Online Travel Agent Market Definition
The online travel agent market consists of sales of travel services through online channels. Online travel agents or agencies are those individuals or companies that have websites that allow consumers to book various travel related services via the internet. Travel agents are engaged in the sales of travel services such as flights, buses, vacation packages, hotels, and rental cars via online networks. The online travel agent market covered in this report is segmented by service type into vacation packages; transportation; accommodation and by platform into mobile/tablets based and desktop based. An online travel agent (OTA) is an individual or a company that provides a web-based market place, which allows consumers to research and book travel products and services, such as hotels, flights, cars, tours, and cruises, among others, directly with travel suppliers.
Online Travel Agent Market Size
The global online travel agent market reached a value of nearly $744.7 billion in 2019, having increased at a compound annual growth rate (CAGR) of 7.9% since 2015. The market declined from $744.7 billion in 2019 to $595.8 billion in 2020 at a rate of -20.0%. The decrease is mainly due to COVID-19 pandemic across all countries in the world as most countries went into lockdown with severe travel restrictions. Subsequently, industries such as airlines, railways, hospitality, and tourism all suffered major setbacks. The market is expected to grow at a CAGR of 14.8% from 2021 and reach $902.2 billion in 2023.
Growth in the historic period resulted from strong economic growth in emerging markets, rapid population growth, demographic shift, improved earning capacity, acceptance of solo travel and technological advances. Factors that negatively affected growth in the historic period were skilled workforce shortages and high taxes on air travel.
Going forward, shift in travel trends, resurgence of staycation, faster economic growth, surge in smartphone users, and government initiatives will drive the market for online travel agent. Factors that could hinder the growth of the online travel agent market in the future include geopolitical tensions, government regulations, and coronavirus pandemic.
Online Travel Agent Market Drivers
The key drivers of the online travel agent market include:
Surge In Smartphone Users
The surge in smartphone users along with growing internet penetration are anticipated to boost the online tourism industry and the business for travel agents during the period. Increasing penetration of internet and growth in the number of smartphone users is contributing to the consumer shift towards online channels for travel ticket and hotel bookings. For instance, the number of smartphone users in India is estimated to reach 1.1 billion in 2024.ii Consequently, the rise in the number of smartphone users coupled with increasing internet penetration is forecast to propel the revenues for the online travel agent market during the years to come ahead.
Online Travel Agent Market Restraints
The key restraints on the online travel agent market include:
Geo-Political Tensions
Geopolitical tensions are likely to have a negative impact on the online travel agent market during the forecast period. Repercussions of geopolitical tensions included sanctions on Russia, trade protectionism and heightened military tensions in the Middle East. For instance, Brexit is likely to lead to more trade restrictions between the UK and other countries in Europe. The USA is also implementing several trade restrictions, especially with China, to boost its local production. For example, in the USA, as on mid 2019, increased input costs due to steel and aluminum tariffs (in March 2018) resulted in 0.6% fewer jobs accounting for 75,000 fewer jobs in manufacturing sector.iii Geo-political tensions will result in job losses, which in turn will decrease the disposable incomes and spending power of individuals, and discourage them from touring and traveling. This will hinder the growth of the market going forward.
Online Travel Agent Market Trends
Major trends shaping the online travel agent market include the following –
Demand From Solo Travelers
Solo traveling is becoming increasingly popular due to changing lifestyles; with many people partnering and settling down later in life, young people taking gap years to travel independently, high divorce rates in many countries and the growing acceptance of solo travel. The demand from solo travelers is rising which is increasing opportunities for the travel industry. According to statistics, solo travel bookings increased to 42% in 2020 from 2018. iv The players in the travel industry are offering different flexible and cashless packages to attract these solo travelers.
Increasing Customer Acquisition
Players in the online travel industry are increasingly focusing on customer acquisitions by launching direct booking platforms to attract a greater number of customers. The direct booking services through different platforms such as apps, websites, social media and others offer an opportunity for players in the online travel agent market to engage a greater number of customers and build positive customer relationships. For instance, in 2020, Skyscanner Ltd., a Scotland based travel agency launched its direct booking services to focus on customer acquisitions. v
Opportunities And Recommendations In The Online Travel Agent Market
Opportunities – The top growth opportunities in the online travel agent market segmented by service type will arise in the travel market segment, which will gain $95.7 billion of global annual sales by 2023. The top opportunities in the online travel agent market segmented by platform will arise in the desktop-based segment, which will gain $98.3 billion of global annual sales by 2023.The online travel agent market size will gain the most in the USA at $34.2 billion.
Recommendations – To take advantage of the opportunities, the business research company recommends the online travel agent companies to provide personalized services using recognition technology, focus on customer engagement and personalization, use of big data, offer competitive pricing, invest in emerging markets, offer loyalty schemes, offer exclusive discounts, leverage social media, focus on achieving the best customer reviews, focus on millennials and focus on expanding B2B network.
Online Travel Agent Segmentation
Online travel agent Market is segmented by service type, platform and by geography.?
By Service Type
The online travel agent market is segmented by service type into vacation packages, travel and accommodation.
- a. Vacation Packages
- b. Travel
- c. Accommodation
Travel was the largest segment of the online travel agent market by service type, accounting for 39.8% of the total market in 2019.
By Platform
The online travel agent market is also segmented by platform by end user into mobile/tablet based, and desktop based.
- a. Mobile/Tablet Based
- b. Desktop Based
Desktop Based was the largest segment of the online travel agent market by platform, accounting for 85.2% of the total market in 2019.
By Geography-
The online travel agent market is segmented into
- o North America
- o Western Europe
- o Asia Pacific
- China
- India
- Japan
- Australia
- Indonesia
- South Korea
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Asia Pacific was the largest region in the global online travel agent market, accounting for 31.3% of the total in 2019. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the online travel agent market will be Asia-Pacific, and Africa, where growth will be at CAGRs of 6.9% and 5.4% respectively.
Online Travel Agent Competitive Landscape
Major Competitors are:
- • Booking Holdings Inc.
- • Expedia Group Inc
- • Trip.com Group Limited
- • Tripadvisor, Inc.
- • Trivago N.V.
Other Competitors Include:
- • eDreams Odigeo
- • Despegar
- • MakeMyTrip Limited
- • Webjet Limited
- • Lastminute.com Group
- • Fliggy
- • Qunar
- • Qyer
- • MaFengWo
- • Trip.com Group
- • Tuniu
- • Cncn Travel
- • eLong
- • Lvmama
- • Tongcheng Network Technology Co
- • Tujia
- • Xiaozhu
- • Klook
- • Huangbaoche
- • Huoli
- • China International Travel Service Corporation Limited
- • Travelplan Australia
- • Traveloka
- • Utiket
- • NusaTrip
- • Yanolja
- • Daily Hotel
- • Hanatour
- • Mode Tour
- • MakeMytrip
- • Yatra
- • Cleartrip
- • EaseMyTrip
- • Goibibo
- • Expedia
- • Thomas Cook India
- • JTB (Japan Travel Bureau) Corporation
- • Jalan
- • JAPANiCAN.com
- • Ikyu
- • Evolable
- • Rakuten Travel
- • International Travel Service Corporation Limited
- • Tuniu
- • Booking.com
- • ab-in-den-Urlaub.de
- • Expedia.de
- • trivago.de
- • HolidayCheck.de
- • fluege.de
- • Opodo.de
- • weg.de
- • ltur.com
- • Sherpa Expeditions
- • Stoke Travel
- • Trafalgar
- • Topdeck Travel
- • Sicily Activities
- • Flag Travel Holidays
- • Soleto Travel
- • Busabout
- • Euroventure
- • Expedia Group Inc
- • Skyscanner Ltd
- • Opodo Ltd
- • On the Beach Group plc
- • Booking.com Ltd
- • We Love Holidays Ltd
- • Secret Escapes Ltd
- • Voyage Prive UK
- • Lastminute.com Group
- • Vola.ro
- • eSky.ro
- • Fly-Go
- • Oktogo
- • Travelata
- • Aviasales
- • Tutu.ru
- • AnywayAnyday
- • OneTwoTrip
- • Ozon Travel
- • Ostrovok.ru
- • Onlinetours
- • HipWay
- • Unitiki
- • WeAtlas
- • Fly
- • Zenhotels
- • Skyscanner
- • Agoda
- • Lastminute.com
- • Hotwire
- • Destination Services Mexico
- • On The Go Tours
- • Bel Air Travel
- • Canada Travels
- • Canuck Abroad
- • Cheapflights
- • Escapes
- • Exitnow
- • FlightCentre.ca.
- • Airbnb, Priceline
- • Booking Holdings
- • Lonely Planet Global Inc
- • TripAdvisor Inc.
- • CheapOair.Com
- • AirGorilla
- • LLC
- • DxTravela
- • AgileEngine
- • Solvd
- • Rootstrap
- • Genium
- • Decolar.com
- • Hotel Urbano
- • Submarino Viagens
- • ViajaNet
- • Hoteis.com
- • Exodus Travels
- • Say Hueque Argentina Journeys
- • World Expeditions
- • Dragoman, Tucan Travel
- • Scenic Luxury Cruises & Tou
- • National Geographic Journey
- • Luxury Gold, Trafalgar
- • Contiki
- • Chimu Adventures
- • Evaneos
- • Tucan Travel
- • TreXperience
- • Peregrine Adventures
- • Flyin
- • Yamsafer
- • Holiday Me
- • Rehlat, Tajawal
- • Almosafer
- • Hoojoozat
- • Musafir
- • Batuta
- • HotelOnline
- • Dubai city
- • TP Connects
- • Hey Flyer
- • Trivol
- • Travel Talk
- • Costsaver
- • Timeless Tours
- • Intrepid Travel
- • Trafalgar
- • Expat Explore Travel
- • Vacations to go travel
- • Insight Vacations
- • Exodus Travels
- • Dragoman
- • Cape Town Day Tours
- • G Adventures
- • Kabura Travel & Tours
- • On The Go Tour
- • FlyBoku.com
- • Wakanow
- • Travelstart
- • Zenith Travels and Tours Limited
- • Mayfair Travel Nigeria limited
- • Gadeshire Travels & Tours Limited
- • Finchglow Travel Agency Nigeria Limited
- • GMT Travels And Tours Limited
