The global tourism market could grow USD 451.19 billion until 2026
Technavio today published a report revealing that the potential growth difference for the travel market between 2021 and 2026 is USD 451.19 billion. The study also predicts that the market will witness an accelerated growth momentum at a CAGR of 13.86%.
Technavio classifies the global travel market as part of the global hotel, restaurant and leisure market. Our research report has extensively covered the external factors influencing the growth potential of the main market in the coming years, which will determine the growth levels of the travel market during the forecast period.
The report provides extensive value chain analysis insights for the travel market, which providers can leverage to gain a competitive advantage during the forecast period. Key Market Dynamics:
Market Driver: Technological advancements are likely to positively influence market growth. The travel market relies on technologically advanced solutions that help travel agents and their customers access travel data, compare booking options, and book the most efficient, affordable, and convenient option. Additionally, advances in artificial intelligence (AI) have helped automate the travel booking process, eliminating the need to re-enter employee travel preferences, in turn saving time and energy. Furthermore, with the increasing digitization of payments, the travel market is gaining maximum advantage as travel bookings and payments have become easy for businesses.
Market Challenge: The spread of COVID-19 globally since the first quarter of 2020 has hampered the growth of the global travel market. The COVID-19 outbreak has become a global health emergency and has prompted companies operating around the world to halt international and domestic business travel to stop the spread of the disease. The pandemic has also led to increased health screening paperwork at airports, with delays and stricter inspections, making employee travel tedious.
Segmentation Perspectives
Revenue-Generating Prospects: Growth in travel market share by the airline segment will be significant during the forecast period. With the improvement of the global economy, there has been a simultaneous growth in the air travel industries of many countries around the world. The increased influx of airline passengers has resulted in higher revenues and associated taxes, which, in turn, have contributed to economic development. This development is expected to continue during the forecast period due to the introduction of travel packages such as package tours.
Regional Contribution: 41% of the market growth will originate from APAC during the forecast period. China and Japan are the key markets for travel in APAC. The market growth in this region will be faster than the market growth in other regions. The growing tourism industry will facilitate the growth of the travel market in APAC during the forecast period.
Source: IATA
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