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The travel agency services market size is forecast to increase by USD 156.7 billion and is estimated to grow at a CAGR of 8.6% between 2023 and 2028. The travel industry is experiencing significant growth, driven by several key factors. One of the most notable trends is the increasing number of international tourists. According to the World Tourism Organization, international tourist arrivals reached 1.4 billion in 2018, a 6% increase from the previous year. Another significant factor is the growing preference for online booking travel arrangements through travel agencies. This trend is expected to continue as more travelers seek the convenience and time-saving benefits of digital platforms. Additionally, the increasing disposable income of travelers, particularly in emerging markets, is fueling demand for travel experiences. These factors are driving innovation and growth in the travel industry, with online travel agencies at the forefront of meeting the evolving needs of consumers.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The leisure travel segment is estimated to witness significant growth during the forecast period. Travel agencies cater to the diverse needs of various traveler segments, including leisure tourists, business travelers, and adventurers, by offering additional travel services beyond flights, hotels, and car hire.
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The leisure travel segment was the largest segment and valued at USD 203.20 billion in 2018. These services encompass phone booking and online booking options, as well as in-person booking for those who prefer a more personal touch. For domestic and international travelers, travel agencies provide assistance with accommodation booking, transportation arrangements, visa assistance, travel insurance, and personalized itineraries. The integration of AI and machine learning algorithms enhances the travel planning experience, enabling travelers to access real-time information, compare prices, and customize their travel plans according to their preferences. Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is estimated to contribute 32% 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. The Market is experiencing significant growth, driven by the increasing popularity of various tourism sectors. IoT technology integration in travel services enhances the convenience of booking and planning trips. Millennials, with their preference for adventure and art tourism, are a major demographic fueling this trend. Social networking sites facilitate the sharing of travel experiences and recommendations, further boosting the market. Hence, such factors are driving the market in APAC during the forecast period.
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.
Abercrombie and Kent USA LLC: The company offers travel agency services including bespoke journeys, small-group tours, private jet expeditions, villa rentals, and custom-designed itineraries to destinations worldwide.
Technavio provides ranking index for the top 20 companies along with insights on market positioning of:
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Market structure |
Fragmented |
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YoY growth 2023-2024 |
14.53 |
The market caters to the growing demand for seamless travel experiences for various types of travelers, including leisure tourists, business travelers, and adventurers. The market offers additional services beyond traditional flight, hotel, and car hire booking. These services include phone booking, online booking, travel planning, ticketing, accommodation booking, transportation arrangements, visa assistance, travel insurance, personalized itineraries, and more. Advancements in technology, such as AI and machine learning algorithms, have transformed the travel industry. Online travel agencies (OTAs) and airlines offer direct booking options, global connectivity, and personalized services to meet the unique needs of travelers. The middle-class population's increasing disposable income and growing interest in sustainable travel practices have propelled the market's growth. Additional travel services, such as travel insurance and visa assistance, provide peace of mind and convenience to travelers. OTAs and travel agencies use data analytics to offer customized recommendations and personalized itineraries. The market's future looks promising, with continuous innovation and technological advancements expected to shape the travel industry landscape. 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.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.
Increasing international tourist footfalls is notably driving market growth. Travel agency services cater to various types of travelers, including leisure tourists, business travelers, and adventurers, offering additional services beyond basic ticketing and accommodation booking.
Moreover, these services include transportation arrangements, such as car hire, and more complex offerings like visa assistance, travel insurance, and personalized itineraries. With the advent of AI and machine learning algorithms, travel agencies are enhancing their offerings through online and phone booking options, as well as in-person services. Thus, such factors are driving the growth of the market during the forecast period.
Increasing use of technologically advanced travel solutions is the key trend in the market. Travel agency services cater to various types of travelers, including leisure tourists, business travelers, and adventurers, offering additional services beyond flights, hotels, and car hire. AI and machine learning algorithms are increasingly being integrated into travel planning, ticketing, and accommodation booking to provide personalized itineraries and transportation arrangements.
Moreover, travel agencies facilitate both domestic and international travel, catering to independent travelers and package travelers alike. They offer visa assistance, travel insurance, and sustainable travel practices, such as eco-friendly tourism and support for local communities. Digital marketing and smartphone, tablet applications enable seamless online booking and phone booking options. Operational safety, employee safety, and civil construction activities are essential considerations for travel agencies, ensuring a secure and efficient travel experience. Thus, such trends will shape the growth of the market during the forecast period.
Growing threat from rising terrorist activities is the major challenge that affects the growth of the market. Travel agency services cater to various types of travelers, including leisure tourists, business travelers, and adventurers, offering additional services beyond basic ticketing and accommodation booking.
Moreover, AI and machine learning algorithms are increasingly being integrated into travel agencies' operations to enhance the customer experience. These technologies enable personalized itineraries, real-time flight and hotel availability, and seamless transportation arrangements, including car hire and visa assistance. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
Travel agency services have evolved significantly in recent years, offering more than just flights, hotels, and car hire to leisure tourists and business travelers. With the integration of AI and machine learning algorithms, travel agencies now provide personalized itineraries, visa assistance, travel insurance, and transportation arrangements to cater to the unique needs of each traveler. Independent travelers and package travelers alike can benefit from these additional services, making the planning process more convenient and efficient. For domestic and international travel, travel agencies offer various booking options, including phone booking, online booking, and in-person booking. The use of digital marketing, smartphone, and tablet applications has made it easier for travelers to access these services from anywhere in the world. The middle-class population's growing disposable income and the increasing trend towards sustainable travel practices have propelled the travel industry forward. Eco-friendly tourism and support for local communities have become essential components of travel planning. Operational safety and employee safety are crucial aspects of the travel agency business, with geoscientists and engineers ensuring the highest standards in civil construction activities. Airlines and online travel agencies offer direct booking options, providing global connectivity for travelers. Overall, the market continues to grow, offering a wide range of services to cater to the diverse needs of adventurers and professionals alike.
The Travel Agency Services Market is a significant segment of the global travel and tourism industry, catering to both independent and package travelers. With the advent of online travel booking platforms, the market has witnessed robust growth, allowing travelers to make 'in person booking' or 'online booking' at their convenience. The middle class population's increasing disposable income and growing travel aspirations have fueled the demand for travel agency services. These services offer personalized assistance, expert advice, and customized travel packages, making travel planning more accessible and hassle-free for travelers. Moreover, the travel industry's infrastructure development, including 'dams,' 'bridges,' and 'tunnels,' has opened up new travel opportunities, further boosting the market's growth. Travel agencies provide valuable insights into these engineering marvels, offering unique travel experiences to their clients. In conclusion, the Travel Agency Services Market plays a crucial role in the global travel and tourism industry, bridging the gap between independent and package travelers by providing expert advice, personalized services, and customized travel solutions. As the industry continues to evolve, travel agencies will remain an essential partner for travelers seeking memorable and enriching travel experiences.
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Market Scope |
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Report Coverage |
Details |
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Page number |
191 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.6% |
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Market growth 2024-2028 |
USD 156.7 billion |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 32% |
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Key countries |
US, China, UK, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Abercrombie and Kent USA LLC, American Express Co., BCD Group, Booking Holdings Inc., China tourism group, Corporate Travel Management Ltd., CWT Global BV, eDreams ODIGEO, Expedia Group Inc., Flight Centre Travel Group Ltd., Kesari Tours Pvt. Ltd., MakeMyTrip Ltd., Services International Ltd., The Travel Corp, Thomas Cook India Ltd., Trafalgar, Trip.com Group Ltd., TripAdvisor Inc., TUI AG, and Yatra Online Inc. |
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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 forecast period |
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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. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Five Forces Analysis
7 Market Segmentation by Type
8 Market Segmentation by Distribution Channel
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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