The global travel agency services market is projected to grow from USD 572.8 billion in 2026 to USD 1,540.5 billion by 2036, expanding at a 10.4% CAGR during the forecast period, according to Future Market Insights (FMI). The market was valued at USD 518.8 billion in 2025. Growth is being supported by rising demand for packaged trip planning, online booking, corporate travel management, and agency support for complex itineraries.
Online booking is projected to account for 65.0% of the booking channel segment in 2026, reflecting the growing role of websites and mobile applications in travel search, comparison, and payment. By services provided, full-service travel arrangements are expected to hold a 60.0% share in 2026 as travelers seek coordinated support covering flights, accommodation, itinerary planning, and managed travel packages.
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Digital Booking Expands While Assisted Travel Retains Value
Travel agencies are increasingly operating across both self-service and assisted booking journeys. Online platforms allow travelers to compare fares, routes, hotels, and package options quickly, while human agents continue to support complex trips, high-value travel, itinerary changes, and disruption management.
The shift toward digital booking is also changing the economics of the industry. Booking Holdings reported that merchant bookings reached USD 104.2 billion in 2024, while traditional agency bookings declined 10.9% to USD 61.4 billion. This movement toward merchant models places greater importance on payment infrastructure, post-booking support, refunds, and customer service.
Regulatory changes are also increasing the operational responsibilities of travel agencies. In April 2024, the United States Department of Transportation introduced rules requiring agencies to provide prompt refunds when flights are cancelled or significantly changed. Agencies therefore need stronger coordination with airlines and improved refund processes to manage customer support while protecting margins.
Full-Service Arrangements Lead as Travelers Seek Greater Planning Support
Full-service travel arrangements are forecast to account for 60.0% of the market in 2026, supported by demand for one point of control across transport, accommodation, and itinerary planning. Partial travel services continue to serve customers who require assistance with individual flight or accommodation bookings.
Domestic travel is projected to represent 55.0% of tourist-type demand in 2026, supported by recurring short-haul and domestic holiday bookings. Package travelers are expected to account for 45.0% of tour-type demand, as bundled arrangements can simplify planning and budgeting.
Corporate travel is another important service area. Managed travel programs allow companies to apply spending policies and provide traveler support during disruptions. Corporate travel management providers are competing through account controls, traveler care, and technology-enabled assistance rather than consumer-facing inventory alone.
India and China Record Strong Growth Outlook
Regional growth is expected to vary significantly across major travel markets. India is projected to record a 13.8% CAGR through 2036, supported by organized holiday planning, outbound travel, digital payments, and growing demand for bundled air and hotel services. India recorded 20.57 million international tourist arrivals in 2024, according to tourism ministry data cited in the FMI report.
China is forecast to expand at a 12.9% CAGR, supported by its large domestic travel market and mobile booking activity. China recorded 5.615 billion domestic travel trips in 2024, with domestic travelers spending more than 5.75 trillion yuan during the year.
Other high-growth markets include Indonesia at 12.4% CAGR, Saudi Arabia at 12.1%, the United Arab Emirates at 11.8%, Brazil at 11.3%, and Mexico at 11.0% through 2036.
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Competition Shifts Toward Technology, Inventory and Service Support
Competition in travel agency services is increasingly shaped by inventory access, booking speed, digital planning tools, and assisted service capabilities. Major online platforms are investing in AI-enabled travel discovery and planning, while corporate travel providers are strengthening account management and traveler support.
In May 2024, Expedia Group introduced Romie and more than 40 travel features at EXPLORE to support travel planning and booking. In October 2024, Booking.com expanded AI-powered tools including Smart Filter and review summaries. Amex GBT completed its acquisition of CWT in September 2025, strengthening its position in corporate travel management.
“Travel agency services are no longer judged only by ticket access. Clients compare planning speed with refund support and itinerary advice. Online booking controls the first search step. Human agents keep value in complex trips and high-risk journeys. Corporate accounts need policy control and traveler tracking with less staff effort,” said Ronak Shah, Principal Consultant for Travel and Tourism at Future Market Insights.
The full Travel Agency Services Market study covers services provided, booking channel, tourist type, tour type, demography, age group, and regional markets across more than 30 countries.
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Future Market Insights, Inc. (FMI) is an ESOMAR-certified, ISO 9001:2015 market research and consulting organization, trusted by Fortune 500 clients and global enterprises. With operations in the U.S., UK, India, and Dubai, FMI provides data-backed insights and strategic intelligence across 30+ industries and 1200 markets worldwide.
