There has been a shift in the traveling consumer base lately. With an increasingly younger generation with high levels of income, the market has gained a highly lucrative consumer base.
The travel intermediaries business is projected to reach a valuation of US$ 500 Bn in 2022. Sales are projected to increase at a 6% CAGR, with the market size reaching US$ 895.42 Bn by 2032.
According to Future Market Insights, the Travel Intermediaries business is forecasted to grow at a stable rate throughout the forecast period. This is due to several numbers of reasons, that include the rise of travel amongst the younger generation who prefer to plan and book their tours in advance, where they can redeem amazing offers and discounts while saving all the hassle.
There has been a shift in the traveling consumer base lately. With an increasingly younger generation with high levels of income, the market has gained a highly lucrative consumer base.
With the need for express services, high-quality concierge, certified stay accommodations, and luxury travel, the need for travel intermediaries who encompass all these services on one platform and packages, the market will benefit healthily.
The innovation by the firms in the market has helped the business to be booming. The travel intermediaries’ business has always been a highly competitive business, with new firms entering the market every year, the need to focus on key details has become highly necessary for the firms to enjoy a long profitable tenure in the market.
Key Takeaways from the Travel Intermediaries Market Study:
- Vacation Packages are the most popular services offered by travel intermediaries.
- The North American region holds a significant market share of 29% in the travel intermediaries market.
- With a lot of high-income countries present in Europe, it has shown to be one of the key regions.
- Offering air travel arrangements is one of the leading categories in the segment.
- As a result of the pandemic, the rise of the internet, and the increasing ease of booking, the online bookings channel is expected to lead the bookings channel category.
“Customer satisfaction, a high number of offerings, and increasing brand presence will be some of the key factors in keeping the competitive edge.” FMI Analyst said.
Impact of COVID-19
The Covid-19 pandemic hit the travel intermediaries’ business very hard, with the world going on a global lockdown due to the virus. The extremely high spread of the virus and the scare of safety concerns had made the market outlook extremely weak and depilated state. The complete halt on travel meant that no new demand was emerging in the market.
The businesses in the market had to suffer continuous losses due to halted operations; with some of them coming up with new strategies to survive by diverting their business models.
Post-pandemic the market outlook has improved a lot, with demand for travel emerging in developed countries, since the customers are eager to travel and explore after being confined to their homes for over a year. The firms in the market are offering packages that guarantee safety, as to regain consumer confidence. Pent-up demand for exploration and outdoor activities will rejuvenate the market, helping it recover from the pandemic impact.
Who is winning?
The leading firms in the market are focused on capturing a higher market share. With the increasing amount of competition, they are looking to innovate their service, improve their product portfolios, and increase their brand presence through conventional as well as the newer method of marketing; social media marketing is one of the key aspects that the firms are focused on currently.
The key players in the Travel Intermediaries business are Expedia Groups, Booking Holdings, BCD Travel, Vantage Deluxe, World Travel, Global Work and Travel Company, Global Vacation Network, Thomas Cook, and Zicasso.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
