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.

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 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.

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.

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

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 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 market size of the online travel industry worldwide increased sharply in 2023 compared to the previous year. After falling to *** 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 *** billion U.S. dollars. This figure was expected to grow steadily in the following years, reaching an estimated *** 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 *** 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 ********** of total sales value.

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%

In 2023, the number of businesses in the travel agency services industry worldwide increased sharply over the previous year, recovering from the impact of the coronavirus (COVID-19) pandemic. Overall, this industry recorded approximately ******* companies in 2023. This figure was expected to reach an estimated ******* in 2024.

Employment statistics on the Travel Agencies industry in the US

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.

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

Revenue in the Travel Agencies industry is expected to grow at a compound annual rate of 12.3% over the five years through 2025 to €121.5 billion. The focus of the travel industry in the last five years has been recovering from the COVID-19 pandemic. Travel demand plunged 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 by trends characterised as revenge travel and responsible travel. People made up for lost time by taking more trips after COVID-19 restrictions had been lifted. In 2024 and 2025, consumers are still keen for trips but want value-for-money adventures instead as they’re cautious of their spending amid disposable income squeezes. 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. There’s concerns that President Trump’s administration and US tariffs could see a drop in US visitors, but in early 2025 numbers have been strong. 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. Travel remains a high priority for many households, driving up bookings. As a result, revenue is expected to mount by 4.4% in 2025. 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 8.9% in the five years through 2030 to €186.3 billion. Online travel agencies will continue to cement their position in the industry, with most traditional agencies adapting by now or already closing. Climate change will disrupt travel agencies and the destination packages they offer. The last few years have already seen 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 Travel Agency Services Market is on the rise, with a promising 9.1% CAGR, expected to reach $1,074.99 million.

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.

Revenue in the Travel Agencies industry is expected to grow at a compound annual rate of 12.3% over the five years through 2025 to €121.5 billion. The focus of the travel industry in the last five years has been recovering from the COVID-19 pandemic. Travel demand plunged 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 by trends characterised as revenge travel and responsible travel. People made up for lost time by taking more trips after COVID-19 restrictions had been lifted. In 2024 and 2025, consumers are still keen for trips but want value-for-money adventures instead as they’re cautious of their spending amid disposable income squeezes. 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. There’s concerns that President Trump’s administration and US tariffs could see a drop in US visitors, but in early 2025 numbers have been strong. 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. Travel remains a high priority for many households, driving up bookings. As a result, revenue is expected to mount by 4.4% in 2025. 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 8.9% in the five years through 2030 to €186.3 billion. Online travel agencies will continue to cement their position in the industry, with most traditional agencies adapting by now or already closing. Climate change will disrupt travel agencies and the destination packages they offer. The last few years have already seen 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 market size of the online travel agency industry in the United Kingdom stood at close to *********** British pounds as of October 2024. As of that month, *** businesses operated in the industry.

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