Online Travel Agencies IT Spending Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast 2024-2028

Online Travel Agencies IT Spending Market 2024-2028 :

The online travel agencies IT spending market size is estimated to grow at a CAGR of 17.19% between 2023 and 2028. The market size is forecast to increase by USD 2.66 billion. The growth of the market depends on several factors such as the increase in the popularity of augmented reality (AR) and virtual reality (VR) technologies in the travel industry, the rise in adoption of voice search and virtual assistance, and the increasing consolidation of online travel agencies. Online travel agencies IT spending refers to the investment made by these companies in technology infrastructure, software systems, and digital platforms necessary for their operations. This includes expenditures on website development and maintenance, booking engines, customer relationship management (CRM) systems, payment gateways, mobile app development, and other IT-related projects. Online travel agencies IT spending is aimed at improving the online booking experience, enhancing user interfaces, ensuring secure transactions, managing customer data, and optimizing overall operational efficiency.

This online travel agencies IT spending market report extensively covers market segmentation by type (software spending, IT services spending, and hardware spending), End-user (large enterprises, and small and medium enterprises (SMEs)), and Geography (North America, Europe, APAC, South America, and Middle East and Africa) and geography North America, Europe, APAC, South America, and Middle East and Africa. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.

What will be the size of the Online Travel Agencies IT Spending Market During the Forecast Period?

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Online Travel Agencies IT Spending Market Overview

Driver

The increase in the popularity of augmented reality (AR) and virtual reality (VR) technologies in the travel industry is notably driving market growth. AR and VR technologies are gaining popularity in the travel industry, leading to an increase in their adoption and IT spending by online travel agencies. These immersive technologies offer unique experiences that enhance the way customers explore and interact with travel destinations, accommodations, and attractions. Another significant advantage of AR and VR technologies is their ability to overcome physical barriers and limitations.

Additionally, AR and VR technologies offer an innovative way for online travel agencies to differentiate themselves from competitors. By providing unique and immersive experiences, these agencies can stand out in a crowded market. Customers are increasingly seeking memorable and interactive experiences, and AR and VR technologies can deliver these memorable experiences, creating a positive impact on brand perception and customer loyalty. Thus, such factors are expected to increase the demand for AR and VR technologies in online travel agencies' IT spending, which will drive the growth of the market during the forecast period.

Trends

Dynamic cost-effective IT solutions are an emerging trend shaping market growth. 

Dynamic IT solutions are one of the latest trends in the global online travel agencies IT spending market. The pricing methodology was introduced by vendors to gain the maximum advantage of peak season for specific locations. Vendors will charge customers according to the number of average travelers to a specific destination. If the number of travelers to a country or a region is high during a particular period, the prices of hotels, flights, and other amenities will be increased according to the demand. 

However, most vendors in the global online travel agencies IT spending market are using this method for pricing and are generating more profits when compared with the fixed pricing techniques. The dynamic pricing technique will be one of the primary drivers of the global online travel agency's IT spending market during the forecast period.

Restrain

Threat from offline travel agencies is a significant challenge hindering the market growth. Offline travel agencies have acquired a significant share of the global travel industry, even though it has been declining over the past few years. A large number of travelers with limited knowledge about the Internet and trust issues with online partners are the major factors supporting the growth of offline travel agencies. Many offline travel agents are present across the world. Each region has multiple travel agents, which help in guiding customers during their trips.

Moreover, offline service providers are often regional and have multiple offices across the country. Customers who have less Internet knowledge would have heard more about such offline vendors than international online players. These factors contribute to the high market share of offline travel agents and act as a major challenge for the global online travel agencies IT spending market during the forecast period.

Online Travel Agencies IT Spending Market Segmentation By Type Segment

The market share growth by the software spending segment will be significant during the forecast period. Software spending refers to the investments made by online travel agencies in software solutions that facilitate their operations, enhance customer experience, and drive business growth. The software spending segment encompasses various types of software applications and platforms that enable online travel agencies to manage bookings, streamline processes, engage with customers, and effectively compete in the dynamic travel industry.

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The software spending segment was the largest and was valued at USD 1.10 billion in 2018. Furthermore, the software spending segment includes investments in analytical tools and business intelligence (BI) software. Online travel agencies rely on data analytics to gain insights into customer behavior, monitor performance metrics, and make informed business decisions. By leveraging data analysis and BI software, online travel agencies can identify trends, optimize pricing strategies, and identify areas for growth and improvement. These insights enable online travel agencies to stay ahead of the competition and adapt their business strategies to meet customer demands effectively. Thus, the abovementioned advantages are expected to increase the demand for software spending, which will propel the growth of the software spending segment in the global online travel agencies IT spending market during the forecast period.

Online Travel Agencies IT Spending Market Segmentation By End-user Segment   

Large enterprises segment refers to the investments made by large online travel agencies companies with substantial market presence and extensive operations. Large enterprises play a crucial role in shaping the online travel industry and drive significant IT spending to support their operations and maintain a competitive edge.  Additionally, large enterprises invest in extensive customer support infrastructure to ensure timely and efficient resolution of customer inquiries and issues. This includes setting up dedicated call centers, employing a large number of customer service representatives, and implementing advanced CRM systems. Large online travel agencies understand the value of providing exceptional customer service and invest in technology and personnel to offer 24/7 support, multichannel communication options, and personalized assistance. Thus, the abovementioned advantages are expected to increase the demand for online travel agencies' IT spending in large enterprises, which will drive the growth of the online travel agencies' IT spending market during the forecast period.

Regional Overview

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North America 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. North America is a dominating region in the global online travel agencies IT spending market, with the US and Canada being the leading revenue-generating countries. Factors such as the growing baby boomer population, the increasing demand for micro-trips from working professionals, the rising demand for multigenerational customized travels, the rising number of domestic tourist destinations, tremendous growth in disposable incomes, and increasing expenditures in leisure and traveling activities are driving online travel agencies to enhance their service offerings by adopting new technologies.

In addition to growth in tourism and traveling, hectic lifestyles result in a rapid shift to online travel booking for convenience in booking, with considerable time savings. Such factors are boosting online travel bookings and thereby encouraging online travel agencies to serve customers with advanced technologies by providing mobile applications and user-friendly websites to book tickets online. This, in turn, is expected to propel the growth of the market in North America during the forecast period.

The outbreak of COVID-19 adversely impacted the aviation, tourism, and travel industries in 2020. However, the market revenue growth is expected to recover slowly during the forecast period due to the increasing efforts by governments to support the economy and the growing control over the spread of the disease due to the implementation of vaccination drives in 2021, which has led to an increase in the demand for domestic and international travel, which will drive the growth of the regional market during the forecast period.

Online Travel Agencies IT Spending Market Customer Landscape

The Online Travel Agencies IT Spending Market 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 growth strategies.

Global Online Travel Agencies IT Spending Market Customer Landscape

Who are the Major Online Travel Agencies IT Spending Market Companies?

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.

 

Amadeus IT Group SA - The company offers online travel agencies IT spending such as New Skies integrated revenue generating platform, travel intelligent advertising services.

Lemax d.o.o. - The company offers online travel agencies IT spending such as Lemax online booking software.

Dolphins Dynamics Ltd. - The company offers online travel agencies IT spending such as Vamoos mobile travel app.

The research report also includes detailed analyses of the competitive landscape of the market and information about 13 market companies, including:

• DirectVision SRL
• Oracle Corp.
• Qtech Software Pvt. Ltd.
• Sabre Corp.
• Technoheaven
• Tramada Systems Pty Ltd.
• TravelCarma
• Travelport LP
• TravelSoft Corp.
• WNS Holdings Ltd.

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.

Segment Overview

The online travel agencies IT spending market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 - 2022.

• Type Outlook
  • Software spending
  • IT services spending
  • Hardware spending
• End-user Outlook
  • Large enterprises
  • Small and Medium enterprises (SMEs)
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Online Travel Agencies IT Spending Market Scope
Report Coverage	Details
Page number	162
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 17.19%
Market Growth 2024-2028	USD 2.66 billion
Market structure	Concentrated
YoY growth 2023-2024(%)	15.0
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 39%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Amadeus IT Group SA, DirectVision SRL, Dolphins Dynamics Ltd., Lemax d.o.o., Oracle Corp., Qtech Software Pvt. Ltd., Sabre Corp., Technoheaven, Tramada Systems Pty Ltd., TravelCarma, Travelport LP, TravelSoft Corp., and WNS Holdings Ltd.
Market dynamics	Parent market analysis, 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 the 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.

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What are the Key Data Covered in this Online Travel Agencies IT Spending Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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