cars were generally higher than for their ICE equivalents, which increased their TCO in relative terms. On the upside, higher fuel efficiency and lower maintenance costs enable fuel cost savings for electric cars, lowering their TCO. This is especially true in periods when fuel prices are high, in places where electricity prices are not too closely correlated to fossil fuel prices. Depreciation is also a major factor in determining TCO: As a car ages, it loses value, and depreciation for electric cars tends to be faster than for ICE equivalents, further increasing their TCO. Accelerated depreciation could, however, prove beneficial for the development of second-hand markets.

However, the trend towards faster depreciation for electric vehicles might be reversed for multiple reasons. Firstly, consumers are gaining more confidence in electric battery lifetimes, thereby increasing the resale value of EVs. Secondly, strong demand and the positive brand image of some BEV models can mean they hold their value longer, as shown by Tesla models depreciating more slowly than the average petrol car in the United States. Finally, increasing fuel prices in some regions, the roll-out of low-emissions zones that restrict access for the most polluting vehicles, and taxes and parking fees specifically targeted at ICE vehicles could mean they experience faster depreciation rates than EVs in the future. In light of these two possible opposing depreciation trends, the same fixed annual depreciation rate for both BEVs and ICE vehicles has been applied in the following cost of ownership analysis.

Subsidies help lower the TCO of electric cars relative to ICE equivalents in multiple ways. A purchase subsidy lowers the original retail price, thereby lowering capital depreciation over time, and a lower retail price implies lower financing costs through cumulative interest. Subsidies can significantly reduce the number of years required to reach TCO parity between electric and ICE equivalents. As of 2022, we estimate that TCO parity could be reached in most cases in under 7 years in the three major EV markets, with significant variations across different car sizes. In comparison, for models purchased at 2018 prices, TCO parity was much harder to achieve.

In Germany, for example, we estimate that the sales-weighted average price of a medium-sized battery electric car in 2022 was 10-20% more expensive than its ICE equivalent, but 10-20% cheaper in cumulative costs of ownership after 5 years, thanks to fuel and maintenance costs savings. In the case of an electric SUV, we estimate that the average annual operating cost savings would amount to USD 1 800 when compared to the equivalent conventional SUV over a period of 10 years. In the United States, despite lower fuel prices with respect to electricity, the higher average annual mileage results in savings that are close to Germany at USD 1 600 per year. In China, lower annual distance driven reduces fuel cost savings potential, but the very low price of electricity enables savings of about USD 1 000 per year.

In EMDEs, some electric cars can also be cheaper than ICE equivalents over their lifetime. This is true in India , for example, although it depends on the financing instrument. Access to finance is typically much more challenging in EMDEs due to higher interest rates and the more limited availability of cheap capital. Passenger cars have also a significantly lower market penetration in the first place, and many car purchases are made in second-hand markets. Later sections of this report look at markets for used electric cars, as well as the TCO for electric and conventional 2/3Ws in EMDEs, where they are far more widespread than cars as a means of road transport.

Upfront retail price parity

Achieving price parity between electric and ICE cars will be an important tipping point. Even when the TCO for electric cars is advantageous, the upfront retail price plays a decisive role, and mass-market consumers are typically more sensitive to price premiums than wealthier buyers. This holds true not only in emerging and developing economies, which have comparatively high costs of capital and comparatively low household and business incomes, but also in advanced economies. In the United States, for example, surveys suggest affordability was the top concern for consumers considering EV adoption in 2023. Other estimates show that even among SUV and pick-up truck consumers, only 50% would be willing to purchase one above USD 50 000.

In this section, we examine historic price trends for electric and ICE cars over the 2018-2022 period, by country and car size, and for best-selling models in 2023.

Electric cars are generally getting cheaper as battery prices drop, competition intensifies, and carmakers achieve economies of scale. In most cases, however, they remain on average more expensive than ICE equivalents. In some cases, after adjusting for inflation, their price stagnated or even moderately increased between 2018 and 2022.

Larger batteries for longer ranges increase car prices, and so too do the additional options, equipment, digital technology and luxury features that are often marketed on top of the base model. A disproportionate focus on larger, premium models is pushing up the average price, which – added to the lack of available models in second-hand markets (see below) – limits potential to reach mass-market consumers. Importantly, geopolitical tension, trade and supply chain disruptions, increasing battery prices in 2022 relative to 2021, and rising inflation, have also significantly affected the potential for further cost declines.

Competition can also play an important role in bringing down electric car prices. Intensifying competition leads carmakers to cut prices to the minimum profit margin they can sustain, and – if needed – to do so more quickly than battery and production costs decline. For example, between mid-2022 and early-2024, Tesla cut the price of its Model Y from between USD 65 000 and USD 70 000 to between USD 45 000 and USD 55 000 in the United States. Battery prices for such a model dropped by only USD 3 000 over the same period in the United States, suggesting that a profit margin may still be made at a lower price. Similarly, in China, the price of the Base Model Y dropped from CNY 320 000 (Yuan renminbi) (USD 47 000) to CNY 250 000 (USD 38 000), while the corresponding battery price fell by only USD 1 000. Conversely, in cases where electric models remain niche or aimed at wealthier, less price-sensitive early adopters, their price may not fall as quickly as battery prices, if carmakers can sustain greater margins.

Price gap between the sales-weighted average price of conventional and electric cars in selected countries, before subsidy, by size, in 2018 and 2022

In China, where the sales share of electric cars has been high for several years, the sales-weighted average price of electric cars (before purchase subsidy) is already lower than that of ICE cars. This is true not only when looking at total sales, but also at the small cars segment, and is close for SUVs. After accounting for the EV exemption from the 10% vehicle purchase tax, electric SUVs were already on par with conventional ones in 2022, on average.

Electric car prices have dropped significantly since 2018. We estimate that around 55% of the electric cars sold in China in 2022 were cheaper than their average ICE equivalent, up from under 10% in 2018. Given the further price declines between 2022 and 2023, we estimate that this share increased to around 65% in 2023. These encouraging trends suggest that price parity between electric and ICE cars could also be reached in other countries in certain segments by 2030, if the sales share of electric cars continues to grow, and if supporting infrastructure – such as for charging – is sustained.

As reported in detail in GEVO-2023 , China remains a global exception in terms of available inexpensive electric models. Local carmakers already market nearly 50 small, affordable electric car models, many of which are priced under CNY 100 000 (USD 15 000). This is in the same range as best-selling small ICE cars in 2023, which cost from CNY 70 000 to CNY 100 000. In 2022, the best-selling electric car was SAIC’s small Wuling Hongguang Mini EV, which accounted for 10% of all BEV sales. It was priced around CNY 40 000, weighing under 700 kg for a 170-km range. In 2023, however, it was overtaken by Tesla models, among other larger models, as new consumers seek longer ranges and higher-end options and digital equipment.

United States

In the United States, the sales-weighted average price of electric cars decreased over the 2018-2022 period, primarily driven by a considerable drop in the price of Tesla cars, which account for a significant share of sales. The sales-weighted average retail price of electric SUVs fell slightly more quickly than the average SUV battery costs over the same period. The average price of small and medium models also decreased, albeit to a smaller extent.

Across all segments, electric models remained more expensive than conventional equivalents in 2022. However, the gap has since begun to close, as market size increases and competition leads carmakers to cut prices. For example, in 2023-2024, Tesla’s Model 3 could be found in the USD 39 000 to USD 42 000 range, which is comparable to the average price for new ICE cars, and a new Model Y priced under USD 50 000 was launched. Rivian is expecting to launch its R2 SUV in 2026 at USD 45 000, which is much less than previous vehicles. Average price parity between electric and conventional SUVs could be reached by 2030, but it may only be reached later for small and medium cars, given their lower availability and popularity.

Smaller, cheaper electric models have further to go to reach price parity in the United States. We estimate that in 2022, only about 5% of the electric cars sold in the United States were cheaper than their average ICE equivalent. In 2023, the cheapest electric cars were priced around USD 30 000 (e.g. Chevrolet Bolt, Nissan Leaf, Mini Cooper SE). To compare, best-selling small ICE options cost under USD 20 000 (e.g. Kia Rio, Mitsubishi Mirage), and many best-selling medium ICE options between USD 20 000 and USD 25 000 (e.g. Honda Civic, Toyota Corolla, Kia Forte, Hyundai Avante, Nissan Sentra).

Around 25 new all-electric car models are expected in 2024, but only 5 of them are expected below USD 50 000, and none under the USD 30 000 mark. Considering all the electric models expected to be available in 2024, about 75% are priced above USD 50 000, and fewer than 10 under USD 40 000, even after taking into account the USD 7 500 tax credit under the IRA for eligible cars as of February 2024. This means that despite the tax credit, few electric car models directly compete with small mass-market ICE models.

In December 2023, GM stopped production of its best-selling electric car, the Bolt, announcing it would introduce a new version in 2025. The Nissan Leaf (40 kWh) therefore remains the cheapest available electric car in 2024, at just under USD 30 000, but is not yet eligible for IRA tax credits. Ford announced in 2024 that it would move away from large and expensive electric cars as a way to convince more consumers to switch to electric, at the same time as increasing output of ICE models to help finance a transition to electric mobility. In 2024, Tesla announced it would start producing a next-generation, compact and affordable electric car in June 2025, but the company had already announced in 2020 that it would deliver a USD 25 000 model within 3 years. Some micro urban electric cars are already available between USD 5 000 and USD 20 000 (e.g. Arcimoto FUV, Nimbus One), but they are rare. In theory, such models could cover many use cases, since 80% of car journeys in the United States are under 10 miles .

Pricing trends differ across European countries, and typically vary by segment.

In Norway, after taking into account the EV sales tax exemption, electric cars are already cheaper than ICE equivalents across all segments. In 2022, we estimate that the electric premium stood around -15%, and even -30% for medium-sized cars. Five years earlier, in 2018, the overall electric premium was less advantageous, at around -5%. The progressive reintroduction of sales taxes on electric cars may change these estimates for 2023 onwards.

Germany’s electric premium ranks among the lowest in the European Union. Although the sales-weighted average electric premium increased slightly between 2018 and 2022, it stood at 15% in 2022. It is particularly low for medium-sized cars (10-15%) and SUVs (20%), but remains higher than 50% for small models. In the case of medium cars, the sales-weighted average electric premium was as low as EUR 5 000 in 2022. We estimate that in 2022, over 40% of the medium electric cars sold in Germany were cheaper than their average ICE equivalent. Looking at total sales, over 25% of the electric cars sold in 2022 were cheaper than their average ICE equivalent. In 2023, the cheapest models among the best-selling medium electric cars were priced between EUR 22 000 and EUR 35 000 (e.g. MG MG4, Dacia Spring, Renault Megane), far cheaper than the three front-runners priced above EUR 45 000 (VW ID.3, Cupra Born, and Tesla Model 3). To compare, best-selling ICE cars in the medium segment were also priced between EUR 30 000 and EUR 45 000 (e.g. VW Golf, VW Passat Santana, Skoda Octavia Laura, Audi A3, Audi A4). At the end of 2023, Germany phased out its subsidy for electric car purchases, but competition and falling model prices could compensate for this.

In France, the sales-weighted average electric premium stagnated between 2018 and 2022. The average price of ICE cars also increased over the same period, though more moderately than that of electric models. Despite a drop in the price of electric SUVs, which stood at a 30% premium over ICE equivalents in 2022, the former do not account for a high enough share of total electric car sales to drive down the overall average. The electric premium for small and medium cars remains around 40-50%.

These trends mirror those of some of the best-selling models. For example, when adjusting prices for inflation, the small Renault Zoe was sold at the same price on average in 2022-2023 as in 2018-2019, or EUR 30 000 (USD 32 000). It could be found for sale at as low as EUR 25 000 in 2015-2016. The earlier models, in 2015, had a battery size of around 20 kWh, which increased to around 40 kWh in 2018‑2019 and 50 kWh in newer models in 2022-2023. Yet European battery prices fell more quickly than the battery size increased over the same period, indicating that battery size alone does not explain car price dynamics.

In 2023, the cheapest electric cars in France were priced between EUR 22 000 and EUR 30 000 (e.g. Dacia Spring, Renault Twingo E-Tech, Smart EQ Fortwo), while best-selling small ICE models were available between EUR 10 000 and EUR 20 000 (e.g. Renault Clio, Peugeot 208, Citroën C3, Dacia Sandero, Opel Corsa, Skoda Fabia). Since mid-2024, subsidies of up to EUR 4 000 can be granted for electric cars priced under EUR 47 000, with an additional subsidy of up to EUR 3 000 for lower-income households.

In the United Kingdom, the sales-weighted average electric premium shrank between 2018 and 2022, thanks to a drop in prices for electric SUVs, as in the United States. Nonetheless, electric SUVs still stood at a 45% premium over ICE equivalents in 2022, which is similar to the premium for small models but far higher than for medium cars (20%).

In 2023, the cheapest electric cars in the United Kingdom were priced from GBP 27 000 to GBP 30 000 (USD 33 000 to 37 000) (e.g. MG MG4, Fiat 500, Nissan Leaf, Renault Zoe), with the exception of the Smart EQ Fortwo, priced at GBP 21 000. To compare, best-selling small ICE options could be found from GBP 10 000 to 17 000 (e.g. Peugeot 208, Fiat 500, Dacia Sandero) and medium options below GBP 25 000 (e.g. Ford Puma). Since July 2022, there has been no subsidy for the purchase of electric passenger cars.

Elsewhere in Europe, electric cars remain typically much more expensive than ICE equivalents. In Poland , for example, just a few electric car models could be found at prices competitive with ICE cars in 2023, under the PLN 150 000 (Polish zloty) (EUR 35 000) mark. Over 70% of electric car sales in 2023 were for SUVs, or large or more luxurious models, compared to less than 60% for ICE cars.

In 2023, there were several announcements by European OEMs for smaller models priced under EUR 25 000 in the near-term (e.g. Renault R5, Citroën e-C3, Fiat e-Panda, VW ID.2all). There is also some appetite for urban microcars (i.e. L6-L7 category), learning from the success of China’s Wuling. Miniature models bring important benefits if they displace conventional models, helping reduce battery and critical mineral demand. Their prices are often below USD 5 000 (e.g. Microlino, Fiat Topolino, Citroën Ami, Silence S04, Birò B2211).

In Europe and the United States, electric car prices are expected to come down as a result of falling battery prices, more efficient manufacturing, and competition. Independent analyses suggest that price parity between some electric and ICE car models in certain segments could be reached over the 2025-2028 period, for example for small electric cars in Europe in 2025 or soon after. However, many market variables could delay price parity, such as volatile commodity prices, supply chain bottlenecks, and the ability of carmakers to yield sufficient margins from cheaper electric models. The typical rule in which economies of scale bring down costs is being complicated by numerous other market forces. These include a dynamic regulatory context, geopolitical competition, domestic content incentives, and a continually evolving technology landscape, with competing battery chemistries that each have their own economies of scale and regional specificities.

Japan is a rare example of an advanced economy where small models – both for electric and ICE vehicles – appeal to a large consumer base, motivated by densely populated cities with limited parking space, and policy support. In 2023, about 60% of total ICE sales were for small models, and over half of total electric sales. Two electric cars from the smallest “Kei” category, the Nissan Sakura and Mitsubishi eK-X, accounted for nearly 50% of national electric car sales alone, and both are priced between JPY 2.3 million (Japanese yen) and JPY 3 million (USD 18 000 to USD 23 000). However, this is still more expensive than best-selling small ICE cars (e.g. Honda N Box, Daihatsu Hijet, Daihatsu Tanto, Suzuki Spacia, Daihatsu Move), priced between USD 13 000 and USD 18 000. In 2024, Nissan announced that it would aim to reach cost parity (of production, not retail price) between electric and ICE cars by 2030.

Emerging market and developing economies

In EMDEs, the absence of small and cheaper electric car models is a significant hindrance to wider market uptake. Many of the available car models are SUVs or large models, targeting consumers of high-end goods, and far too expensive for mass-market consumers, who often do not own a personal car in the first place (see later sections on second-hand car markets and 2/3Ws).

In India, while Tata’s small Tiago/Tigor models, which are priced between USD 10 000 and USD 15 000, accounted for about 20% of total electric car sales in 2023, the average best-selling small ICE car is priced around USD 7 000. Large models and SUVs accounted for over 65% of total electric car sales. While BYD announced in 2023 the goal of accounting for 40% of India’s EV market by 2030, all of its models available in India cost more than INR 3 million (Indian rupees) (USD 37 000), including the Seal, launched in 2024 for INR 4.1 million (USD 50 000).

Similarly, SUVs and large models accounted for the majority share of electric car sales in Thailand (60%), Indonesia (55%), Malaysia (over 85%) and Viet Nam (over 95%). In Indonesia, for example, Hyundai’s Ionic 5 was the most popular electric car in 2023, priced at around USD 50 000. Looking at launch announcements, most new models expected over the 2024-2028 period in EMDEs are SUVs or large models. However, more than 50 small and medium models could also be introduced, and the recent or forthcoming entry of Chinese carmakers suggests that cheaper models could hit the market in the coming years.

In 2022-2023, Chinese carmakers accounted for 40-75% of the electric car sales in Indonesia, Thailand and Brazil, with sales jumping as cheaper Chinese models were introduced. In Thailand, for example, Hozon launched its Neta V model in 2022 priced at THB 550 000 (Thai baht) (USD 15 600), which became a best-seller in 2023 given its relative affordability compared with the cheapest ICE equivalents at around USD 9 000. Similarly, in Indonesia, the market entry of Wuling’s Air EV in 2022-2023 was met with great success. In Colombia, the best-selling electric car in 2023 was the Chinese mini-car, Zhidou 2DS, which could be found at around USD 15 000, a competitive option relative to the country’s cheapest ICE car, the Kia Picanto, at USD 13 000.

Electric car sales in selected countries, by origin of carmaker, 2021-2023

Second-hand markets for electric cars are on the rise.

As electric vehicle markets mature, the second-hand market will become more important

In the same way as for other technology products, second-hand markets for used electric cars are now emerging as newer generations of vehicles progressively become available and earlier adopters switch or upgrade. Second-hand markets are critical to foster mass-market adoption, especially if new electric cars remain expensive, and used ones become cheaper. Just as for ICE vehicles – for which buying second-hand is often the primary method of acquiring a car in both emerging and advanced economies – a similar pattern will emerge with electric vehicles. It is estimated that eight out of ten EU citizens buy their car second-hand, and this share is even higher – around 90% – among low- and middle-income groups. Similarly, in the United States, about seven out of ten vehicles sold are second-hand, and only 17% of lower-income households buy a new car.

As major electric car markets reach maturity, more and more used electric cars are becoming available for resale. Our estimates suggest that in 2023, the market size for used electric cars amounted to nearly 800 000 in China , 400 000 in the United States and more than 450 000 for France, Germany, Italy, Spain, the Netherlands and the United Kingdom combined. Second-hand sales have not been included in the numbers presented in the previous section of this report, which focused on sales of new electric cars, but they are already significant. On aggregate, global second-hand electric car sales were roughly equal to new electric car sales in the United States in 2023. In the United States, used electric car sales are set to increase by 40% in 2024 relative to 2023. Of course, these volumes are dwarfed by second-hand ICE markets: 30 million in the European countries listed above combined, nearly 20 million in China, and 36 million in the United States . However, these markets have had decades to mature, indicating greater longer-term potential for used electric car markets.

Used car markets already provide more affordable electric options in China, Europe and the United States

Second-hand car markets are increasingly becoming a source of more affordable electric cars that can compete with used ICE equivalents. In the United States, for example, more than half of second-hand electric cars are already priced below USD 30 000. Moreover, the average price is expected to quickly fall towards USD 25 000, the price at which used electric cars become eligible for the federal used car rebate of USD 4 000, making them directly competitive with best-selling new and used ICE options. The price of a second-hand Tesla in the United States dropped from over USD 50 000 in early 2023 to just above USD 33 000 in early 2024, making it competitive with a second-hand SUV and many new models as well (either electric or conventional). In Europe , second-hand battery electric cars can be found between EUR 15 000 and EUR 25 000 (USD 16 000‑27 000), and second-hand plug-in hybrids around EUR 30 000 (USD 32 000). Some European countries also offer subsidies for second-hand electric cars, such as the Netherlands (EUR 2 000), where the subsidy for new cars has been steadily declining since 2020, while that for used cars remains constant, and France (EUR 1 000). In China , used electric cars were priced around CNY 75 000 on average in 2023 (USD 11 000).

In recent years, the resale value 8 of electric cars has been increasing. In Europe, the resale value of battery electric cars sold after 12 months has steadily increased over the 2017-2022 period, surpassing that of all other powertrains and standing at more than 70% in mid-2022. The resale value of battery electric cars sold after 36 months stood below 40% in 2017, but has since been closing the gap with other powertrains, reaching around 55% in mid-2022. This is the result of many factors, including higher prices of new electric cars, improving technology allowing vehicles and batteries to retain greater value over time, and increasing demand for second-hand electric cars. Similar trends have been observed in China.

High or low resale values have important implications for the development of second-hand electric car markets and their contributions to the transition to road transport electrification. High resale values primarily benefit consumers of new cars (who retain more of the value of their initial purchase), and carmakers, because many consumers are attracted by the possibility of reselling their car after a few years, thereby fostering demand for newer models. High resale values also benefit leasing companies, which seek to minimise depreciation and resell after a few years.

Leasing companies have a significant impact on second-hand markets because they own large volumes of vehicles for a shorter period (under three years, compared to 3 to 5 years for a private household). Their impact on markets for new cars can also be considerable: leasing companies accounted for over 20% of new cars sold in Europe in 2022.

Overall, a resale value for electric cars on par with or higher than that of ICE equivalents contributes to supporting demand for new electric cars. In the near term, however, a combination of high prices for new electric cars and high resale values could hinder widespread adoption of used EVs among mass-market consumers seeking affordable cars. In such cases, policy support can help bridge the gap with second-hand ICE prices.

International trade for used electric cars to emerging markets is expected to increase

As the EV stock ages in advanced markets, it is likely that more and more used EVs will be traded internationally, assuming that global standards enable technology compatibility (e.g. for charging infrastructure). Imported used vehicles present an opportunity for consumers in EMDEs, who may not have access to new models because they are either too expensive or not marketed in their countries.

Data on used car trade flows are scattered and often contradictory, but the history of ICE cars can be a useful guide to what may happen for electric cars. Many EMDEs have been importing used ICE vehicles for decades. UNEP estimates that Africa imports 40% of all used vehicles exported worldwide, with African countries typically becoming the ultimate destination for used imports. Typical trade flows include Western European Union member states to Eastern European Union member states and to African countries that drive on the right-hand side; Japan to Asia and to African countries that drive on the left-hand side; and the United States to the Middle East and Central America.

Used electric car exports from large EV markets have been growing in recent years. For China, this can be explained by the recent roll-back of a policy forbidding exports of used vehicles of any kind. Since 2019 , as part of a pilot project, the government has granted 27 cities and provinces the right to export second-hand cars. In 2022, China exported almost 70 000 used vehicles, a significant increase on 2021, when fewer than 20 000 vehicles were exported. About 70% of these were NEVs, of which over 45% were exported to the Middle East. In 2023, the Ministry of Commerce released a draft policy on second-hand vehicle export that, once approved, will allow the export of second-hand vehicles from all regions of China. Used car exports from China are expected to increase significantly as a result.

In the European Union, the number of used electric cars traded internationally is also increasing . In both 2021 and 2022, the market size grew by 70% year-on-year, reaching almost 120 000 electric cars in 2022. More than half of all trade takes place between EU member states, followed by trade with neighbouring countries such as Norway, the United Kingdom and Türkiye (accounting for 20% combined). The remainder of used EVs are exported to countries such as Mexico, Tunisia and the United States. As of 2023, the largest exporters are Belgium, Germany, the Netherlands, and Spain.

Last year, just over 1% of all used cars leaving Japan were electric. However these exports are growing and increased by 30% in 2023 relative to 2022, reaching 20 000 cars. The major second-hand electric car markets for Japanese vehicles are traditionally Russia and New Zealand (over 60% combined). After Russia’s invasion of Ukraine in 2022, second-hand trade of conventional cars from Japan to Russia jumped sharply following a halt in operations of local OEMs in Russia, but this trade was quickly restricted by the Japanese government, thereby bringing down the price of second-hand cars in Japan. New Zealand has very few local vehicle assembly or manufacturing facilities, and for this reason many cars entering New Zealand are used imports. In 2023, nearly 20% of all electric cars that entered New Zealand were used imports, compared to 50% for the overall car market.

In emerging economies, local policies play an important role in promoting or limiting trade flows for used cars. In the case of ICE vehicles, for example, some countries (e.g. Bolivia, Côte d’Ivoire, Peru) limit the maximum age of used car imports to prevent the dumping of highly polluting cars. Other countries (e.g. Brazil, Colombia, Egypt, India, South Africa) have banned used car imports entirely to protect their domestic manufacturing industries.

Just as for ICE vehicles, policy measures can either help or hinder the import of used electric cars, such as by setting emission standards for imported used cars. Importing countries will also need to simultaneously support roll-out of charging infrastructure to avoid problems with access like those reported in Sri Lanka after an incentive scheme significantly increased imports of used EVs in 2018.

The median age of vehicle imports tends to increase as the GDP per capita of a country decreases. In some African countries, the median age of imports is over 15 years. Beyond this timeframe, electric cars may require specific servicing to extend their lifetime. To support the availability of second-hand markets for electric cars, it will be important to develop strategies, technical capacity, and business models to swap very old batteries from used vehicles. Today, many countries that import ICE vehicles, including EMDEs, already have servicing capacity in place to extend the lifetimes of used ICE vehicles, but not used EVs. On the other hand, there are typically fewer parts in electric powertrains than in ICE ones, and these parts can even be more durable. Battery recycling capacity will also be needed, given that the importing country is likely to be where the imported EV eventually reaches end-of-life. Including end-of-life considerations in policy making today can help mitigate the risk of longer-term environmental harm that could result from the accumulation of obsolete EVs and associated waste in EMDEs.

Policy choices in more mature markets also have an impact on possible trade flows. For example, the current policy framework in the European Union for the circularity of EV batteries may prevent EVs and EV batteries from leaving the European Union, which brings energy security advantages but might limit reuse. In this regard, advanced economies and EMDEs should strengthen co-operation to facilitate second-hand trade while ensuring adequate end-of-life strategies. For example, there could be incentives or allowances associated with extended vehicle lifetimes via use in second-hand markets internationally before recycling, as long as recycling in the destination market is guaranteed, or the EV battery is returned at end of life.

Throughout this report, unless otherwise specified, “electric cars” refers to both battery electric and plug-in hybrid cars, and “electric vehicles” (EVs) refers to battery electric (BEV) and plug-in hybrid (PHEV) vehicles, excluding fuel cell electric vehicles (FCEV). Unless otherwise specified, EVs include all modes of road transport.

Throughout this report, unless otherwise specified, regional groupings refer to those described in the Annex.

In the Chinese context, the term New Energy Vehicles (NEVs) includes BEVs, PHEVs and FCEVs.

Based on model trim eligibility from the US government website as of 31 March 2024.

SUVs may be defined differently across regions, but broadly refer to vehicles that incorporate features commonly found in off-road vehicles (e.g. four-wheel drive, higher ground clearance, larger cargo area). In this report, small and large SUVs both count as SUVs. Crossovers are counted as SUVs if they feature an SUV body type; otherwise they are categorised as medium-sized vehicles.

Measured under the Worldwide Harmonised Light Vehicles Test Procedure using vehicle model sales data from IHS Markit.

Price data points collected from various data providers and ad-hoc sources cover 65-95% of both electric and ICE car sales globally. By “price”, we refer to the advertised price that the customer pays for the acquisition of the vehicle only, including legally required acquisition taxes (e.g. including Value-Added Tax and registration taxes but excluding consumer tax credits). Prices reflect not only the materials, components and manufacturing costs, but also the costs related to sales and marketing, administration, R&D and the profit margin. In the case of a small electric car in Europe, for example, these mark-up costs can account for around 40% of the final pre-tax price. They account for an even greater share of the final pre-tax price when consumers purchase additional options, or opt for larger models, for which margins can be higher. The price for the same model may differ across countries or regions (e.g. in 2023, a VW ID.3 could be purchased in China at half its price in Europe). Throughout the whole section, prices are adjusted for inflation and expressed in constant 2022 USD.

This metric of depreciation used in second-hand technology markets represents the value of the vehicle when being resold in relation to the value when originally purchased. A resale value of 70% means that a product purchased new will lose 30% of its original value, on average, and sell at such a discount relative to the original price.

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Metallurgicheskii Zavod Electrostal AO (Russia)

In 1993 "Elektrostal" was transformed into an open joint stock company. The factory occupies a leading position among the manufacturers of high quality steel. The plant is a producer of high-temperature nickel alloys in a wide variety. It has a unique set of metallurgical equipment: open induction and arc furnaces, furnace steel processing unit, vacuum induction, vacuum- arc furnaces and others. The factory has implemented and certified quality management system ISO 9000, received international certificates for all products. Elektrostal today is a major supplier in Russia starting blanks for the production of blades, discs and rolls for gas turbine engines. Among them are companies in the aerospace industry, defense plants, and energy complex, automotive, mechanical engineering and instrument-making plants.

Headquarters Ulitsa Zheleznodorozhnaya, 1 Elektrostal; Moscow Oblast; Postal Code: 144002

Contact Details: Purchase the Metallurgicheskii Zavod Electrostal AO report to view the information.

Website: http://elsteel.ru

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Marketing to revenue ratio of leading online travel agencies (OTAs) worldwide from 2019 to 2022. Revenue of Booking Holdings worldwide 2007-2023. Revenue of Booking Holdings worldwide from 2007 to ...
Top Travel Agencies' Keys to Success
What's more, a whopping 88 percent of the top 25 agencies have been with Virtuoso for more than 10 years. A majority of the top performers are midsize agencies, and the median advisor count is 19. Virtuoso's study also shed light on the keys to success shared by the top-producing travel agencies: Engaging in the luxury travel industry, placing ...
Navigating the Landscape: Insights into the Online Travel Agency Industry
Expedia, one of the key players in the online travel agency industry, generated $9.85 billion in revenue in 2020. This showcases the substantial market presence and financial success of leading OTAs. The industry's growth is further fueled by the increasing trend of mobile bookings, which accounted for 41% of all online travel bookings.
Understanding the Travel and Tourism Sector: A Business Perspective
Booking.com, founded in 1996, is a global online travel agency. It leverages technology and data to simplify travel booking. Key Success Factors: Vast Inventory: Booking.com offers a wide range of accommodation options, from hotels to vacation rentals. This extensive inventory caters to diverse traveler preferences.
5 Keys to Success For Travel Agents in 2016 And Beyond
With that in mind, here are 5 key drivers travel agents can leverage to ensure continued success in 2016 and beyond. Embrace Transparency. Travel review websites, tourism blogs, social media platforms, and even OTAs themselves have helped make more information available to would-be travelers than ever before.
From Weaknesses to Strengths: A Comprehensive Travel Agency SWOT
In the context of a travel agency, a SWOT analysis enables the identification of key factors that can impact the agency's success in the highly competitive travel industry. The analysis consists of four key components: Strengths: These are the internal factors that give a travel agency a competitive advantage over others.
A review on critical success factors in tourism
The key findings of this review reveal that 1. Identifying critical success factors is indeed a popular field of study within the tourism industry; 2. Different methodologies lead to different results; 3. The majority of researchers approached their research from a supply-side; 4.
The travel agency service industry: industry trends and practices
THE TRAVEL AGENCY SERVICE INDUSTRY: INDUSTRY TRENDS AND PRACTICES Sue Bergin-Seers1 , Barry O'Mahony2 and Regina Quiazon3 Introduction The need for this scoping study was identified by the Australian Federation of Travel Agents (AFTA). ... According to research (IbisWorld 2005), the key success factors for the future operation of a travel ...
Creating the Perfect Business Plan for Your Travel Agency
Key Takeaways: A business plan is an essential document for any business, outlining the goals and objectives of the venture. Research into the travel industry should be conducted to gain a better understanding of the market. A well-defined target market should be identified and tailored to as part of the business plan.
Travel Agencies in the US
Expert industry market research on the Travel Agencies in the US (2024-2029). Make better business decisions, faster with IBISWorld's industry market research reports, statistics, analysis, data, trends and forecasts.
Achieve Financial Freedom: A Guide to Earning High Commissions as a
April 30, 2024Introduction to a Profitable Career PathDreaming of a career that combines your love for travel with the opportunity to earn well? As a travel agent, tapping into high commissions is key to your financial success. This guide will explore the lucrative world of the travel agency industry, providing insights into how you can maximize your earnings.Gateway Travel: Your Partner in ...
Moscow Metro Tours Travel & Holidays in Russia
This makes it easier for people to travel quickly in Moscow. The Moscow Metro is made up of 12 lines and 200 stations, and it is around 333 kilometers long. Most of the stations are open from 5:30 a.m. to 1:00 a.m. The metro entrances are marked with green signs on the doors, and the metro exits are marked with red signs. ...
40 Facts About Elektrostal
40 Facts About Elektrostal. Elektrostal is a vibrant city located in the Moscow Oblast region of Russia. With a rich history, stunning architecture, and a thriving community, Elektrostal is a city that has much to offer. Whether you are a history buff, nature enthusiast, or simply curious about different cultures, Elektrostal is sure to ...
Online Travel Agency SWOT Analysis: The Key to Industry Dominance
Online travel agencies have witnessed a steady increase in market share over the years. According to TravelPerk, their market share is expected to reach 40% by 2024, compared to 35% in 2020. On the other hand, traditional agencies' market share is projected to decline from 65% in 2020 to 60% by 2024. This shift highlights the growing ...
Trends in electric cars
Electric car sales neared 14 million in 2023, 95% of which were in China, Europe and the United States. Almost 14 million new electric cars1 were registered globally in 2023, bringing their total number on the roads to 40 million, closely tracking the sales forecast from the 2023 edition of the Global EV Outlook (GEVO-2023). Electric car sales in 2023 were 3.5 million higher than in 2022, a 35 ...
Visit Elektrostal: 2024 Travel Guide for Elektrostal, Moscow Oblast
Cities near Elektrostal. Places of interest. Pavlovskiy Posad Noginsk. Travel guide resource for your visit to Elektrostal. Discover the best of Elektrostal so you can plan your trip right.
Metallurgicheskii Zavod Electrostal AO (Russia)
Main Activities: Iron and Steel Mills and Ferroalloy Manufacturing | Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding. Full name: Metallurgicheskii Zavod Electrostal AO Profile Updated: February 22, 2024. Buy our report for this company USD 29.95 Most recent financial data: 2023 Available in: English & Russian ...