Travel Agencies Market Size, Share, Growth, and Industry Analysis, By Types (International and Domestic Airline Bookings, Tour and Packaged Travel Bookings, Accommodation Bookings, Cruise Bookings, Car Rental, Others), By Applications (Online, Offline) , and Regional Insights and Forecast to 2035

Travel Agencies Market Size

The Global Travel Agencies Market size was USD 211.18 billion in 2025 and is projected to reach USD 245.39 billion in 2026, followed by USD 285.14 billion in 2027, and expand significantly to USD 947.79 billion by 2035. The market is exhibiting a strong growth trajectory with a CAGR of 16.2% during the forecast period of 2026–2035. Growth is supported by rising international travel participation, with over 62% of travelers preferring professional assistance for complex itineraries. Around 58% of bookings are influenced by bundled travel services, while nearly 64% of travelers value flexible booking and cancellation options. Increasing digital penetration impacts more than 66% of customer interactions, reinforcing the market’s sustained expansion.

The US Travel Agencies Market demonstrates steady growth driven by high travel frequency and strong consumer reliance on managed travel services. Nearly 61% of US travelers prefer travel agencies for international and corporate trips. Online platforms influence about 68% of booking decisions, while offline consultations still account for approximately 32% of complex travel planning. Leisure travel contributes close to 57% of total agency bookings, supported by demand for personalized and experience-driven trips. Additionally, around 49% of travelers prioritize expert guidance for insurance, documentation, and itinerary coordination, reinforcing consistent market growth.

Key Findings

• Market Size: The market expanded from USD 211.18 billion in 2025 to USD 245.39 billion in 2026 and is projected to reach USD 947.79 billion by 2035, growing at 16.2%.
• Growth Drivers: About 66% digital bookings, 59% preference for bundled services, 54% demand for flexibility, and 48% reliance on expert travel support.
• Trends: Nearly 63% mobile-based planning, 52% interest in personalized itineraries, 46% sustainable travel preference, and 41% experiential tourism adoption.
• Key Players: Booking Holdings Inc., Expedia Group Inc., Trip.com Group Limited, MakeMyTrip Limited, TUI Group & more.
• Regional Insights: North America 35%, Europe 28%, Asia-Pacific 25%, Middle East & Africa 12%, driven by travel frequency, tourism activity, and digital adoption.
• Challenges: Around 58% direct booking preference, 53% commission pressure, 47% price sensitivity, and 42% rising customer acquisition costs.
• Industry Impact: Digital platforms influence 66%, service personalization impacts 57%, operational efficiency improves 49%, and customer retention strengthens by 44%.
• Recent Developments: Nearly 55% app upgrades, 48% AI integration, 42% bundled service expansion, and 37% destination diversification adoption.

A unique aspect of the Travel Agencies Market is its evolving hybrid service model, combining digital convenience with human expertise. Approximately 64% of agencies now operate omnichannel platforms, enabling seamless transitions between online and offline engagement. Around 51% of travelers seek agencies for risk mitigation, including disruptions and itinerary changes. Corporate travel compliance drives nearly 39% of managed bookings, while group and event-based travel contributes about 34%. This balanced integration of technology, personalization, and trust-driven services continues to redefine the competitive positioning of travel agencies globally.

Travel Agencies Market Trends

The Travel Agencies Market is undergoing a significant transformation driven by changing traveler behavior, digital adoption, and demand for personalized travel experiences. More than 65% of travelers prefer customized travel packages rather than standard itineraries, highlighting the growing importance of tailored services offered by travel agencies. Online and hybrid booking models account for over 70% of customer interactions, while nearly 55% of consumers still rely on offline agents for complex international travel planning, visa assistance, and group tours. Experiential tourism influences close to 60% of booking decisions, with travelers prioritizing cultural immersion, adventure travel, and wellness tourism. Mobile-based bookings contribute nearly 50% of total inquiries, indicating a strong shift toward app-based and omnichannel engagement strategies.

Sustainable tourism is another major trend shaping the Travel Agencies Market, as approximately 48% of travelers actively seek eco-friendly accommodations and low-impact travel options. Corporate travel recovery has strengthened demand, with business-related bookings contributing nearly 40% of agency-managed travel volumes. Social media and influencer-driven inspiration impacts more than 58% of leisure travel planning, increasing the role of digital marketing for travel agencies. Additionally, flexible cancellation policies influence nearly 62% of purchasing decisions, reflecting consumer preference for risk-free planning. These trends collectively position the Travel Agencies Market for continued evolution through service diversification, digital integration, and customer-centric travel solutions.

Travel Agencies Market Dynamics

OPPORTUNITY

Expansion of Customized and Experiential Travel Services

The Travel Agencies Market holds strong opportunity potential through the expansion of customized and experiential travel offerings. Around 67% of travelers prefer personalized itineraries over standard travel packages, creating demand for destination-specific planning and niche experiences. Nearly 54% of leisure travelers show interest in cultural, adventure, and wellness-focused trips arranged by professional agencies. Group and family travel preferences account for approximately 36% of customized bookings, while premium travelers represent close to 41% of demand for curated services. Digital personalization tools improve booking conversion rates by nearly 48%, enabling agencies to enhance customer satisfaction and long-term engagement.

DRIVERS

Increasing Preference for End-to-End Travel Management

A key driver for the Travel Agencies Market is the growing preference for end-to-end travel management solutions. Nearly 71% of international travelers rely on agencies for itinerary coordination, documentation support, and travel insurance assistance. Corporate and business travel contributes about 39% of professionally managed bookings due to compliance and scheduling complexity. Customer reliance on expert guidance influences almost 62% of repeat bookings, while bundled services improve traveler confidence by nearly 45%. These factors continue to strengthen the role of travel agencies in both leisure and business travel planning.

RESTRAINTS

"Rising Adoption of Direct and Self-Service Booking Platforms"

The Travel Agencies Market faces restraints due to the growing adoption of direct and self-service booking platforms. Approximately 58% of travelers prefer booking flights and accommodations directly through digital platforms to access instant confirmations and loyalty benefits. Price comparison tools influence nearly 64% of consumers to bypass intermediaries. Budget-conscious travelers account for about 47% of self-planned trips, limiting agency involvement in low-cost travel segments. Additionally, simplified online booking interfaces reduce reliance on traditional agents for basic travel needs.

CHALLENGE

"Intensifying Competition and Declining Commission Structures"

Intensifying competition presents a major challenge for the Travel Agencies Market, particularly from online platforms and digital aggregators. Nearly 53% of travel agencies experience pressure from reduced commission structures. Customer acquisition costs have increased by around 42% due to heavy reliance on digital marketing channels. About 49% of travelers compare multiple booking options before making decisions, lowering brand loyalty. These factors challenge agencies to differentiate through service quality, specialization, and long-term customer relationship strategies.

Segmentation Analysis

The Travel Agencies Market segmentation highlights varied demand patterns across service types and applications, reflecting diverse traveler needs. The Global Travel Agencies Market size was USD 211.18 Billion in 2025 and is projected to touch USD 245.39 Billion in 2026, expanding further to USD 947.79 Billion by 2035, exhibiting a CAGR of 16.2% during the forecast period. Service-based segmentation shows higher adoption of bundled travel solutions, while application-based segmentation reflects a steady shift toward digital engagement alongside the continued relevance of offline channels for complex travel planning. Each segment contributes uniquely to overall market expansion through specialization, accessibility, and customer-centric service delivery.

By Type

International and Domestic Airline Bookings

Airline bookings form a core component of the Travel Agencies Market due to frequent travel demand and itinerary complexity. Nearly 46% of travelers rely on agencies for multi-leg and international flight planning, while about 38% use agents for fare comparison and seat selection support.

International and Domestic Airline Bookings accounted for approximately USD 95.03 Billion in 2025, representing nearly 45% market share, and this segment is expected to grow at a CAGR of around 15.8%, supported by rising passenger traffic and demand for managed travel services.

Tour and Packaged Travel Bookings

Tour and packaged travel bookings benefit from growing interest in curated experiences and group travel. Around 41% of leisure travelers prefer pre-arranged packages for convenience, while nearly 34% opt for guided tours to reduce planning effort.

Tour and Packaged Travel Bookings generated about USD 52.79 Billion in 2025, accounting for nearly 25% share, and are projected to grow at a CAGR of about 16.9%, driven by experiential tourism and family travel demand.

Accommodation Bookings

Accommodation bookings through travel agencies remain relevant for travelers seeking bundled deals and verified options. Approximately 36% of customers book hotels via agencies to access negotiated rates and flexible options.

Accommodation Bookings contributed roughly USD 31.68 Billion in 2025, holding around 15% share, and are expected to expand at a CAGR of nearly 15.2%, supported by cross-selling with flight and tour services.

Cruise Bookings

Cruise bookings rely heavily on travel agencies due to itinerary complexity and onboard experience planning. Nearly 58% of cruise travelers prefer agency support for cabin selection and excursion planning.

Cruise Bookings accounted for about USD 19.01 Billion in 2025, representing close to 9% share, and are projected to grow at a CAGR of approximately 17.4%, supported by rising interest in leisure cruising.

Car Rental

Car rental services through travel agencies support destination mobility and bundled travel needs. Around 29% of travelers add car rentals through agencies for convenience and cost efficiency.

Car Rental services generated nearly USD 8.45 Billion in 2025, capturing about 4% share, and are expected to grow at a CAGR of roughly 14.6%, supported by increasing self-drive tourism.

Others

Other services include travel insurance, visa assistance, and event-based travel planning. Approximately 22% of travelers use agencies for these ancillary services.

The Others segment contributed around USD 4.22 Billion in 2025, accounting for nearly 2% share, and is projected to grow at a CAGR of about 13.9%, driven by value-added service demand.

By Application

Online

Online applications dominate customer engagement through mobile apps and web platforms, offering convenience and real-time access. Nearly 63% of travelers prefer online interaction for initial planning and bookings, reflecting strong digital adoption.

The Online segment accounted for approximately USD 133.04 Billion in 2025, representing about 63% share, and is expected to grow at a CAGR of nearly 17.1%, supported by mobile usage and digital personalization.

Offline

Offline applications remain important for complex itineraries, group travel, and personalized consultation. About 37% of travelers continue to rely on physical agency offices for trust-based planning.

The Offline segment generated around USD 78.14 Billion in 2025, holding close to 37% share, and is projected to grow at a CAGR of roughly 14.8%, supported by demand for expert guidance.

Travel Agencies Market Regional Outlook

The Travel Agencies Market shows strong regional diversification supported by travel infrastructure, tourism activity, and digital adoption. Based on a global market size of USD 245.39 Billion in 2026, regional performance varies by travel frequency, consumer spending patterns, and service penetration. North America and Europe benefit from established travel networks, while Asia-Pacific and Middle East & Africa show rising momentum driven by tourism growth and expanding middle-class travel demand.

North America

North America demonstrates high adoption of managed travel services due to frequent domestic and international travel. Around 62% of travelers in the region use agencies for corporate and long-haul travel planning, while leisure travel contributes nearly 44% of bookings.

North America accounted for approximately 35% market share in 2026, equivalent to nearly USD 85.89 Billion, supported by strong business travel activity and advanced digital booking platforms.

Europe

Europe benefits from cross-border travel demand and strong tourism inflows. Nearly 58% of European travelers rely on agencies for multi-country itineraries, while packaged tours account for about 39% of bookings.

Europe held around 28% share in 2026, translating to nearly USD 68.71 Billion, driven by cultural tourism and regional connectivity.

Asia-Pacific

Asia-Pacific shows rapid expansion due to rising disposable income and outbound tourism. Approximately 47% of travelers use agencies for international travel planning, while digital bookings influence nearly 55% of customer interactions.

Asia-Pacific represented about 25% market share in 2026, equal to roughly USD 61.35 Billion, supported by growing tourism demand and expanding online platforms.

Middle East & Africa

Middle East & Africa experiences steady growth driven by tourism investments and increasing inbound travel. Nearly 42% of travelers use agencies for visa processing and destination management services, while leisure travel demand continues to rise.

Middle East & Africa accounted for approximately 12% share in 2026, amounting to nearly USD 29.45 Billion, supported by regional tourism development and expanding travel infrastructure.

List of Key Travel Agencies Market Companies Profiled

Investment Analysis and Opportunities in Travel Agencies Market

Investment activity in the Travel Agencies Market continues to accelerate as digital transformation and travel recovery reshape industry priorities. Nearly 64% of travel agencies are increasing investments in technology platforms to enhance booking efficiency and customer experience. Around 52% of investors focus on mobile-first solutions and artificial intelligence-based personalization tools. Sustainable tourism initiatives attract close to 41% of new investments, reflecting growing consumer preference for eco-conscious travel. Additionally, approximately 47% of funding is directed toward expanding regional presence in emerging travel destinations. Partnerships between agencies and hospitality providers influence nearly 38% of strategic investments, improving bundled service offerings. These trends highlight strong opportunities for investors targeting digital innovation, experiential travel, and scalable service models within the Travel Agencies Market.

New Products Development

New product development in the Travel Agencies Market emphasizes personalization, flexibility, and digital convenience. Nearly 58% of agencies have introduced dynamic travel packages that allow real-time customization. Subscription-based travel services appeal to around 34% of frequent travelers seeking cost predictability. Mobile app enhancements account for nearly 62% of product upgrades, focusing on seamless booking and itinerary management. Virtual assistance and chatbot integration support about 46% of customer interactions, improving response efficiency. Additionally, around 39% of agencies have launched sustainable travel packages aligned with responsible tourism preferences. These developments reflect continuous innovation aimed at improving traveler engagement and operational efficiency.

Developments

• In 2024, several leading travel agencies expanded artificial intelligence-driven recommendation engines, improving itinerary accuracy for nearly 48% of users and increasing engagement across digital platforms.

• Major players enhanced mobile application features in 2024, resulting in approximately 55% higher app-based interactions and improved booking conversion rates.

• Strategic partnerships with airlines and hotels increased bundled travel adoption by nearly 42% in 2024, improving customer retention and cross-selling efficiency.

• Travel agencies introduced flexible cancellation and rebooking tools in 2024, influencing about 61% of customer purchase decisions and improving trust levels.

• Expansion into emerging destinations during 2024 contributed to nearly 37% growth in regional inquiries, supporting diversification of travel offerings.

Report Coverage

This report provides comprehensive coverage of the Travel Agencies Market, analyzing market structure, service segmentation, application trends, regional performance, and competitive landscape. The study includes an overview of strengths such as high digital adoption, influencing nearly 63% of booking behavior, and strong customer reliance on professional travel planning for complex itineraries at about 59%. Weaknesses include dependency on commission-based revenue models affecting nearly 51% of agencies. Opportunities are identified in personalized travel solutions, with approximately 67% of travelers preferring customized experiences. Threats include intense competition from self-service platforms, impacting around 58% of traditional agencies.

The report further examines operational strategies, innovation trends, and customer behavior patterns shaping demand. Regional analysis highlights differences in travel frequency, service preferences, and technology penetration. Competitive analysis evaluates key players based on service portfolio, market reach, and innovation focus. Overall, the report delivers strategic insights supported by percentage-based data, enabling stakeholders to assess market positioning, identify growth areas, and develop informed business strategies within the evolving Travel Agencies Market.