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Online Travel Market Set to Reach USD765,3 Billion by 2025

COVID-19 has accelerated the need for companies within the travel and tourism industry to rapidly invest in digital strategies including the global online travel market which is expected to grow at a compound annual growth rate (CAGR) of eight percent to reach USD765,3 billion between 2022 and 2025, according to GlobalData.

The leading data and analytics company notes that due to more consumers shifting to e-commerce, if players fail to invest in a robust digital strategy, they will allow their competitors to take a greater share of the market.

GlobalData’s latest thematic report, ‘Thematic Research: Online Travel (2022)’, reveals that intermediaries are increasingly shifting from a high street presence towards an asset-light, online-only operation to meet changes in consumer demand and keep operating costs low. The pandemic has heightened the need to reduce physical contact and as a result consumer behaviour has changed with customers now more likely to carry out their transactions online.

This trend was confirmed in a recent GlobalData survey, with 78 percent of consumers reporting to be ‘extremely’, ‘quite’ or ‘slightly’ concerned about visiting shops because of the COVID-19 risk.

Hannah Free, travel and tourism analyst, GlobalData, commented, “Due to the changing needs and demands of the modern traveller, travel intermediation has evolved from traditional high street stores with in-person travel agents to a highly fragmented online marketplace.”

According to GlobalData’s latest survey, 24 percent of consumers used an online travel agent (OTA) the last time they booked a holiday, with just seven percent of consumers using an in-store face-to-face travel agent.