Industry analysts predict a steady 9.1% and USD 1,074.99 Million annual growth for the Travel Agency Services Market until 2032

Travel agents are responsible for helping travelers select and organize a trip according to a specific budget. They can be found in both brick-and-mortar establishments and online. The travel agency industry's global revenue was estimated at over 355 billion U.S. dollars as of March 2025. As of that month, roughly 572,000 businesses operated in this market, with employment reaching approximately three million.

As per newly released data by Future Market Insights (FMI), the online travel agencies market is estimated at US$ 465.1 million in 2023 and is projected to reach US$ 1,694.2 million by 2033, at a CAGR of 13.8% from 2023 to 2033.

Attribute	Details
Online Travel Agencies Market Size (2023)	US$ 465.1 million
Online Travel Agencies Market Projected Size (2033)	US$ 1,694.2 million
Online Travel Agencies Market Value-based CAGR (2023 to 2033)	13.8%

The market size of the travel agency sector in the United States reached approximately 42.7 billion U.S. dollars in 2023. This shows an increase of around 7.7 percent over the previous year's total of approximately 39.64 billion U.S. dollars.

The market for travel agency services is expected to grow to USD 518.8 billion in 2025 and reach USD 1.4 trillion by 2035 at a CAGR of 10.4% during the period 2025 to 2035.

Attribute	Details
Current Travel Agency Services Market Size (2024A)	USD 471.2 Billion
Estimated Travel Agency Services Market Size (2025E)	USD 518.8 Billion
Projected Travel Agency Services Market Size (2035F)	USD 1.4 Trillion
Value CAGR (2025 to 2035)	10.4%
Market Share of Top Players in 2024	~38%-42%

Travel Agency Services Performance by Domestic and International Tourists in Top 10 Countries (2024)

Country	Domestic vs. International Tourists (%)
United States	60% Domestic - 40% International
United Kingdom	55% Domestic - 45% International
Australia	45% Domestic - 55% International
Canada	50% Domestic - 50% International
Germany	65% Domestic - 35% International
France	60% Domestic - 40% International
China	75% Domestic - 25% International
Japan	70% Domestic - 30% International
India	80% Domestic - 20% International
Spain	55% Domestic - 45% International

The Travel Agency Services Market is on the rise, with a promising 9.1% CAGR, expected to reach $1,074.99 million.

Explore the Traditional Travel Agency Market trends! Covers key players, growth rate 5.5% CAGR, market size $195.5 Billion, and forecasts to 2033. Get insights now!

The market size of the online travel industry worldwide increased sharply in 2023 compared to the previous year. After falling to 226 billion U.S. dollars with the onset of the COVID-19 pandemic, the online travel market's global revenue bounced back in 2022, then grew further in 2023, exceeding 600 billion U.S. dollars. This figure was expected to grow steadily in the following years, reaching an estimated 838 billion U.S. dollars by 2029. What are the leading online travel companies worldwide? When looking at the market capitalization of leading online travel companies worldwide, Booking Holdings reported the highest figure in 2024, ahead of Airbnb and Trip.com Group. The firm, which owns brands like Booking.com, Kayak, and Priceline, also topped the ranking of the leading online travel agencies (OTAs) worldwide based on revenue in 2023. Expedia Group, which operates brands like Expedia, Hotels.com, and Vrbo, reported the second-highest revenue that year. How big is the global travel and tourism market? According to Statista Market Insights, the travel and tourism market’s revenue worldwide – including hotels, package holidays, vacation rentals, camping, and cruises – amounted to almost 880 billion U.S. dollars in 2023. When breaking down global travel and tourism revenue by sales channels, the leading role played by the online market is clear, with online transactions generating over two-thirds of total sales value.

The industry includes companies that sell travel, tour, transportation and accommodation services to households or commercial clients. It includes the arranging and assembling of tours sold through travel agencies or agents like tour operators and reservation services. Tourist guides and tourism promotion activities are included.

As of March 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 over 146 billion U.S. dollars. Airbnb and Trip.com Group followed in the ranking, with a market cap of roughly 79.1 billion and 43.2 billion U.S. dollars, respectively. What are the most visited travel and tourism websites? Booking.com, Booking Holdings' flagship brand, ranked as the most visited travel and tourism website worldwide in 2025, with over 560 million visits, 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 the United Kingdom. How big is the online travel market? As shown by the travel and tourism's global revenue breakdown by sales channel, online transactions play a fundamental role in this market, representing over two-thirds of total travel and tourism's revenue in 2024. That year, the online travel market size worldwide was estimated at over 640 billion U.S. dollars, recording an annual increase.

The global Online Travel Agency Market size is expected to grow from USD 830 million in 2019 to USD 1300 million by 2026, at a CAGR of 5% from 2020-2026

The size and share of the market is categorized based on Application (Leisure travel, Corporate travel, Vacation planning, Business travel) and Product (Online travel agencies, Traditional travel agencies, Specialty travel agencies) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

As of October 2024, the market size of the travel agency industry in the United Kingdom totaled 29.4 billion British pounds. Meanwhile, businesses in the sector numbered close to 5,000. Travel agencies vs. tour operators Another large tourism-related industry is the tour operator sector. As of October 2024, the market size of the tour operator industry totaled over 17 billion British pounds. Meanwhile, there were 25,885 individuals employed in the sector, which, was less than half the number of those working in the travel agency industry. What are the leading travel agencies and tour operators in the UK? As of January 2025, the leading travel agent based on the number of outlets in the UK was Hays Travel, with nearly 500 stores, followed by TUI with more than 300 stores. On the other hand, Jet2holidays was the leading operating ATOL-licensed tour operator in the United Kingdom, with over six million passengers licensed as of January 2025.

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Online Travel Agencies IT spending Market Size 2024-2028

The online travel agencies IT spending market size is forecast to increase by USD 2.66 billion at a CAGR of 17.19% between 2023 and 2028.

Online travel agencies (OTAs) have witnessed significant IT spending in recent years, driven by various trends and challenges. The adoption of advanced technologies such as artificial intelligence (AI) and machine learning (ML) is on the rise, enabling personalized recommendations and streamlined operations. Furthermore, the increasing popularity of augmented reality (AR) and virtual reality (VR) technologies In the travel industry offers interactive experiences for customers. However, the market is also facing challenges related to data security and privacy concerns, necessitating strong IT infrastructure and compliance with regulations. Blockchain technology is another emerging trend, providing secure and transparent transactions. Smartphones continue to dominate the travel booking landscape, necessitating mobile optimization and responsive design.
Data analytics plays a crucial role in gaining insights into customer behavior and preferences, enabling targeted marketing and improved customer experience. In the future, the travel industry may see the integration of metaverse and virtual travel experiences, offering unique and interactive ways to plan and book trips. Overall, OTAs must invest in IT solutions that cater to these trends and challenges to remain competitive and provide superior customer experiences.

What will be the Size of the Online Travel Agencies IT spending Market During the Forecast Period?

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The market continues to evolve, driven by the need for software development, website optimization, and mobile application optimization to enhance user experience. Cybersecurity measures and data analytics tools are essential investments to safeguard customer information and personalize recommendations. IT services spending also includes hardware investments for data centers and cloud infrastructure. Customer relationship management systems, artificial intelligence, and machine learning enable real-time bookings and personalized travel packages. Digital transformation In the travel industry is accelerating, with the integration of metaverse technologies, real-time data analytics, and advanced AI for transportation and accommodation booking. Social media integration and adventure travel packages are popular trends, while online payments and blockchain technology ensure secure transactions. Overall, the market is growing strongly, with a focus on comprehensive travel management solutions and continuous innovation.

How is this Online Travel Agencies IT spending Industry segmented and which is the largest segment?

The online travel agencies IT spending industry 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.

Type

  Software spending
  IT services spending
  Hardware spending


End-user

  Large enterprises
  Small
  medium enterprises (SMEs)


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK


  APAC

    China


  South America



  Middle East and Africa

By Type Insights

The software spending segment is estimated to witness significant growth during the forecast period.

Online travel agencies invest significantly in IT solutions to enhance their offerings, improve customer experience, and drive business growth. Software spending is a crucial component of this IT budget, encompassing advanced booking engines, website optimization, mobile application optimization, cybersecurity measures, data analytics tools, IT services, hardware, customer relationship management, artificial intelligence, machine learning, metaverse, VR experiences, blockchain-based solutions, and more. The implementation of sophisticated booking engines is a major factor fueling this spending trend, as these platforms enable real-time bookings, personalized recommendations, comprehensive travel management, and digital transformation.

Additionally, online travel agencies prioritize data security, real-time data analytics, mobile accessibility, and advanced AI to deliver contactless travel solutions and virtual experiences. The travel technology landscape is continually evolving, with online travel agencies leveraging IT investments to offer travel services such as flights, accommodations, rental cars, and vacation packages, as well as transportation booking, accommodation booking, social media, adventure travel, online payments, social media advertising, and travel experiences.

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The software spen

The Report Covers North America Online Travel Agency Industry Analysis and It is Segmented by Service Type (accommodation Booking, Travel Tickets Booking, Holiday Package Booking, and Other Services), Mode of Booking (direct Booking and Travel Agents), Booking Platform (desktop and Mobile/Tablet), and Geography (the United States, and Canada). The Market Size and Forecasts for the Online Travel Market in North America in Value (USD) for all the Above Segments.

India's Online Travel Market Report is Segmented by Service Type (transportation, Travel Accommodation, Vacation Packages, and Others), by Booking Type (online Travel Agencies, Direct Travel Suppliers), by Platform (desktop, Mobile) and by Tour Type (Independent Traveller, Tour Group, Package Traveller). the Market Size and Forecasts for the India Online Travel Market are Provided in Terms of Value (USD) for all the Above Segments.

Revenue in the Travel Agencies industry is expected to contract at a compound annual rate of 9.1% over the five years through 2024 to €86 billion. The main driver of this drop is the plunge in travel demand during 2020 and 2021, when COVID-19 outbreak grounded flights and confined people to their homes. While domestic travel could continue in some countries, most travel agencies had no trips to sell. Since restrictions were lifted across Europe and globally (which happened at each country’s own pace), the travel sector has seen a resurgence in demand in a trend characterised as revenge travel, with people making up for lost time by taking more trips since COVID-19 restrictions have been lifted. International travel to Europe has also resurged, especially from the US, thanks to the more favourable dollar-to-Europe rate – a welcome trend for agencies. Pent-up demand combined with savings built up during COVID-19 has kept bookings high, defying high inflation across Europe that would usually signal lower trip spending. As a result, revenue is expected to mount by 0.6% in 2024. That being said, the Russia-Ukraine war has plagued tourism in Eastern Europe, with countries like Finland and the Baltic states continuing to record much lower tourist numbers than pre-pandemic because of fewer Russian tourists and lower travel confidence to the region. Revenue is anticipated to climb at a compound annual rate of 4% in the five years through 2029 to €104.6 billion. Online travel agencies will continue to cement their position in the industry as a disruptive force, with most traditional agencies adapting by now or already closed. Climate change will disrupt travel agencies and the destination packages they offer. 2023 already saw wildfires across Greece that spelt disaster for many trips and travel agencies will need to plan for the shift from southern European beaches to northern European destinations as temperatures rise. Travel agencies across Europe will also keep trying to carve out more of a niche by specialising in trips for certain age demographics.

The Report Covers Europe Online Travel Market Statistics and is Segmented by Service Type (Transportation, Travel Accommodation, Vacation Packages, and Others), by Booking Type (Online Travel Agencies, Direct Travel Suppliers), by Platform (Desktop, Mobile), and by Country (United Kingdom, Germany, France, Italy, and Rest of Europe). The Report Offers Market Size and Forecast Values for the European Online Travel Market in (USD) for the Above Segments.

In 2018, most companies operating in the travel agency and tour operator sector in Italy had an annual production value of maximum two million euros. Data provided by Prometeia show that these companies accounted for almost 43 percent of the market. That meant there were more than 16 thousand companies with an annual production value of maximum two million euros in the selected year.

Number of employees by business size of the sector’s companies in 2018In 2018, companies with an annual production value not exceeding two million euros registered the highest number of employees in the travel agency and tour operator sector in Italy. Indeed, these specific companies recorded in total more than 30 thousand members of staff. So, approximately 60 percent of all the sector’s employees worked for these businesses in the selected year.

Average percentage change in the production value: the sector’s leadersWhen considering the average percentage change in the production value of selected large companies in this sector, data reveal that Alpitour S.p.A. recorded a significant growth between 2016 and 2018. The Italian company increased on average its production value by 6.5 percent during the period considered.

Global online travel agent market size is expected at $1,483.31 billion by 2033 at a growth rate of 5.81%