Online Travel Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030
Page: 215 | Report Code: CG241007 | Research Suite: Report (PDF) & Market Data (Excel)
The global market value of the online travel market was valued at USD 455.5 billion in 2022, and a CAGR of 14.8% is expected during the forecast period. Increasing demand for easing out the travel planning and bookings for travelers. The online travel industry is pushed by quick and easy flights and hotel bookings. Increasing demand for online payment in the market is significantly driving the growth in the market.
Increasing internet and smartphone penetration in the market has made it easier for consumers to browse, book, and pay for travel services online. Increasing disposable income in many parts of the world, especially in emerging markets such as China, Japan, and India.
Growth Drivers
Customers in this materialistic world are efficiency personified. So, they usually prefer the online booking option. The ability to compare prices, read reviews, and customize trips has shifted demand. From traditional brick-and-mortar travel agencies to online platforms. Technologies like AI, machine learning, and big data are helping online travel agencies to offer personalized recommendations. The growth of low-cost airlines has made travel more affordable, especially for budget-conscious travelers.
Social media
platforms are becoming a significant source of travel inspiration. After the
pandemic got over, there was a big rebound in travel demand. Increased focus on
sustainable travel and ease of online payment and financing is driving growth
in the market. Increasing urbanization and industrialization in emerging
economies is the key factor behind the significant growth in the market.
Segmentation
By Service Type
·
Travel Accommodation
·
Transportation
·
Vacation Packages
By Platforms
·
Mobile
·
Desktop
By Mode of Booking
·
Online Travel Agencies
·
Direct Travel Suppliers
By Age Group
·
22-31
·
32-43
·
44-56
· Greater than 56
Regional Outlook
·
Asia Pacific
·
Europe
·
Middle East and Africa
·
Latin America
·
North America
Online Travel Market by Service type
Segmentation
On the basis of service type, the online travel market is segmented into travel accommodations, transportation, and vacation packages. Travel accommodation is the leading segment in the market and is expected to dominate the market during the forecast period. This includes booking for hotels, vacation rentals, and alternative accommodations like rentals and private homes.
The popularity of platforms like Airbnb, Booking.com, and Expedia has driven significant growth in the market. Consumers tend to prioritize accommodation booking while planning for their trips, making it the largest segment. Transportation includes flights, cars, rentals, and rail bookings. Online flight booking services are significant, but the market share is smaller than accommodation.
The vacation package segment is smaller than
individual accommodation and transportation booking, as more travelers prefer
to customize their trips instead of opting for pre-designed packages. Lucrative
offers provided by various companies for businessmen are driving growth in the
market significantly. Rising disposable income and urbanization are the driving
factors behind the significant growth in the market.
Online Travel Market by Platforms
Market
On the basis of the platforms, the online travel market is segmented into mobile, and desktop. Mobile segment is the leading platform in the market, and is expected to dominate the market during the forecast period due to growing use of smartphones, ease of use in smartphones efficiently, and rising disposable income of people.
Increasing availability of mobile exclusive deals are driving growth in the market significantly. Increasing internet penetration is one of the key factors behind the significant growth in the market. Mobile is easy to carry, and operable from anywhere in the world. Increasing demand for mobiles over desktops for booking is the key factor behind the significant growth in the market. Rising disposable income, and increasing urbanization is the key factor behind the growth in the market. Though Desktops are used in many of the shops, and online booking center.
The
online travel industry is pushed by quick and easy flight, and hotel bookings.
Increasing demand for online payment in the market is significantly driving the
growth in the market. Increasing internet and smartphone penetration in the market
is has made it easier for consumers to browse, book, and pay for travel
services online
Regional Outlook
On the basis of the regions, the online travel market is segmented into 5 regions: Asia Pacific, North America, Latin America, the Middle East and Africa, and Europe. Asia Pacific is the leading segment in the online travel market due to a rising middle-class population and increasing disposable income. The proliferation of smart phones and internet penetration has facilitated the rise of online booking in this region. Governments in Asia Pacific are investing in improving travel and tourism infrastructure, further boosting the sector. Surge of international and local travel booking platforms catering to the diverse and growing customer base in the Asia-Pacific region.
North America is another leading segment due to rising urbanization, and the
number of tourist places has gradually increased in recent years. North
America, particularly the United States, and Canada have a mature online travel
market. The market has shown steady growth, though at a lower pace, compared to
emerging places like Asia Pacific. After the pandemic got over, the market
rebounded strongly, driven by domestic and international travel demand. With
borders reopening, tourism and travel activities surged, boosting online
bookings. The online travel market in North America was valued at billions of
dollars. Companies like Expedia, Booking Holdings, and Trip Advisor are
dominant players in the North American market.
Increasing use of mobile apps and increasing influence of social media platforms are driving growth in the market. There is rising demand for personalized experiences, and companies are increasingly leveraging artificial intelligence and data analytics to offer customized recommendations and dynamic pricing. Intense competition in the market is significantly influencing the market.
With growing online booking, the concern about data
security is also increasing; the integrity and confidentiality of data are to
be ensured before processing. Still, North America is a crucial and highly
advanced region for the online travel market. The European market, including
tourist places like Switzerland, Denmark, Sweden, Norway, and Russia, is
witnessing significant growth in the market. The great influence of social
media platforms on people is driving the demand in the market. The presence of
many key players in these regions is the key factor behind the significant
growth in the market.
Key Players
·
Alibaba Group
·
Elong
· Airbnb
·
TUI Group
·
Air Gorilla
· Other Players