The global traditional travel agency market size was valued at $143.9 billion in 2022, and is projected to reach $212.9 billion by 2032, growing at a CAGR of 3.7% from 2023 to 2032, according to new research.
The LAMEA (Latin America, Middle East and Africa) region is expected to witness the fastest growth - CAGR of 4.2% -- from 2023 to 2032, says the Allied Market Research report.
The global traditional travel agency market is expanding rapidly due to changing consumer preferences and behaviour, complex travel itineraries, and growing demand for one-to-one consultation, says the report.
However, the market for traditional travel agencies is significantly constrained by costs and commission pressure. On the other hand, personalised traveling experiences are creating lucrative opportunities for the growth of the global traditional travel agency market, it says.
Traditional travel agencies have been crucial players in the travel industry, aiding both individuals and organisations in the planning, booking, and management of their journeys while offering an array of travel-related services. Their expertise and personalised guidance have made them an integral and noteworthy part of the travel sector, says the report.
The process of planning a vacation can frequently be a time-consuming task, especially when an individual is faced with a vast array of online options. Travel agencies streamline this process by offering thoughtfully selected choices that align with preferences and budget, it says.
Transportation segment to maintain leadership
By service types, the transportation segment held the highest market share in 2022, accounting for more than two-fifths of the global traditional travel agency market revenue and is estimated to maintain its leadership status throughout the forecast period.
"The demand for transportation services is on the rise within the traditional travel agency market. Travellers seek the convenience of expertly curated transportation options that align with their personalised itineraries," it says.
The travel accommodation segment, however, shows the fastest CAGR of 5% during the forecast period. Travel accommodation services are experiencing a surge in demand within the traditional travel agency market. As travellers seek curated and hassle-free experiences, these agencies play a pivotal role in securing accommodations that align with individual preferences and travel plans.
The 22-31 years segment
By age group, the 32-43 years segment held the highest market share in 2022, accounting for around one-third of the global traditional travel agency market share and is estimated to maintain its leadership status throughout the forecast period. The same segment would showcase the fastest CAGR of 4.7% during the forecast period. The demand from the 32-43 age group is increasing in the traditional travel agency market due to their specific needs as working professionals and family-oriented travellers.
Europe to maintain dominance
By region, Europe held the highest market share in terms of revenue in 2022, contributing to more than one-third and is likely to dominate the market during the forecast period. With a diverse range of destinations and travel preferences, North American travellers turn to agencies for curated experiences, family trips, and niche travel segments. The market continues to evolve, adapting to digital trends while maintaining its appeal through face-to-face interactions and customised planning for a variety of travellers.
The demand for the traditional travel agency market is on the rise in the LAMEA region due to several factors. With its rich cultural diversity and varied landscapes, travelers seek expert assistance to navigate the intricacies of travel choices, the report said. - TradeArabia News Service
