The global online travel agencies IT spending market size is estimated to grow by USD 1.73 billion from 2021 to 2026, according to Technavio. The market is estimated to grow at a CAGR of 15.22% during the forecast period.
The growth of the market is driven by factors such as increasing internet and smartphone penetration, increasing consolidation of online travel agencies, and differential packaging methods used by vendors. For more insights on the market size (2022 to 2026) - Request a sample report
Governments in developed and developing countries are taking various initiatives to increase the accessibility of the internet to citizens. In addition, the rising adoption of smartphones has increased the number of internet users. This has encouraged online travel companies to launch innovative and user-friendly mobile applications to attract more customers. Some travel companies are partnering with mobile phone companies to provide special edition apps and offers for customers. All these factors are driving the growth of the market.
The growth of the market in the software spending segment will be significant during the forecast period. Many travel enterprises are adopting cloud-based IT solutions to reduce costs, improve flexibility, enhance customer service, and adopt advanced technologies. This is increasing the adoption of spending on software solutions for marketing, selling, serving, and operating functions among enterprises. These factors are driving the growth of the segment.
North America will account for 39% of the market growth during the forecast period. Expanding baby boomer population, increasing significant growth in disposable incomes, and increasing expenditures in leisure and traveling activities are driving the growth of the regional market.
Leading trends influencing the market
-The increasing adoption of online payment platforms is the key trend in the market.
-Online payments are increasingly becoming popular among consumers.
Banks and financial institutions are securing their websites with secure socket layer certificates to benefit their customers.
-Search engines such as Google continuously provide updates to create awareness among online users about the security offered by various websites and web pages.
-All these factors are increasing the number of online transactions worldwide, which is expected to have a positive impact on market growth.
Major challenges hindering the market growth
-Disruptions in travel demand is identified as the major challenge affecting the growth of the market.
-Disruptions in travel happen due to various factors such as increase in airline pricing, hotel pricing, and natural calamities.
-Many customers book tickets and other amenities, and later cancel these services due to various reasons.
-During natural calamities, local governments impose restrictions on traveling.
-Such instances create significant losses to vendors and negatively impact market growth.