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The online travel booking platform market size is estimated to grow by USD 1.69 billion at a CAGR of 18.52% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends and factors. Firstly, the increasing penetration of the internet and smartphone has made it easier for consumers to plan and book their travel online. Secondly, the adoption of secure online payment platforms has increased trust in the digital booking process, further fueling market growth. However, disruptions in travel demand due to unforeseen circumstances such as pandemics or natural disasters can pose challenges to the industry. Despite these challenges, the online travel booking market is expected to continue its growth trajectory, offering convenient and cost-effective solutions for travelers.
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The market is witnessing significant growth due to the increasing trend of Online bookings among International tourists and Domestic travelers. The influence of Social media and Travel blogson travel plans is driving the demand for convenient and authentic travel experiences. Millennials and Young professionals prefer Group traveling and Adventure travel, which is propelling the growth of online travel agencies. Online payment, Mobile websites, and Travel apps are making the booking process easier and more accessible. The Travel & tourism industry is undergoing a Digital transformation with the integration of Artificial intelligence (AI), Machine learning, Augmented reality, and Subscription models. Domestic travel and international travel are both enhanced by personalized recommendations for vacation packages, which now increasingly incorporate health safety measures and sustainable travel practices. For seamless flight booking, travelers rely on platforms that tailor their options to individual preferences and requirements. Vacation packages and Personalized recommendations are becoming popular among consumers. Health safety measures and Cybersecurity threats are key concerns for online travel platforms. Flight booking is a significant segment of the travel and tourism market, with the increasing popularity of budget airlines and last-minute bookings. The market is expected to continue its growth trajectory, driven by the increasing number of international tourists and the convenience and personalization offered by online travel agencies. The market is also expected to be influenced by the trend towards Sustainable travel and the integration of AI and Machine learning for better customer experience.
The rising consolidation of online travel agencies is notably driving the market growth. The market has various large players competing with each other. The growth of the travel and tourism market has further intensified the competition in the market, which has led to various mergers and acquisitions. Vendors are entering strategic alliances to expand their market reach and customer base. They are using the latest technologies such as metasearch and dynamic pricing for bookings.
Market penetration will increase with the rise in the number of strategic alliances. Several M&A have occurred during the last five years. For instance, in January 2020, eDreams ODIGEO announced that it would enter into a purchase agreement with RoamAmore Inc. Similarly, in July 2020, Lastminute.com announced that it would acquire iTraveller.com to expand into the Indian market. In addition, GuestJoy announced that it would be acquired by SiteMinder in August 2022. Such factors are expected to fuel the growth of the online travel booking service market during the forecast period.
Dynamic pricing is a key trend influencing market growth. Vendors use the dynamic pricing methodology to gain the maximum advantage of peak season bookings for certain locations. They charge customers based on the number of average travelers to a particular destination. For example, if the number of people traveling to a certain country or region is high during a particular period, the prices of hotels, flights, and other amenities increase based on demand.
Dynamic pricing enables vendors to attract more tourists during the off-season. Vendors can use this pricing method to generate more profits instead of using fixed pricing techniques. Therefore, the use of the dynamic pricing technique will support the growth of the global online travel booking service market during the forecast period.
The threat from offline travel agencies may challenge the market growth. Offline travel agencies have a significant share of the global travel industry due to low awareness. Some customers, especially those belonging to the age group of 50-70 years, prefer face-to-face interaction to confirm travel bookings. In addition, many families prefer travel agents for all their trips despite the presence of low-cost options.
Most of the offline service providers are regional players with multiple offices across the country. These players are preferred by customers with low knowledge of the Internet. This, in turn, contributes to the high market share of offline travel agents. However, the presence of offline travel agents may pose a challenge to the growth of the global online travel booking service market during the forecast period.
The online travel booking service market share growth by the mobile/tablet segment will be significant during the forecast period. Many customers use their phones for booking, with the increasing adoption of smartphones and the availability of multiple travel applications. Hence, vendors constantly update their mobile applications to provide a personalized experience to their customers. They also offer coupons and discounts for downloading, referring, and using mobile applications.
The mobile/tablet segment was valued at USD 362.20 billion in 2018. The rising number of mobile applications for room bookings, restaurant bookings, car rentals, and travel tickets is expected to increase the use of mobiles/tablets for online travel bookings during the forecast period. Airlines, hotels, and online travel agencies made applications and mobile websites that are easy to use. This will increase their adoption during the forecast period. Companies use dynamic pricing, virtual experiences, and family-friendly packages to attract customers, book hotels and maintain customer loyalty.
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APAC is estimated to contribute 35% to the growth of the global market during the forecast period. North America is another key region in the market. The US and Canada are the main revenue-generating countries for the regional market. The growth of the market in North America is attributed to factors such as the growing population of baby boomers, the increasing demand for micro trips, the rising demand for multigenerational customized travels, the increasing number of domestic tourist destinations, growth in disposable income, and the rising expenditure in leisure and travel activities. Moreover, North America has a well-connected transportation infrastructure, numerous luxurious hotels, and exotic destinations. These factors will promote the growth of the market in the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the online travel booking service market.
Airbnb Inc. - The company offers online travel booking platforms for booking of accommodations and hosting. The company also offers vacation rentals, which provides holiday homeowners and agents a platform to manage their rentals.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Online travel booking platforms have revolutionized the way we plan and book our travels. From Millennials to young professionals, international tourists, and independent travelers, everyone is embracing the convenience and accessibility of booking flights, accommodation, travel packages, and transportation online. Social media influence plays a significant role in shaping travel plans. Authentic travel experiences are increasingly popular, with adventure travel and group traveling leading the trend. Travel technology, including mobile-friendly websites, travel apps, and online payments, has made booking a breeze. The online booking segment, including desktop and mobile segments, dominates the travel industry.
Furthermore, peer evaluations and travel blogs are essential tools for travelers, providing valuable insights and recommendations. Online payment and transportation booking are the most common applications, followed by accommodation booking and travel packages. Travel agencies have adapted to the digital age, offering online booking services, and competing with direct travel suppliers. The group travel business has also seen a surge in popularity, with solo travelers and booking cancelations becoming common. The travel & tourism industry continues to evolve, with digital literacy and threat from Online Travel Agencies (OTAs) being key challenges. Despite these challenges, the future looks bright for online travel booking platforms, offering endless opportunities for growth and innovation.
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Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 18.52% |
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Market growth 2024-2028 |
USD 1.69 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
15.17 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 35% |
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Key countries |
US, China, UK, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Airbnb Inc., BlueStar Air Travel Services I Pvt. Ltd., Booking Holdings Inc., DirectVision SRL, eDreams ODIGEO, Expedia Group Inc., Fareportal Inc., Happyeasygo Group, Hopper Inc., Hostelworld.com Ltd., Kiwi.com sro, lastminute.com NV, MakeMyTrip Ltd., OneTwoTrip Ltd., Thomas Cook India Ltd., Travelopro, Trip.com Group Ltd., TripAdvisor Inc., TUI AG, and Yatra Online Inc. |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Platform
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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