Online Travel Agency (OTA) Market size was valued at USD 508.1 Million in 2023 and is projected to reach USD 781 .2 Million by 2031, at a CAGR of 4.7% from 2024 to 2031.

Global Online Travel Agency (OTA) Market Drivers

The market drivers for the Online Travel Agency (OTA) Market can be influenced by various factors. These may include:

1. Increasing Internet and Smartphone Penetration: Widespread Internet Access: As more people gain access to the internet, especially in developing countries, the pool of potential (OTA) users expands. Smartphone Usage: The proliferation of smartphones has made it easier for consumers to book travel on the go, resulting in increased usage of mobile apps and websites for travel bookings.
2. Shift in Consumer Preferences: - Convenience: Consumers prefer the convenience of comparing prices, reading reviews, and booking travel services from the comfort of their homes or while on the move. Customization and Personalization: (OTA)s often provide personalized recommendations based on user preferences, enhancing the user experience.
3. Technological Advancements: Improved User Interfaces: User-friendly websites and mobile applications enhance the booking experience. Integration of Advanced Technologies: AI, machine learning, and data analytics help in providing better services and personalized experiences. Augmented Reality and Virtual Reality: These technologies offer virtual tours of destinations, enhancing customer decision-making.
4. Competitive Pricing and Deals: Price Comparison: (OTA)s offer the ability to compare prices across different airlines, hotels, and other travel services, which can lead to more cost-effective choices. Exclusive Offers and Discounts: Seasonal promotions, exclusive deals, and loyalty programs attract budget-conscious travelers.
5. Expanding Middle Class: Increased Disposable Income: A growing middle class in many regions around the world is fostering an increased demand for travel services. Travel as a Lifestyle: Travel is becoming a significant part of lifestyle for many consumers, particularly millennials and Gen Z.
6. Growing Trend of Solo and Adventure Travel: Individual Travel: There is an increasing trend of solo and adventure travelers who often rely on (OTA)s for customizable travel options and itineraries.
7. Corporate Travel: Business Travel Management: (OTA)s are increasingly catering to corporate clients, offering comprehensive travel management solutions that help businesses manage travel expenses and logistics efficiently.
8. Ease of Payment: Variety of Payment Options: Leveraging multiple payment gateways and options including EMIs, digital wallets, and international payment systems facilitates easier transactions. Security and Fraud Prevention: Enhanced security features build trust among users for conducting online transactions.
9. Regional and Global Tourism Growth: Tourism Infrastructure: Developing tourism infrastructure in various regions increases travel options, which (OTA)s can capitalize on. Global Events and Expos: Global events like expos, Olympics, and international conferences boost travel activity, benefiting (OTA)s.
10. Collaborations and Partnerships: Alliances with Airlines and Hotels: Partnerships and collaborations with airlines, hospitality chains, and car rental services expand service offerings and can result in better deals for customers. API Integrations: Seamless integration with service providers ensures real-time availability and booking confirmation.

Online Travel Agencies (OTAs) Services Market Outlook

The global online travel agencies (OTAs) services market size was valued at USD 820 billion in 2023 and is projected to reach USD 1,580 billion by 2032, registering a CAGR of 7.5% during the forecast period. The growth of the OTA market is driven by increasing internet penetration, the proliferation of smartphones, and the rising preference for convenience and efficiency in travel planning and booking. With the rapid advancements in technology and the evolving travel preferences of consumers, the market is poised for substantial expansion in the coming years.

One of the primary growth factors contributing to the expansion of the OTA market is the increasing reliance on digitalization. The advent of high-speed internet and widespread smartphone usage has made it easier for consumers to access travel services online. Additionally, the convenience of comparing prices and services across multiple providers in one platform has bolstered the popularity of OTAs. Travelers today value the ability to customize their travel experiences, and OTAs facilitate this by offering a wide array of choices and user-friendly interfaces.

Another significant growth driver is the rising trend of experiential travel. Modern travelers, particularly millennials and Gen Z, seek unique and personalized travel experiences rather than traditional vacation packages. OTAs have responded to this demand by diversifying their offerings to include local experiences, adventure activities, and custom itineraries. This shift towards personalized travel experiences has been instrumental in boosting the popularity of OTAs, as they provide a platform for exploring and booking these niche travel opportunities.

The expansion of the global tourism industry has also played a crucial role in the growth of the OTA market. With increasing disposable incomes and a growing middle class in emerging economies, there has been a notable surge in international travel. OTAs have capitalized on this trend by expanding their reach and enhancing their services to cater to a global audience. Furthermore, the ease of accessing comprehensive travel information and seamless booking processes offered by OTAs has encouraged more people to travel, thus driving market growth.

From a regional perspective, Asia Pacific is expected to witness the highest growth rate in the OTA market during the forecast period. The rapid economic development, increasing internet penetration, and a burgeoning middle class in countries like China and India are key contributors to this growth. North America and Europe also hold significant market shares, driven by the presence of established OTA players and high travel spending. Meanwhile, Latin America and the Middle East & Africa are emerging as potential markets due to increasing tourism activities and improving digital infrastructure.

Service Type Analysis

The OTA market can be segmented by service type into accommodation booking, transportation booking, vacation packages, and others. Accommodation booking remains the most dominant segment, driven by the constant need for lodging solutions from both leisure and business travelers. OTAs offer a wide range of accommodations, from budget hotels to luxury resorts, catering to diverse traveler preferences. The ability to read reviews, compare prices, and book instantly online has made accommodation booking through OTAs highly popular.

Transportation booking is another critical segment within the OTA market. This includes booking flights, trains, car rentals, and other forms of transportation. The convenience of booking transportation in conjunction with accommodation and other travel services has made OTAs a preferred choice for travelers. The emergence of low-cost carriers and increasing competition among transportation providers have further fueled the growth of this segment, as consumers seek the best deals through OTA platforms.

Vacation packages offered by OTAs have gained traction, especially among families and groups looking for hassle-free travel solutions. These packages often include flights, accommodations, and sometimes activities, providing a comprehensive travel experience. The ability to book an entire trip in one go appeals to many travelers, leading to the steady growth of this segment. OTAs continuously innovate their vacation packages, offering customizable options to cater to the diverse needs of travelers.

The 'others' segment encompasses a variety of travel-related services such as tr

The Online Travel Agency Market report segments the industry into Service Type (Transportation, Vacation Packages, Accommodation), Device Platform (Mobile, Desktop), Payment Modes (UPI, E-Wallet, Debit / Credit Card, Others (Vouchers, Discount Codes)), and Geography (North America, Europe, Asia Pacific, South America, Middle East). Get five years of historical data alongside five-year market forecasts.

Online Travel Agency (OTA) Market Outlook 2032

Impact of Artificial Intelligence (AI) in the Online Travel Agency (OTA) Market

The Online Travel Agencies (OTA) IT Spending market is experiencing robust growth, projected to reach $2.20 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 17.19% from 2025 to 2033. This expansion is driven by several key factors. Firstly, the increasing adoption of advanced technologies like AI and machine learning for personalized recommendations, dynamic pricing, and fraud detection is fueling significant IT investments. Secondly, the ongoing digital transformation within the travel industry compels OTAs to upgrade their infrastructure, enhance cybersecurity measures, and improve customer experience through mobile-first strategies and seamless online booking processes. The rising demand for cloud-based solutions and big data analytics for better decision-making further contributes to market growth. Segmentation reveals that software spending constitutes a substantial portion of the overall IT budget, closely followed by IT services and hardware. Large enterprises dominate the market, but SMEs are increasingly adopting sophisticated IT solutions to compete effectively. North America and Europe currently hold significant market shares, but the Asia-Pacific region demonstrates considerable potential for future growth, driven by increasing internet penetration and rising disposable incomes. The competitive landscape is marked by a mix of established players like Amadeus, Sabre, and Travelport, and emerging innovative companies. These firms employ various strategies, including strategic partnerships, mergers and acquisitions, and the development of innovative technology solutions, to gain market share. While the market faces restraints such as data security concerns and the need for constant technological upgrades, the overall outlook remains positive. The continued rise of online travel booking, coupled with ongoing technological advancements, ensures the OTA IT spending market will continue its strong growth trajectory over the forecast period. Understanding the specific needs of various segments (large enterprises vs. SMEs, and different types of IT spending) is crucial for companies seeking to capitalize on this expanding market opportunity.

As of July 2025, Booking Holdings recorded the highest market cap among the selected online travel companies worldwide. As of that month, Booking Holdings – the leading online travel agency (OTA) worldwide by revenue – recorded a market cap of almost *** billion U.S. dollars. Airbnb and Trip.com Group followed in the ranking, with a market cap of roughly ** billion and ** billion U.S. dollars, respectively. What are the most visited travel and tourism websites? Booking.com, Booking Holdings' flagship brand, was the most visited travel and tourism website worldwide in 2025, ranking ahead of tripadvisor.com and airbnb.com. When looking at the geographical distribution of booking.com's visits, the United States accounted for the highest traffic, followed by Germany and Italy. How big is the online travel market? As shown by a breakdown of travel and tourism's global revenue by sales channel, online transactions play a fundamental role in this market, representing over ********** of total travel and tourism's revenue in 2024. That year, the online travel market size worldwide was estimated at over *** billion U.S. dollars, recording an annual increase in revenue.

Global Online Travel Agencies OTA Services market size 2025 was XX Million. Online Travel Agencies OTA Services Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Online Travel Agency (OTA) Market Outlook

The global Online Travel Agency (OTA) market size was valued at approximately USD 825 billion in 2023 and is projected to reach around USD 1,345 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 5.5% during the forecast period. This growth is largely driven by the increasing internet penetration, rising disposable incomes, and the convenience offered by online booking platforms, which have revolutionized the way people plan and book their travel.

One of the primary growth factors in the OTA market is the increasing use of smartphones and mobile applications. With the proliferation of mobile technology and the ease of access to the internet, consumers are increasingly turning to their mobile devices to plan and book travel. Mobile platforms offer a seamless and user-friendly experience, which has significantly contributed to the growth of the OTA market. Additionally, the integration of advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) in mobile apps has enhanced the personalization of travel recommendations, further boosting user engagement and satisfaction.

Another significant factor driving the growth of the OTA market is the increasing trend of experiential travel. Modern travelers, particularly millennials and Gen Z, are seeking unique and tailored travel experiences rather than traditional tours. OTAs are capitalizing on this trend by offering a wide range of customizable travel packages and experiences that cater to the diverse preferences of travelers. This shift towards personalized and experience-focused travel has opened new avenues for OTAs to attract and retain customers.

The growing middle-class population and rising disposable incomes, especially in emerging economies, have also played a crucial role in the expansion of the OTA market. As more people gain financial stability, the demand for leisure and business travel increases. OTAs provide a convenient and cost-effective solution for booking travel, making it easier for consumers to explore new destinations. Furthermore, aggressive marketing strategies and attractive discount offers by OTAs have further fueled market growth by making travel more accessible and affordable to a broader audience.

The rise of the Online Travel Booking Platform has significantly transformed the travel industry by providing users with the ability to compare and book travel services from the comfort of their homes. These platforms have streamlined the booking process by offering a wide array of options for flights, accommodations, and car rentals, all in one place. As a result, travelers can easily customize their itineraries to suit their preferences and budgets. The convenience and efficiency of these platforms have led to a surge in their popularity, particularly among tech-savvy travelers who value speed and accessibility. With the integration of user reviews and ratings, online travel booking platforms have also enhanced transparency, allowing users to make informed decisions based on the experiences of other travelers.

From a regional perspective, Asia Pacific is expected to witness the highest growth in the OTA market during the forecast period. This growth can be attributed to the increasing internet penetration, rapid urbanization, and the rising middle-class population in countries such as China, India, and Southeast Asian nations. North America and Europe also hold significant market shares, driven by high internet usage rates, advanced technological infrastructure, and a strong propensity for travel among the population.

Service Type Analysis

Accommodation booking remains one of the largest segments in the OTA market. The convenience of comparing prices, reading reviews, and booking from a wide range of options has made online accommodation booking immensely popular among travelers. OTAs offer various types of accommodations, including hotels, hostels, vacation rentals, and boutique stays, catering to the diverse preferences and budgets of travelers. The integration of loyalty programs and exclusive member discounts has further incentivized users to book accommodations through OTAs, contributing to the growth of this segment.

Transportation booking is another vital segment within the OTA market. This includes the booking of flights, trains, buses, and car rentals. The ability to compare different transportation options, check schedules, and

The Europe Online Travel Market report segments the industry into Service Type (Transportation, Travel Accommodation, Vacation Packages, Other Service Types), Booking Type (Online Travel Agencies, Direct Travel Suppliers), Platform (Desktop, Mobile), and Country (United Kingdom, Germany, France, Italy, Rest of Europe). Get five years of historical data alongside five-year market forecasts.

The online travel agency (OTA) services market, valued at approximately $X million in 2025 (estimated based on the provided 1988 market size and 8.7% CAGR), is poised for significant growth over the forecast period (2025-2033). Several factors drive this expansion. The increasing adoption of smartphones and convenient access to high-speed internet are fueling online booking habits. Furthermore, the growing preference for personalized travel experiences and the emergence of innovative travel booking platforms offering curated itineraries and AI-powered recommendations are bolstering market growth. The diversification of offerings, including flight, hotel, car rental, and package deals, cater to a broader customer base and enhance revenue streams for OTAs. Competitive pricing strategies and loyalty programs implemented by major players further stimulate market demand. However, challenges remain. Fluctuations in fuel prices, economic downturns affecting consumer spending, and increasing security concerns regarding online transactions could potentially impede growth. Nevertheless, the overall trajectory points towards a robust expansion fueled by technological advancements and evolving consumer preferences. Regional variations significantly impact market performance. North America and Europe currently dominate the market share, driven by high internet penetration and established travel habits. However, the Asia-Pacific region exhibits high growth potential due to rapid economic development, increasing disposable incomes, and rising internet usage in countries like China and India. The market segmentation by application (desktop, mobile, tablet) and booking type (flights, hotels, packages etc.) provides valuable insights for strategic market entry and expansion. The competitive landscape is dominated by established players like Booking Holdings, Expedia, and Trip.com, who continually innovate to maintain their market leadership. The presence of smaller, regional players, however, creates niche opportunities within specific geographic markets or travel segments. The forecast suggests sustained growth, driven by increasing online travel adoption globally.

Travel agencies have struggled due to COVID-19 and the rise of internet travel booking, which has interfered with the core services of travel agencies. Online travel agents now play a larger role alongside traditional brick-and-mortar businesses. Most agencies suffered in 2020 and 2021 as governments imposed restrictions on travel. Revenue is expected to slump at a CAGR of 4.7% to $2.4 billion through the end of 2024, including an increase of 12.5% in 2024 alone. The pandemic fuelled an unprecedented level of cancellations. Despite the economy showing signs of recovery in the latter half of 2021, the travel industry continued to endure difficulties. Profit has endured high volatility in recent years as travel agencies struggled to reduce costs as quickly as revenue plummeted. In addition, brick-and-mortar travel agents have been increasingly forced to reinvent themselves to remain relevant as online booking engines have expanded their respective roles. Agencies that have invested in a significant online presence have reaped the rewards as consumers have become increasingly comfortable with online shopping. Climbing travel activity will facilitate growth moving forward. Consumers will once again begin making travel reservations, aided by improved internet interfaces and seamless transactions. However, brick-and-mortar agencies must keep pace with consumer expectations and attempt to capture more online reservations. Growing consumer confidence will also hike spending on luxury trips and international travel. Industry revenue is expected to climb at a CAGR of 2.3% to $2.7 billion through the end of 2029.

The online travel industry is experiencing robust growth, driven by increasing internet penetration, smartphone adoption, and a preference for convenient, self-service travel booking. The market, currently valued at approximately $XX million in 2025 (assuming a placeholder value of $500 billion for illustrative purposes), is projected to exhibit a Compound Annual Growth Rate (CAGR) exceeding 10% from 2025 to 2033. This sustained expansion is fueled by several key factors. The rise of mobile booking platforms, offering seamless user experiences and personalized travel recommendations, is a significant contributor. Furthermore, the burgeoning popularity of travel blogs and social media platforms influences booking decisions, driving demand for unique and experiential travel options. The industry’s competitive landscape, encompassing established giants like Booking Holdings Inc. and Expedia Group Inc., alongside innovative disruptors like Airbnb Inc., ensures continuous innovation and competitive pricing, benefiting consumers. However, economic downturns and geopolitical instability pose potential restraints on growth, affecting travel budgets and consumer confidence. Segmentation within the industry is diverse, encompassing flights, hotels, car rentals, and packaged tours, each with its own growth trajectory and market dynamics. Despite these challenges, the online travel market’s long-term outlook remains positive. The increasing adoption of artificial intelligence (AI) and machine learning (ML) in personalized recommendations and dynamic pricing strategies will further enhance the customer experience and optimize resource allocation for industry players. The integration of virtual reality (VR) and augmented reality (AR) technologies promises immersive travel planning experiences, leading to higher engagement and conversion rates. Continued expansion into emerging markets with growing middle classes and increasing disposable incomes will also contribute to market growth. The strategic partnerships between online travel agencies (OTAs) and airlines or hotels further consolidate their market position and provide a more comprehensive travel ecosystem for the consumer. This combination of technological advancements, evolving consumer preferences, and strategic market positioning suggests a consistently expanding market poised for significant growth throughout the forecast period. Key drivers for this market are: Increase in Domestic Travel Driving the Market, Growing Tourist Footfall Driving the Market. Potential restraints include: Restrictions on Purchases of Number of Products, Customs Regulations and Taxation Policies. Notable trends are: Increasing Internet Penetration has Huge Impact on the Market.

According to a survey by Rakuten Insight on online travel agencies (OTAs) conducted in June 2023, around ** percent of respondents in Indonesia claimed that they had used Traveloka, followed by Tiket.com and Agoda. Traveloka is an Indonesian startup turned unicorn company that provides flight tickets, hotel booking services, and more. Why are online travel agencies thriving in Indonesia? Growing internet penetration and smartphone adoption have fueled the growth of online travel agency (OTA) use in Indonesia. The young, tech-savvy population increasingly prefers the convenience of online travel bookings. OTAs in Indonesia attract users with competitive processes, diverse options, and user-friendly interfaces, simplifying the travel planning process. The rise of digital payment systems and growing trust in online transactions further boost their popularity. As tourism expands, OTAs continue to provide accessible and efficient travel services, solidifying their crucial role in Indonesia’s travel industry. The economic impact of tourism in Indonesia Tourism is pivotal in Indonesia’s economy, contributing significantly to the Gross Domestic Product (GDP) and employment. In 2019, before the pandemic hit, the tourism industry accounted for about **** percent of the GDP, with international tourists spending billions on accommodation, food, and entertainment. Tourism also supports millions of jobs directly in hospitality and travel services, and indirectly in other sectors such as transportation, retail, and food services. The industry is experiencing a strong recovery post-pandemic, with the government heavily promoting domestic tourism and improving infrastructure. In addition, sustainable tourism is now a key focus. Indonesia aims to balance economic growth with environmental conservation and cultural preservation, ensuring tourism remains a vital economic driver.

Having a forecasted market value of USD 601.8 million by 2025, the industry is anticipated to grow substantially to an estimated value of USD 2,300 million by 2035, depicting a strong CAGR of 14.4% during the period.

Country-wise Analysis

Competitive Outlook

The China Online Travel Market is Segmented by Service Type (Accommodation Booking, Travel Tickets Booking, and More), Traveler Type (Leisure, Business, VFR, and Others), Mode of Booking (OTA / Travel Agent, and Supplier Direct), Destination Type (Domestic, Outbound, and Inbound) Age Group (Gen Z, Millennials and More), Region (Central China, East China and More). The Market Forecasts are Provided in Terms of Value (USD).

The Online Travel Booking Service Market size was valued at USD 0.56 trillion in 2023 and is projected to reach USD 1.02 trillion by 2032, exhibiting a CAGR of 9.0 % during the forecasts period. An online travel booking service, sometimes called an online travel agency (OTA), is a website or application that allows you to search and book various travel components in one place. Players in the online travel industry are launching new and improved mobile apps to attract young travelers with great travel deals and free bookings. Most young travelers prefer to book their trips online because of the usability, convenience and accessibility of a mobile phone. Market participants increasingly offer travelers a wide range of hotels at reasonable prices. Customers compare accommodation on different websites to find the best deal.

Online Travel Agencies IT Spending Market Outlook

The global market size for Online Travel Agencies (OTAs) IT spending was valued at approximately USD 8.5 billion in 2023 and is projected to reach around USD 18.9 billion by 2032, growing at a compound annual growth rate (CAGR) of 9.4% during the forecast period. The growth in this market is driven by the increasing reliance on digital platforms for travel bookings, the demand for personalized travel experiences, and the ongoing advancements in technology that enhance service delivery and customer satisfaction.

One of the primary growth factors for the OTA IT spending market is the surge in internet penetration and the proliferation of smartphones. The ubiquity of these devices has revolutionized how consumers plan and book their travel, leading to a significant uptick in online transactions. As more consumers become comfortable with digital platforms, OTAs are compelled to invest heavily in IT infrastructure to offer seamless, user-friendly, and secure booking experiences. Additionally, the rising popularity of mobile applications for travel bookings has necessitated further investment in mobile-friendly IT solutions.

Another critical growth driver is the increasing importance of data analytics and Artificial Intelligence (AI). OTAs are leveraging big data to analyze consumer behavior, preferences, and trends, which helps them provide personalized recommendations and improve customer retention. AI-powered chatbots and virtual assistants are also being deployed to offer 24/7 customer support, thereby enhancing the overall customer experience. These technological advancements are not just a luxury but a necessity in the highly competitive OTA market, prompting significant IT spending.

Furthermore, the growing trend of digital payments is also bolstering IT spending among OTAs. As more consumers opt for cashless transactions, the need for secure and efficient payment processing systems has become paramount. OTAs are investing in advanced payment gateways and fraud detection systems to ensure secure transactions. This shift is particularly crucial in building consumer trust and loyalty, thereby driving the demand for robust IT infrastructure.

From a regional perspective, North America and Europe are expected to lead the market, owing to their advanced technological infrastructure and high internet penetration rates. Asia Pacific, however, is anticipated to exhibit the highest growth due to the increasing number of internet users and the rising middle-class population in countries like India and China. Latin America and the Middle East & Africa are also showing promising growth potential, driven by improving economic conditions and growing internet accessibility.

Component Analysis

The OTA IT spending market can be segmented by components into Software, Hardware, and Services. The software segment is expected to account for the largest share of the market, driven by the increasing need for advanced booking management systems, customer relationship management (CRM) tools, and analytics platforms. OTAs are continuously investing in software solutions to enhance their service offerings and improve operational efficiency.

Software solutions are crucial for OTAs to manage their vast databases of customer information and bookings. Advanced CRM software enables OTAs to track customer interactions, preferences, and feedback, which is essential for personalizing travel experiences. Additionally, booking management software helps streamline the reservation process, making it more efficient and user-friendly. These software solutions are integral to the OTA's operations, driving significant investments in this segment.

The hardware segment, although smaller in comparison to software and services, is also witnessing substantial growth. OTAs require robust hardware infrastructure to support their software applications and handle large volumes of data transactions. Investments in servers, data centers, and network equipment are critical to ensuring smooth operation and high availability of services. As OTAs expand their operations and customer base, the demand for reliable hardware solutions is expected to rise.

Services, including consulting, system integration, and maintenance, play a vital role in the OTA IT spending market. These service

Global Online Travel Agent market size is expected to reach $1178.28 billion by 2029 at 5.7%, segmented as by service type, vacation packages, travel, accommodation

Middle East Online Travel Agency (OTA) Market size was valued at USD 21,488.37 Million in 2024 and is projected to reach USD 42,964.25 Million by 2032, growing at a CAGR of 10.40% from 2026 to 2032.

Middle East Online Travel Agency (OTA) Market Overview

The Middle East Online Travel Agency market has seen an important shift in recent years, owing to a mix of technical developments and shifting customer tastes. Rapid digital development in the region has resulted in an amazing increase in internet adoption and smartphone usage, creating an atmosphere in which digital-first travel planning is not just simple, but also expected. Consumers currently rely more on technology to compare costs, read reviews, and book travel arrangements, allowing online travel companies to acquire considerable market share previously held by traditional travel agencies.

The Travel Agency and Tour Arrangement Services industry has experienced extreme revenue volatility over the past five years. The pandemic significantly disrupted downstream demand, causing revenue to sharply drop in 2019-20 and 2020-21. As conditions returned to normality and tourism demand rebounded, the industry witnessed a strong recovery. Revenue started to stabilise in 2023-24 and 2024-25, as multiple years of normal conditions have seen growth rates taper off. Despite a strong post-pandemic recovery, revenue and profit margins remain lower than all-time highs. The continued rise of online travel agencies has greatly disrupted and moulded the industry dynamic, challenging traditional retail-based travel agencies through competitive pricing and lower overhead costs. The digital transformation was especially quick during the pandemic, as established businesses looked to minimise costs. Travel agents’ pricing power has also eroded over the past five years, as major airlines and hotels have slashed commission fees by leveraging their own in-house booking platforms. The rise of metasearch websites has posed a further threat, enabling consumers to compare prices and bypass travel agencies completely. Overall, the industry’s revenue has expanded by an estimated 5.5% over the five years through 2024-25, to an anticipated $12.8 billion, including a 2.9% rise expected in 2024-25. Over the next five years, the industry is projected to expand, driven by greater domestic demand and traveller volumes as consumer sentiment recovers. However, increased competition, particularly from online travel aggregators, and dwindling commission rates will keep profitability below pre-pandemic levels. Innovative revenue models will be essential for providers to compete and remain viable. The industry will continue to witness a shift away from traditional, in-person services to online business models, leading to lower overheads and increased profitability. This transition is likely to drive new entrants to the industry, attracted by its growing revenue and low barriers to entry. Overall, revenue is set to grow at an annualised 3.4% to $15.1 billion over the five years through 2029-30.