The Global Online Travel Market size was valued at USD 354.2 Bn in 2021. The market is projected to grow USD 1,835.6 Bn in 2030, at a CAGR of 14.8 %. Review sites and travel e-commerce sites make up the majority of the internet travel sector. It provides the convenience of reserving from the comfort of one's own home and frequently entices customers with package deals and cost-cutting choices. As a result, many tourists are opting to book their trips online rather than through traditional brick-and-mortar travel firms. Furthermore, the primary global online travel market is being driven by greater consumer spending power, a government initiative to promote tourism, growing internet and credit card usage, and the creation of new online segments. The increasing penetration of international flight and hotel bookings supplied by online portals such as Booking.com, TripAdvisor.com, .
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The emergence of the travel and tourism business, as well as shifting patterns in standard of life, has resulted in a steady increase in the online travel market. The demand for online travels varies depending on the property type and is impacted by factors including location, size, and on-site amenities. The market is likely to be driven by rising disposable income, popularizing weekend culture, the introduction of low-cost airline services, and the developing service industry. The rise in spending power and the style of living are two of the most important factors driving people to luxury resorts. The demand for online travels is also fueled by a city's or country's hosting of sporting events. The development of the market has been hastened by the emergence of online lodging booking services. Marriott International, for example, published a new edition of its mobile app, Marriott Bonvoy, on February 10, 2021, with new features like better booking possibilities, greater personalized experiences, and customizations in earning and redeeming points. As a result, the industry is expected to consolidate due to growing demand for premium services with better booking options.
The epidemic of COVID-19 has had a significant influence on the tourism and travel industries. The global implementation of social distancing, stay-at-home, and travel restrictions has stifled the expansion of the online travel industry. According to the American Hotel and Lodging Association 2021 study, hotel occupancy in the United States fell from 66 percent to around 40 percent in 2020, compared to the previous year. As a result of the pandemic, the hotel industry is likely to suffer a severe slowdown; nevertheless, the market is expected to return to its prior growth trajectory in the coming years.
Service Type Outlook
The travel accommodation segment accounted largest market share for the global online travel market in 2020. Market competitors are gradually providing travellers with a varied selection of hotel options at reasonable prices. Customers evaluate lodging options across multiple websites in order to get the most cost-effective option. Because they offer a diverse range of housing options, travelers prefer specialized online accommodation providers such as Airbnb, Inc. and OYO Rooms. As a result, the aforementioned reasons are responsible for the market's rise in the travel accommodation segment. These hotels usually have high-end designer interiors created with cutting-edge technology propels the demand for the growth of the global online travel market.
Global Online Travel Market Report Coverage
|Market Size in 2021:||USD 354.2 Billion|
|Forecast Period:||2021- 2030|
|Forecast Period 2021- 2030 CAGR:||14.18%|
|2030 Value Projection:||USD 1,835.6 Billion|
|Historical Data for:||2017-2020|
|No. of Pages:||210|
|Tables, Charts & Figures:||118|
|Segments covered:||Service Type, By Mode of Booking, By Platform, By Region,|
|Companies Covered:||Alibaba Group, Elong, Inc, TUI Group, Tuniu Corporation, AirGorilla, LLC, Hays Travel limited, Airbnb, Inc, Yatra Online Private Limited India, Expedia, Trip Advisor Inc., MakeMyTrip Limited, Hostelworld Group PLC (HSW), Trivago N.V, Despegar.com, Corp, Lastminute.com Group|
|Growth Drivers:||1) The travel accommodation segment accounted largest market share 2) The travel accommodation segment accounted largest market share|
|Pitfalls & Challenges:||The epidemic of COVID-19 has had a significant influence on the tourism and travel industries.|
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The mobile segment accounted largest market share for the global online travel market in 2020 owing to the expansion of the market through the mobile sector is mostly due to an increase in mobile usage and the development of novel mobile travel apps. The way people communicate and travel throughout the world has changed as a result of technological advancements. With the advancement of technology and the increased usage of mobile phones, simple and effective techniques are being developed to make travelling simple and comfortable, hence boosting the travel industry's growth. Travelers prefer to make their travel reservations using mobile travel apps, which are gradually gaining traction in the market. As a result, the expansion of the internet travel business is projected to be fueled by an increase in smart phone usage and a rise in digital literacy.
Mode of Booking Outlook
The online travel agencies (OTAs) segment accounted largest market share for the global online travel market in 2020. Online travel firms are becoming the most popular method of making reservations around the world. The rise of online travel agencies has been one of the most striking examples of industry and society's digital revolution in the last 25 years. OTAs have evolved into digital marketplaces that provide direct access to a wide range of online travel options for both B2B and B2C consumers. OTAs can be thought of as a cross between an e-commerce platform and a travel agency. Expedia, Booking.com, and Trip.com, among others, have dominated the global online travel business (hotels, airlines, packaged tours, rail and cruises).
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Asia Pacific dominated largest market share for the global online travel market in 2020 owing to has the most potential for growth in the internet travel business, with India and China being the most profitable areas. The increase in discretionary income, rise in the middle-class section, and increasing penetration of internet facilities are all factors contributing to the expansion. In China, Ctrip is the most popular online travel agency (OTA), whereas in India, MakeMyTrip, Yatra, and Cleartrip are the most popular OTAs.
Europe is anticipated to emerge as the fastest-growing region over the forecast period. This is due to the presence of some of the world's most popular tourist spots. According to the UNWTO's Foreign Tourism Highlights 2019 Edition, Europe accounted for half of all international visitor arrivals in 2018. The survey also reveals that five major European countries are among the top ten destinations based on foreign tourist arrivals in 2018.
Key Companies & Recent Developments
Partnerships, strategic mergers, and acquisitions are expected to be the most successful strategies for industry participants to get speedy access to growing markets while also improving technological capabilities.
In addition, product differentiation and developments, as well as service expansion, are projected to help organizations thrive in the market.
Market Segmentation of Global Online travel Market
By Service Type
- Travel Accommodation
- Vacation Packages
By Mode of booking
- Online Travel Agencies (OTAs)
- Direct Travel Suppliers
- Alibaba Group
- Elong, Inc.
- TUI Group
- Tuniu Corporation
- AirGorilla, LLC
- Hays Travel limited
- Airbnb, Inc.
- Yatra Online Private Limited, India
- Trip Advisor Inc.
- MakeMyTrip Limited
- Hostelworld Group PLC (HSW)
- Trivago N.V
- Despegar.com, Corp
- Lastminute.com Group
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