The global online travel market was valued at $354.2 billion in 2020, and is estimated to reach $1,835.6 billion by 2031, registering a CAGR of 14.8% from 2022 to 2031.
Travel & 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 The number of passengers and their travel expenses has increased dramatically. To appeal to this potential target population, market players have used a variety of techniques, the most effective of which is 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.
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 increase in spending power has encouraged people to plan holiday trips at frequent intervals, thus, driving the online travel market growth. Furthermore, the introduction of established e-commerce businesses such as Alibaba (online travel site Alitrip) into the online travel sector is increasing market competition..
Outbreak of COVID-19 has negatively impacted the overall growth of the online travel market. This is majorly attributed to implementation of lockdown and social distancing norms in almost every country of the world, flights were grounded, trains stopped running, and almost all public transport services were halted. Thus, the growth rate of online travel market decreased in 2020.
The online travel market is segmented into service types, platforms, mode of booking, age group, and region. On the basis of service types, the market is categorized into transportation, travel accommodation and vacation packages. By platforms, it is segmented into mobile and desktop. On the basis of mode of booking, it is segregated into online travel agencies (OTAs) and direct travel suppliers. On the basis of age group, market is segmented into 22-31 Years¬32-43 years¬ 44-56 years ¬and >56 years. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, and rest of LAMEA).
Asia-Pacific have gained considerable traction in the global online travel market, and is expected to sustain its traction during the forecast period. The growth is attributed to increase in disposable income, rise in middle-class segment, and greater adoption of internet. Proliferation of social media and adoption of artificial intelligence tools by travel & tourism service providers are the majorly attributed to the growth of Asia-Pacific online travel market.
The major players operating in the market are Expedia Group, Inc., Ebury Partners UK Ltd, Fareportal Inc. , Hostelworld.com Limited, Hurb Co S/A, HRS, MakeMyTrip Ltd., Oracle Corporation, Priceline (Booking Holdings Inc.), SABS Travel Technologies, Tavisca Solutions Pvt. Ltd., Thomas Cook India Ltd., travelomatix.com, Trip.com Group, Tripadvisor, Inc., and WEX Inc.
Travel & 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 The number of passengers and their travel expenses has increased dramatically. To appeal to this potential target population, market players have used a variety of techniques, the most effective of which is 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.
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 increase in spending power has encouraged people to plan holiday trips at frequent intervals, thus, driving the online travel market growth. Furthermore, the introduction of established e-commerce businesses such as Alibaba (online travel site Alitrip) into the online travel sector is increasing market competition..
Outbreak of COVID-19 has negatively impacted the overall growth of the online travel market. This is majorly attributed to implementation of lockdown and social distancing norms in almost every country of the world, flights were grounded, trains stopped running, and almost all public transport services were halted. Thus, the growth rate of online travel market decreased in 2020.
The online travel market is segmented into service types, platforms, mode of booking, age group, and region. On the basis of service types, the market is categorized into transportation, travel accommodation and vacation packages. By platforms, it is segmented into mobile and desktop. On the basis of mode of booking, it is segregated into online travel agencies (OTAs) and direct travel suppliers. On the basis of age group, market is segmented into 22-31 Years¬32-43 years¬ 44-56 years ¬and >56 years. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, and rest of LAMEA).
Asia-Pacific have gained considerable traction in the global online travel market, and is expected to sustain its traction during the forecast period. The growth is attributed to increase in disposable income, rise in middle-class segment, and greater adoption of internet. Proliferation of social media and adoption of artificial intelligence tools by travel & tourism service providers are the majorly attributed to the growth of Asia-Pacific online travel market.
The major players operating in the market are Expedia Group, Inc., Ebury Partners UK Ltd, Fareportal Inc. , Hostelworld.com Limited, Hurb Co S/A, HRS, MakeMyTrip Ltd., Oracle Corporation, Priceline (Booking Holdings Inc.), SABS Travel Technologies, Tavisca Solutions Pvt. Ltd., Thomas Cook India Ltd., travelomatix.com, Trip.com Group, Tripadvisor, Inc., and WEX Inc.
KEY BENEFITS FOR STAKEHOLDERS
- The study provides an in-depth analysis of the global online travel market with current trends and future estimations to elucidate the imminent investment pockets in the market
- The report provides information regarding drivers, restraints, and opportunities with impact analysis
- A quantitative analysis from 2020 to 2031 is provided to showcase the financial competency of the market
- Porter’s five forces model of the industry illustrates competitiveness of the market by analyzing various parameters such as threat of new entrants, threat of substitutes, bargaining power of the buyers, and bargaining power of the suppliers operating in the market
- Value chain analysis in the report provides a clear understanding of the roles of stakeholders involved in the value chain
- Competitive intelligence highlights business practices followed by leading market players across various regions
KEY MARKET SEGMENTS
By Service types
- Transportation
- Travel Accommodation
- Vacation Packages
By Platforms
- Mobile
- Desktop
By Mode of booking
- Online Travel Agencies (OTAs)
- Direct Travel Suppliers
By Age Group
- 22-31 Years
- 32-43 Years
- 44-56 Years
- >56 Years
By Region
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Rest of LAMEA
Table of Contents
Chapter 1: Introduction
Chapter 2: Executive Summary
Chapter 3: Market Landscape
Chapter 4: Online Travel Market, by Service Types
Chapter 5: Online Travel Market, by Platforms
Chapter 6: Online Travel Market, by Mode of Booking
Chapter 7: Online Travel Market, by Age Group
Chapter 8: Online Travel Market, by Region
Chapter 9: Company Profiles
List of Tables
List of Figures
Executive Summary
According to a new report titled, “Online Travel Market by Service types, Platforms, Mode of booking and Age Group: Global Opportunity Analysis and Industry Forecast, 2022-2031,”The global online travel market was valued at $354.2billion in 2020, and is estimated to reach $1,835.6 billion by 2031, registering a CAGR of 14.8% from 2022 to 2031. Globally, the number of people in the middle and upper middle classes is increasing rapidly.
People now opt for more than one trip every year with the growth in living standards and increased purchasing power. Furthermore, for convenience and easy transactions, people have started availing online travel services, thus saving time &resources, fostering the growth of the online travel market. Growth of the online travel market is driven by 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 introduce 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.
Political disturbance and natural calamities are some of the factors that restrain the growth of the online travel market .Furthermore, low digital literacy and unavailability of the internet connection in remote areas are expected to limit the growth of the market.
Outbreak of COVID-19 negatively affected the growth of the online travel market in 2020. Frequent lockdown practices, social distancing and ban on travel and tourism in most of the countries were some of attributes for decreased growth of the market in 2020.
According to the online travel market analysis, the online travel market segmented into service type, platform, mode of booking, age group, and region. On the basis of service type, the market is categorized into transportation, travel accommodation, and vacation packages. By platform, it is segmented into mobile and desktop. On the basis of mode of booking, it is segregated into online travel agencies (OTAs) and direct travel suppliers. On the basis of age group, market is segmented into 22-31 years32-43 years44-56 years and >56 years. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, and rest of LAMEA).
According to the online travel market trends, on the basis of service types, the transportation segment was valued at $145.8billion in 2020, and is projected to reach $670.6billion by 2031, growing at a CAGR of 13.6% from 2022 to 2031. 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, which significantly contributes for the online travel market growth during the forecast period. Tier I cities are densely populated and have higher living expenses and tier II cities are with moderate cost of living and decent infrastructure and connectivity.
By platform, the mobile segment accounted for the significant share in the global market in 2020 and is expected to increase its share during the forecast period. Increased penetration of smartphones, growing confidence of people in safety of mobile payments, growing digital literacy and social media usage for advertising are likely to contribute for the growth of the market through mobile segment.
On the basis of mode of booking, the online travel agencies (OTAs)segment accounted for considerable share in global online travel market and is expected sustain its share throughout the online travel market forecast period. The OTAs gain popularity in the online travel market owing to the low cost travel options offered by them. They give travelers the flexibility to plan and book travel as and when required. The OTAs gain popularity in the market owing to the low cost travel options offered by them. They give travelers the flexibility to plan and book travel as and when required. Flight bookings contribute approximately 87% of the OTA sales; however, they have taken initiatives to diversify the non-air products as well. Non-air products includes hotels, bus, trains and other. Currently, OTA majorly contributes to the revenue generation of hotels.
On the basis of age group, 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 22–31 years segment is expected to witness the highest CAGR, due to extensive use of social media and smartphones for travel planning and bookings. This age group traveler’s first research scan various sites online, and when planning for a vacation or a short weekend getaway. These people have high spending power as compare to other age group people.
According to the online travel market opportunities, region-wise, North America dominated online travel market share and is expected to be dominant during the forecast period. Surge in demand for travelers seeking perfectly clean sites and personalized services in a normal environment also increases the demand for tourism packages in the North America. Growth in number of trip per year and emergence and increase in demand for agro tourism, eco-tourism are further attributable for the growth of the market in North America.
The players operating in the online travel industry have adopted product launch and business expansion as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Expedia Group, Inc., Ebury Partners UK Ltd, Fareportal Inc. , Hostelworld.com Limited, Hurb Co S/A, HRS, Make MyTrip Ltd., Oracle Corporation, Priceline (Booking Holdings Inc.), SABS Travel Technologies, Tavisca Solutions Pvt. Ltd., Thomas Cook India Ltd., travelomatix.com, Trip.com Group, Tripadvisor, Inc., and WEX Inc
Key Findings Of The Study
The online travel market size was valued at $354.2billionin 2020, and is estimated to reach $1,835.6billionby 2031, registering a CAGR of 14.8% from 2022 to 2031.
- In 2020, depending on service types, the transportation segment acquired $145.8 billion, garnering 412% of the global market share
- On the basis of platforms, the mobile segment acquired $108.8 billion, exhibiting 307% of the global market share
U.S. was the most prominent market in North America in 2020, and is projected to reach $93.2 billion by 2031, growing at a CAGR of 12.0% during the forecast period.
Companies Mentioned
- Expedia Group, Inc.
- Ebury Partners UK Ltd
- Fareportal Inc.
- Hostelworld.com Limited
- Hurb Co S/A, HRS
- MakeMyTrip Ltd.
- Oracle Corporation
- Priceline (Booking Holdings Inc.)
- SABS Travel Technologies
- avisca Solutions Pvt. Ltd.
- Thomas Cook India Ltd.
- travelomatix.com, Trip.com Group
- Tripadvisor, Inc.
- WEX Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 110 |
| Published | February 2022 |
| Forecast Period | 2020 - 2031 |
| Estimated Market Value ( USD | $ 402.18 billion |
| Forecasted Market Value ( USD | $ 1835.6 billion |
| Regions Covered | Global |
| No. of Companies Mentioned | 14 |
