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Online Travel Market Poised to Expand at a Robust Pace Over 2020-2030

Market Dynamics 

The online travel market could potentially reach a valuation of USD 2403.22 billion by 2030, confirms Market Research Future (MRFR). MRFR also estimates the market progression rate to be 11.8% between 2020 and 2030 (review period). We will provide covid-19 impact analysis with the report. The report offers an in-depth analysis of the market following the coronavirus disease outbreak. 

COVID-19 Analysis

The worldwide economic crisis along with the downfall in consumer spending post the SARS-CoV-2 outbreak has emerged as a significant challenge for global travel intermediaries. The massive threat to lodging and airline bookings has pressured travel companies to shut down their operations and lay off workforces in a space of a few months. According to the impact analysis on COVID-19, the short-term impact on the online travel industry has been significantly high and can remain in the near future. The long-term impact of COVID-19 can lead to the continuous practice of social distancing in the industry. The same proportions of lodging and airline bookings cannot be expected as before. However, since the prices are expected to rise considerably, there will be a surge in the cash flow as people need to travel. This could give rise to lucrative opportunities for the online travel agencies around the globe. These developments are expected to take place in the coming period, even as countries strive to find a covid-19 breakthrough.

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Post novel coronavirus, businesses worldwide are expected to experience a significant transition, where the ICT industry can be the biggest gainer. A number of IT vendors have already digitized their processes and have spent considerably on collaboration tools and modern infrastructure to facilitate remote delivery models and also secure their workspaces. The fast adoption of digital transformation has been in line with the emerging mobility and cloud trends. In a nutshell, the expanding IT industry coupled with the prevalence of the digitalization trend can work in favor of the online travel market.

Growth Boosters and Main Barriers 

With frequent technical innovations along with the rising use of smartphones, new methods are being explored that can make traveling more comfortable and easy, leading to expansion of the travel and tourism industry. Mobile apps have gained massive traction in the market and are a big hit among travelers looking for the best travel arrangements. Hassle-free navigation and easy accessibility via online travel sites have led to boom in the online travel market. Over the years, travel bookings on mobiles have become quite prevalent across the globe.

More and more companies are exploring new ways to fulfill the evolving needs of the travelers, leading them to develop innovative apps to generate higher interest. Apps imbibed with numerous features are being created to be connected throughout the traveler’s journey and help them as and when needed. These apps offer the travelers with high flexibility, becoming a differentiating factor that helps the consumers determine which travel company to choose from during the online travel process. Customers also download airlines and hotels apps for quick booking and other related services. Various other services are emerging that are expected to generate more interest in online traveling, which include concierge services, customized coupons, and in-destination services. These innovative services help promote the brand and procure higher consumer base, thus working in favor of the online travel market.

Segmental Review 

Platform type, booking and service type are the main segment according to which the market review has been conducted in the report.

The platform types include desktop-based platform as well as mobile/tablets based.

The booking-wise market segmentation comprises direct travel facilitators and online travel agencies.

Depending on the service type, the primary segments include accommodation (hotels and guest house/dormitory), vacation packages (in-country and outside country) and transportation (air travel, train travel, bus travel and others).

Regional Insight 

The geographical analysis of the online travel market is done for North America, Europe, Asia-Pacific, and the rest of the world. 

In 2017, North America led the market with a share of 33.75% and held the value of USD 192.46 billion. It is projected that the North American market can achieve a growth rate of 11.8% during the assessment timeline. The same year, the second position was held by Europe at a value of USD 178.72 billion; and estimations indicate that the regional market can progress at a rate of 12.0%. The APAC market can gain the fastest growth rate of 15.9% in the following years.

The influx of automation, augmented and virtual reality and big data have created several opportunities for the travel agencies in North America. The online travel market in the region is booming, backed by the rising demand for CRM solutions across diverse industries, combined with the increasing use of the mobile booking technology as well as travel apps. 

Eminent Vendors 

Alibaba Group Holding Limited (China), TripAdvisor Inc. (US), eDreams ODIGEO SA (Luxembourg), FlixMobility GmbH (Germany), Ctrip.com International Ltd (China), Thomas Cook Group PLC (UK), MakeMyTrip (India) Pvt. Ltd (India), Airbnb Inc. (US), Ryanair DAC (Ireland), Expedia Inc. (US), Booking Holdings Inc. (US), are the eminent vendors in the online travel market.

Some other players outlined in the report include Hostelworld Group (Ireland), AirGorilla LLC (California), Yatra Online Private Limited (India), Hays Travel limited (UK), Hotel Urbano Travel and Tourism SA (Brazil), Tuniu Corporation (China), CheapOair.Com (US), to name a few.

Latest Developments

May 2020 

Post COVID-19 pandemic, Cleartrip (India) has launched Cleartrip for Work, using which travellers can now access corporate prices on flights with benefits including complimentary in-flight meals, cashbacks, lower cancellation fee, lesser seat selection fee and zero trip modification charges. The company has chosen this strategy to boost revenue generation in terms of online travel, following the economic crisis.