The global online travel market is expected to grow from $ 570.25 billion in 2017 to $ 1,134.55 billion by 2023. The compound annual growth rate (CAGR) got 13.16% in forecast period. But there’s a huge change by The Impact Of COVID-19 On The Online Travel Booking Market.
I got the information from the article: Online Travel Booking Statistics & Trends 2020
The online travel industry has undergone a number of changes over the past decade, due to advances in technology. The use of technology in the travel industry has come a long way. Since the introduction of global distribution systems (GDS) due to the use of mobile applications and the growing penetration of the Internet. This has made it easy and quick to change the travel booking process. Service models of online travel agents provide multiple services through a single platform. With this in mind, the travel booking process has undergone a dramatic shift from physical booking to web booking and is now mobile platform. Online tour agents have integrated all modes of transportation and accommodation options in one single platform, which encourages users to make the same choice.
In addition, tour operators and service providers have adopted digitization and automation to develop higher productivity and provide customers with unique travel experiences. Social media platforms have emerged as an influencer and an effective marketing platform for online tour agents. Travelers use social media platforms to share travel experiences and post their reviews, helping other customers choose a travel agency according to their needs. This trend is about to increase as more social media platforms become available.
The majority of travelers rely on online reviews and other users’ reviews before booking a hotel or restaurant. As a result, hotels and restaurants continually try to improve their services based on reviews. Hotels also have social media teams to promote their brands through various social media platforms. These groups read, review and analyze reservations to identify trends that can help them attract a new customer base while retaining old customers. As a result, social media platforms help online travel agents market their services and provide transparency and ease of the entire process.
The size of the global online travel market
Furthermore, big data streams and other complementary technologies like automation and augmented reality (AR / VR) are about to create opportunities for travel agencies. By incorporating these technologies into existing platforms and applications, they can deliver a better user experience. However, there is no centralized system that can streamline data between government agencies and private travel agencies, thus creating a gap between them. This could hamper the growth of the global online travel market.
You can get more information by reading: The Facts About Online Travel Booking Trends
The global online travel market is estimated to grow at a significant rate over the forecast period from 2018 to 2023. Geographic analysis of the online travel market is conducted for North America and Europe. Europe, Asia – Pacific and the rest of the world. North America accounted for the largest market share with 33.75% in 2017, with a market value of 192.46 billion USD; The market is about to achieve a CAGR of 11.8% over the forecast period. Europe is the second largest market in 2017, worth $ 178.72 billion; The market is about to have a CAGR of 12.0%. However, the Asia-Pacific market is expected to achieve the highest CAGR of 15.9%.
The main factors driving the growth of the online travel market in North America are the growing demand for CRM solutions in different industries, and the adoption of mobile booking and travel calendar. In Europe, a focus on tourism is seen as one of the key pillars for job growth and inclusive growth. In Asia and the Pacific, technological advances in tourism are driving the growth of the online travel business. The growing reach of the Internet, the advancement of travel technology and services are responsible for the growth of this market in the Middle East and South America.
The key players in the global online travel market are Expedia Inc. Booking Holdings Inc. TripAdvisor Inc. (USA), Ctrip.com International Ltd (China), FlixMobility GmbH (Germany), Ryanair DAC (Ireland)), Thomas Cook Group PLC (UK), MakeMyTrip (India) Pvt. Ltd (India), Alibaba Group Holding Limited (China), Airbnb Inc. (USA) and eDreams ODIGEO SA (Luxembourg).
Other companies include Hostelworld Group (Ireland), Hotel Urbano Travel and Tourism SA (Brazil), CheapOair.Com (USA), AirGorilla, LLC (California), Hays Travel Limited (UK), Yatra Online Private Limited (India) ), Tuniu Corporation (China) among other countries also has a prominent presence in the market.
In September 2018, TUI Group strengthened its position in the excursions, travel and operations business, with the acquisition of Italian technology startup M Entertainment. The acquisition is expected to help TUI expand its portfolio of travel experience products and customize them for better customers. Furthermore, in June 2018, Cleartrip announced the acquisition of Saudi Arabia’s largest online travel agency Flyin.
In November 2017, Airbnb announced the acquisition of Accomable, a British startup focused on a travel-friendly list. In July 2017, Travelsoft acquired Sepage, a travel data marketing service. The acquisition is about to bring artificial intelligence to the tourism and travel industry.
Based on platform type – mobile / tablet and desktop platforms
By booking method – online travel agent and live travel assistant
Based on the type of service – transportation (air travel, train travel, bus ride and others), accommodation (hotels and guest houses / hostels) and vacation packages (domestic and foreign)
By region – North America, Europe, Asia – Pacific and other parts of the world
The global financial crisis and the lack of consumer spending following the COVID-19 outbreak created a significant threat to travel intermediaries. The negative impact on airline and accommodation bookings has caused travel companies to completely shut down and lay off staff over the past month. According to the Booking Holdings CEO, online travel has experienced two recessions in the past. But market growth has hit the hardest due to the boom.
As analyzed, some of the largest public online travel agencies are likely to lose more than $ 12 billion in revenue due to the 2020 Coronavirus outbreak, and the amount could even go as high as $ 20 billion in a digital case. cases will increase in the coming time. month. The pandemic has severely affected North American and European countries. These countries are seeing a decline in business. At the same time, China’s online travel agencies (OTAs), though suboptimal, are slowly getting back to work.
The biggest companies are making big losses, while small businesses are doing a little better and recovering. The rapid spread of Coronavirus across Europe, Asia and North America and the uncertainty of travel trends has led to Expedia Group, Inc. must withdraw their EBITDA for the whole year. Re-share purchases are suspended to ensure complete and complementary flexibility for the future.
COVID-19 has made a deep impact on the online travel booking. According to the MRFR analysis, the impact of COVID-19 on the online travel industry is quite high. Moreover, it will likely remain the same in the coming months. Moreover, even after the situation returns to normal, the industry will continue to adhere to the norms of social exclusion. The industry cannot expect the same amount of airline and accommodation bookings as before. Prices are about to increase considering the importance of customer travel. This will lead to increased cash flows in the market, which in turn creates opportunities for OTAs around the world.
So that, every companies should have the own way to suffer this season. I hope with my market report shown above, you will have your solution on this case.
Read more of my market report on: WP Travel Booking
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