Global Online Travel Market Research Report, 2028

Online travel providers aim to ease travel planning and bookings for travelers. The ability to compare a wide range of available travel options, as well as quick and simple flight and hotel bookings, are driving growth in the online travel sector. As one of the most popular methods for booking travel, particularly among young professionals, market participants are heavily promoting their travel services through mobile websites and applications. The growth of the travel and tourism industry as well as changes in lifestyle trends have led to a steady rise in the internet travel sector. Depending on the type of property, many factors such as location, size, and on-site amenities affect the demand for online travel. Rising disposable income, the growing weekend culture, the introduction of low-cost airline services, and the expanding service sector are all expected to have a positive impact on the market. Two of the main causes pushing people to upscale resorts are the increase in purchasing power and the way of life. The popularity of internet travel is also increased by the presence of sporting events in a city or nation. The rise of internet motel reservation services has accelerated industry growth. For instance, on February 10, 2021, Marriott International released a new version of its mobile app, Marriott Bonvoy, with new features like better booking options, more individualized experiences, and customizations in earning and redeeming points. Due to the rising demand for premium services with more flexible booking choices, the market is therefore anticipated to consolidate. The younger generation is extremely popular with online trip booking. Due to the fact that Gen Z and Millennial are affected by technologically advanced items, it is projected that they would search for sophisticated booking services that provide them with a customized experience. In order to automate the online travel booking process, which is expected to draw young consumers, travel businesses are investing in integrating technology like artificial intelligence, machine learning, and Big Data. Travel agencies use the Big Data traveler analytics to create customized packages, which is anticipated to increase website and app traffic by leading expansion. According to the research report, “Global Online Travel Systems Market Research Report, 2028” published by Actual market Research, the market is anticipated to cross USD 990 Billion by 2028, increasing from USD 567.71 Billion in 2022. The market is expected to grow with 10.06% CAGR by 2023-28. The market's expansion through the mobile segment is mostly attributable to the rise in mobile usage and the development of inventive mobile travel apps. The way people communicate and travel throughout the world has changed as a result of technology. Easy and effective methods are being developed to make traveling simple and comfortable, which is boosting the expansion of the travel business, thanks to changing technology and an increase in mobile usage. Travelers prefer to book their trips using mobile travel apps, which are steadily gaining market share. Therefore, it is anticipated that increased smartphone usage and increased digital literacy will fuel the expansion of the online travel sector. People are now heavily exposed to social networking sites thanks to the development of the internet. Before making a purchase, people first surf websites, obtain in-depth information, and evaluate the needed good or service. Additionally, people frequently share their vacation plans on social media sites like Facebook, Twitter, and travel blogs. Online travel service providers use social media as a platform to promote their products and exclusive deals for bookings made online, fueling the growth of the online travel market throughout the course of the forecast period. Additionally, it is projected that the advent of vlogging culture and people's increased interest in frequent travel will support market growth. Due to the international travel restrictions put in place by countries during the pandemic outbreak, the travel and tourism sector saw a considerable decline in income.

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Over the past ten years, the majority of industries have digitized more and more. The travel industry, in particular, has taken considerable pains to develop its online presence, and it is still evolving quickly as evidenced by the recent adoption of artificial intelligence (AI) in the travel and tourist industries. In general, travel e-commerce websites and review websites make up the majority of the online travel sector. Travel-related e-commerce websites are focused on selling travel-related goods like flights, lodging, and rental cars. These can be ordered directly from a travel agency's website or another website that sells travel. Travelers can also share their comments on hotels, restaurants, and other tourist attractions on review websites like Tripadvisor. Over the past ten years, the majority of industries have digitized more and more. The travel industry, in particular, has taken considerable pains to develop its online presence, and it is still evolving quickly as evidenced by the recent adoption of artificial intelligence (AI) in the travel and tourism industries. In general, travel e-commerce websites and review websites make up the majority of the online travel sector. They are focused on selling travel-related goods like flights, lodging, and rental cars. These can be ordered directly from a travel agency's website or another website that sells travel. Travelers can also share their comments on hotels, restaurants, and other tourist attractions on review websites like Tripadvisor. Personalized online experiences become a trade-in between the market rival and the increasingly competitive online travel booking industry in 2022, so other businesses might investigate tracking what consumers search for on the Internet and offering them new vacation possibilities when they log in. The global online travel market is segmented into five major regions including North America, Europe, Asia-Pacific, South America and Middle East & Africa. Among them, Asia-Pacific is dominating the market with over 30% market share in 2022. People's increased purchasing power and greater living standards are two key elements luring them into the travel & tourism industry and driving the expansion of the regional internet travel market. Furthermore, the group travel industry has been significantly accelerated and encouraged by regional economic growth, the convenience of travel restrictions, growing competition, and aggressive promotion techniques used by the sector's involved players. These factors are anticipated to accelerate the growth of the online travel industry over the course of the assessment period. Due to rising income levels throughout the area, the United States holds the biggest regional market share, making the North American Online Travel Market the second largest in the world. Due to its rigorous licensing regulations, increased travel and tourism expenditures, significant use of digital media, and larger consumer buying power, this region dominates. An increasing number of overseas students who want to finish their studies in the United States are predicted to fuel the increase. In search of a new home abroad, overseas settlers are increasingly choosing Canada. To entice more immigrants to relocate there, the Canadian government has made large expenditures, which work as a revenue-generating component for growing the local market. Based on the service type, the market is segmented into several types including transportation, travel accommodation, vacation packages and others (travel insurance, visas and passport services, currency exchange services, travel spa and wellness services, travel gear and gadgets, etc.) Among them, transportation segment is expected to lead the market by the end of the forecast period. Global internet travel booking for buses, trains, and flights is boosting the market's expansion. The segment is also primarily influenced by global trends in expanding consumer spending, urbanization, broadband accessibility rates in emerging economies, and a preference for travel among the growing global affluent class. Additionally, the inclination for traveling for different reasons—such as business and adventure—across Asian nations like China and India has increased the need for online travel reservations in this area, supporting industry growth over the course of the projection period. Additionally, the market is being driven by an increase in couple vacations over the past century, which has been facilitated by both the growth of couples-focused package vacations and increased accessibility to international travel. Additionally, it is projected that rising internet usage, rising travel demand, and rising mobile phone penetration would fuel the rise. Travel to previously untraveled areas has also been encouraged and inspired by social media and social networks, which is expected to spur industry growth.

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Kripa Shah

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Industry growth is being accelerated by the increasing use of desktop or web browsing to obtain comprehensive information about travel and hotel reservations. Additionally, buyers are more comfortable using computers to purchase bigger items like vacation packages and flights. Additionally, the percentage of customers who abandon their travel purchase on desktops is higher than that of mobile, majorly, which spurs the market's expansion. However, from 2023 to 2028, the mobile category would experience the fastest CAGR of over 11%. This can be linked to the increased global use and penetration of smartphones and the internet. Additionally, the busy schedules of young, employed consumers and the availability of reputable online travel firms are spurring industry expansion. The quick and simple hotel and travel reservations provided by marketplace platforms and the wide service offerings through mobile applications are credited with the segment's growth. Additionally, rapid, mobile-friendly, and easy-to-use applications for smartphones are being released by travel booking companies, which is increasing the segment's growth during the course of the projection year. The market is divided into direct travel suppliers and online travel agents based on the kind of booking. Online travel firms are becoming the world's most popular method of making reservations. One of the most spectacular examples of the digital change of business and society over the past 25 years has been the development of online travel agents. OTAs have developed into digital marketplaces that provide direct access to a wide selection of online travel options for both B2B and B2C clients. In actuality, OTAs are a cross between an e-commerce platform and a travel agency. The global online travel market—which includes hotels, airlines, package tours, rail travel, and cruises—has been dominated by OTAs from industry titans like Expedia, Booking.com, and Trip.com. Additionally, it is anticipated that the Travel Accommodation segment would continue to dominate the market for online travel services. Travel accommodations are now the largest contributor to the market due to the globalization of commerce and businesses' expansion strategies. Online booking is accessible for a variety of travel accommodations, including hotels, resorts, vacation rentals, and more. Several important elements in the online travel market contribute to the dominance of the 32–43 age groups in the market. People in this age bracket are in their peak working and earning years and often have more money available to spend on travel. They are frequently in a time of life where they have fewer obligations to their families and more freedom to organize and travel. Additionally, the age group of 32 to 43 is technologically aware and at ease using digital platforms for a range of tasks, including trip planning and booking, which accelerates the rate of product acceptance. They are accustomed to online purchases and digital communication because they have grown up alongside the quick development of technology. In addition, they may organize their vacations at their own speed and from the convenience of their homes or offices thanks to online travel platforms, which also save time. Additionally, the growing inclination of this age group for efficiency and ease in their travel plans is assisting in the segment's expansion.

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Market Dynamics • Convenience and accessibility: The ease of use and accessibility provided by online platforms have changed how consumers organize and reserve their travel. With the help of these platforms, travelers may access a wide range of travel-related information, choices, and services in a one location. Time and effort can be saved by having access to various flights, hotels, and travel agents through an easy-to-use interface. Travelers can make reservations either at home or on the road by comparing pricing, reading reviews, or making reservations. Because internet platforms are accessible around-the-clock, travelers are no longer constrained by the opening hours of conventional travel firms. Because of their accessibility and ease, travelers now have greater influence over their itinerary and are better equipped to make judgments. • Shift in Travel trends: The market for online travel agents is predicted to be significantly impacted by the quick movement in travel habits toward business leisure (bleisure) and food tourism. Bleisure travel is a hybrid form of travel that combines both business and leisure trips. After finishing their official duties on business travels to different nations, people like to travel and sample the local cuisine. The Global Business Travel Association estimates that one third of business travelers include a leisure activity on at least one of their journeys each year. Another significant trend that is anticipated to fuel the market for online travel agencies is food tourism. The focus of food tourism is on real gastronomic encounters. There has been increasing shift towards experiencing local delicacies of specific countries in unique food and beverages activities while travelling in the last two years. Market Restraints • Competitive Pricing and Deals: Market competition has led to competitive pricing and the availability of alluring offers and discounts. OTAs and booking websites work hard to draw customers by promoting exclusive bargains, package discounts, and last-minute specials. Travelers can find the greatest selections and acquire the most affordable offers by using the ability to compare costs across several sites. Travelers may make informed judgments and take advantage of advantageous pricing options because to pricing transparency, real-time availability information, and price changes. For those looking to save money and get the most for their money, online travel has become a desirable alternative due to the availability of such competitive pricing and packages. Moreover, loyalty programs and reward systems offered by these platforms further incentivize travelers to book through their platforms, enhancing customer loyalty and engagement. • Geo-Political Tensions: During the projection period, geopolitical tensions are projected to have a detrimental effect on the market for online travel agencies. Sanctions against Russia, economic protectionism, and increased military tensions in the Middle East were all effects of geopolitical unrest. For example, Brexit may result in increased trade restrictions between the UK and other European nations. In order to increase domestic manufacturing, the USA is also enacting a number of trade restrictions, particularly with China. For instance, increasing input costs brought on by steel and aluminum tariffs (in March 2018) in the USA as of mid-2019 resulted in 0.6% fewer jobs, or 75,000 fewer jobs in the manufacturing sector. Job losses brought on by geopolitical tensions will reduce people's disposable incomes and purchasing power, discouraging them from touring and traveling. Future market growth will be hampered by this. Market Trends • Demand from Solo Travelers: Due to changing lifestyles, which include more individuals getting married later in life, young people taking gap years to travel alone, high divorce rates in many countries, and the increased acceptance of solo travel, solo travel is becoming more and more common. There are more chances for the travel business as demand from solitary travelers rises. To entice these single travelers, the participants in the travel business are providing a variety of flexible and cashless packages. • Increased use of artificial intelligence (AI): AI is used by online travel agencies to improve user experience and operational effectiveness. Chatbots and virtual assistants, who offer individualized advice and help customers with travel reservations, are one way AI is being employed. AI-driven chatbots may deal with a range of customer inquiries, from making travel and lodging arrangements to responding to frequently asked questions. This improves the user experience by giving prompt and correct responses to enquiries, saving time and resources for online trip booking services. Covid-19 Impacts The pandemic led to widespread travel restrictions, lockdowns, and border closures, which significantly reduced both domestic and international travel. This had a profound impact on the entire travel industry, including online travel agencies (OTAs) and booking platforms. With people advised to stay at home and avoid non-essential travel, there was a massive decline in travel bookings across all platforms. Flights, hotels, tours, and other travel-related services experienced a sharp drop in demand. Online travel agencies faced financial losses due to the cancellation of bookings and the decrease in new bookings. Many companies were forced to lie off or furlough employees, cut costs, and seek financial assistance. The pandemic led to a shift in travel preferences, with a focus on safety, hygiene, and flexible booking options. Travelers became more cautious and looked for providers that offered easy cancellations and refunds. With physical travel limited, there was an increase in virtual travel experiences and online tours. Some platforms started offering virtual tours of popular destinations and attractions to keep travelers engaged. Online travel platforms had to innovate to adapt to the changing landscape. Some companies introduced features like health and safety information, flexible booking policies, and updated refund procedures to address travelers' concerns. As vaccination efforts began and travel restrictions eased in some regions, the online travel industry started to see a gradual recovery. However, the pace of recovery varied depending on the region and the effectiveness of containment measures. The pandemic prompted travelers to reevaluate their travel habits and consider factors such as sustainability, health, and safety more seriously. This shift in mindset could lead to lasting changes in the way people plan and experience their trips. Recent Developments • In April 2023, Expedia launched New Feature Powered by ChatGPT to help plan travel. This innovative integration aims to enhance the travel planning experience for Expedia users by providing them with a personalized and conversational approach to trip planning. With this new feature, users can engage in natural language conversations with the ChatGPT system, similar to chatting with a virtual assistant. • In May 2023, HRS won three sustainability awards at BTN Americas Event by Business Travel News magazine. These accolades acknowledge HRS's comprehensive sustainability program, their role as a green supplier, and their innovative approaches to promoting sustainable travel choices. With these awards, HRS continues to inspire and lead the way in sustainable practices, encouraging positive change across the industry. • In October 2022, MakeMyTrip (MMT) launched a new and unique payment model called 'Book Without Payment,' which allows international and domestic travelers to book accommodation in India or abroad without making any upfront payments. • In November 2022, EaseMyTrip.com, one of India's leading travel technology portals, has released a corporate selfbooking tool. Business travelers and corporations can make bookings for their trips with the help of this tool, as it simplifies the booking process. This tool uses AI technologies such as machine learning and data mining to make it more efficient and resourceful. Key Players Insights: Booking Holdings Inc., Airbnb, Inc., Edreams Odigeo, Expedia, Inc., Make My Trip Pvt. Ltd., Thomas Cook Group plc, Hostelworld.com Limited, Alibaba Group Holding Limited, Tripadvisor LLC, Trip.com Group Limited , Despegar.com, Corp, Lastminute.com Group, Fareportal, HRS GmbH, Hurb, Travelstart Online Travel Operations Pty Ltd, Wego Pte Ltd, Decolar, 2fntravel, Cleartrip Pvt. Ltd. Considered in this report: • Geography: Global • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report: • Global Online Travel with its value and forecast along with its segments • Regional and Country-wise Online Travel market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Regions & Countries covered in the report • North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Spain, Italy, Russia) • Asia-Pacific (China, Japan, India, Australia, South Korea) • South America (Brazil, Argentina, Colombia) • Middle-East & Africa (UAE, Saudi Arabia, South Africa) By Service Type: • Transportation • Travel Accommodation • Vacation Packages • Others (Travel Insurance, Visas and passport services, Currency Exchange Services, Travel spa and wellness services, Travel gear and gadgets, etc.) By Device: • Laptop/Desktop Devices • Mobile Devices By Mode of Booking: • Online Travel Agencies (OTAs) • Direct Travel Suppliers By Age Group: • 22-31 Years • 32-43 Years • 44-56 Years • >56 Years The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations and organizations related to the Online Travel industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.