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Online Travel Agents Global Market Revenue Size is All Set to Reach $1,259.1 billion in 2030

online travel agents Market

Market Size Analysis:

According to a report by Altus Market Research titled, “Online Travel Agents Global Market 2022 Opportunities And Strategies To 2030: Growth And Change Including: By Service Type: (Vacation Packages; Travel; Accommodation); By Mode Of Transport: (Air; Others); By Mode Of Booking: (Online; Offline; Direct” the global online travel agent market size reached a value of nearly $460.9 billion in 2020, having decreased at a compound annual growth rate (CAGR) of -3.5% since 2015. The market increased from $460.9 billion in 2020 to $972.1 billion in 2025 at a rate of 16.1%. The decrease is mainly due to COVID-19 pandemic across all countries in the world as most countries went into lockdown with severe travel restrictions. Subsequently, industries such as airlines, railways, hospitality, and tourism all suffered major setbacks. The market is expected to grow at a CAGR of 5.9% from 2025 and reach $1,259.1 billion in 2030.

Market Growth Drivers:

The online travel agent market growth factors in the historic period include strong economic growth in emerging markets, rapid population growth, demographic shift, improved earning capacity, rise in E-commerce, acceptance of solo travel and technological advances. Factors that negatively affected growth in the historic period were skilled workforce shortages, high taxes on air travel, and demand for offline travel agencies.

Going forward, shift in travel trends, resurgence of staycation, faster economic growth, surge in smartphone users, increased car rental opportunities, technology, and government initiatives will drive the market for online travel agent. Factors that could hinder the growth of the online travel agent market in the future include geopolitical tensions, government regulations, and coronavirus pandemic.

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Market Growth by Segments:

The online travel agent market is segmented by service type into vacation packages; travel and accommodation.

The travel market was the largest segment of the online travel agent market segmented by service type, accounting for 42.2% of the total in 2020 and going forward the travel market is expected to be the fastest growing segment in the online travel agent market by service type , at a CAGR of 17.6% during 2020-25.

The online travel agent market is segmented by mode of transport into air and others. The others market was the largest segment by service type, accounting for 69.4% of the total in 2020 and going forward the air transport market is expected to be the fastest growing segment in the online travel agent market by mode of transport, at a CAGR of 18.3% during 2020-25.

The air travel agent market is segmented by mode of booking into online, offline and direct. The direct market was the largest segment of the online travel agent market segmented by service type, accounting for 58.4% of the total in 2020 and going forward the online mode market is expected to be the fastest growing segment in the air travel market by mode of booking, at a CAGR of 18.4% during 2020-25.

The top opportunities in the online travel agent market segmented by service type will arise in the travel market segment, which will gain $244.1 billion of global annual sales by 2025.

COVID-19 Impact on Online Travel Agents Global Market:

The coronavirus pandemic of 2020 caused many economic implications in countries all over the world. The closure of all nonessential businesses and strict quarantine measures taken by governments created a halt in worldwide operations. One of the most significant impacts of the virus was seen on the travel and tourism industry, as most countries went into lockdown with severe travel restrictions inhibiting people from moving about. Subsequently, industries such as airlines, railways, hospitality, and tourism all suffered major setbacks. The online travel agents’ market was also severely hit by the pandemic. According to an article by Skift Research, the largest seven public online travel agencies will lose at least $11.5 billion in revenue this year due to the virus. The impact could reach even higher, potentially as much as $20 billion in missed revenue.

Market Growth by Region:

Asia Pacific was the largest region in the global online travel agent market, accounting for 32.8% of the total in 2020. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the online travel agent market will be Asia-Pacific, and Africa, where growth will be at CAGRs of 19.1% and 16.1% respectively. These will be followed by North America and Western Europe, where the markets are expected to grow at CAGRs of 15.5% and 14.0% respectively.

Market Growth by Key Players:

The online travel agent market is highly fragmented, with a small number of large players holding significant market share.  Major players in the market include Booking Holdings Inc., Expedia Group Inc., Trip.com Group Limited, Tripadvisor, Inc., Trivago N.V., eDreams Odigeo, Despegar, MakeMyTrip Limited, Webjet Limited, and lastminute.com NV.

Other Players

Webjet Limited, MakeMyTrip Limited, Despegar, eDreams Odigeo, Lastminute.com Group, Tiket, Pegipegi.com, Fliggy, Qunar, Qyer, MaFengWo, Cncn Travel, eLong, Lvmama, Tongcheng Network Technology Co, Tujia, Xiaozhu, Klook, Huangbaoche, Huoli, China International Travel Service Corporation Limited, Tuniu, Travelplan Australia, Traveloka, Utiket, NusaTrip, Yanolja, Daily Hotel, Hanatour, Mode Tour, Yatra, Cleartrip, EaseMyTrip, Goibibo, JTB (Japan Travel Bureau) Corporation, Jalan, JAPANiCAN, Ikyu, Evolable, Rakuten Travel, Omio, TravelPerk, ab-in-den-Urlaub, HolidayCheck, fluege, weg, ltur, Sherpa Expeditions, Stoke Travel, Topdeck Travel, Sicily Activities, Flag Travel Holidays, Soleto Travel, Busabout, Euroventure, Opodo Ltd, On the Beach Group plc, We Love Holidays Ltd, Secret Escapes Ltd, Voyage Prive UK, Vola, eSky, Fly-Go, Oktogo, Travelata, Aviasales, Tutu, AnywayAnyday, OneTwoTrip, Ozon Travel, Ostrovok, Onlinetours, HipWay, Unitiki, WeAtlas, Zenhotels, Skyscanner, Agoda, Hotwire, Destination Services Mexico, Bel Air Travel, Canada Travels, Canuck Abroad, Cheapflights, Exitnow, FlightCentre, Airbnb, Priceline, Lonely Planet Global Inc, CheapOair, AirGorilla, LLC, DxTravela, AgileEngine, Solvd, Rootstrap, Genium, Decolar, Hotel Urbano, Submarino Viagens, ViajaNet, Hoteis, Say Hueque Argentina Journeys, World Expeditions, Dragoman, Scenic Luxury Cruises & Tou, National Geographic Journey, Luxury Gold, Contiki, Chimu Adventures, Explore, Evaneos, Tucan Travel, TreXperience, Peregrine Adventures, Wego, Flyin, Yamsafer, Holiday Me, Rehlat, Tajawal, Almosafer, Hoojoozat, Musafir, Batuta, HotelOnline, Dubai city, TP Connects, Hey Flyer, Trivol, Travel Talk, Costsaver, Timeless Tours, Intrepid Travel, Trafalgar, Expat Explore Travel, Vacations to go travel, Insight Vacations, Exodus Travels, Cape Town Day Tours, G Adventures, Kabura Travel & Tours, On The Go Tour, FlyBoku, Wakanow, Travelstart, Zenith Travels and Tours Limited, Mayfair Travel Nigeria limited, Gadeshire Travels & Tours Limited, Finchglow Travel Agency Nigeria Limited, GMT Travels And Tours Limited

Strategies by Key Players:

Player based strategies include focus on establishing mutually beneficial relationship between travel service providers and restaurants across the globe, focus on expanding its business presence in alternative and vacation accommodation market through acquisition of emerging companies in the market, focus on expanding product and service offerings through strategic acquisitions, partnerships and investments in travel services industries in Greater China and overseas, focus on developing innovative tools to support the customers with safety and health information during reopening of facilities post COVID-19, focus on improving product and capabilities through strategic collaborations and partnerships with technology companies, and focus on expanding business presence in hotel and dynamic package products through acquisition of emerging and innovative companies.

Market: Trend-based Strategies

Market-trend-based strategies for online travel agent market include focusing on offering attractive packages to the solo travelers to maximize profits, focus on customer acquisition by launching direct booking platforms, focus on improving rank on search engines to attract customers, consider investing in chatbots to improve customer experiences, consider investing in acquisitions to improve user experience and to have a wider customer base.

Growth Strategies by Altus Market Research for Companies in the Market:

To take advantage of the opportunities, the AMR recommends the online travel agent companies to provide personalized services using recognition technology, focus on customer engagement and personalization, use of big data, offer competitive pricing, invest in emerging markets, offer loyalty schemes, offer exclusive discounts, leverage social media, focus on achieving the best customer reviews, focus on millennials and focus on expanding B2B network.