Travel and Tourism is one of the key sectors that play a pivotal role in any country’s economy and make a significant contribution to the country’s GDP. The global growth in travel and tourism activities has led to the rise of travel intermediaries, making them an important part of selling travel products to customers.
The global market size of the travel and tourism sector reached a value of $631 billion in 2021, with 45% contribution from the in-store sector and the remaining 55% from the online sector. North America is the market leader with a contribution of 37% to the global market size followed by Asia-Pacific with 26%. In recent years, the rise in the number of online travel intermediaries was aided by the growth in the number of internet users along with the demand for convenience among travelers further supported the rise in the market for online travel Intermediaries.
Even though there has been a rise in the number of online travel intermediaries, in-store travel still has its relevance and has been growing steadily for the past few years as it provides a sense of security, especially for the elderly who are generally skeptical of the usage of online platforms.
The global travel and tourism market grew by 43% in 2021, with the biggest growth coming from South and Central America at 131%. The in-store sector saw a growth of 39% and online, 47%, as the industry witnessed a recovery in the demand after easing the restrictions which were placed on account of the outbreak of the COVID-19 pandemic and travel intermediaries’ sharp rise in travel products as the consumers plan their travel activities after the gap of almost two years. The growth in 2021 accounted for $191 billion with North America alone contributing $84 billion followed by South and Central America with $48 billion.
Meanwhile, the growth which the travel and tourism sector was going to see was reversed with the pandemic which completely devastated the industry in 2020. During the year 2020, the global market value of travel and tourism saw a de-growth of 62%, accounting for a whopping $733 billion. The biggest de-growth was seen in the Asia-Pacific region with $284 billion.
Key travel destinations among travelers include Thailand, France, Dubai, Los Angeles, and Rio de Janeiro among others.
The travel and tourism market grew at a CAGR of negative 13% during the period 2017-2021. The global travel industry along with its allied sectors saw a slump in market value with the pandemic in 2020. Before 2020, the industry was also witnessing slow but steady growth in most regions due to low economic growth.
The major companies with a strong presence in the global travel market include Topdeck Travel Ltd., Dufry AG, Skyscanner, Expedia, Kiwi.com, Hotwire, and South American Vacations among others.
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