Online Travel Industry: Top 3 Developments, Amazon and Google Emerging as the New Giants

Published By : 05 Jan 2016 | Published By : QYRESEARCH

The travel industry is predicted to exhibit a healthy growth in the forecast period starting from 2014 to 2019 and is fuelled by the growing tourism.  The countries in Asia Pacific are predicted to exhibit robust performances within the travel industry. The category of online travel is presently encountering swift changes with personalization, mobile channel, and peer to peer travel services emerging as major disruptors. The increasing mobile channel, in particular, is changing consumer behaviors, booking patterns, and business models within the travel industry. The arrivals of global tourists are predicted to expand at a CAGR of 4.0% from 2014 to 2019 and is fuelled by the region of Asia Pacific.  The arrivals of global tourists accounted for 899 mn in 2009 and are expected to reach 1.4 bn trips by 2019.

  • China to Strengthen its Leadership: The Chinese economies’ downfall isn’t predicted to impede the market for tourism in China. In addition, intra-regional travel is on the rise. However, long-haul international travel will also grow within China.
  • Swift Development of the Category of Online Travel: The online travel has encountered a swift development having personalization, mobile channel, and peer to peer travel services on the lead. In addition, mobile applications for online bookings are more convenient and will be highly preferred in the coming years owing to busy lifestyles of customers. The mobile channel is expanding swiftly within the travel industry. The overall sales of mobile travel stood at US$96 bn in 2014 and are predicted to touch US$260 bn by 2019, which is 25% of overall online travel bookings.
  • Rising Consolidation Seen in Online Travel Agencies: The Priceline Group and Expedia have been fuelling consolidation with the category of online travel agencies. This is posing a challenge to a number of direct suppliers, particularly hotels and to other intermediaries. Google and TripAdvisor have also entered the space of travel bookings.

The established online companies such as Amazon and Google may emerge as biggest threats for the already present industry giants. Recently, Amazon has introduced its travel site, named Amazon Destinations which helps customers in booking and locating hotels within their driving distances. Thus, the online travel industry is poised to grow exponentially in the coming years.

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