The traditional travel agency market size has grown significantly in recent years, projected to increase from $141.4 billion in 2023 to $149.14 billion in 2024, at a compound annual growth rate (CAGR) of 5.5%. This historical growth can be attributed to factors such as the increasing global travel trend, growing economic prosperity, rising consumer preferences for personalized travel experiences, expanding corporate travel needs, robust industry relationships, and a heightened demand for specialized travel services. Looking ahead, the market is expected to continue its upward trajectory, reaching $185.4 billion in 2028 with a CAGR of 5.6%. The anticipated growth during this forecast period will be driven by a resurgence in post-pandemic travel demand, a growing middle-class population, advancements in technological innovations, a rising interest in experiential travel, a rebound in corporate travel, and an increasing focus on personalized service. Major trends in this period will include the use of artificial intelligence, the development of hybrid travel solutions, enhanced travel safety and health measures, advancements in virtual reality (VR), and an expansion into emerging markets.
Major Driver In The Traditional Travel Agency Market
The increasing demand for corporate travel is projected to significantly enhance the growth of the traditional travel agency market in the near future. Corporate travel refers to work-related trips undertaken by employees or business representatives for purposes such as meetings, conferences, and client visits. The rising demand for corporate travel is driven by expanding business activities and the shift toward remote and hybrid work models, coupled with a heightened focus on face-to-face client interactions that encourage travel for relationship building and deal securing. Traditional travel agencies play a crucial role in corporate travel by managing bookings, itineraries, and providing travel support, delivering tailored services that streamline travel processes for businesses. For instance, in January 2024, a recent survey of over 700 business travel professionals from 41 countries conducted by the Global Business Travel Association (GBTA) indicated that 83% of travel buyers reported an increase in their global business travel bookings for 2023 compared to 2022, with 31% experiencing a significant rise, 37% a moderate increase, and 15% a slight improvement. Furthermore, 59% of buyers expect a further increase in business trips within their companies in 2024 compared to the current year. Thus, the growing demand for corporate travel is driving the growth of the traditional travel agency market through 2023, into 2024, and is expected to continue expanding by 2028.
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Traditional Travel Agency Market Competitive Landscape
Major companies operating in the traditional travel agency market are TUI AG, Booking Holdings Inc, Expedia Group Inc, CWT Global BV, American Express Global Business Travel, Flight Centre Travel Group Limited, Travelport Worldwide Ltd, Frosch International Travel, Thomas Cook (India) Ltd, BCD Travel, Abercrombie & Kent, Corporate Travel Management, JTB Corporation, G Adventures, Frosch Travel, Contiki, Travel Leaders Group, STA Travel, Classic Travel, HRG (Hogg Robinson Group), Kuoni Travel Ltd, Airtreks, National Geographic Expeditions, AAA Travel, Journese
Key Traditional Travel Agency Market Trend
Major companies in the traditional travel agency market are targeting high-growth business development opportunities, such as direct-to-market expansion, to better serve local clients and improve operational control. Direct-to-market expansion involves a strategy where a travel agency establishes its own operations, office, or presence within a specific market or region, instead of relying on partnerships or intermediaries to interact directly with clients. This approach allows for tailored services and personalized experiences. For example, in June 2022, FCM Travel Solutions, an Australia-based travel management company, opened a dedicated office in Tokyo, accompanied by a team of expert consultants to enhance the company’s capabilities across Asia. This direct-to-market expansion highlights FCM’s commitment to integrating advanced technology, including its innovative platform, and reflects the growing customer demands and business development potential in Japan.
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Global Traditional Travel Agency Market Segmentation
The traditional travel agency market covered in this report is segmented –
1) By Service Types: Transportation, Travel Accommodation, Vacation Packages
2) By Tourist Type: Domestic, International
3) By Age Group: 22-31 Years, 32-43 Years, 44-56 Years, Over 56 Years
By Geography:The regions covered in the traditional travel agency market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Europe was the largest region in the traditional travel agency market in 2023
The Traditional Travel Agency Global Market Report 2024 furnishes information about the global traditional travel agency market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
