OTA Market to Exceed $670 Billion in 2031
According to the information compiled by Türkiye Turizm Ansiklopedisi from the Allied Market Research report, the Online Travel Agencies (OTA) market will reach 670.6 billion dollars in 2031.
The travel market has developed significantly in the last few years due to the digitalization of travel services and the trend of interconnected growth worldwide. The widespread use of mobile devices greatly supports the growth of this market. In the market, leading online travel agencies (OTAs) are witnessing the acquisition of newly established companies and other small players. This situation creates a challenging competition for established direct travel suppliers and travel agencies.
The transportation segment is expected to maintain its leadership in the overall online travel services market due to the increase in online flight bookings. The increase in the number of low-cost carriers and the increase in the number of connecting flights for Tier I and Tier II cities worldwide drive the growth of flight bookings.
The increasing penetration of smartphones and people's growing confidence in the security of mobile payments also contribute positively to the growth of the market. Increasing digital literacy and the increasing use of social media for advertising are also growing the market.
OTAs Provide Flexibility to Travelers
The OTA market is classified as 'Accommodation Reservation, Flight Reservation, Car Rental, Holiday Packages, Cruise Reservation, Train Travel, Events-Tours and Travel Insurance by Service Type'.
Based on the booking method, the OTA segment has a significant share in the global online travel market and OTAs are expected to maintain their share during the market forecast period. OTAs provide travelers with the flexibility to plan and book their trips as needed, when needed. OTAs are gaining popularity in the market thanks to the low-cost travel options they offer.
The OTA market is a comprehensive service industry that leverages digital platforms to facilitate and simplify travel arrangements for consumers. This market can be divided into segments according to the type of services offered, each catering to the different needs of travelers. The primary service segment is Accommodation Reservation, which includes reservations for hotels, hostels, vacation rentals and boutique guesthouses that cater to a variety of budget ranges and preferences. Flight Reservation offers a platform for users to compare and book airline tickets, including both domestic and international flights. Car Rental offers car rental options that can be pre-booked to ensure availability and convenience at the destination.
Holiday Packages combine multiple travel services such as accommodation, transportation and activities, offering a holistic and often discounted travel experience. Cruise Booking facilitates the booking of sea voyages, including a variety of itineraries from luxury cruises to budget-friendly cruises. Train Travel covers tickets and passes for rail journeys, which are particularly attractive in regions with extensive and efficient rail networks. Activities and Tours covers the booking of local experiences, tours and excursions, allowing travelers to plan their itineraries in advance. Finally, Travel Insurance offers coverage options for travel cancellations, medical emergencies and other travel-related situations. In summary, OTAs accurately address various segments. Therefore, it can effectively attract a wide range of customers, increasing user loyalty and growth in the market.
LEADING PLAYERS IN THE OTA MARKET
Players providing services and solutions in the OTA market are fiercely competing with each other to expand their market share and increase their profitability. In order to survive in this tough competition, they adopt product launches and business expansion as their basic development strategies. The leading players in the OTA market consist of the following companies: Expedia Group, Ebury Partners UK, Fareportal, Hostelworld.com, Hurb Co, HRS, Make MyTrip, Oracle Corporation, Priceline (Booking Holdings), SABS Travel Technologies, Tavisca Solutions, Thomas Cook India, Travelomatix.com, Trip.com Group, Tripadvisor, WEX, Expedia Group, Airbnb, Agoda, Kayak, Orbitz, Travelocity and Hotwire.
