How should the online travel market in different countries be planned?

In less than 30 years, the online travel market has become a multi-billion dollar industry and has revolutionized the way we plan, book and experience travel. A revolution that is far from over, as recent applications of artificial intelligence (AI) in the travel industry and the booming mobile travel market have shown. That said, while the internet and social media now influence every aspect of travel, it is worth considering that different travel markets and countries do not rely on online channels to the same degree.

How big is the online travel market?

The global online travel market is expected to reach $600 billion by 2023, with steady growth expected in the coming years. Looking at the distribution of sales in the global travel industry, we can clearly understand the key role played by the online market, which generated about two-thirds of the market revenue that year. However, not all industries rely so heavily on online sales. Data from the global cruise market sales channels shows that offline transactions will account for more than three-quarters of total sales in 2023, indicating that online companies still have a lot of room for growth in the industry. This is because travelers usually prefer to talk to an agent rather than buying a cruise trip online themselves, as the booking process can be more complicated due to the variety of options.

Booking Holdings global revenue from 2007 to 2023 (in billion US dollars). Data source: Statista.com

What travel products do consumers book online?

According to Statista Consumer Insights Global, in 2023, hotels are the most commonly booked travel product online in the United States, while in India, long-distance train tickets rank first in online booking of travel products. This shows that regional differences are crucial to the online travel market. In this sense, the popularity of brands will also vary significantly depending on the geographical environment. By 2023, Booking.com is by far the preferred brand for online hotel bookings in Germany, but in China it pales in comparison to Ctrip, with 70% of Chinese consumers booking hotels online through the latter's brand.