How Has the Traditional Travel Agency Market Size Evolved in Recent Years?
The traditional travel agency market has seen considerable growth due to a variety of factors.
• The traditional travel agency market has grown strongly in recent years, anticipated to rise from $149.14 billion in 2024 to $157.74 billion in 2025, at a CAGR of 5.8%.
Growth is fueled by increasing global travel, economic prosperity, consumer preferences for personalized travel, corporate travel needs, strong industry relationships, and demand for specialized travel services.
What Is The Forecast For The Traditional Travel Agency Market Size?
The traditional travel agency market is expected to maintain its strong growth trajectory in upcoming years.
• The traditional travel agency market is forecasted to reach $195.5 billion by 2029, with a CAGR of 5.5%.
This growth is attributed to post-pandemic travel demand, rising middle-class populations, technological advancements, interest in experiential travel, a rebound in corporate travel, and a growing focus on new experiences. Key trends include AI adoption, hybrid travel solutions, enhanced safety measures, virtual reality advancements, and expansion into emerging markets.
What Are The Essential Drivers Behind The Growth Of The Traditional Travel Agency Market?
The traditional travel agency market's growth is anticipated to be driven by the escalating demand for corporate travel. This refers to the business-related journeys undertaken by employees or company representatives for things like meetings, conferences, and visits to clients. The surge in demand for this type of travel is being sparked by the growth of various business operations. Moreover, the transition to remote and hybrid working models and an increased emphasis on in-person client communication has led to more travel for the purpose of enhancing relationships and securing deals. Traditional travel agencies offer business travel services such as booking, travel support, and itinerary management, customizing their offerings to simplify travel procedures for organizations. As an example, a recent survey conducted by the US-based Global Business Travel Association (GBTA) in January 2024, polling over 700 business travel professionals from 41 different countries, revealed that 83% of travel buyers saw an uptick in their global business travel bookings for 2023 compared to 2022. Of these, 31% witnessed a significant increase, 37% a moderate one, and 15% a small improvement. Additionally, 59% of buyers predict a rise in business trips within their companies in 2024 in comparison to the present year. Thus, this growing demand for corporate travel is set to propel the growth of the traditional travel agency market.
How Is The Global Traditional Travel Agency Market Divided Into Key Segments?
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
Subsegments:
1) By Transportation: Air Travel, Rail Travel, Car Rentals, Cruise Services, Bus And Coach Services
2) By Travel Accommodation: Hotels, Resorts, Hostels, Vacation Rentals, Bed And Breakfasts
3) By Vacation Packages: All-Inclusive Packages, Customized Travel Packages, Group Tours, Honeymoon Packages, Family Holiday Packages
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What Trends Are Shaping The Traditional Travel Agency Market?
Leading organizations in the conventional travel agency market are honing in on lucrative commercial growth possibilities, such as direct-to-market growth, to better cater to local clientele and improve operational management. Direct-to-market growth is a plan in which a travel agency establishes its functioning, office, or existence in a particular market or region, eliminating the need for alliances or intermediaries to communicate directly with clients in that market, and providing personalized services and experiences. For example, in June 2022, FCM Travel Solutions, an Australian travel management firm, set up a dedicated office in Tokyo. This strategic action incorporates a team of expert advisors to boost the company's proficiency throughout Asia. This growth directly into the market highlights FCM's dedication to incorporating groundbreaking technology, including their innovative platform. The choice to expand FCM's foothold in Japan acknowledges emerging customer needs and recognizes the substantial commercial growth potential within the nation.
Who Are the Key Players In The Traditional Travel Agency Market?
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
What Are The Regional Insights Into The Traditional Travel Agency Market?
Europe was the largest region in the traditional travel agency market in 2023 The regions covered in the traditional travel agency market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
