Online travel market - statistics & facts
It took less than 30 years for the online travel market to become a multibillion-dollar industry, completely revolutionizing the way we plan, book, and experience travel. This technological innovation is far from over, as shown by the recent implementation of artificial intelligence (AI) in the tourism sector.
While consumer habits change from country to country, the online segment of the global travel market looks to retain its dominance. With the increasing adoption of AI tools, the thriving mobile travel market, and a boom in the use of social media in tourism, the online travel market will likely consolidate its leading position in the years to come.
How big is the online travel market?
The online travel market size worldwide was estimated at over 640 billion U.S. dollars in 2024, a figure that is expected to grow steadily in the following years. The sales distribution in the global travel and tourism sector shows a clear picture of the pivotal role played by the online segment, with online channels generating roughly 70 percent of the total market’s revenue that year. However, not all industries rely so heavily on online sales. For example, offline transactions accounted for over three-quarters of total sales in the global cruise market in 2024, showing that online companies still have much room for growth in that industry.What are the leading players in the online travel market?
In 2024, Booking Holdings, which owns brands like Booking.com, Priceline, and Kayak, had the highest market cap of any online travel company worldwide. Not only that, but it also recorded the highest income by an online travel agency (OTA) to date, with Booking Holdings’ revenue peaking at almost 24 billion U.S. dollars in 2024. That year, the total revenue of Expedia Group, which operates brands like Expedia, Hotels.com, and Vrbo, also reached an all-time high, amounting to nearly 14 billion U.S. dollars. Meanwhile, Airbnb was less reliant on marketing than its competitors to generate sales, having one of the lowest marketing to revenue ratios of online travel agencies worldwide.What travel products do consumers book online?
According to the Statista Consumer Insights Global survey, hotels and flight tickets were the most common travel products booked online in the United States in 2024. While over one-third of U.S. consumers reported making hotel reservations online, just five percent did the same when booking train tickets for long-distance trips. In contrast, bookings for long-distance train travel ranked just behind hotels among online travel product bookings in India, showing that regional differences are paramount to the online travel market. The popularity of brands also changes significantly based on the geographical context. In 2024, Booking.com was by far the preferred brand for online hotel bookings in Germany. Meanwhile, Ctrip ranked as the most popular brand for online hotel bookings in China, whereas less than 10 percent of surveyed Chinese consumers made a hotel reservation via Booking.com.While consumer habits change from country to country, the online segment of the global travel market looks to retain its dominance. With the increasing adoption of AI tools, the thriving mobile travel market, and a boom in the use of social media in tourism, the online travel market will likely consolidate its leading position in the years to come.
