Travel Agency Services Market to Grow by USD 156.7 Billion (2024-2028) as International Tourism Rises, How AI is Transforming the Industry - Technavio Report

NEW YORK, Sept. 2, 2024 /PRNewswire/ -- Report with market evolution powered by AI- The global travel agency services market size is estimated to grow by USD 156.7 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 8.6% during the forecast period. Increasing international tourist footfalls is driving market growth, with a trend towards increasing use of technologically advanced travel solutions. However, growing threat from rising terrorist activities poses a challenge. Key market players include Abercrombie and Kent USA LLC, American Express Co., BCD Group, Booking Holdings Inc., China tourism group, Corporate Travel Management Ltd., CWT 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 Driver

The Travel Agency Services Market involves providing customers with various services related to booking and planning their trips. These services include flight reservations, hotel bookings, vacation packages, and tour arrangements. Travel agencies facilitate customers by offering competitive prices, convenient payment options, and personalized travel recommendations. They help simplify the travel planning process and ensure a seamless experience for their clients. Effective customer service and efficient operations are key to success in this market.

Travel agency services continue to evolve, focusing on additional offerings beyond flights, hotels, and car hire for both leisure and business travelers. AI and machine learning algorithms enhance personalized itineraries and ticket booking. Domestic and international travelers, including independent and package travelers, benefit from travel planning, accommodation booking, and transportation arrangements. Visa assistance, travel insurance, and personalized itineraries are increasingly popular. Online booking and phone booking options cater to diverse preferences. Airlines and online travel agencies offer direct booking options for global connectivity. Middle-class population growth fuels demand. Sustainable travel practices, eco-friendly tourism, and local community engagement are trends. Digital marketing, smartphone, and tablet applications streamline booking processes. Operational safety, employee safety, and civil construction activities, including dams, bridges, and tunnels, ensure travel experiences are safe and efficient. IoT and social networking sites facilitate real-time updates and communication.

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Market Challenges

• The Travel Agency Services Market caters to customers seeking convenient and customized travel solutions. Agencies offer various services such as flight bookings, hotel reservations, tour packages, and visa assistance. They ensure a seamless travel experience by handling all travel-related arrangements. Agencies maintain strong relationships with suppliers to secure competitive prices and provide additional perks for their clients. Their expertise and industry knowledge enable them to offer valuable insights and recommendations.
• Travel agency services face several challenges in today's market. Independent travelers prefer self-planning, while package travelers seek convenience. Travel planning, ticketing, accommodation booking, and transportation arrangements are essential services, but visa assistance, travel insurance, personalized itineraries, and customer support set agencies apart. Airlines and online travel agencies offer direct booking options, making competition fierce. Global connectivity, middle-class population growth, and sustainable travel practices are trends shaping the industry. Eco-friendly tourism and local community engagement are key to long-term success. Digital marketing, smartphone, and tablet applications are essential tools. Geoscientists, engineers, and operational safety experts ensure civil construction activities like dams, bridges, and tunnels are safe. IoT, social networking sites, and adventure tourism cater to diverse traveler needs. Millennial generation preferences and online booking channels continue to disrupt the market. Safety, both for employees and travelers, remains a top priority.

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Segment Overview

This travel agency services market report extensively covers market segmentation by

1. Type
• 1.1 Leisure travel
• 1.2 Business travel
• 1.3 Specialty travel
2. Distribution Channel
• 2.1 Online travel agencies
• 2.2 Hybrid
• 2.3 Brick and mortar travel agencies
3. Geography
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Leisure travel- The leisure travel market is experiencing significant growth due to several factors. Increased disposable income among consumers enables them to invest in travel and discover new destinations. The importance of work-life balance drives individuals to take regular vacations for relaxation. Modern travelers prioritize experiences over material possessions, leading them to seek unique and memorable leisure activities. Easy access to information and social media platforms inspires travelers to explore new destinations. Health-conscious individuals are drawn to wellness and spa tourism, while cultural explorers seek destinations rich in heritage and traditions. Adventurous travelers are motivated by adrenaline-pumping activities, and celebratory events mark important milestones with memorable trips. Improvements in transportation infrastructure, accessibility, and visa processes make global travel more accessible. Seasons and cultural events influence travel choices, and budget-friendly accommodations and deals make leisure travel affordable for many. For instance, Yatra Online's The Big EMI Fest offers lucrative value-added services during the festive travel season. These factors are expected to fuel the growth of the leisure travel segment in the global travel agency services market.

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Research Analysis

The Travel Agency Services Market caters to the diverse needs of various traveler segments, including leisure tourists, business travelers, and adventurers. AI and machine learning algorithms are revolutionizing the industry by providing personalized itineraries and seamless booking experiences. Travel agencies offer additional services such as flights, hotels, car hire, visa assistance, travel insurance, and transportation arrangements. Online booking and phone booking options ensure global connectivity, while direct booking options provide convenience. Middle-class populations are driving growth in this market, and sustainable travel practices are gaining popularity. Airlines and online travel agencies are major players, providing a wide range of services from ticketing to accommodation booking. The industry continues to evolve, offering innovative solutions to meet the changing demands of travelers.

Market Research Overview

The Travel Agency Services Market caters to the diverse needs of various traveler segments, including leisure tourists, business travelers, and adventurers, offering additional services beyond flights, hotels, and car hire. AI and machine learning algorithms are revolutionizing the industry, enabling personalized itineraries, ticket booking, and accommodation reservations. Travel agencies facilitate domestic and international travel for independent and package travelers, providing visa assistance, travel insurance, and transportation arrangements. Airlines, online travel agencies, and direct booking options offer global connectivity, while sustainable travel practices and eco-friendly tourism gain popularity among the middle-class population. Adventure tourism, art tourism, and digital marketing through smartphone and tablet applications cater to the millennial generation. Geoscientists, engineers, and operational safety experts ensure the safety of civil construction activities, such as dams, bridges, and tunnels, while IoT and social networking sites expand travel opportunities.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Leisure Travel
• Business Travel
• Specialty Travel
• Distribution Channel
• Online Travel Agencies
• Hybrid
• Brick And Mortar Travel Agencies
• Geography
• North America
• APAC
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio