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Online Travel Market Size, Share Global Analysis Report, 2022 – 2028
Online Travel Market Size, Share, Growth Analysis Report By Platform (Mobile, and Desktop), By Service Type (Vacation Packages, Travel Accommodation, and Transportation), By Mode of Booking (Direct Travel Suppliers, and Online Travel Agencies), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2028
Industry Insights
[225+ Pages Report] According to the report published by Facts Factors, the global online travel market size was worth around USD 354.25 billion in 2021 and is predicted to grow to around USD 1835.7 billion by 2028 with a compound annual growth rate (CAGR) of roughly 14.9% between 2022 and 2028. The report analyzes the global online travel market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the online travel market.
Market Overview
Online travel is a part of the tourism industry that makes use of digital technology and information present on the world wide web, to make travel arrangements for travel plans. Before the internet was accessible to all, travelers had to avail of the services of travel agencies to help them plan itineraries, book tickets, stays, and other travel-related arrangements. Since there was limited information access, a lot of times, travelers had to rely only on the information provided by the agency which included the places that should be visited, restricted number of days per location, cost of travel tickets, and other information. However, with the boom of technology and internet accessibility, the travel industry has now majorly shifted online. Even though offline travel agencies still function and many people avail of their services, a large section of the urban population is entirely dependent on details present online for travel-related arrangements. Digital travel has not only provided willing travelers with a wide range of options to choose from ranging from a travel destination to modes of transport available, but it has also opened a transparent flow of information for prospective travelers.
Key Insights
- As per the analysis shared by our research analyst, the global online travel market is estimated to grow annually at a CAGR of around 14.9% over the forecast period (2022-2028).
- In terms of revenue, the global online travel market size was valued at around USD 354.25 billion in 2021 and is projected to reach USD 1835.7 billion, by 2028. Due to a variety of driving factors, the market is predicted to rise at a significant rate.
- Based on platform segmentation, mobile was predicted to show maximum market share in the year 2021
- Based on service type segmentation, travel accommodation was the leading service in 2021.
- On the basis of region, North America was the leading revenue generator in 2021.
Covid-19 Impact
The global market cap size was one of the most heavily impacted industries during the pandemic. The online travel industry for the majority of 2020 and 1st quarter of 2021 remained restricted purely to the travel of healthcare professionals from countries willing to assist regions that have the fastest infection growth rate and lack of necessary medical professionals. Apart from such travel, the global market cap witnessed negligible growth during the period but heavy losses.
Growth Drivers
- High mobilization rate amongst people to propel market growth
The global online travel market is projected to grow owing to the high rate of mobilization and frequent domestic or international trips, either for long visits, short visits, or permanent stays. A trend of cross-country relocation amongst working professionals can be witnessed which is growing at a high rate. The relocation depends on work requirements and with globalization, more companies are now open to attracting talent even if they are from the same region. Organizations are willing to pay for expatriates if they can get their hands on the desired candidate. These factors greatly influence the global market growth rate, since in such cases, it is generally observed that the working professional eventually shifts base along with the entire family. Online travel is one of the best ways to make this a seamless transition since not only can the people pre-plan their travel details, they can stay within the budget owing to the transparency of information provided by online travel portals.
Restraints
- Growing digital fraud to restrict market expansion
The global market cap is projected to be affected by the growing number of digital frauds resulting in more people being susceptible to scams. Since there are numerous websites on the internet that are not authentic and can lead to more fraud, viruses, malware, and data leakage, it has caused a growing hesitancy amongst new internet users to completely trust online travel packages.
Opportunities
- Prevailing offers on digital travel booking to attract more customers
Online travel booking comes with its own set of benefits. Digital travel companies offer a lot of offers and coupon codes that can result in discounted prices for flight tickets, hotel booking, and other travel-related aspects. There is a growing emergence of websites that offer only seasonal coupons to be used later. Some other benefits include a point collection system based on the number of travel bookings done from a particular website which encourages more customers to use online travel platforms for bookings and planning.
Challenges
- Problems with application-related bookings to challenge the market expansion
The global online travel market expansion is expected to bear losses owing to the various problems associated with bookings made through application bookings. As per a recent survey, around 22% of respondents claimed that they had to face repercussions owing to incorrect bookings because of website malfunction, and 41% claimed that websites were confusing or slow resulting in loss of consumer database.
Segmentation Analysis
The global online travel market is segmented by platform, service type, mode of booking, and region.
Based on platform, the global market segments are mobile and desktop. The global market is currently dominated by the mobile segment owing to its convenience, and on-the-go bookings. The segment is expected to grow at a CAGR of 15.75% by 2028.
Based on service type, the global market is divided into vacation packages, travel accommodation, and transportation. In 2021, the global market generated the highest revenue from the travel accommodation segment owing to the availability of a wide range of options at discounted prices. As per estimates, more than USD 120 billion was generated from this segment in 2020.
Based on mode of booking, direct travel suppliers and online travel agencies are two segments with direct travel suppliers witnessing a major segmental revenue. As per official reports from booking.com, the company amassed revenue of USD 14.64 billion in 2022.
Recent Developments:
- In October 2019, OYO Hotel & Homes, an Indian multinational hospitality chain, announced the launch of online travel portals dedicated especially to travel agents. The portal is termed SuperAgent and is expected to enhance the booking experience for travel agents that work offline
- In February 2022, Majorel, a next-generation end-to-end customer experience solution provider for new entrants, announced the expansion of its strategic partnership with the Dutch online agency, Booking.com. With the partnership, the latter has agreed to transfer 12 out of 14 internal customer service centers in the Americas, Asia-Pacific, and Europe to Majorel.
Report Scope
Report Attribute |
Details |
Market Size in 2021 |
USD 354.25 Billion |
Projected Market Size in 2028 |
USD 1835.7 Billion |
CAGR Growth Rate |
14.9% CAGR |
Base Year |
2021 |
Forecast Years |
2022-2028 |
Key Market Players |
Tripadvisor, Hostelworld.com, MakeMyTrip Ltd, Ebury Partners, Expedia Group, and others. |
Key Segment |
By Platform, Service Type, Mode of Booking, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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Regional Analysis
- North America to generate the highest revenue in the forecast period
The global online travel market is projected to be dominated by North America in the coming period following the trend from the previous years. The United States is a major contributor to the regional market revenue with more than 79 million international tourists visiting the country in 2019. As claimed by Phocuswrite, Booking Holdings, and Expedia, two international online travel agencies dominated the country’s travel bookings with more than 92% of the region’s market share. Although the market value declined by 58.5% during the pandemic, in the coming years, owing to eased travel in Canada, the revenue is expected to mark a rising trend. Revenue in North America is further propelled by the large-scale access to internet connectivity as well as the already existing huge consumer database resulting in mass awareness about online travel and the benefits associated with it.
Competitive Analysis
- Tripadvisor
- Hostelworld.com
- MakeMyTrip Ltd
- Ebury Partners
- Expedia Group
The global online travel market is segmented as follows:
By Platform
- Mobile
- Desktop
By Service Type
- Vacation Packages
- Travel Accommodation
- Transportation
By Mode of Booking
- Direct Travel Suppliers
- Online Travel Agencies
By Regional Segment Analysis
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Denmark
- Sweden
- Norway
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
Table of Content
Industry Major Market Players
- Tripadvisor
- Hostelworld.com
- MakeMyTrip Ltd
- Ebury Partners
- Expedia Group
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