Profitability and financial structure of tour operators: an initial international comparison

Abstract

The pandemic had a devastating effect on tourism, even though it subsided during the summer months. The sector is economically important in many countries. Purpose: The research analyses the economic and financial dynamics of tour operators over the last decade in three European countries where tourism is widespread: Italy, France, and Spain. Research Methods: The financial statements of a sample of 4,044 tour operators (1043 Italian, 2340 French, 661 Spanish) for the ten years 2012-2021 were analysed, illustrating the average trend of Return on Equity (Roe) and Financial Leverage. The data were subjected to statistical processing. Anova and, where necessary, Tukey-Kramer methods were used for the comparison between countries. Results: Roe followed a similar trend in the three nations that were most affected by the pandemic. The financial situation was more erratic but equally similar. Implications: This study implements the modest economic literature on these companies. Quantitative research shows significant gains only in some periods and in some countries. Public policies should be attentive to the tourism-enhancing sector by building packages.