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 of July 2025, UK-based tour operator Jet2 plc was the company with the highest market cap among the selected travel agencies and tour operators worldwide. As of that month, Jet2 plc's market cap reached almost 4.7 billion U.S. dollars. German-based multinational group TUI AG and Australian company Flight Centre Travel Group Limited followed in the ranking, with a market cap of roughly 4.6 billion and 1.8 billion U.S. dollars, respectively. Meanwhile, Booking Holdings recorded the highest market cap of leading online travel companies worldwide in 2025.

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

In 2024, travel service conglomerate Trip.com Group generated a total revenue of approximately 53.38 billion yuan. Meanwhile, net revenue amounted to around 53.29 billion yuan that year.

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.

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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

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%

Employment statistics on the Travel Agencies industry in the US

In 2024, Carnival Corporation & plc, Royal Caribbean Cruises, and Norwegian Cruise Line, among the leading companies in the global cruise industry, all reported an annual increase in revenue. In 2024, Carnival Corporation & plc's revenue exceeded 25 billion U.S. dollars, growing by nearly 16 percent over the previous year. Meanwhile, total earnings of Royal Caribbean Cruises and Norwegian Cruise Line increased by around 19 percent and 11 percent, respectively, compared to 2023.

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 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%

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

Market Size statistics on the Global Travel Agency Services industry in Global

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 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.

The global Travel Agency Services market is experiencing robust growth, projected to reach a value of $306.89 billion in 2025 and exhibiting a compound annual growth rate (CAGR) of 8.6% from 2025 to 2033. This expansion is fueled by several key factors. The rising disposable incomes in developing economies are driving increased leisure travel, while the growing business travel sector necessitates the expertise of travel agencies for efficient trip planning and management. Furthermore, advancements in technology, such as online booking platforms and sophisticated travel management systems, are enhancing customer experience and streamlining agency operations. The increasing preference for personalized travel itineraries and curated experiences further contributes to the market's growth. However, challenges remain, including increasing competition from online travel agents (OTAs) and the volatility of the global economy impacting travel budgets. Market segmentation reveals significant variations in growth across regions and application types. For example, North America and Europe currently hold significant market share due to established tourism industries and high per capita spending on travel. However, the Asia-Pacific region is expected to experience considerable growth in the coming years, driven by rapid economic development and an expanding middle class with a growing appetite for travel. The diverse range of services offered by leading companies, such as Abercrombie and Kent, American Express, and Expedia, highlights the evolving nature of the industry with a focus on providing specialized and high-value services catering to both leisure and corporate travelers. The competitive landscape is characterized by intense competition among established players and the emergence of innovative start-ups, leading to continuous product development and service diversification. The future of the Travel Agency Services market hinges on the industry's ability to adapt to evolving consumer preferences and technological advancements. The integration of artificial intelligence (AI) and machine learning (ML) in areas like personalized recommendations and dynamic pricing is expected to redefine the customer journey. Focus on sustainable travel practices and environmentally responsible tourism will likely shape future market trends. Companies are focusing on enhancing their digital presence, improving customer service, and leveraging data analytics to personalize offerings and improve efficiency. This emphasis on technology, customization, and sustainability positions the industry for continued growth, despite the challenges posed by economic fluctuations and competitive pressures. The ability to cater to the diverse needs of an increasingly discerning global traveler base will be a critical factor in determining market success in the years ahead.

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

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.

Travel agencies have struggled due to 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. Industry revenue has recovered from the pandemic low, expanding at a CAGR of 11.1% to $2.8 billion through the end of 2025, including a decline of 2.8% in 2025 alone. 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. Growing 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. Improving consumer confidence will also hike spending on luxury trips and international travel. Industry revenue is expected to climb at a CAGR of 2.8% to $3.3 billion through the end of 2030.