Issta Lines (TASE: ISTA), controlled by Israel Student Travel Association (ISSTA) and Knafaim-Arkia Holdings (TASE:KNFM), is Israel's largest travel agency, stated Business Data Israel (BDI) in a special report published today on the travel industry.
Issta operates 48 of the 730 travel agencies in Israel. There were 5% fewer travel agencies in Israel in 2003 than in 2002. BDI states that more travel agencies closed in 2003 than in previous years, due to the plunge in profitability, increasing competition, and lower commissions from airlines.
BDI states that the average price of airline tickets and holidays fell by 10-15% in 2002-03. In addition, airlines reduced the commissions they pay to travel agencies. BDI believes that many travel agencies are liable to close this year.
BDI states that Hadaka Hatishim is one of Israel's most important travel agencies, thanks to the steady growth over the past two years for last-minute purchases of plane tickets and holiday packages. BDI reports that 30% of holiday packages and tickets in Israel are sold at the last moment.
BDI expects that the tourism industry will improve substantially this year, unless there is an unexpected escalation in the security situation.
Published by Globes [online] - www.globes.co.il - on May 9, 2004