The global online travel market size is estimated to reach USD 1505.6 billion by 2026 and is projected to expand at a significant CAGR of 9.7% during the forecast period, 2021–2028. The growth of the market is attributed to growing awareness among males regarding grooming and personal hygiene globally. The growth of the market is attributed to rising penetration of internet usage and smartphone users, increasing tourism industry, and rising faith of customers in online payments across the globe.
Travel that is booked online through a website that specializes in making travel arrangements such as flight tickets, automobile rentals, and packages is known as online travel. Online travel companies or direct travel suppliers are the agencies that help with travel booking. The goal of online travel companies is to make planning and booking travel easy for travelers. Online travel service is accessed via a mobile app or a website and bookings are made directly with the agency, but confirmation is provided by service providers such as motels or airplanes.
Travel e-commerce websites offer recommendations for various lodgings, locations, and attractions as well as information on how to get there. Most governments and states have their own travel websites to attract tourists. Traditional travel consultants are being replaced by online travel booking platforms, due to increasing internet penetration. MakeMyTrip Limited, Trivago N.V., Airbnb, Google Trips, Uber, and TripAdvisor are among the dedicated websites for trips and travel.
Market Trends, Drivers, Restraints, and Opportunities
- Rising implementation of technological advancements in the online travel market is spurring the market growth during the forecast period. Increased usage of mobile applications enabled travel booking to be flexible and convenient.
- Growing use of smartphones and rising penetration of internet are estimated to fuel the market in the coming years.
- Rapid growth of urbanization, rising per capita income, economic expansion as well as change in customer lifestyles for enhanced services and comfort are anticipated to boost the market during the forecast period.
- Various services provided by online travel such as secure and quick payment methods, online reviews of hotels and transportation capabilities, and convenient and simple cancellation are all factors that are expected to drive the global online travel market during the forecast period.
- Growing concerns regarding safety and privacy during online payments and bookings is projected to hinder the market growth during the forecast period.
Global Online Travel Market Segment Insights
Based on modes of booking, the market is segmented into direct travel suppliers and online travel agencies. The online travel agencies segment is expected to account for a key share of the market during the forecast period, due to high acceptance of this mode of booking by customers as a part of the spectacular benefits associated with its use, such as saving time and money, as they do not charge any consultancy fees, provide expert insights and a safety net to the trip, make multi-destination travel smooth, and allow customers to check feedback.
In terms of service types, the global online travel market is segregated into vacation packages, transportation, and travel accommodation. The travel accommodation segment is anticipated to dominate the market during the forecast period, as this segment holds the largest share in the market. Increasing number of business travelers around the world is a major factor that is estimated to boost the market during the forecast period.
Based on types of platforms, the market is segmented into desktop and mobile. The mobile segment is expected to represent a key share of the market during the forecast period, due to hassle-free navigation through online sites and easy accessibility of mobile apps. Businesses have started to cater to the demands of passengers with creative mobile travel apps to increase their market share. Apps with a variety of features are being created to keep travelers connected during their journey and to assist them as needed.
On the basis of regions, the global online travel market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Increasing number of visitors in this region is attributed to increased disposable income and rising internet usage across developing countries. Asia Pacific is expected to dominate the market over the forecast period.
Segments Covered in the Report:
By Modes of bookings
By Service types
- Direct travel suppliers
- Online travel agencies
By Types of platforms
- Vacation packages
- Travel accommodation
By Key Players
- Asia Pacific
- North America
- Europe, Latin America
- Middle East & Africa
- Booking Holdings Inc.
- Expedia Group
- Trip.com Group Limited
- TripAdvisor LLC
- Hostelworld Group
- Thomas Cook Group plc
- MakeMyTrip Pvt. Ltd.
Booking Holdings Inc., Expedia Group, Trip.com Group Limited, TripAdvisor LLC, Hurb, Hostelworld Group, CheapOair.Com, Thomas Cook Group plc, Trivago, and MakeMyTrip Pvt. Ltd. are some of the key players in the market.