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The travel market size is forecast to increase by USD 5.51 billion at a CAGR of 18.52% between 2023 and 2028. The travel market is experiencing significant expansion, driven by various influential factors. One key trend is the rising preference for experiential travel, where travelers seek authentic and immersive experiences rather than traditional sightseeing. Another significant factor is the burgeoning medical tourism industry, which attracts individuals from around the world in search of affordable and high-quality healthcare services. Furthermore, governments' increasing efforts to promote tourism through various initiatives and incentives have also contributed to the market's growth. These factors, combined, are propelling the travel industry forward, offering new opportunities for businesses and creating exciting experiences for travelers. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The online travel market has witnessed profound shifts, especially amidst the challenges posed by the pandemic. Despite setbacks, it presents a ripe acquisition opportunity as domestic tourism gains traction. Bookings, particularly during New Year holidays, are increasingly facilitated through mobile apps, covering a spectrum from flight and hotel bookings to holiday packages and car rentals. Catering to the evolving needs of the travel and tourism industry, online platforms connect travelers with international cities and unexplored destinations, offering new experiences and personalized services including micro trips. While the sector embraces technological advancements like the adoption of IoT, it navigates challenges such as political instability, natural disasters, and stringent immigration policies, underscoring the resilience of travel and tourism progress in an ever-changing landscape.
The growing popularity of experiential travel is a key factor driving the travel market growth. Modern travelers prioritize meaningful and authentic experiences that connect them with local cultures. Experiential travel offers a profound understanding of a destination's way of life, catering to younger generations who value creating memories over material possessions. Social media amplifies this trend, as unique and immersive experiences become shareable content.
The rise of experiential travel serves as an alternative to mass tourism, addressing concerns about overcrowding and environmental impact in popular destinations. Travelers now seek off-the-beaten-path adventures, tailoring trips to personal preferences. Adventure and eco-tourism, emphasizing engagement with nature and local communities, contribute to the growth of the global luxury travel market.
The increasing international tourist footfall is one of the major key travel market trends. In recent years, global inbound tourism has surged, leading to a substantial increase in the number of tourists and a heightened demand for travel activities. The rise in international and domestic travel for business, leisure, and sports has significantly contributed to this trend.
The presence of numerous multinational corporations positively influences business visits worldwide. As international travel expands, especially through online platforms, the demand for travel activities intensifies. Government initiatives, such as airport openings in various Indian cities, further stimulate the tourism industry. Notably, North America, Europe, and the Pacific region contribute significantly to India's international tourist arrivals. This growth in tourism is anticipated to propel the global travel market in the forecast period.
The threat of growing terrorism is a major challenge hindering the travel market growth. Terrorist activities have surged globally since 2016, with the primary goal of instilling fear and altering people's behavior. Racially or ethnically motivated terrorism (REMT) poses a significant threat to society. The deadliest terrorist attack in 2021 occurred in Kabul, Afghanistan, with 183 fatalities from a suicide bombing at Kabul International Airport. Of the 20 worst attacks in 2021, six were in Afghanistan.
Such incidents, like a 2020 motorcycle bomb explosion in Jolo, Philippines, directly impact industries such as hotels and travel activities. Terrorism results in heightened border clearance challenges, causing travel disruptions, delays, and increased security costs for infrastructure like oil and gas pipelines. Additionally, it raises insurance and reinsurance expenses, posing a potential obstacle to the growth of the global travel market in the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
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 market.
American Express Global Business Travel GBT: The company offers travel solutions such as end-to-end solutions for business travelers, including booking, expense management, and travel policy compliance.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The transportation segment is estimated to witness significant growth during the forecast period. With the improvement in the global economy, there has been simultaneous growth in the airline travel industries of many countries worldwide. Increased revenue and associated taxes are generated as a result of increased passenger traffic, which, in turn, contribute to economic development.
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The transportation segment was the largest segment and was valued at USD 2.49 billion in 2018. With the introduction of travel packages such as tourism packages, tourists can opt for preferred destinations and resorts after comparing their prices and offerings. In order to provide tourists with special tourist services, some tourism enterprises cooperate with resorts and privately operated helicopters. Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Rapid economic growth in APAC countries like China, India, and Japan has expanded the middle class, fostering increased spending on travel. Urbanization has opened opportunities for business travel and cultural exchanges, with diverse destinations ranging from historical sites to modern cities. Improved transportation infrastructure facilitates easy travel within and between APAC countries. Governments, including the UAE and India, are investing in tourism, simplifying visas, and enhancing infrastructure. Rich cultural heritage and high-quality medical facilities contribute to the growth of cultural, medical, and wellness tourism. Digital technologies streamline trip planning, while the region's prominence in international business drives demand for business travel services. Diverse landscapes attract nature enthusiasts and adventure seekers, making the APAC region a significant market for cruise tourism. These factors are expected to drive global APAC travel market growth in the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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In the expansive realm of travel, online travel agents serve as the linchpin connecting elite travelers to a myriad of experiences within the tourism sector. Offering reliable transport and fostering professional interaction, they curate customized tours and private experiences, catering to diverse demographics from Baby boomers to Millennials. Across the spectrum, from safari and adventure segments to luxury tents and opulent hotels and resorts, travelers are immersed in unparalleled hospitality. As the world shrinks with airlines, cruise liners, and online booking platforms, overseas travel and short and long-distance journeys become seamless. Governments bolster the industry through infrastructural development and governmental support, while rapid globalization and technical integration redefine travel paradigms. The rise of social media networks and influencer marketing amplifies promotional activities, shaping tourist destinations and influencing leisure activities. Amidst concerns over security and health, the industry undergoes digital transformation, leveraging online resources and flight tickets to sustain economic stability while offering unforgettable vacations and tour packages to a global audience.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.52% |
Market growth 2024-2028 |
USD 5.51 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.17 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, France, China, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accor S.A., American Express Global Business Travel GBT, Balkan Holidays Ltd., BCD Travel Services BV, Booking Holdings Inc., Carlson Inc., Corporate Travel Management Ltd., Expedia Group Inc., Fareportal Inc., Flight Centre Travel Group Ltd., G Adventures, JPMorgan Chase and Co., JTB Corp., MakeMyTrip Ltd., Marriott International Inc., Omega World Travel Inc., PT Global Digital Niaga, Traveloka, The Scott Travel Group Ltd., Travel Leaders Group Holdings LLC, World Travel Holdings, and World Travel Inc. |
Market dynamics |
Parent market analysis, Market forecast, 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 forecast period |
Customization purview |
If our market 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 Sector
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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