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The online bus ticketing service market size is forecast to increase by USD 5.74 billion, at a CAGR of 26.97% between 2023 and 2028. The market is experiencing substantial growth, influenced by several key factors. Firstly, the widespread penetration of the Internet and smartphones has significantly enhanced accessibility to online booking platforms. This ease of access, coupled with the convenience of booking bus tickets online, has propelled market expansion. Additionally, there's a noticeable shift in consumer behavior towards preferring online platforms for travel bookings, reflecting evolving consumer preferences. As consumers increasingly seek convenient and hassle-free travel solutions, online bus ticket booking platforms are becoming increasingly popular. This trend is expected to continue driving market growth as more consumers embrace the simplicity and efficiency of online booking for their travel needs.
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The market is witnessing robust growth, driven by various factors. Increasing smartphone penetration and the convenience of secure online transactions are key drivers. Both private and public bus companies are leveraging online platforms to offer customer loyalty programs and real-time reporting. However, challenges such as commission fees for online travel agents and competition from local travel agents persist. Emerging trends include the adoption of real-time bus tracking system and personalized offers to attract tech-savvy tourists. Overall, as working adults increasingly opt for online applications, the market is expected to continue its upward trajectory with advancements in digital marketing and technology. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The convenience of booking bus tickets online is the key factor driving market growth. Previously, booking bus tickets was done through bus companies or travel agencies. However, with advancements in technology and the increasing number of consumers using various online services, consumers can now easily book bus tickets online.
Moreover, internet booking services are gaining significant traction through online platforms, driven by factors such as easy accessibility, round-the-clock service availability, and robust customer support. Consumers increasingly prefer the convenience of mobile ticketing which allows them to carry m-tickets on their smartphones, benefit from live bus tracking, receive real-time route updates, and access app-enabled services. These features not only enhance the overall travel experience but also contribute to the growth of the market by meeting modern consumer expectations for seamless and efficient booking solutions. As internet booking platforms continue to innovate and integrate mobile ticketing capabilities, the market is poised to expand during the forecast period, catering to the increasing demand for digital and mobile-driven services in the transportation sector. This trend underscores a shift towards enhanced convenience and accessibility in travel booking processes through advanced digital technologies.
The importance of bus transportation in providing potential growth opportunities is the primary trend shaping market growth. Demand for private and public transportation is high from commercial and individual customers. Tech-savvy customers prefer to book bus tickets through web portals and mobile apps for their personal or business travel. Online bus ticket booking is convenient and also saves time for individuals. Busbud, GotoBus.com, and BusOnlineTicket.com are some of the prominent companies in the market.
Furthermore, in both developed markets and emerging markets, corporate offices are partnering with online bus ticketing service providers to provide bus transportation services to their employees. Thus, these factors will contribute to the significant growth opportunities for the players to tap the new and emerging markets. Hence, the importance of bus transportation in providing potential growth opportunities will propel the growth of the market during the forecast period.
Difficulty in scaling up the business due to market fragmentation is a challenge that affects market growth. The bus tourism industry is very fragmented and unorganized. This makes it difficult for service providers to penetrate this market. Many people are still not using online bus ticket booking services to book bus tickets due to reliability issues and a lack of knowledge. People in developing countries like India are still not familiar with such services, which is a major challenge for the vendors operating in this market.
Moreover, due to the presence of several travel agencies and private bus operators, people often book their tickets directly from such offline channels. This creates challenges for market players in Automatic Fare Collection (AFC) systems, as they face inflexible competition. AFC Systems providers struggle to increase their sales of bus tickets through online web portals or mobile applications due to this market fragmentation. Consequently, scaling up the business becomes difficult, impeding market growth during the forecast period.
The market research report includes the adoption lifecycle of the market research and growth, 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.
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 market is characterized by a diverse range of platforms and technologies that cater to the modern traveler's needs. With the proliferation of smartphones and the advent of secure online transaction methods, online bus ticketing platforms have become increasingly popular. These platforms, including online transaction applications and booking websites, offer convenient solutions for travelers to book their bus tickets from the comfort of their homes. Both private and public bus companies have embraced this trend, offering customer loyalty programs and personalized offers to attract tech-friendly tourists. Moreover, the centralized network facilitates real-time reporting and bus tracking, providing travelers with travel updates and alerts. Additionally, the market has witnessed the emergence of desktop-based applications and smart gadgets, further enhancing the online booking experience for working adults and tech-savvy consumers.
Moreover, the business travel segment is estimated to witness significant growth during the forecast period. The target customer base that uses these online platforms to book bus tickets for their business travel needs is known as the business travel segment in the market. When it comes to travel plans, business travelers frequently have certain requirements and preferences. They might have to arrange travel for several staff, make itineraries, and decide whether to sit in business or first class.
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The business travel segment was the largest segment and was valued at USD 820.01 million in 2018. Additionally, they might need extra amenities like Wi-Fi access, power outlets, or designated business lounges. To fulfill these particular needs, such service providers that target the corporate travel market frequently offer unique features and services. These may consist of corporate booking portals, customized travel packages, dedicated customer service, loyalty programs, and integration with expense management systems. The rising demand for practical and effective transportation options for business travelers drives the growth of the business travel segment in the market during the forecast period.
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APAC is estimated to contribute 34% 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. APAC delivers noteworthy opportunities for the market due to the presence of strong economies such as China, India, and Japan. The shift in population, rise in business travel, and growth in tourism will lead to the growth of the market.
Furthermore, governments in APAC are making efforts to provide a smooth travel experience to daily commuters. For instance, In February 2021, the Indian Railway Catering and Tourism Corporation (IRCTC) launched its internet booking services across India in 22 states and three Union territories. IRCTC has also partnered with around 50,000 private bus and state road transport operators. Such instances are anticipated to drive market growth in the region during the forecast period.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market has witnessed significant growth driven by the convenience and accessibility offered by online booking platforms. With secure transaction methods and advanced reservation technology, travelers can easily book tickets through online bus ticketing platforms and booking websites. Private bus companies have embraced these platforms to reach a wider audience, leveraging innovative marketing strategies and personalized services. From over-the-road to city-to-city buses, travelers can choose from a variety of routes and services, often benefiting from discounts and personalized offers. Real-time bus tracking systems and IoT-enabled devices enhance the travel experience, while integrated payment solutions and e-wallets streamline transactions. With the rise of digitalization, internet booking services cater to diverse segments, from tourism segment to corporate travelers, offering a sophisticated and cost-effective way to plan bus journeys.
In addition, the market continues to thrive with the proliferation of internet booking services and websites, offering convenience and accessibility to travelers worldwide. Online travel agents (OTAs) play a pivotal role in facilitating ticket reservations, often earning commissions for their services. These platforms provide a diverse range of options, from highway buses to coach services, catering to various intercity travel modes. With the expansion of network services and the introduction of e-ticketing and bus tracker programs, travelers can enjoy seamless journeys. Digitization and IoT integration ensure safety monitoring and sophisticated travel experiences, while integrated payment solutions and discount codes enhance affordability. Social media and real-time bus tracking systems further augment the travel experience, attracting subscribers and facilitating recreational activities and corporate travellers alike. Whether for tourism travel segment or business segment purposes, internet booking services platforms offer personalized options for travelers, complementing other modes of transport like trains and flights.
Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 26.97% |
Market Growth 2024-2028 |
USD 5.74 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
25.63 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 34% |
Key countries |
US, Canada, India, China, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BAOLAU Pte Ltd., Busbud Inc., Busonlineticket Pte Ltd., Easy Trip Planners Ltd., FlixMobility GmbH, Global Charter Services Inc., GoEuro Corp., GotoBus, Gozing Technology Pvt. Ltd., Hip Mobility Inc., KOBO CO. LTD., Le Travenues Technology Ltd., MakeMyTrip Ltd., Mantis Technologies Pvt. Ltd., Stelling Technologies Pvt. Ltd., TicketGoose, Vy Bus AS, WILLER Inc., Yatra Online Inc., and Zeelo Ltd. |
Market dynamics |
Parent market growth 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, and Market condition analysis for the market forecast period. |
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 Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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