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 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.

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.

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.

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

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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 market growt

Over the five years through 2025-26, revenue is projected to soar at a compound annual rate of 10.5%. Unsurprisingly, OTAs didn't escape the effects of the COVID-19 outbreak and global travel restrictions, which brought plummeting sales, litigation threats and restructuring activity at the beginning of the five-year period. Bookings exploded following the scrapping of travel restrictions in March 2022. OTAs' troubles weren't over immediately when borders reopened – the spike in passenger numbers has taken time to translate into the same rise in revenue, with customers booking holidays using credit notes and vouchers amid COVID-19 backlogs. However, strong passenger numbers in the two years through 2025-26 are supporting strong OTA revenue growth.

Demand for travel has proved resilient despite the cost-of-living squeeze, with many making a holiday their top discretionary purchase. Travellers looking for great value have seen an uptick in package holidays. In 2025-26, revenue is anticipated to climb by 3.3% to reach £2 billion and the average industry profit margin is set to rise to 8.6%.

Over the five years through 2030-31, revenue is forecast to swell at a compound annual rate of 2.8% to reach £2.3 billion. Competition from tourism providers will intensify as suppliers cut prices and boost loyalty programme rewards to attract bookings. While OTAs may not be able to compete against airlines and hotels on price and loyalty programmes, they can emphasise personalisation. Social media is the new marketing norm and OTAs need to prioritise digital marketing. Younger travellers especially trust these platforms, as 59% of Gen Z use Instagram, 54% turn to YouTube and 47% rely on TikTok for holiday inspiration, according to Sky Scanners ‘The Future of Travel’ report in November 2025. As momentum gains on sustainable travel intent, so does the opportunity for OTAs to further efforts in building and communicating more sustainable travel experiences.

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.

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.

According to a survey from Rakuten Insight conducted in June 2023, ** percent of the respondents in Singapore have used online travel agencies before. In comparison, ** percent of the respondents in the Philippines and Japan have used online travel agencies as of June 2023. The popularity of online travel The online travel market in the Asia-Pacific region (APAC) has been steadily increasing in the past few years, reaching a market value of over ** billion U.S. dollars. In Singapore, the gross merchandise value of the online travel sector was expected to further increase to *** billion dollars by 2030. The main reason why Singaporeans used OTAs was convenience, as consumers could book all they needed within a few minutes online. Tourism in the Asia-Pacific region Overall, APAC has a strong international and domestic tourism market. Despite the dip in the market during the COVID-19 pandemic, the region saw an increase in inbound visitor growth again. Furthermore, the expenditure on international tourism in APAC has exceeded ** billion dollars in certain countries, with China occupying the top spot in 2022.

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%

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

Snapshot img

India Travel Services Market Size 2025-2029

The India travel services market size is forecast to increase by USD 23.62 billion at a CAGR of 15.3% between 2024 and 2029.

The market is experiencing significant growth, driven by several key trends. The number of mergers, partnerships, and strategic alliances among players is increasing, leading to consolidation and expansion In the industry. Additionally, the introduction of low-cost airlines is making travel more affordable for consumers, thereby boosting demand. However, intense competition among players is leading to price wars, putting pressure on profit margins. To stay competitive, companies are focusing on innovation, such as offering personalized services, smartphone solutions, and car rental services to enhance the customer experience. Overall, these trends are shaping the future of the travel services market and presenting both opportunities and challenges for market participants.

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The market encompasses various sectors, including air travel, accommodations, itinerary planning, and booking trips. Air travel continues to dominate the market, with advancements in AI and robotics streamlining operations and enhancing customer experience. The sharing economy, embodied by platforms like home-sharing services and ride-hailing apps, has disrupted traditional travel providers, offering more affordable options for travelers.



Solo travelers, adventure seekers, and eco-tourists also influence market trends, driving demand for niche offerings. Low-cost airlines and online travel agents cater to budget-conscious travelers, while medical tourism and educational tourism cater to specific needs. Desktop and mobile applications facilitate seamless booking and planning processes, enabling travelers to easily compare prices and customize their trips. Domestic tourism and package travelers also contribute significantly to market growth. Overall, the travel services market is characterized by innovation, competition, and evolving consumer preferences.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Mode Of Booking

  Online
  Offline


Service

  Domestic flight services
  Hotel accommodation services
  Rail ticket services
  Cab services
  Others


Geography

  India

By Mode Of Booking Insights

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

The convenience offered by online platforms propels the shift in consumer preference for booking travel services through the online mode, subsequently propelling the sales generated through this segment. The sales through the online travel services segment are expected to grow at a rapid pace during the forecast period. The availability of a strong infrastructure for the penetration of online travel services also propels the preference for online platforms.

Additionally, internet penetration and smartphone use help consumers access online travel service platforms. The increasing Internet penetration and the number of smartphone users help online travel service providers expand their customer reach and service portfolio. Additionally, the availability of proper infrastructure and many agents and third-party online platforms ensure streamlined business activities of online travel service providers.

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Market Dynamics

Our market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of India Travel Services Market?

Increase in number of mergers, partnerships, and strategic alliances is the key driver of the market.

The market encompasses various sectors including air travel, online travel services, and offline travel services. Air travel dominates the market, with online travel agencies (OTAs) and low-cost airlines driving growth through their user-friendly platforms and competitive pricing. AI and robotics are revolutionizing the industry, offering personalized itinerary planning and seamless booking experiences for individual travelers and corporations. The sharing economy, such as homestays and ride-sharing services, is also gaining traction among solo travelers and adventure travelers. Additionally, niche markets like eco-tourism, medical tourism, and educational tourism are expanding the market's reach. Tour packages, including flight bookings, hotel booking s

The Travel Agency Software Market was valued at USD 7.50 billion in 2022 and will reach USD 17.91 billion by 2030, registering a CAGR of 11.5% for the forecast period 2023-2030. Factors Impacting the Travel Agency Software Market Growth:

Escalation of online booking platforms is expected to drive the growth of the Travel Agency Software Market.

The emergence of software has replaced the traditional booking systems done by an agent. Thereby, increasing the demand for online booking systems. This significantly propelled the market growth of travel agency software. Additionally, the increasing adoption of digital technologies for tourism activities and vacation planning by developing nations has boosted the market growth of travel agencies. Moreover, the desire to lower costs is by the organization's further drive the market growth of this software. The rising use of travel agency software has benefitted the business in several ways such as cost saving, achieving goals, smooth operations, and efficient growth. Large organizations are highly investing in such innovative technologies for the overall development of the business. Therefore, such technological advantages of this software for growing businesses significantly drive the market growth of the travel agency software market.

A lack of understanding of the operation process is expected to hinder the growth of the Travel Agency Software Market

A lack of understanding of the operation process and integration of technological changes in the software requires a skilled professional. This helps in the smooth functioning of the business through the installation of a cloud-based software solution. Moreover, organizations have a huge amount of data and hence require privacy and security in the data handling for easy transactions and registrations. Furthermore, the increasing operational complexities are expected to hamper the market growth of travel agency software over the forecast period.

Impact of the COVID-19 Pandemic on Travel Agency Software Market:

The covid-19 pandemic propelled the market growth of the travel agency market. After the wide spread of covid-19, there was seen an increase in the number of tourists, globally. There were several changes made in the operations and working of the organizations to manage the costs and to bring about changes in the marketing value for travel agency software solutions. Moreover, the increasing use of advanced technology increased along with the increase in online booking of tourism. The travel agency platform changed the booking processes of online tours and gained a competitive edge in the market due to flexibility and easy access to cloud-based platforms. Therefore, all these factors led to an increase in the adoption of online booking platforms and boosted the market growth of travel agency software, post-pandemic. What is Travel Agency Software?

Travel agency software helps companies to manage all of the travel services such as flight reservations, hotel bookings, and other activities. This software keeps a record of all offer packages, quotations, process payments, and many other services. This primarily helps in tracking the financial status of the organization. Travel agency software simplifies the process of online bookings, inventory management, customization of packages, and others to help the company to manage costs and increase bookings in less time.

Discover the booming global travel agency market! This comprehensive analysis reveals key trends, market size projections (2025-2033), leading companies, and regional breakdowns. Learn about growth drivers, restraints, and future opportunities in online & offline travel booking.

USD 145.43 Billion in 2024; projected USD 300.79 Billion by 2033; CAGR 8.37%.

Explore insights from Market Research Intellect's Travel Agencies Market Report, valued at USD 500 billion in 2024, expected to reach USD 800 billion by 2033 with a CAGR of 6.5% during 2026-2033.Uncover opportunities across demand patterns, technological innovations, and market leaders.

The Canada Travel Agency Services Industry is poised for substantial growth over the next decade. It is likely to increase from the projected USD 11 billion in 2025 to USD 23.2 billion by 2035 at a CAGR of 7.7% for the 2025 to 2035 forecast period.

Attribute	Value
Estimated Canadian Industry Size (2025E)	USD 11 billion
Projected Canadian Value (2035F)	USD 23.2 billion
Value-based CAGR (2025 to 2035)	7.7%