Global Online Travel Booking Service Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: Global Online Travel Booking Service Market (2024-30):

The Global Online Travel Booking Service Market size is estimated to grow at a CAGR of around 11.70% during the forecast period, i.e., 2024-30. The factors that can be attributed to the growth of online travel booking services have been the increase in tourism across the globe mainly in the Middle East, North America & Europe. According to the World Tourism Organization, in 2021, Europe welcomed around 304.8 million tourists, an increase of approximately 27% as compared to 2020.

Moreover, the regions including Europe, Asia-Pacific, and others have been witnessing a rise in inbound tourists due to the surge in medical tourism, recreational activities, and live events like World Cups or pop concerts. As per Live Nation Entertainment, a leading entertainment company based in the US, in 2022, the attendees in more than 44 thousand live concerts increased to approximately 150.04 million, an increase of about 24% compared to 2019. These live events boast enthusiastic fan communities and audiences to forge contacts with others who share their commitment and zeal for a specific event. As a result, individuals from across the globe tend to attend these shows & travel to the destined locations, driving the Online Travel Booking Service Market.

Moreover, global companies like Tesla, FuelBuddy, Arabyads, etc., are significantly expanding their business operations to other countries like Saudi Arabia, Africa, India, etc., to position themselves at par with their competitors. This increasing expansion of the companies is boosting business executives' travel for meetings, site inspections, and other official work, consequently boosting business travel or corporate travel. According to the Global Sustainable Tourism Council, in 2022, over 445 million business travel took place globally. Different regions such as the Americas, Europe, Asia-Pacific, and Africa witnessed an increase of approximately 35%, 28%, 41%, and 23% respectively, compared to 2021. This increasing corporate travel is driving the requirement for travel booking companies like TravelPerk, BCD Travel, SAP Concur, etc., to ensure the safe accommodation & travel booking of the employees, amplifying the Online Travel Booking Service Market.

Global Online Travel Booking Service Market Driver:

Surging Demand for Online Travel Booking Services Amidst Global Travel Relaxations – Over the years, tourism in countries like the UAE, Italy, and others has significantly increased due to a surge in the net disposable income of individuals, flexible visa policies, government-led initiatives to boost tourism, and others. Individuals residing in countries like the UAE, Saudi Arabia, etc., experienced a rise in their net disposable income during past years. With an upswing in net disposable income, individuals allocated their financial resources to leisure pursuits like travel, thereby driving tourism.

Further, tourism irrefutably plays a vital role in the enlargement of the economy of numerous nations and global regions since it stimulates economic activity across multiple sectors and bolsters local enterprises and services such as lodging, dining, transportation, entertainment, etc. As a result, tourism contributed to elevating the Gross Domestic Product (GDP) of the countries across the globe during 2019-2023. According to the World Travel & Tourism Council, in 2022, the travel & tourism sector contributed to approximately 7.6% of the World’s GDP, an increase of about 22% compared to 2021.

Hence, the governments of countries like Saudi Arabia, India, etc., increasingly encouraged tourism and attracted millions of tourists in their countries by easing travel-related policies, hosting numerous cultural & sports events, and investing in the tourism sector. The surge in tourism across the globe contributed to an increase in the demand for online travel booking services.

Global Online Travel Booking Service Market Opportunity:

Surge in Wellness and Medical Tourism to Elevate the Requirement for Online Travel Booking Services – In recent years, medical tourism in countries like Japan, India, Spain, the UK, etc., has significantly increased due to the prevalence of world-class amenities and doctors in these countries. In addition, several countries like the US, Germany, and others have some of the most expensive healthcare systems. As a result, the citizens residing in these countries seek to travel to other countries for treatment to minimize medical treatment costs.

According to the International Trade Administration, in 2021, almost 3% of Americans travel overseas to countries like; Malaysia, Mexico, India, etc., for medical treatment. Owing to this surge in medical tourism, several travel booking service platforms such as Booking Med Travel, Medical Tourism.com, etc., have started offering facilities as per the patient's medical needs. These platforms help the consumers to compare the prices & packages of different healthcare providers and ensure the booking of medical treatment procedures and other facilities. As a result, the consumer preferably opts for these solutions.

Hence, the surging medical tourism is posing an opportunity for online travel platforms to offer patients & their acquaintances suitable packages, consequently surging the demand for the Online Travel Booking Service Market in foreseen years.

Global Online Travel Booking Service Market Challenge:

Technical Glitches in the Travel Booking Applications Posing Challenges – Online Travel market platforms such as Trivago, Goibibo, etc., are made up of complex systems, software, and hardware interacting, which interact with the users. Therefore, with a sudden surge in traffic during the holiday or peak booking season, the servers become overloaded, slowing down the system and resulting in technical glitches. For instance, in 2022, MYAirline, a flight booking application, faced technical glitches due to high traffic on their website & mobile application. These technical glitches, downtime, or system failures lead to issues with bookings, payment processing, or access to information.

Moreover, these technical issues or errors within the booking system often lead to ticket cancellations & financial repercussions. Therefore, to avoid inconvenience in booking, payment processing issues, or unexpected ticket cancellations, consumers opt for traditional ticket booking rather than opting for travel booking applications, restraining market growth.

Global Online Travel Booking Service Market Trend:

Integration of Artificial Intelligence for Personalized & Interactive Recommendations Gaining Momentum – In recent years, online travel & accommodation companies have increasingly integrated technologies like Artificial Intelligence (AI), Machine Learning (ML), and others to make the applications & websites more user-interactive. Online travel booking platforms like Booking.com and Expedia are increasingly deploying chatbots on their web application to provide customers with real-time information regarding flight details, accommodation options, and prices. For instance,

• In 2023, the company Insta Tourism LLC, launched its travel booking platform Bookmybooking.com, with features like a chatbot, and offers tailor-made or personalized travel packages based on consumer behavior.

As a result, consumers are shifting from traditional travel agents to interactive online platforms to make rational decisions based on the real-time information provided by the platform. Moreover, the chatbots offer immediate assistance to users, addressing their queries and concerns and improving the overall user experience. These chatbots also eliminate the need for conversation with any customer support executive in case of any issues. Hence, more customers are gradually inclining towards interactive online booking platforms for smooth and customized travel experiences.

Global Online Travel Booking Service Market (2024-30): Segmentation Analysis

The Global Online Travel Booking Service Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2024-2030 at the global level. According to the analysis, the market has been further classified as:

Based on the Booking Method:

• Direct Online Booking
• Online Travel Agencies (OTAs)

Direct online booking has gained a significant share in the Online Travel Booking Service Market due to higher price transparency and flexible booking policies. Direct Online booking offers prior arrangements of airline tickets & accommodation without any requirement for the middle men, enabling travelers to book them at precise rates. Moreover, direct booking facilitates direct communication between the tourists and the travel provider. So, in case of modifications, special requirements, or reservation-related problems, the individuals directly converse with the travel provider for personalized support, hence, the chances of miscommunication due to the absence of travel agents are relatively lower.

Besides, making reservations via online travel agencies (OTAs) is costly for consumers since the customers are compelled to pay a fixed commission to the OTAs for each booking. According to the survey by Northern Territory Tourism, Australia, in 2023, the travel agencies seek a commission of up to 30% per booking. Therefore, the rates of booking via online travel agencies (OTAs) are relatively higher. As a result, the consumers make the travel bookings directly, enhancing the share of the Direct Online Booking in the Online Travel Booking Service Market.

Based on End Users:

• Leisure Travelers
• Business Travelers
• Medical and Wellness Travelers

Leisure travelers witnessed significant growth in the Online Travel Booking Service Market during historical years due to the increase in the net disposable income of individuals & the changing consumer preference towards travel with friends & family. Leisure travelling is emerging as a popular trend among the millennials & genZ population since travelling is considered as therapeutic & refreshing for individuals. Consumers nowadays travel with their families to spend quality time with them.

According to the US Ministry of Tourism, in 2019, approximately 100 million American families embarked on at least one trip, with a majority of them, around 62%, choosing destinations based on the availability of family-friendly activities and attractions. Thus, the market share of the leisure travelers in the Global Online Travel Booking Service Market was relatively higher.

Besides, in recent years, individuals have started spending their money on traveling alone due to the emergence of the self-reflection and introspection trend globally. Therefore, the share of leisure travelers will witness remarkable growth in the forecast years as well.

Global Online Travel Booking Service Market (2024-30): Regional Projections

Geographically, the Global Online Travel Booking Service Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

The prevalence of world-renowned art and architecture, with iconic landmarks such as the Louvre, the Vatican City, and the Gaudi-designed buildings in European countries like the UK, Germany, Italy, etc., has facilitated tourism in Europe. Moreover, intra-regional travel in Europe due to the Schengen Area allows passport-free travel within its almost 27 European countries, simplifying travel logistics for tourists. Further, the government of the European countries also encourages tourism by laying out tourism policies to maintain Europe's position as a leading global destination and to turn Europe into a sustainable tourism destination.

Thus, the government's favorable policy and the prevalence of architecture in Europe are enhancing share of Europe in the Online Travel Booking Service Market. Moreover, some European countries are also emerging as medical tourism hubs since they are cost-effective and budget-friendly medical treatment. Thus, the tourists seeking attention are gradually coming to these countries, making Europe the most popular in the Online Travel Booking Service Market.

Global Online Travel Booking Service Industry Recent Development:

• 2023: Airbnb Inc. launched a new online room booking platform “Airbnb Rooms”, with more than 50 features and upgrades to address feedback from guests and Hosts to elevate the customer’s experience.
• 2023: MakeMyTrip Pvt Ltd. Launched an application “Traveller Map of India” in collaboration with the Ministry of Tourism, India to discover tourism locations within the country based on their travel preferences.

Gain a Competitive Edge with Our Global Online Travel Booking Service Market Report

1. Global Online Travel Booking Service Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Online Travel Booking Service Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.