Online Travel Market Market Size
Online Travel Market size was USD 520.57 billion in 2021 and projected to grow from USD 670.1 billion in 2023 to USD 2126.2 billion by 2032, exhibiting a CAGR of 13.7% during the forecast period.
Online travel is an internet-based marketplace that enables customers to browse and reserve travel-related goods and services, including lodging, transportation (flights, cars, cruises, and tours), activities, and more, directly with travel vendors. Online reservations allow clients and travelers to pay less than they would through a travel agent. Moreover, if the price difference is graphically shown to travelers, they will rather choose the cheaper airfare.
Market Highlights
Online Travel Market is expected to project a CAGR of 13.7 % during the forecast period, 2022-2032
Online Travel Market is expected to reach USD 2126.2 billion, growing at a CAGR of 13.7% during the forecast period owing to the rise in consumer buying power, expanding use of credit cards and the internet, a government drive to promote tourism, and the growth of new online travel websites. Furthermore, technological improvements and use of smartphones rises, simple and effective online booking tactics have made travel easy and economical. These factors are expected to boost the Online Travel Market over the estimated period.
Online Travel Market Segmentation
Travel Accommodation segment is expected to dominate in the forecast period
Online Travel Market is classified based on the Service Type into Transportation, Travel Accommodation, and Vacation Packages. The Travel Accommodation category was leading the market in 2020, and is estimated to lead during the estimated period as well. Market companies are increasingly providing travelers with a varied selection of hotel choices at sensible prices. Customers shop around for the greatest bargain on lodging by visiting multiple websites. Travelers prefer specialist online housing providers like OYO Rooms since they offer a diverse selection of lodging options. Hence, these factors are significantly driving market expansion in the travel accommodation industry.
Online Travel Agencies (OTAs) segment is expected to dominate in the forecast period
Online Travel Market is classified based on the Mode of Booking into Online Travel Agencies (OTAs) and Direct Travel Facilitators. The Direct Travel Facilitators category accounted for the major market share in the past years. Direct Travel Facilitators category led the market in the past years. However, the growing market share of OTAs elongated as Online Travel Agencies poses a greater challenge to this segment. For strong competition, airlines like Lufthansa AG prefer to avoid OTAs by charging additional costs for OTA bookings. Since clients are continually using OTA platforms, the internet travel sector through direct travel facilitators is increasing at a slower rate.
Market Dynamics
Growth Drivers
Growing Consumer Awareness and Rising IT & Internet Penetration Worldwide is Expected to Boost the Market Growth
Consumer awareness in developing nations is likely to drive the Online Travel Market growth. Growth in nations with an established consumer database is steady; however, a large number of untapped areas is an opportunity for surplus growth. Also, expanding IT and internet penetration is encouraging market revenue and helping the market to achieve new heights. Another aspect is the increasing candidates or students who choose to study in international colleges to gain more exposure.
Increasing Number of Business Travelers is Expected to Boost the Market Growth
The internet provides virtual illustrations like 3D interactive tours to offer a clear sense of travel places, offering an indirect experience beyond the capacity of traditional travel firms. The speedy development of transportation and communication, and the growing number of business travelers worldwide, are projected to drive market growth in the future.
Restraint
Growing Social and Political Disturbances Impacting Tourism &Travel to Restrain the Market Growth
A gap between government organizations and private travel agencies due to the lack of a centralized system that simplifies data may limit the Online Travel Market growth. Furthermore, social and political upheavals affecting the travel and tourist industry in various regions are negatively affecting the market growth. Even if travel services are inexpensive, customers are likely to avoid conflict-prone locations. This restricts the opportunity of online travel booking to certain nations, affecting online travel market sales.
Recent Developments
- In October 2022, MakeMyTrip (MMT) introduced a new and innovative payment approach dubbed 'Book Without Payment'. This enables domestic and international visitors to book lodging in India or overseas without making any upfront payments.
- EaseMyTrip.com, one of India's major travel technology platforms, stated the debut of a self-booking service for corporates in November 2022. Business travelers and corporations may easily schedule their travels with this tool since it streamlines the entire booking experience with the use of AI technologies, data mining, machine learning, and so on for more efficiency and resourcefulness.
Online Travel Market
Key Players Covered:
- Alibaba Group Holding Limited
- Trip.com Group
- Booking Holdings Inc.
- Ryanair DAC
- Expedia Group Inc.
- MakeMyTrip Ltd.
- Tripadvisor Inc.
- Thomas Cook India Ltd.
- Fareportal Inc.
- eDreams ODIGEO
- HRS
- Ebury Partners UK Ltd
- Hostelworld.com Limited
- FlixMobility GmbH
- SABS Travel Technologies
- Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)
Regional Analysis
Online Travel Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Asia Pacific registered a substantial share of the Online Travel Market and is likely to maintain that share during the estimated period. It has the most potential for growth in the internet travel business, with China and India being highly attractive markets. The increase in disposable income, rise in the middle-class section, and growing penetration of facilities offered by the internet are credited to the growth.
Impact of Covid-19 on Online Travel Market
COVID-19 has a substantial impact on the tourist and travel industry. Restriction on interstate and local travel, trade fairs, hotel visits, and attendance of cultural event harmed the market. Global social distancing, quarantine, and restrictions on travel hampered the growth of the Online Travel Market. The hotel business is anticipated to face a significant slowdown due to the pandemic.
Online Travel Market is further segmented by region into:
- North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
- Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
- Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
- Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
- Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA
Online Travel Market Scope and Segments:
|
ATTRIBUTE |
DETAILS |
|
Study Period |
2018-2032 |
|
Base Year |
2022 |
|
Forecast Period |
2022-2032 |
|
Historical Period |
2019-2021 |
|
Growth Rate |
CAGR of 13.7% from 2022-2032 |
|
Unit |
Value (USD Billion) |
|
Segmentation |
Main Segments List |
|
Service Type |
|
|
Platform |
|
|
Mode of Booking |
|
|
By Region |
|
Frequently Asked Questions (FAQ):
Online Travel Market size was estimated at USD 520.57 billion in 2021 and is expected to reach USD 2126.2 billion in 2032.
Online travel is an internet-based marketplace that enables customers to browse and reserve travel-related goods and services, including lodging, transportation (flights, cars, cruises, and tours), activities, and more, directly with travel vendors.
Travel Accommodation and Online Travel Agencies (OTAs) segments accounted for the largest Online Travel Market share.
Key players: Alibaba Group Holding Limited, Trip.com Group, Booking Holdings Inc., Ryanair DAC, Expedia Group Inc., MakeMyTrip Ltd., Tripadvisor Inc., Thomas Cook India Ltd., Fareportal Inc., eDreams ODIGEO, HRS, Ebury Partners UK Ltd, Hostelworld.com Limited, FlixMobility GmbH, SABS Travel Technologies, and Other Prominent Players are the key players in the Online Travel Market.
Rising disposable income of consumers and government support for tourism are the driving factors of the Online Travel Market.
.png){kind=icon}
