PUBLISHER: The Business Research Company | PRODUCT CODE: 1480359
PUBLISHER: The Business Research Company | PRODUCT CODE: 1480359
An online travel agent (OTA) is an individual or a company that provides a web-based marketplace, which allows consumers to research and book travel products and services, such as hotels, flights, cars, tours and cruises, among other travel-related services, directly with travel suppliers.
The online travel agent market consists of sales, by entities (organizations, sole traders or partnerships), of travel services through online channels. Online travel agents or agencies are those individuals or companies that have websites that allow consumers to book various travel related services via the internet. Travel agents are engaged in the sales of travel services such as flights, buses, vacation packages, hotels and rental cars, via online networks.
The global online travel agent market was valued at $675.21 billion in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 4.0%.
Increasing Disposable Income
The online travel agent market was mainly driven by increasing disposable income during the historic period. Disposable income refers to the amount of money that households have available for spending and saving after taxes have been deducted. Online travel agents strategically use disposable income to tailor their offerings, target affluent customers and maximize revenue opportunities within the travel market. For instance, in November 2022, Euromonitor International Ltd., a UK-based strategic market research company, offering global business intelligence, market analysis and consumer insights, reported that disposable incomes and household expenditures increased by 2.6% globally in 2022. Additionally, in June 2021, according to Statistics Iceland, an Iceland-based official institute, providing statistics on the nation, household gross disposable income in Iceland climbed by 8.1% in the first quarter of 2021, in comparison to the same quarter in 2020. During the same time period, the purchasing power of per capita household disposable income increased by 2.6%. Therefore, increasing disposable income contributed to the growth of the online travel agent market.
Increasing Investments To Drive Innovation and Expansion
Companies in the online travel agent market are focusing on increasing their investments to innovate, expand their offerings, improve the customer experience and stay ahead in a dynamic and competitive market. For example, in January 2024, Daytrip, a UK-based travel company, secured a $10 million Series B investment to strengthen its position in the online travel industry, by expanding its operations, developing its platform and entering new markets, including the US, to grow their business and become a more prominent player in the online travel services industry. Further, in January 2023, Joyned, an Israel-based software company, secured an $8 million series A funding round. This investment aims to address the need for shared experiences in the holiday booking process and has already established commercial agreements with numerous international travel brands, including Amadeus, OYO Vacation Homes and TravelUp. This funding will support Joyned's mission to make a significant impact on the global hospitality industry.
The global online travel agent market is highly fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 5.83% of the total market in 2022.
Online Travel Agent Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global online travel agent market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for online travel agent? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The online travel agent market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider online travel agent market; and compares it with other markets.