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.

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

Over the past five years, travel agencies have faced numerous challenges and undergone significant transformations. Although international travel by US residents rebounded strongly in 2022, persistent inflationary pressures have moderated revenue growth. In 2025, the industry is expected to experience slower demand from both domestic and foreign tourists due to trade uncertainty. Overall, due to a low pandemic base year, revenue is expected to grow at a CAGR of 17.3% to $46.4 billion over the five years to 2025, including a projected 4.2% growth in 2025 alone. Profitability has remained a critical challenge, with competitive online travel platforms like Expedia and Priceline transforming the landscape. The rise of mobile technology has enabled consumers to independently research and book cost-effective travel options, posing a challenge to traditional brick-and-mortar agencies. In response, many agencies have shifted focus to cater to high-income, time-constrained customers desiring personalized services. Smaller agencies have seized this customization demand, while larger platforms have engaged in acquisitions to expand market share and diversify service offerings. Despite these strategies, maintaining profitability has proven difficult in an industry shaped by evolving technology and consumer preferences. In 2025, profit is expected to reach an estimated 10.2% of revenue. Looking ahead to the next five years up to 2030, customization is poised to remain a crucial differentiator. As disposable incomes rise, travel bookings are expected to increase, with consumers gravitating towards higher-margin, personalized services. Nonetheless, the pervasive influence of social media grants travelers greater access to destination insights, potentially reducing their dependency on travel agents. Peer-to-peer rental services are anticipated to flourish by providing affordable alternatives, while online booking platforms will likely retain their dominance due to their convenience. Further, a series of international sports events during the outlook period will spur demand for travel agencies, supporting revenue growth. Consequently, industry revenue is forecasted to grow at a CAGR of 1.3%, reaching $49.5 billion over the five years to 2030, indicating a steady, albeit modest, expansion in a swiftly evolving market landscape.

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 *** billion U.S. dollars as of March 2025. As of that month, roughly ******* businesses operated in this market, with employment reaching approximately ***** million.

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.

Metrics	Values
Industry Size (2025E)	USD 601.8 million
Industry Value (2035F)	USD 2,300 million
CAGR (2025 to 2035)	14.4%

Country-wise Analysis

Country	CAGR (2025 to 2035)
USA	9.2%
UK	8.5%
France	7.8%
Germany	8.1%
Italy	7.5%
South Korea	9%
Japan	7.3%
China	10.5%
Australia	8%
New Zealand	7.6%

Competitive Outlook

Company Name	Estimated Market Share (%)
Booking Holdings	38.7%
Expedia Group	23.3%
Airbnb	17.9%
Trip.com Group	11.4%
TripAdvisor	5%
Other Companies	3.7%

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

Despite the considerable transformation in consumer behavior with the rise of online booking channels, the Global Travel Agency services have still seen a surge in revenue. The growth of online booking agencies has led to increased competition for traditional brick-and-mortar agencies, forcing them to reinvent their operations to stay competitive. Notably, there has been a noticeable decline in traditional travel agents in developed economies such as the United States and Europe due to the consumer shift towards online travel arrangements. To overcome this, many agencies have shifted their focus to specialize in specific destinations or unique travel experiences, offering services best suited for complex travel packages. For example, approximately 73.0% of cruise travelers reportedly said that advice provided by travel consultants significantly impacts their cruise booking decisions, according to the 2024 State of the Cruise Industry report. Despite the challenges brought on by a mix of high inflation, potential trade wars and geopolitical tensions, global travel agencies are projected to see an increase in revenue at a CAGR of 5.5%, reaching $355.4 billion in 2025. This includes an expected growth of 3.7% in 2025 alone, with profit accounting for an expected 7.1% of revenue. Demand for travel agency services will likely continue increasing with rising per capita income, improving consumer sentiment, and declining global unemployment rates. Despite current challenges, the industry's next five years are expected to see significant growth in Asia and South America's emerging economies. This will, in turn, attract increased investments from larger travel agencies in these regions. The industry is projected to grow with a CAGR of 2.2%, reaching an estimated $397.2 billion in 2030.

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

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Travel Agency Services Market Size 2024-2028

The travel agency services market size is forecast to increase by USD 156.7 billion at a CAGR of 8.6% between 2023 and 2028.

The market is experiencing significant growth due to several key factors. The increasing number of international tourists and their footfalls are driving market growth. Moreover, the adoption of technologically advanced travel solutions is transforming the industry, offering customers convenience and personalized services. The integration of artificial intelligence and machine learning algorithms has transformed the industry, enabling more efficient and customized offerings. However, the market faces challenges such as the growing threat from rising terrorist activities, which can negatively impact tourist destinations and travel plans. Additionally, economic instability and fluctuating exchange rates can also impact travel plans and affect market growth. Overall, the market is expected to continue its growth trajectory, driven by these factors and the evolving needs of travelers.

What will be the Size of the Travel Agency Services Market During the Forecast Period?

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The market caters to the diverse needs of leisure tourists, business travelers, and adventurers, offering a range of additional services beyond traditional flight and hotel booking. These services include car hire, phone booking, online booking, travel planning, ticketing, accommodation booking, transportation arrangements, visa assistance, travel insurance, personalized itineraries, and more. Online travel agencies and direct booking options have gained significant traction due to global connectivity, while airlines have also expanded their offerings to include ancillary services. The middle-class population's growing disposable income and increasing interest in sustainable travel practices further fuel market growth.

How is this Travel Agency Services Industry segmented and which is the largest segment?

The travel agency services 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

  Leisure travel
  Business travel
  Specialty travel


Distribution Channel

  Online travel agencies
  Hybrid
  Brick and mortar travel agencies


Geography

  North America

    US


  APAC

    China
    Japan


  Europe

    Germany
    UK


  Middle East and Africa



  South America

By Type Insights

The leisure travel segment is estimated to witness significant growth during the forecast period.

The market caters to various types of travelers, including leisure tourists, business travelers, adventurers, and independent or package travelers. With the global middle-class population expanding, the demand for travel services has risen. Travelers now expect seamless travel planning, ticketing, accommodation booking, and transportation arrangements. Additional services such as visa assistance, travel insurance, and personalized itineraries have become essential. Technological advancements, including AI and machine learning algorithms, have transformed the travel industry. Online booking channels, direct booking options, and global connectivity have made travel more accessible. Digital marketing through smartphone and tablet applications, social networking sites, and search engines influence travelers' decisions.

Travelers also prioritize sustainable travel practices, eco-friendly tourism, and supporting local communities. Business travelers require operational safety, employee safety, and convenience. Civil construction activities, such as dams, bridges, and tunnels, create opportunities for adventure tourism and art tourism. IoT and AI-powered solutions improve safety and efficiency In the travel industry. The millennial generation's travel preferences are shaping the market, with a focus on unique experiences and customization.

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The Leisure travel segment was valued at USD 203.20 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 32% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American market is currently the largest globally, driven by significant contributions from the US and Canada. Factors such as the increasing disposable income, the growing popularity of micro-trips among professionals, and the rising trend of multigenerational travel are fueling m

Online Travel Agencies Market size is expected to grow USD 1412.0 Billion by 2034, from USD 613.1 Billion in 2024, at a CAGR of 8.7%.

As of October 2024, the market size of the travel agency industry in the United Kingdom totaled **** billion British pounds. Meanwhile, businesses in the sector numbered close to *****. 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 ** billion British pounds. Meanwhile, there were ****** 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 *** stores, followed by TUI with more than *** stores. On the other hand, Jet2holidays was the leading operating ATOL-licensed tour operator in the United Kingdom, with over *** million passengers licensed as of January 2025.

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

In 2018, most companies operating in the travel agency and tour operator sector in Italy had an annual production value of maximum *********** euros. Data provided by Prometeia show that these companies accounted for almost ** percent of the market. That meant there were more than 16 thousand companies with an annual production value of maximum *********** 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 *********** 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 ** thousand members of staff. So, approximately ** 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 *** percent during the period considered.

Global Traditional Travel Agency market size is expected to reach $194.89 billion by 2029 at 5.5%, segmented as by transportation, air travel, rail travel, car rentals, cruise services, bus and coach services

The USA Travel Agency Services Industry is expected to experience steady growth over the next decade. It is projected to grow from an estimated USD 86 billion in 2025 to USD 172 billion by 2035, with a CAGR of 7.2% during the forecast period from 2025 to 2035.

Attribute	Value
Estimated USA Industry Size (2025E)	USD 86 billion
Projected USA Value (2035F)	USD 172 billion
Value-based CAGR (2025 to 2035)	7.2%

Corporate Travel Agency Market Outlook

The global corporate travel agency market size was valued at $564 billion in 2023 and is projected to reach $823 billion by 2032, growing at a compound annual growth rate (CAGR) of 4.5%. This growth is driven by the increasing globalization of businesses, which has led to a higher demand for efficient and reliable corporate travel services. Companies are investing in business travel to expand their market reach and establish a global presence, thereby fueling the demand for corporate travel agencies.

One of the primary growth factors is the technological advancements in the travel industry. Innovations such as artificial intelligence, blockchain, and machine learning are revolutionizing the way corporate travel agencies operate. These technologies enhance customer experience by offering personalized travel plans, real-time updates, and seamless booking processes. Moreover, the integration of big data analytics helps agencies to better understand customer preferences and offer tailored solutions, thus driving market growth.

Another significant factor contributing to the market's growth is the increasing emphasis on travel management solutions. Businesses are increasingly recognizing the importance of managing travel expenses efficiently. Corporate travel agencies provide comprehensive travel management services that include itinerary planning, expense tracking, and risk management, which are essential for companies to control costs and ensure employee safety. The rise in business travel budgets and the need for policy compliance further support the demand for these services.

The growing trend of corporate social responsibility (CSR) also plays a vital role in market expansion. Companies are now more focused on sustainable travel practices to reduce their carbon footprint. Corporate travel agencies are adapting by offering eco-friendly travel options and carbon offset programs. This shift towards sustainable travel not only helps in attracting environmentally conscious clients but also aligns with global efforts towards sustainability, thereby boosting the market.

Regionally, North America and Europe hold significant market shares due to the presence of numerous multinational companies and well-established travel infrastructure. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period. The rapid economic development in countries like China and India, coupled with the expansion of the corporate sector, is driving the demand for corporate travel services. Additionally, favorable government policies and investments in improving travel infrastructure further support market growth in this region.

Service Type Analysis

In the corporate travel agency market, the service type segment plays a pivotal role and is divided into transportation, accommodation, meetings & events, and others. Transportation services form the backbone of corporate travel, including air travel, car rentals, and rail services. As businesses globalize, the need for efficient and timely transportation services increases. Corporate travel agencies offer streamlined booking processes, negotiated rates, and itinerary management, which are critical for business travel efficiency. The rise in business trips and the need for hassle-free travel are driving the demand for transportation services.

Accommodation services are another crucial component. This includes hotel bookings, serviced apartments, and other lodging solutions. Corporate travel agencies leverage their partnerships with various accommodation providers to offer competitive rates and exclusive deals. The increasing number of business travelers necessitates the need for comfortable and conveniently located accommodations. Agencies also manage corporate housing programs, ensuring that employees have access to suitable lodging during extended stays, thereby enhancing the overall travel experience.

Meetings and events constitute a significant share of corporate travel expenses. This service type encompasses the planning and execution of conferences, seminars, and corporate events. Corporate travel agencies provide end-to-end solutions, including venue selection, logistics coordination, and attendee management. By offering these comprehensive services, agencies help businesses focus on their core activities while ensuring the success of their events. The growing trend of offsite meetings and international conferences further fuels the demand for these services.

The 'Ot

Travel Agency Software Market Outlook

The global travel agency software market size was estimated at USD 2.8 billion in 2023 and is projected to reach USD 5.7 billion by 2032, reflecting a remarkable Compound Annual Growth Rate (CAGR) of approximately 8.1% from 2024 to 2032. This robust growth is fueled by the digital revolution sweeping across the travel industry, enabling agencies to leverage software solutions for enhanced operational efficiency and customer satisfaction. The rising demand for personalized travel experiences and real-time inventory management is compelling travel agencies to adopt sophisticated software solutions, which is a significant driver of market growth.

One of the primary growth factors for the travel agency software market is the increasing integration of advanced technologies such as Artificial Intelligence (AI) and Machine Learning in travel software systems. These technologies enable agencies to offer more personalized services to their clients by analyzing vast amounts of data to predict travel trends and preferences. Moreover, AI-driven chatbots and virtual assistants have become commonplace, providing seamless customer service and automating routine queries, which reduces operational costs for agencies. The adaptation to these technologies not only streamlines the booking process but also enhances customer satisfaction, thereby propelling market growth.

Another crucial growth factor is the exponential increase in internet penetration and smartphone usage worldwide. The proliferation of mobile applications for travel bookings has simplified the process, providing travelers with instant access to flights, accommodation, and tour packages. This consumer behavior shift towards mobile and online platforms necessitates that travel agencies adopt software solutions that integrate seamlessly with these channels. Additionally, the convenience and transparency offered by such software have significantly contributed to the growing popularity of online travel booking, thus boosting the demand for travel agency software.

The evolving dynamics of the travel industry, characterized by a heightened focus on customer satisfaction and the demand for personalized experiences, further drive the market. TodayÂ’s travelers seek tailored itineraries and unique experiences, prompting travel agencies to utilize sophisticated CRM software to better understand and cater to consumer needs. The ability to manage customer relationships effectively, retain loyal customers, and attract new ones through personalized service offerings is a vital factor contributing to the adoption of travel agency software. This trend indicates a shift towards customer-centric business models, which is expected to continue driving market growth.

In this evolving landscape, the role of a Commercial Travel Agency is becoming increasingly significant. These agencies are pivotal in bridging the gap between travelers and the vast array of travel services available. By leveraging advanced travel agency software, commercial travel agencies can offer tailored travel experiences that meet the specific needs of their clients. This customization is essential in today's market, where travelers demand unique itineraries and seamless service. The integration of sophisticated software solutions allows commercial travel agencies to efficiently manage bookings, customer relationships, and inventory, thereby enhancing their operational capabilities and customer satisfaction.

Regionally, North America leads the travel agency software market owing to its advanced technological infrastructure and the presence of major industry players. However, the Asia Pacific region is anticipated to exhibit the highest growth rate during the forecast period. Factors contributing to this rapid growth include the rising middle-class population, increased disposable incomes, and the growing popularity of international travel among consumers in countries like China and India. Additionally, the expansion of low-cost airlines in the region and government initiatives to promote tourism are expected to further fuel the market growth in Asia Pacific.

Deployment Type Analysis

Deployment type plays a pivotal role in defining the landscape of the travel agency software market, with segments categorized into on-premises and cloud-based solutions. On-premises deployment involves installing software on the agency's local servers, providing greater control over data and customization options. Th

The global travel agency services industry is expanding at a swift pace with firms within the industry competing fiercely to cater to the changing needs of both vacation and business tourists.

Key Players	Industry Share (%) 2025
Expedia Group, Booking Holdings, TUI Group	40%
Regional Players (American Express Global Business Travel, TripAdvisor, CWT)	30%
Niche Providers (Travel Leaders Group, Flight Centre, BCD Travel, Priceline)	20%
Independent Operators (Local Travel Agents, Freelance Guides)	10%

The UK travel agency services market is set to grow steadily over the next ten years. It is expected to grow from a projected USD 45.3 billion in 2025 to USD 99.8 billion in 2035, at a CAGR of 8.2% over the forecast period of 2025 to 2035. The increase will be due to the increased demand for immersive and personalized travel experiences, increased usage of digital booking platforms, and the trend towards environmentally friendly travel options.

Attribute	Value
Estimated UK Industry Size (2025E)	USD 45.3 billion
Projected UK Value (2035F)	USD 99.8 billion
Value-based CAGR (2025 to 2035)	8.2%

The industry includes companies that sell travel, tour, transportation and accomodation services to households and commercial clients. This industry is composed of agencies that provide booking, reservation and information services. Tour operators arrange, assemble and conduct tours in Europe and other countries around the world.