Online Travel Market Size, Share, Opportunities, And Trends By Platform (Mobile And Tablet, Computers), By Service Type (Hotels, Flights, Vacation Packages, Cars, Cruises, Others), And By Geography - Forecasts From 2023 To 2028

The online travel market is projected to grow at a CAGR of 15.29% to reach US$87.469 billion in 2028 from US$32.309 billion in 2021.

The online travel industry includes all of the different reservation and booking systems that consumers can use to book their travel directly online. The online travel sector is made up of a wide range of businesses that provide various prices, charges, and locations for lodging, transit, and even trip plans. The simplicity with which flights and accommodations may be booked, the rise in digital payment acceptance, and the wide range of travel options are the driving forces behind this business. The online travel sector has the potential for exponential growth in the upcoming years due to the rapid advancement of technology and the ease of using the internet.

The key factors driving demand for the online travel market include the growth of online travel agencies and the growing demand for tourism.

In nations where a consumer database already exists, the growth is steady, but more growth is anticipated driven by regions where there are many consumers yet to be discovered, and with the business expansion of technology and the internet, it is anticipated that the market revenue will grow. Thousands of people from all around the world frequent the websites of online travel agencies (OTAs). Additionally, these agencies have established themselves as an authority on all things travel-related. People, therefore, believe the advice they get from OTAs. In addition to reaching a large audience, hotels that list in OTAs also increase the visibility of their service among other reliable sources of information. Key businesses in this market have seen an increase in income over the past few years as a result of such efforts. For instance, according to their yearly reports, MakeMyTrip had an increase of over 90% from 2021 to 2022 and produced total revenues of roughly US$131.3 million in 2021.

Growing cybercrime and social unrest in various nations restrain the industry expansion.

Consumers' attitudes are influenced by expanding digital frauds, which further drive them to avoid using Internet services for online travel purposes and services. Political and social unrest also have an effect on the tourism industry, which in turn has an impact on online travel. For example, the war between Russia and Ukraine has massively impacted the travel industry of these countries. Customers tend to stay away from these areas and nations, and governments in a number of nations discourage and restrict tourists from their nation from travelling to countries and regions where there are social and political upheavals or diseases.

Key Developments.

The new, multi-year GDS arrangement with AirTrip International Corp. was announced in December 2022 in Japan by Sabre Corporation, a major software and technology supplier that powers the world's online travel business.   As part of the agreement, AirTrip International will utilise Sabre's global distribution system (GDS) to enhance its technology-driven growth plan for its export company. The comprehensive GDS content provided by Sabre, which includes NDC offers, as well as Sabre's Bargain Finder Max API will allow AirTrip International to grow its content strategy while generating attractive offers for its clients. In a fiercely competitive marketplace like Japan, AirTrip International became the traveller's first option by putting a premium on providing customers with an exceptional product experience. The OTA has demonstrated its adaptability by being able to quickly change its business model in response to problems that have arisen throughout the epidemic. The OTA is now concentrating on technical advancement for future growth.

A new "consumer-grade" booking platform for business travel was released in November 2022 by booking technology firm Vibe. The off-the-shelf application, called Vibe Corporate, can incorporate intricate travel regulations and multi-level approval with content "from all major GDS connections," such as hotel, rail, and supplementary connections. Users of TMCs can access the tool under the Vibe Corporate brand, and existing TMC clients will also be able to access a fully customizable Vibe Corporate Plus solution for corporations. The UK, Australia, New Zealand, and North America are now rolling out both services, which will be offered on a pay-per-transaction basis.

Regional Insights

The United States is expected to hold a significant market share in North America. The development is anticipated to be fuelled by the rising number of foreign students who opt to continue their education in the US, while Canada is becoming more and more popular among foreign immigrants looking to reside abroad. The Canadian government has made significant investments in an effort to entice more immigrants to migrate, which serves as a revenue-generating component for the expansion of the North American market. The European market will increase as tourism grows in European nations like Spain, Portugal, Italy, and others. Asia Pacific is anticipated to grow its market share in internet travel significantly over the coming years with countries like India, Thailand, Vietnam, and so on becoming attractive tourist destinations. It has the most development potential in the online travel sector. The growth is linked to higher expendable revenue, growth in the working-class population, and increased internet facility coverage. 

Online travel market Scope:

Key Market Segments

• By Platform
  • Mobile and Tablet
  • Computers
• By Service Type
  • Hotels
  • Flights
  • Vacation packages
  • Cars
  • Cruises
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
    • Indonesia
    • Vietnam
    • Others