The global travel technology market is anticipated to achieve a valuation of US$ 13 billion by 2033, expanding at 8% CAGR over the next ten years.
Travel technology is applicable in information and communication technology employed in the travel and hospitality sectors. Solution providers offer various software and applications to travel companies to plan and book flights and tours, facilitate seamless transactions, and for other tour-related processes. The airline industry widely uses travel technology solutions, which rely heavily on online reservation systems.
Substantial development in the travel and tourism sector and an increasing requirement for automation across industries are major factors propelling the global demand for travel technologies. Moreover, the growing adoption of SaaS-based models and artificial intelligence (AI) is fueling market growth. AI provides interactive conversational systems, such as chatbots and virtual support agents, that can directly address the consumer’s needs, improving their overall experience.
Technological improvements such as the use of recognition technologies, incorporation with the internet of things (IoT), and the adoption of smart devices are having a beneficial impact on market growth. Numerous facial and fingerprint recognition technologies are used in hotels and other public areas to automate payment processes, check-in, and check-out. Other factors, such as rapid urbanization, rising consumer spending power, and intensive R&D activities, are expected to bolster market growth over the coming years.
The global travel technologies market is valued at US$ 6 billion in 2023. Worldwide demand for travel technologies is estimated to evolve at a CAGR of 8% from 2023 to 2033 (forecast period). The global market is forecasted to garner US$ 13 billion by 2033. The global distribution system (GDS) segment is projected to evolve at a CAGR of 6.1% from 2023 to 2033. North America captured a 39% share of the global market in 2022.
“The main factors boosting global travel technologies market growth are steadily expanding travel & tourism industry, rising demand for online travel bookings, and increasing usage of advanced technologies such as AI and IoT,” says a Fact.MR analyst.
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, a travel technology portal, 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.
North America is leading the global travel technologies market and is expected to continue to do so throughout the forecast period as well. The presence of significant players with advanced technologies is massively contributing to regional market growth. Moreover, the United States is the leading market in the North American region.
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