Online Travel Booking Service Market Size, Share & Trends Analysis Report By Service Type (Vacation Packages, Transportation Booking), By Booking Method, By Device, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global online travel booking service market size was valued at USD 519.1 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.0% from 2022 to 2030. The market growth can be attributed to shifting consumer behavior, the growing influence of social media, increasing disposable income, and rising inclination toward adventure travel across the globe. Moreover, the increasing number of travelers around the globe is driving the industry in the last few years. According to the statistics published by UN World Tourism Organization and IMF staff calculations, the number of international tourists rose to more than 1.5 billion by the end of 2019 from 680 million in 2000.

The outbreak of COVID-19 had badly affected the global economy. In order to break the chain and spread of coronavirus, lockdown orders were imposed by various countries around the world. This had a devastating impact on domestic and international travel across the globe. Moreover, the pandemic is having a profound impact on the global industry due to travel restrictions and cancelations of bookings. According to the World Tourism Organization's most recent data, the devastating effects of COVID-19 on the industry caused international visitor arrivals to drop by 93% in June compared to the same month in 2019.

The increasing traveler preference for reliable transport, personalized service, exclusivity, and positive and professional interaction with staff is fueling the growth. The primary services are offered by online travel agencies around the globe, which is accelerating market growth. Moreover, the rising inclination towards group traveling among the youth is expected to accelerate industry advancement. Moreover, working professionals and millennials prefer online travel booking services over offline modes. The increasing demand for authentic and individualized travel experiences by customers is expected to propel the industry growth during the forecast period. Additionally, the growing digital innovations, constantly shifting consumer expenditure behaviors, and rising urbanization are collectively projected to drive the market.

Travel technology enables consumers to access travel-related services in a far more convenient and cost-effective fashion than traditional offline services, which is expected to accelerate the industry growth during the forecast period. Furthermore, travel agencies are launching quick, mobile-friendly websites that are simple to use on smartphones. These services provide peer evaluations, straightforward pricing comparisons, and 360-degree video tours, which aid online vacation planning and booking by travelers. This is expected to accelerate growth during the projection period. However, unpredictable climate change and environmental degradation are a few possible risks associated. Expanding online platforms and trusted sellers of holiday packages, hotels, and other services across the globe are opening a new opportunity for the industry, which is expected to accelerate the growth during the forecast period.

Booking Method Insights

The direct travel agency segment held the largest revenue share of over 80.0% in 2021. This is attributed to the huge trips and travel packages offered by travel agents keeping travelers’ budgets and comfort in mind across the globe. Moreover, people are encouraged to purchase their vacation packages through online travel agents since they offer quick and fast hotel and flight bookings and a chance to compare different accessible travel alternatives. Increased customer confidence in online payments is projected to accelerate industry growth.

The online booking segment will register the fastest CAGR of 10.7% from 2022 to 2030. The segment is driven by the rising numerous booking of travel packages, hotel bookings, and other services by people from online travel agencies due to the tailored experience and convenience. Additionally, key initiatives taken by market players such as online campaigns and social media advertising are expected to attract prospective customers to initiate their bookings through the online booking mode, which is anticipated to accelerate industry growth. Moreover, the increasing middle-class population in developing economies, globalization, and rising disposable income are driving the market over the last few years.

Device Insights

The desktop segment held the largest revenue share of over 60.0% in 2021. The rising adoption of desktop or web browsing to know detailed information about travel and hotel bookings is accelerating industry growth. Additionally, consumers feel more at ease buying larger products such as holiday packages and flights with desktops. Moreover, the desktop conversion rate is higher than mobile i.e. the percentage of shoppers that abandon their travel purchase is 85% for desktops, which may accelerate the market growth.

The mobile segment will register the fastest CAGR of 9.9% from 2022 to 2030. This can be attributed to the rising usage and penetration of mobile and the internet across the globe. Moreover, the hectic schedule of young and working consumers and the presence of trusted online booking agencies are increasing the market growth. The growth of the segment is attributed to quick and easy travel and hotel bookings offered by marketplace platforms and extensive service offerings through mobile applications. Furthermore, travel booking agencies are launching quick, mobile-friendly applications that are simple to use on smartphones, which is accelerating the segment growth during the forecast period.

Service Type Insights

The transportation booking segment held the largest revenue share of over 50.0% in 2021. The rising online booking of flights, trains, and buses across the globe is propelling the market growth. Moreover, the segment is driven mostly by global trends in increased consumer spending, urbanization, broadband accessibility rates in emerging economies, and the inclination towards travel amongst the rising affluent class around the world. Furthermore, the rising preference for traveling for various purposes like business and adventure across Asian countries like India and China has boosted the demand for online travel booking in this region, thus fueling the industry growth during the forecast period.

The accommodation booking segment is expected to register the fastest growth rate of 9.9% from 2022 to 2030. The growing online hotel bookings by people across the globe are accelerating market growth. Moreover, the rising accessibility to foreign travel and the development of couples-oriented package vacations have both contributed to the increase in couple vacations during the past century, which is driving the market. Furthermore, increasing internet adoption, an increasing propensity to travel, and greater mobile phone penetration are anticipated to propel the growth. Additionally, social media and social networks have promoted and inspired travels to previously un-trafficked destinations, which is projected to boost industry growth.

Regional Insights

Europe held the largest revenue share of over 30.0% in 2021, owing to rising income levels across the region, the improving business environment in European countries, and government initiatives to promote tourism and travel activities. Moreover, there is a tremendous demand for travel tourism since Europeans appreciate the sense of exploring new areas. Furthermore, the increase in the number of independent/solo travelers, along with the growing number of online travel agencies in this region, is projected to fuel the growth during the assessment period.

Asia Pacific is expected to expand at the highest CAGR of 9.8% from 2022 to 2030. The increase in spending power and improvements in the standard of living are some of the major factors accountable for attracting people to the travel and tourism industry, which is fueling the growth. Moreover, the group travel business has been considerably encouraged and accelerated by economic growth, ease of travel restrictions, increased competition, and aggressive promotion techniques used by the involved players in the sector, which is projected to accelerate the industry growth during the assessment period.

Key Companies & Market Share Insights

Both small and large players are introducing innovative packages and expanding their portfolios in order to appeal to consumers across the globe. Moreover, key market participants are dependent on tactics like the launch of new services and business growth to increase their market shares and maintain relevance in the online travel booking industry. Furthermore, the online travel booking service is gaining traction around the globe mainly due to the accessibility of several varieties. Some prominent players in the global online travel booking service market include:

• Airbnb

• Expedia

• Booking Holding

• Trip Advisor Inc.

• Trip.com Group Ltd.

• MakeMyTrip Limited

• Hostelworld Group PLC (HSW)

• Trivago N.V

• Despegar.com, Corp.

• Lastminute.com Group

Online Travel Booking Service Market Report Scope

Global Online Travel Booking Service Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global online travel booking service market report on the basis of service type, booking method, device, and region:

• Service Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Vacation Packages

  • Accommodation Booking

  • Transportation Booking

  • Others

• Booking Method Outlook (Revenue, USD Million, 2017 - 2030)

  • Online Booking

  • Direct Travel Agency

• Device Outlook (Revenue, USD Million, 2017 - 2030)

  • Desktop

  • Mobile

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • Indonesia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa