Travel Technologies Market

Travel Technology Market Outlook (2023 to 2033)

Global demand for travel technologies is estimated to increase at a CAGR of 8% from 2023 to 2033. Currently, the global travel technologies market is valued at US$ 6 billion and is predicted to reach a market size of US$ 13 billion by the end of 2033.

Travel technology is the use of information and communication technology in the tourism, travel, and hospitality industries. It enables enterprises to automate numerous activities such as booking & tracking flights, tours, and hotels, and providing a common interface to connect travel agents with customers. It also assists in building personalized plans, locating the best pricing & schedules, handling travel insurance, converting currency, and providing travel tips to customers.

The COVID-19 pandemic had a substantial impact on the travel, tourism, and aviation industries. As a result, the demand for travel technologies dropped precipitously in 2020. Nevertheless, the global market is predicted to recover and grow speedily over the next ten years as governments increase their efforts to boost the economy and get control of the pandemic.

Key technologies used for travel automation technology are Big Data and the Internet of Things (IoT). Big data is a necessity in modern tourism management, and practically all successful organizations employ their own data collection methodologies.

Improving personalization is one of the most common uses of this data, with travel companies employing the information to make exact improvements to their offerings, resulting in economic development. The analysis of actual market results is another beneficial application of big data.

For example, hotel owners can use big data for revenue regulation purposes, leveraging historical occupancy rates and other prior indicators to estimate demand levels. When demand is predictable, pricing and marketing strategies can be customized to provide better services to customers.

One of the most intriguing breakthroughs in travel technology is the IoT, which involves internet-based connectivity between ordinary gadgets that allows them to both send and receive data. People are already seeing signs of its prominence in the travel and tourism market, which will only grow in the coming years.

IoT technology, for example, can be utilized in hotel rooms to provide guests with a system that links everything from heaters to air conditioning and lighting, allowing everything to be controlled from a single location. Likewise, baggage boxes can be outfitted in airports with sensors that alert passengers as they walk past. Smarter airports are another area where IoT can be deployed. All of these advantages and expanding applications brought about by technological improvements contribute to market expansion.

Report Attributes	Details
Travel Technology Market Size in 2023	US$ 6 Billion
Projected Market Value (2033)	US$ 13 Billion
Global Market Growth Rate (2023 to 2033)	8% CAGR
North American Market Share (2022)	39%
Global Distribution System (GDS) Segment Growth Rate (2023 to 2033)	6.1% CAGR
Key Companies Profiled	Amadeus IT Group, S.A Qtech Software Pvt. Ltd Navitaire LLC Kaptio Travel Lemax Ltd mTrip Expedia Group TravelWorks Dolphins Dynamics Sabre Corporation

Why is Demand for Travel Technology Solutions Intensifying?

“Increasing Usage of Artificial Intelligence in Travel Industry”

When AI-enabled platforms have the necessary volume of back-end data to derive insights, they deliver the intended results. The travel industry produces a significant amount of customer data. Vendors are introducing AI capabilities into their offerings to customize products and services.

Travel companies have recognized the value of AI technology, both in regard to service cost reduction and the possibility of leveraging it as a new sales channel to boost revenue. As a result, travel businesses have begun to invest in sophisticated conversational platforms that can handle their consumers' demands without requiring human participation.

AI can also assist in optimizing and automating business travel bookings by giving travel managers instant access to the most cost-efficient and rewarding alternatives for their travel programs.

Which Factor Can Adversely Impact the Market for Travel Technologies?

“Growing Concerns over Cybersecurity”

The travel and hospitality industry has a vast amount of vital customer data, such as online financial activities and personally identifiable information (PII). Online transactions carry data security and privacy risks. There have been various data leaks in the travel and tourism industry.

• For example, customer data, such as credit card information, was taken from two major airlines, Cathay Pacific and British Airways, in 2019.

Data security is critical for both hospitality and travel service providers and vendors. As a result, cybersecurity is an obstacle to the expansion of the worldwide market.

Country-wise Insights

Why is the United States a Leading Market for Travel Technologies?

“High Adoption of Sophisticated Travel Technologies & Solutions”

North America stood for 39% of the worldwide market for travel technologies in 2022. The United States is dominating the North American market due to the increased adoption of sophisticated travel technology solutions by travel agencies and enterprises to reduce travel expenditure and the growing demand for the implementation of real-time changes in travel plans.

Which Countries are Fostering Market Expansion in Asia Pacific?

“South Korea & Japan Key Markets in the Region”

The Asia Pacific market is growing at a rapid pace. The regional market expansion is ascribed to factors such as strong economic growth, rising middle-class spending, a greater emphasis on generating new experiences, and a growing urban population. People are prepared to spend more on travel and tourism, once considered luxury, as their disposable income rises.

Moreover, South Korea and Japan are promoting Asia Pacific market expansion due to the increased adoption of SaaS-based models. Organizations in these countries are increasingly using robotic process automation (RPA) to simplify and automate process applications, manage bookings, and documentation to reduce human errors.

What is Germany's Contribution to the European Market?

“Germany Witnessing High Usage of Travel-related Solutions”

The European market is witnessing considerable growth. Airlines and hotel chains in the region are increasing their efforts to create and implement innovative technologies like online ticketing, self-service kiosks, automated check-in, and customer care applications.

Germany is making substantial contributions to the European market due to the increasing utilization of advanced technologies by local travel companies, such as big data analytics, artificial intelligence, and machine learning, to collect vital information and insights and offer enhanced services to potential tourists.

Category-wise Insights

Why is GDS the Leading Product in This Space?

“Several Advantages of GDS Driving Their Popularity”

Demand for a global distribution system (GDS) is expected to progress at a CAGR of 6.1% over the next ten years. GDS is a computerized reservation system used by travel companies, travel agents, and airlines to simplify the purchase of travel services like flights, hotels, vehicle rentals, and other services. GDS serves as a central repository for information on availability, pricing, and bookings, enabling customers and travel agents to access the same information.

GDS allows travel and hospitality service firms to broaden their global customer base. With the new distribution capabilities, travel agents can obtain comprehensive content about travelers to assist airlines in providing personalized offers. Several vendors provide add-on services and solutions with their GDS to travel service providers to assist them in efficiently placing their offers.

Demand for airline and hospitality IT solutions is also increasing. Airline and hospitality IT solutions are designed to assist hotels, airlines, resorts, and other hospitality companies in streamlining and optimizing their operations. These solutions automate customer-facing procedures by utilizing cutting-edge technology such as cloud computing and artificial intelligence, allowing the travel and hospitality industry to serve their customers better.

Competitive Landscape

The global market is highly competitive. Key players in the travel technologies market are competing for market share. With the expansion of the travel and tourism business, competition has intensified, resulting in a slew of mergers and acquisitions. Moreover, intense competition in the worldwide market is projected to push established vendors to expand their market position through strategic partnerships. Furthermore, numerous start-ups are focusing on new developments to address long-standing issues.

• Deal Engine, a Miami-based start-up, is addressing a well-known issue for airlines and their customers: post-booking flight adjustments. Historically, airlines have contracted pricey contact centers to handle many of their customers' change requests, which became onerous during the pandemic.
• EaseMyTrip.com, one of India's major travel technology portals, launched a self-booking tool for corporates in November 2022. This tool uses AI technologies such as machine learning and data mining to make it more effective and resourceful. Corporates and business travellers can easily book their travels utilizing this tool since it simplifies their booking process.
• MakeMyTrip (MMT) developed a new and revolutionary payment model called 'Book Without Payment' in October 2022, which allows international and domestic travellers to book a hotel without making any advance payment.
• American Express Global Business Travel (GBT) and Sabre launched a multi-faceted strategic partnership in December 2021 with the goal of developing innovations that would help define the future of corporate travel distribution. Under the terms of the agreement, which went into effect in January 2022, the corporation increased its commitment to Sabre and committed to a multi-million-dollar, long-term annual investment in collaborative technology development with Sabre.
• Booking Holdings Inc. announced in December 2021 that it had completed its previously announced USD 1.2 billion acquisition of Getaroom from Court Square Capital Partners. Getaroom is a business-to-business hotel room distributor that has amalgamated with Booking Holdings Inc.

Key Segments of Travel Technologies Industry Research

• By Product :

  • Global Distribution System (GDS)
  • Airline & Hospitality IT Solutions

• By Application :

  • Travel Industry
  • Tourism Industry
  • Hospitality Industry

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa