Travel and tourism is one of the largest and fastest growing industries, as there has been a surge in the number of travelers in the recent years, for various reasons such as recreation, enjoyment, relaxation, and business among others. In the year 2014, this increase in number of travelers and their travel spent accounted for nearly 10% of the global GDP. To cater this potential target audience, market players have adopted various approaches, the most effective being the internet.
Online travel services have gained popularity among travelers as it enables them to avail a number of services such as booking flight tickets, hotels, holiday packages, and car rentals using their phone or computer anytime and anywhere. Online travel services can be availed either through online travel agencies (OTAs) or direct travel suppliers. According to market analysis, online travel bookings witnessed a growth of nearly 12.1% in 2015 and the rate has been growing steadily.
Online travel services offer convenient usage of debit & credit cards and a platform to compare prices, features, and services of online travel products, which has led to the escalation in adoption of these services. Moreover, customers tend to rely on websites review to avail the best online travel deals. Hectic lifestyle, rise in disposable income, and increased spending power has encouraged people to plan holiday trips at frequent intervals, thus, driving the online travel market growth. Also, entry of established ecommerce players such as Alibaba (online travel site Alitrip), in online travel market, is intensifying the market competition.
The market is categorized by mode of booking, types of platform, types of services, age group and geography. By mode of booking, the online travel market comprises online travel agencies (OTAs) and direct travel suppliers. Based on types of platform, the market is sub-segmented into mobile and desktop. By types of services, it is sub-segmented by transportation, travel accommodation, and travel packages. Based on age group, the market is bifurcated into 22-31, 32-43, 44-56, and >56. By geography, the market is broadly segmented into North America, Europe, Asia-Pacific, and LAMEA. Key players profiled in the report are Expedia, Inc., Priceline Group Inc., TripAdvisor LLC, Ctrip.com International, Ltd., Hostelworld Group, Hotel Urbano Travel and Tourism SA, Cheapoair.Com. Trivago GmbH, Thomas Cook Group Plc, and MakeMyTrip Limited.
The study provides an in-depth analysis of the online travel market to elucidate the imminent investment pockets.
Current trends and future estimations are outlined to single out profitable trends and gain a stronger foothold in the market.
The report provides information about key drivers, restraints, and opportunities with a detailed impact analysis.
Quantitative analysis of the current market and estimations from 2014 to 2022 is provided to showcase the financial competency.
Porter’s Five Forces model of the industry illustrate the potency of the buyers and suppliers.
Value chain analysis provides a clear understanding of the roles of stakeholders involved.
The market is segmented on the basis of mode of booking, types of platform, and service types, age group, and geography.
BY MODE OF BOOKING
Online Travel Agencies
Direct Travel Suppliers
BY TYPES OF PLATFORM
BY SERVICE TYPES
BY AGE GROUP
Rest of Europe
Rest of Asia- Pacific
1.1. Report description
1.2. Key benefits
1.3. Key market segments
1.4. Research methodology
1.4.1. Secondary research
1.4.2. Primary research
1.4.3. Analyst tools and models
CHAPTER 2 EXECUTIVE SUMMARY
CHAPTER 3 MARKET OVERVIEW
3.1. Market definition and scope
3.2. Key findings
3.2.1. Top impacting factors
3.2.2. Top investment pockets
3.2.3. Top winning strategies
3.3. Value chain analysis
3.4. Porters five force analysis
3.4.1. Bargaining power of suppliers
3.4.2. Bargaining power of buyers
3.4.3. Threat of new entrants
3.4.4. Competitive rivalry
3.4.5. Threat of substitutes
3.5. Market positioning, 2015
3.6. Market dynamics
22.214.171.124. Rise of social media
126.96.36.199. Secured online payment mechanism
188.8.131.52. Growing middle and upper middle class
184.108.40.206. Varying socio-economic conditions
220.127.116.11. Proliferation of mobile usage and innovative mobile travel apps
CHAPTER 4 GLOBAL ONLINE TRAVEL MARKET, BY MODE OF BOOKING
4.1.1. Market size and forecast
4.2. Online travel agents (OTA)
4.2.1. Key market trends
4.2.2. Growth factors and opportunities
4.2.3. Market size and forecast
4.3. Direct travel suppliers
4.3.1. Key market trends
4.3.2. Growth factors and opportunities
4.3.3. Market size and forecast
CHAPTER 5 GLOBAL ONLINE TRAVEL MARKET, BY TYPES OF PLATFORM
5.1.1. Market size and forecast
5.2.1. Key market trends
5.2.2. Growth factors and opportunities
5.2.3. Market size and forecast
5.3.1. Key market trends
5.3.2. Growth factors and opportunities
5.3.3. Market size and forecast
CHAPTER 6 GLOBAL ONLINE TRAVEL MARKET, BY SERVICE TYPES
6.1.1. Market size and forecast
6.2.1. Key market trends
6.2.2. Growth factors and opportunities
6.2.3. Market size and forecast
6.3. Travel accommodation
6.3.1. Key market trends
6.3.2. Growth factors and opportunities
6.3.3. Market size and forecast
6.4. Vacation packages
6.4.1. Key market trends
6.4.2. Growth factors and opportunities
6.4.3. Market size and forecast
CHAPTER 7 GLOBAL ONLINE TRAVEL MARKET, BY AGE GROUP
7.1.1. Market size and forecast
7.2.1. Key market trends
7.2.2. Growth factors and opportunities
7.2.3. Market size and forecast
7.3.1. Key market trends
7.3.2. Growth factors and opportunities
7.3.3. Market size and forecast
7.4.1. Key market trends
7.4.2. Growth factors and opportunities
7.4.3. Market size and forecast
7.5. 56 and above
7.5.1. Key market trends
7.5.2. Growth factors and opportunities
7.5.3. Market size and forecast
CHAPTER 8 GLOBAL ONLINE TRAVEL MARKET, BY GEOGRAPHY
8.1.1. Market size and forecast
8.2. North America
8.2.1. Key market trends
8.2.2. Growth factors and opportunities
8.2.3. Market size and forecast
18.104.22.168. Market size and forecast
22.214.171.124. Market size and forecast
126.96.36.199. Market size and forecast
8.3.1. Key market trends
8.3.2. Growth factors and opportunities
8.3.3. Market size and forecast
188.8.131.52. Market size and forecast
184.108.40.206. Market size and forecast
220.127.116.11. Market size and forecast
8.3.3. Rest of Europe
18.104.22.168. Market size and forecast
8.4.1. Key market trends
8.4.2. Growth factors and opportunities
8.4.3. Market size and forecast
22.214.171.124. Market size and forecast
126.96.36.199. Market size and forecast
188.8.131.52. Market size and forecast
8.4.7. Rest of Asia-pacific
184.108.40.206. Market size and forecast
8.5. LAMEA (Latin America, Middle East, and Africa)
8.5.1. Key market trends
8.5.2. Growth factors and opportunities
8.5.3. Market size and forecast
8.5.4. Latin America
220.127.116.11. Market size and forecast
8.5.5. Middle East
18.104.22.168. Market size and forecast
22.214.171.124. Market size and forecast
CHAPTER 9 COMPANY PROFILES
9.1. Expedia, Inc.
9.1.1. Company overview
9.1.2. Operating business segments
9.1.3. Business performance
9.1.4. Key strategic moves & developments
9.2. Priceline Group Inc.
9.2.1. Company overview
9.2.2. Operating business segments
9.2.3. Business performance
9.2.4. Key strategic moves & developments
9.3. TripAdvisor LLC
9.3.1. Company overview
9.3.2. Operating business segments
9.3.3. Business performance
9.3.4. Key strategic moves & developments
9.4. MakeMytrip Limited
9.4.1. Company overview
9.4.2. Operating business segments
9.4.3. Business performance
9.4.4. Key strategic moves & developments
9.5. Hostelworld Group
9.5.1. Company overview
9.5.2. Business performance
9.5.3. Key strategic moves & developments
9.6. Thomas Cook Group Plc
9.6.1. Company overview
9.6.2. Business performance
9.6.3. Key strategic moves & developments
9.7.1. Company overview
9.7.2. Key strategic moves & developments
9.8.1. Company overview
9.8.2. Key strategic moves & developments
9.9. Hotel UrbanTravel and Tourism Sa
9.9.1. Company overview
9.9.2. Key strategic moves & developments
9.10. Ctrip.Com International, Ltd.
9.10.1. Company overview
9.10.2. Key strategic moves & developments
Growth of the online travel market is driven by the increase in internet penetration, rise in disposable income of people in emerging markets, and ease of comparing a variety of travel options online. Market players are introducing innovative travel and vacation package deals to assist travelers in making sound travel decisions as per their spending capability, such as affordable packages for international destination, discounts on car rentals and cash back on international flights.
Direct travel suppliers segment accounted for approximately 57% of the overall online travel market revenue in 2015.Though, the segment would continue to dominate the market over the analysis period, a gradual reduction in its market share is expected, owing to the growing popularity of online travel agencies (OTAs). OTAs are expanding their offerings at a rapid rate to attract travelers and increase their customer base.
Based on booking platforms, the market is segmented into mobile and desktop. Mobile platform attributes to two-sevenths of the market revenue and is anticipated to witnesshighest growth in coming years. This is attributed to increased penetration of smartphones and growing confidence of people in safety of mobile payments.
Transportation segment is projected to maintain its lead in the overall online travel services market, owing to rise in online flight bookings. Expansion in the number of low-cost carriers and growth in the number of connecting flights for tier I and II cities across the globe, drive the growth of flight bookings. In addition, online rail bookings witnessed a significant growth in the past few years. Expedia, a leading online travel agency, has announced its plans to launch a rail ticketing service in Europe by end of 2016, to mark its presence in the rail services within the transportation segment.
The online travel market is segmented on the basis of age group, wherein the travelers in the age group of 32 - 43 years, occupy a major portion of the market. However, from a growth perspective, the young travelers within the age group of 2231 years, would witness the highest CAGR, due to extensive use of social media and smartphones for travel planning and bookings.
North America accounted for the majority revenue in 2015; however, Asia-Pacific is estimated to overtake North America in coming years to become the leading revenue-generating region. This is attributed to growing disposable income, growth inmiddle-class segment, increased penetration of Internet facilities, and increase in the number of youth population in emerging markets of Asia-Pacific.
Growing exposure to multimedia phones and increased penetration of online services would accelerate the growth of the overall online travel market.
India is estimated to be the fastest growing country in Asia-Pacific, growing at a CAGR of 18.5% during the forecast period.
Travelers within the age group of 22 and 31 years are more inclined towards online travel services, as they are more tech savvy and are constantly connected to social media.
Flights and hotel bookings are anticipated to grow at an unprecedented rate.
Key players profiled in this report are Expedia, Inc., Priceline Group Inc., TripAdvisor Inc., Ctrip.com International, Ltd., Hostelworld Group, Hotel Urbano Travel and Tourism SA, Fareportal, Inc., Trivago GmbH, ThomasCook Group, and MakeMyTrip Limited.
- Expedia Inc
- Priceline Group Inc
- TripAdvisor LLC
- CtripCom International Ltd
- Hostelworld Group
- Hotel Urbano Travel and Tourism Sa
- Trivago Gmbh
- Thomas Cook Group plc
- MakeMytrip Limited Other players in the value chain include (profiles not included in the report)
- Alibaba Group
- Elong Inc
- TUI Group
- Tuniu Corporation
- AirGorilla LLC
- Hays Travel limited
- Airbnb Inc
- Yatra Online Private Limited India