Digital travel forecast to be a $1,100 billion market in five years
By cameron in Uncategorized
A new report has forecast the global digital travel sector could be worth $1,091 billion by 2022.
The Allied Market Research study predicts the figure will be reached by way of more markets opening up to web services and penetration levels in existing markets climbing even further.
The figure represents an 11.1% growth rate between 2-16 and 2002.
Direct bookings accounted for around 57% of the market in 2015, Allied says.
But this figure is likely to drop as market share shifts further to intermediaries and travel search engines adopting meta-book models.
Interestingly, although air bookings are expected to drive a significant proportion at the transportation end of the rise in overall pie, especially as second and third tier cities connect to destinations further afield, rail is also tipped to achieve a significant share of web activity.
China may get the lion’s share of attention, in terms of the power and ambitions of its online travel brands, it is India where the fastest growth is expected – up 18.5% over the 2014-2022 period.
Research analyst Yogiata Sharma says the proliferation of mobile devices “largely supplements the growth of this market”.
“The market is witnessing consolidation with leading OTAs acquiring smaller startups and other smaller players, thereby, giving a tough competition to the established direct travel suppliers and travel agents.”
NB: Full research here.