Exclusive extracts from this 112-page-long report:
- What is the business?
The present report covers the global travel market, covering both traditional tour operators and online travel agencies (OTAs). These players compete for a bigger slice of the €1.4bn travel market, which includes the €220bn managed corporate travel segment. Leading travel firms' offerings span all market segments, from individual to corporate, from low-cost to all-inclusive luxury resorts, and from independent travel products to packaged holidays. […]
- What are the main markets?
Over the medium term, global travel bookings are expected to increase annually by an average of more than 5%. However, this figure masks two diverging trends. On the one hand, the online travel market will keep growing faster (over 8% per year), bolstered by increased Internet usage. Today, more than 50% of travel expenditure in Europe is transacted online, with the US coming in at about 48% and emerging regions in the range of 30-40%. On the other hand, traditional competitors, which used to rely on physical retail networks, are fundamentally transforming the way they do business, increasingly investing in digital capabilities and continuing to streamline their offline footprints. [...]
- How intense is competition?
With higher and steadily growing online travel penetration, the marketplace is becoming ever more crowded, with the entrance of new competitors, big (e.g. Google) and small (local OTAs) alike. Rivalry has been further exacerbated by airlines and hotel groups that are aggressively pursuing direct online distribution of their products and services, either bypassing middlemen (both OTAs and traditional tour operators) or reducing/limiting the commissions that they can charge customers, as well as the growing success of the “sharing economy” (e.g. Airbnb). [...]