Online Travel Industry Overview:
The Online Travel Market is estimated to garner $1,091 billion by 2022, registering a CAGR of 11.1% during the forecast period 2016-2022. Online travel providers aim to ease travel planning and bookings for travelers. The online travel market is driven by quick and convenient flight and hotel bookings, rise in customers’ trust in online payment, and ability to compare various available travel options. Nowadays, market players are extensively offering travel services through mobile websites and apps, as it is one of the most preferred mediums of travel bookings, particularly among the young professionals.
The report segments the global online travel market based on the mode of booking, types of platform, service types, age group, and geography. Online travel agencies (OTAs) and direct travel suppliers are the two major modes of booking. Based on the type of platform, the market is bifurcated into mobile and desktop. The different service types include transportation, travel accommodation, and vacation packages. Key age groups of the market are 22-31, 32-43, 44-56, and >56. The market is further analyzed across geographical regions, namely, North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, and rest of Europe), Asia-Pacific (India, China, Japan, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Age group between 22 and 31 years drives the growth of the online travel market
The age group of 22-31 years comprises the young population, which are the early starters in their professional career. These travelers are more inclined to spend on travel and explore new destination, as compared to the travelers in the higher age-group category.
It is reported that this age group spends approximately $200 billion on travel every year. These travelers have revolutionized the online travel industry by the extensive use of technology. Smartphones and other mobile devices are largely preferred to make travel arrangements. Moreover, social media platforms are used to review various travel service providers, destinations, transportation, and accommodations. These young traveler’s first research online and scan various sites, when planningfor a vacation or a short weekend getaway. They are always active on social media sites, such as Facebook, Twitter, and Instagram, repeatedly updating their virtual image by posting their day-to-day activities, including travel check-ins. Their travel decisions are strongly influenced by online travel review sites, social media, blogs, and friend’s recommendations.
Market players are introducing new and enhanced versions of mobile apps, which offer great travel deals and hassle-free booking to attract young travelers. In addition, online travel booking via mobile is the most preferred booking medium for most of the young travelers due to ease of use, convenience, and 24/7 accessibility.
Asia-Pacific: Most lucrative online travel market
Asia-Pacific possesses the highest growth potential in the online travel market share, India and China being the most lucrative markets.
The growth is attributed to the increase in disposable income,rise in middle-class segment, and greater penetration of Internet facilities. Ctrip is the leading player in China’s online travel market, whereas MakeMytrip, Yatra, and Cleartrip are the major online travel agencies (OTA) operating in India. OTAs are becoming the most preferred medium for bookings in the region.
Business travel has also fueled the market growth in Asia-Pacific. Approximately 90% of corporate travelers in the region own either a smartphone or tablet. More than 50% of these travelers manage their travel through these devices.
Proliferation of mobile usage and innovative mobile travel apps are the key growth drivers:
Technology has changed the way people communicate and travel, worldwide. With evolving technology and increasing use of mobiles, easy and efficient methods are being developed to make traveling easy and comfortable, thus fueling the growth of travel and tourism industry.
Mobile travel apps are gradually gaining pace in the market and are preferred by travelers to make their travel arrangements. Easy accessibility and hassle-free maneuvering through online travel sites are major reasons for the market growth. Over the past few years, mobile travel bookings have increased immensely, across all the regions, as depicted in the figure below:
Companies have started to cater to the needs of travelers through innovative mobile travel apps to gain market share. Apps infused with various features are being developed to remain connected to travelers throughout their journey and to assist them whenever required. Travel apps offer flexibility to travelers, thus, becoming an important differentiating factor for the consumers while choosing a travel company. In addition, customers have started to download hotels and airline apps for a quick view and booking status. Companies are also incorporating other services such as customized coupons, concierge services, and other in-destination services in the travel apps to have easy customer touch point and promote their brand. Thus, proliferation of mobile usage and innovative mobile travel apps are expected to foster the growth of the online travel market size in the future.
Key players profiled in this report are Expedia, Inc., Priceline Group Inc., TripAdvisor LLC, Ctrip.com International, Ltd., Hostelworld Group, Hotel Urbano Travel and Tourism SA, Cheapoair.Com., Trivago GmbH, Thomas Cook Group plc, and MakeMyTrip Limited.
Other players in the value chain include AirGorilla, LLC, Hays Travel limited, Airbnb, Inc., Yatra Online Private Limited, India, Alibaba Group, Elong, Inc., TUI Group, and Tuniu Corporation.
KEY BENEFITS OF ONLINE TRAVEL MARKET
- A comprehensive analysis of the current trends and future estimations in the global online travel market has been provided in this report.
- This report presents information regarding key drivers, restraints, and opportunities along with a detailed impact analysis from 2014 to 2022.
- Porter’s Five Forces model of the online travel industry illustrate the potency of the buyers and suppliers participating in the market.
- A quantitative analysis of the current scenario and the forecast period from 2016 to 2022 highlights the financial competency of the market.
- This report provides a detailed analysis of the global online travel market with respect to mode of booking, types of platform, service types, age group, and geography to enable stakeholders to take appropriate investment decisions.
- Value chain analysis in the report provides a clear understanding on the role of stakeholders involved in this process.
KEY MARKET SEGMENTS ONLINE TRAVEL MARKET
BY MODE OF BOOKING
- Online Travel Agencies
- Direct Travel Suppliers
BY TYPES OF PLATFORM
BY SERVICE TYPES
- Travel Accommodation
- Vacation Packages
- BY AGE GROUP
- North America
- Rest of Europe
- Rest of Asia- Pacific
- Latin America
- Middle East
MARKET PLAYERS IN THE VALUE CHAIN:
- Expedia, Inc.
- Priceline Group Inc.
- TripAdvisor LLC
- Ctrip.Com International, Ltd.
- Hostelworld Group
- Hotel Urbano Travel and Tourism Sa
- Trivago Gmbh
- Thomas Cook Group plc
- MakeMytrip Limited
- Alibaba Group
- Elong, Inc.
- TUI Group
- Tuniu Corporation
- AirGorilla, LLC
- Hays Travel limited
- Airbnb, Inc.
- Yatra Online Private Limited, India