ROI of the travel agency and tour operator sector in Italy 2017-2022

Between 2017 and 2022, it is expected that the return of investment (ROI) of the travel agency and tour operator sector in Italy will decrease significantly. The ROI is a metric used by companies to analyze the efficiency of an investment. It is obtained by dividing the net profit by the cost of the investment made by the company in a specific time. Data provided by Prometeia show that in 2017 the sector’s return of investment peaked at 11.1 percent. However, it is estimated that the ROI will go down sharply to 2.5 percent in 2020, then it should rise again in 2021 and 2022.

From ROI to ROE: the return on equity’s forecast of the sector from 2017 to 2022

The return on equity (ROE) is determined by dividing the net income of the company by its equity over a certain period. This share is used to measure a company’s profitability. As for the ROI, the sector’s ROE is also expected to record a decreasing trend between 2017 and 2022. Whereas in 2017 the return on equity recorded a 13.2 percent, it is estimated that this value will decrease considerably in 2020. It will then increase again in the following two years.

ROI and ROE of large travel agencies between 2016 and 2018

Between 2016 and 2018, 6 Tour S.r.l., a large company of the travel agency and tour operator sector, recorded a particularly high return on investment. By contrast, the ROI of Alpitour S.p.A. - a company with a production value that is 10 times higher than the one of 6 Tour S.r.l. - was negative between 2016 and 2018. As of the period considered, 6 Tour S.r.l. also recorded a ROE of roughly 58 percent.