The market for travel agency services is expected to grow to USD 518.8 billion in 2025 and reach USD 1.4 trillion by 2035 at a CAGR of 10.4% during the period 2025 to 2035. Growing demand for customized travel experiences, guided tours, and high-end vacation planning is fuelling the market. Consumers are looking for more customized travel itineraries, adventure trips, and offbeat cultural experiences worldwide.
Travel agencies are shifting by broadening their services to accommodate varied requirements. Top travel firms such as TUI Group and Expedia are seeing more bookings for personalized travel packages featuring local activities, private guides, and private tours. Meanwhile, specialist agencies such as Abercrombie & Kent are providing luxury, high-end trips with customized itineraries catering to demanding clients seeking unique travel experiences.
The growth of experiential travel is also worth mentioning, with consumers choosing to immerse themselves in local cultures, food tours, and environmentally friendly holidays. Operators such as Intrepid Travel and G Adventures are prioritizing sustainable tourism through providing group holidays that prioritize the environment, supporting local communities, and genuine experiences. In addition, adventure tourism, involving activities such as trekking, safaris, and adventure sports, has recorded huge growth, targeting adventure seekers across the globe.
Luxury travel companies are experiencing a boom in demand, with high-net-worth clients increasingly booking private yacht charters, luxury safaris, and private island escapes. Companies like Black Tomato and Scott Dunn are providing one-off, high-end experiences, ranging from private helicopter flights over the Alps to tailor-made trips to far-flung locations in Antarctica. On the lower-cost end, players such as Priceline and Kayak are offering value-conscious travellers affordable choices, such as cheap airfares, last-minute bargains, and cheap vacation packages.
As digital technology advances, travel agencies are utilizing AI to provide customized trip planning services. Online websites and mobile applications are transforming the way customers plan their travel, with data suggesting tailored destinations, hotels, and activities. Virtual tours and AI-based travel suggestions are changing the manner in which tourists plan and experience their holidays, making the travel experience smooth and immersive.
Travel Agency Services Market Insights
| Attribute | Details |
|---|---|
| Current Travel Agency Services Market Size (2024A) | USD 471.2 Billion |
| Estimated Travel Agency Services Market Size (2025E) | USD 518.8 Billion |
| Projected Travel Agency Services Market Size (2035F) | USD 1.4 Trillion |
| Value CAGR (2025 to 2035) | 10.4% |
| Market Share of Top Players in 2024 | ~38%-42% |
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The market for travel agency services has been growing steadily, with a CAGR of 10.4% between 2020 and 2024, reaching a market size of an estimated USD 471.2 billion in 2024. The momentum is anticipated to sustain at a similar CAGR between 2025 and 2035, with the market expected to grow to USD 1.4 trillion by 2035.
A number of forces are driving this growth. Travelers are becoming more interested in custom and immersive travel, booking specially designed itineraries, adventure holidays, and luxury trips. Travel agencies have adapted by creating custom-made travel packages that cater to the personal interests and needs of their customers. Major travel sellers such as TUI Group and Expedia are providing more holistic travel experiences, including guided holidays, local immersion, and distinctive adventure activities, in order to capitalize on increasing demand.
Specialty travel services are also on the rise. Operators such as Abercrombie & Kent continue to entice high-end travellers with high-end trips, such as private yacht cruises, private safaris, and island hideaways.
Conversely, operators such as Intrepid Travel and G Adventures are building momentum with environmentally-aware travellers by providing eco-sensitive travel packages that focus on green accommodations and community-based cultural immersion. Adventure travel too is flourishing, with operators providing off-the-beaten-path experiences such as Himalayan treks, African safaris, and adventure sports in out-of-the-way places.
Luxury travel companies have transformed to serve high-net-worth travellers who desire handpicked, unique experiences. High-end tour operators such as Black Tomato and Scott Dunn create tailor-made itineraries, including private helicopter flights over the Alps or handpicked trips to Antarctica. Meanwhile, mid-market travel companies such as Priceline and Kayak are massifying travel by offering affordable options, including reduced fares on flights, last-minute holiday packages, and group tours at reasonable prices.
Technology keeps improving the market, with travel agencies using AI and machine learning to develop customized recommendations for their customers. AI tools now match tourists with destinations, accommodations, and activities according to their interests, offering a more tailored travel planning experience. Moreover, digital platforms enable tourists to view virtual tours, giving them insights into destinations prior to booking.
As the demand for experiential and customized travel increases, the market for travel agency services will continue to grow. Travel agencies with customized itineraries, eco-travel options, and cutting-edge technology will continue to lead the industry in the next ten years.
Comparative Analysis: In-Person Booking vs. Online Booking in Travel Agency Market (2020 & 2024, 2025 & 2035)
| Year | In-Person Booking vs. Online Booking |
|---|---|
| 2020 | The global travel agency market saw a significant decline in in-person bookings due to the COVID-19 pandemic, with travel restrictions and safety concerns limiting physical office visits. Brick-and-mortar agencies experienced lower foot traffic as many consumers cancelled or postponed trips. However, the market saw a sharp increase in online bookings, driven by the need for flexibility, safety, and convenience. E-commerce platforms like Expedia, Booking.com, and Airbnb saw substantial growth, as travellers shifted to digital platforms to secure their travel plans. |
| 2024 | In-person bookings began recovering as travel restrictions eased and confidence in travel returned. In-person bookings continued to serve high-net-worth individuals and travellers seeking personalized services, particularly within luxury travel segments. Travel agencies catered to these needs by offering exclusive, customized itineraries. However, online bookings remained the dominant method for the majority of travellers. AI-powered platforms like Skyscanner and Kayak offered personalized travel suggestions, while virtual tours and augmented reality became integral tools for planning. |
| 2025 | In-person bookings are still catering to specific traveller needs, such as luxury or highly tailored itineraries, and travel agencies are offering hybrid models that blend both in-person and online interactions. This allows clients to access both personalized consultations and the convenience of digital booking options. Meanwhile, online bookings are forecasted to further dominate the market, with advancements in AI helping to provide more personalized recommendations, flexible cancellation policies, and seamless payment solutions. |
| 2035 | In-person bookings will likely become a niche service, catering mainly to affluent travellers seeking exclusive and highly customized experiences. Agencies will offer immersive, one-on-one consultations, and VIP services to a select clientele. On the other hand, online bookings will continue to lead the market. Advanced technologies like virtual reality, augmented reality, and AI will redefine the booking process, allowing for fully immersive, real-time travel previews and highly personalized trip planning experiences. |
The market for travel agencies has experienced a dramatic change in how travellers plan their trips, especially between offline and online means. In 2020, the outbreak of the COVID-19 pandemic severely affected offline bookings. Offline travel agencies witnessed a drastic drop in traffic, with lockdowns and travel bans confining face-to-face consultations.
Conversely, online bookings surged as travellers looked for convenient and secure options. Online travel sites such as Expedia, Booking.com, and Airbnb became extremely popular as customers enjoyed the convenience of booking vacations at home, with a large number using flexible, digitally-oriented solutions to organize their holidays.
By 2024, face-to-face bookings were beginning to recover as travel restrictions lifted and consumers grew accustomed to traveling once more. But face-to-face services mainly served the luxury and premium sectors of the market, where high-net-worth consumers wanted one-on-one consultations, special access travel planning, and customized itineraries. Luxury agencies started to flourish by providing customized experiences, with clients wanting one-on-one services to organize once-in-a-lifetime holidays or private events.
In spite of this revival, internet bookings continued to be the overwhelming choice, fuelled by the unabated use of digital aids. Online travel portals such as Skyscanner and Kayak employed AI to provide personalized recommendations based on past history and inclination, making the process of planning travel more convenient and personalized. Virtual tours and augmented reality excursions gained greater popularity, enabling travellers to explore destinations, lodgings, and activities prior to making a booking.
Forward to 2025 and beyond, in-person bookings will be a niche product, with high-end travellers still preferring individualized consultations. Most of the travel marketplace, though, will rely predominantly on online booking sites. Online booking sites will advance, employing the latest technology such as virtual assistants, machine learning, and AI-based tools to provide increasingly customized, frictionless booking experiences.
By 2035, internet reservations will dominate the travel market, with travellers experiencing immersive, multi-sensory travel through VR, AR, and interactive software. Reservation processes will be nearly fully automated, with websites predicting traveller choices and making suggestions ahead of time in real-time.
Overall, while in-person booking services will remain relevant for a select few, the travel agency market will be overwhelmingly digital, with technology playing a central role in delivering personalized and efficient travel experiences.
| Country | Domestic vs. International Tourists (%) |
|---|---|
| United States | 60% Domestic - 40% International |
| United Kingdom | 55% Domestic - 45% International |
| Australia | 45% Domestic - 55% International |
| Canada | 50% Domestic - 50% International |
| Germany | 65% Domestic - 35% International |
| France | 60% Domestic - 40% International |
| China | 75% Domestic - 25% International |
| Japan | 70% Domestic - 30% International |
| India | 80% Domestic - 20% International |
| Spain | 55% Domestic - 45% International |
Travel agency services continue to experience increased demand from domestic and overseas tourists alike, with each nation having different trends in the proportion of local and foreign visitors. Domestic general tourism is prominent in certain nations, while others have large numbers of international tourists seeking leisure, business, or culture travel.
The United States, United Kingdom, and Australia are the favourite destinations for English-speaking countries for international visitors, thanks mainly to their matured infrastructure, connectivity across the globe, and varied travel offerings. These countries are still extending their tourism services with a mixed base of visitors seeking everything from high-end services to low-end offers. Canada also has been balanced in the market with competitive prices and encouraging international tourism services.
Germany and France are also among the countries that provide a high percentage of domestic tourists, with both markets serving cultural, historical, and leisure travel purposes. Although these nations remain popular with foreign tourists, they also enjoy a robust domestic tourism market, especially for city breaks, nature holidays, and wellness retreats.
Asian nations like China and Japan experience a growing large domestic tourism market. Both countries are investing a lot in domestic tourism services, offering distinctive experiences for locals as well as internal travel patterns like brief stays and local culture experiences. India's middle class and domestic travel market and the country's eventual entry into the BRIC economies are set to make the nation a major force in domestic tourism within a few years. While that is so, India's cheap travel choices, religious tourism, and diverse cultural experiences appeal to foreign visitors.
Spain has a balanced combination of both internal and international visitors with its rich culture, monuments, and sun-kissed destinations. The Mediterranean nation continues to be a prime European destination for global visitors, while it also enjoys strong internal tourism, especially for city breaks, beach holidays, and gastronomic experiences.
The international travel agency services industry is also changing, with increased focus on domestic tourism in most nations, and the development of services that are specifically customized for foreign visitors. From AI-powered trip planning to cross-border collaborations, travel agencies are incorporating technology to deliver customized experiences, responding to the changing demands of tourists globally. Local or foreign, travellers are now looking for immersive and seamless travel experiences, shaping the future of the industry.
Full-service travel bookings are still the keystone of the travel agency services industry, yielding high revenues through the provision of an all-encompassing, hassle-free journey to travellers. Full-service travel bookings offer flights and accommodations right down to transport, activities, and travel insurance, appealing to leisure and business travellers alike that prioritize convenience and thorough planning.
Top-tier agencies like TUI, Expedia, and American Express Global Business Travel dominate this area by presenting customers with seamless, guided travel experiences. For instance, TUI offers expansive holiday packages that include flights, accommodations, and guided tours, making life easy for customers. Analogously, firms like Virtuoso and Abercrombie & Kent serve the luxury segment by providing customized travel arrangements, such as private jets, luxurious accommodations, and customized itineraries.
Full-service packages are particularly appealing to upscale vacation travellers, groups, and business travellers, where the convenience of a single-source solution is greatly appreciated. By serving the needs of upscale travellers and professionals with little time to spare, these services earn substantial revenue from high-end packages that bundle first-class accommodations, private tours, and other amenities.
The independent traveller market has grown substantially with an increasing number of individuals choosing self-directed, customized travel experiences. Independent travellers tend to plan and organize their travels on their own, booking flights, accommodations, and activities without the use of packaged tours. This market encompasses solo travellers, digital nomads, and adventure-seekers who are looking for authentic and flexible experiences.
Specialized agencies like Lonely Planet, Intrepid Travel, and G Adventures are doing well by providing resources for independent travellers with curated itineraries, travel guides, and local experiences. Independent travellers are attracted to places that provide cultural immersion, nature discovery, and off-the-beaten-path experiences.
With the growing ubiquity of digital resources, solo travellers are better positioned to plan and research their travels. Sites such as Skyscanner, TripAdvisor, and Airbnb have facilitated easier access to flights, places to stay, and activities in an area, allowing individuals to design their perfect travel experience. As more individuals take to the freedom of self-travel planning, the independent traveller market continues to expand and contribute heavily to the market for travel agency services.
The USA travel agency service industry remains active, with millions of foreign tourists visiting the country annually. American travel agencies are favoured by high demand for various services, including tailor-made tour packages to tours with guides, and play an important role in the economy. Key cities such as New York, Los Angeles, and Miami are the target destinations, with tourists spending on lodging, travel, meals, and leisure, thus leaving a positive impact on the economy.
USA-based full-service travel agencies like American Express Global Business Travel provide complete travel experiences, from flights to accommodation to carefully planned itineraries. This has established the USA as one of the most sought-after destinations for tourists and business travellers alike, and the agencies ride the wave of foreign tourists flocking to the country. Agency functions also flourish in specialized markets catering to specific niches like adventure travel, cultural tour travel, or eco-travel.
In addition, part-travel packages, which offer customized packages, are becoming more popular, particularly among independent tourists who prefer more control over the itinerary. Operators such as Priceline and Expedia permit tourists to make reservations for flights, accommodations, and tours separately, giving travellers a more cost-efficient and flexible alternative to experience the USA at their own convenience.
As the USA continues to hold the position of one of the leading tourist spots, the market for travel agency services keeps growing with various options catering to the different tastes of travellers. The emphasis of the government on tourism-friendly policies combined with creative technology platforms augments the strength of the market and ensures it remains at the international level.
The UK is still a top player in the travel agency services industry, welcoming millions of foreign visitors every year. Its rich heritage, world-famous landmarks, and multicultural attractions make the UK a leading destination for tourists looking for something different. UK travel agencies are responsible for coordinating a range of services, from city tours to multi-destination holidays, to provide tourists with a seamless and enjoyable experience.
Full-service agencies like Trafalgar and Insight Vacations deal in offering the whole travel experience, from accommodations to transportation and excursions to some of the UK's most popular destinations, such as London's Buckingham Palace, Edinburgh's Castle, and Stonehenge. Tourists who enjoy an all-inclusive experience find the packages highly sought after, as they get to see the best of the UK without going to a lot of trouble.
The emergence of independent travellers has created an increasing need for partial travel services, including customizable tours and self-guided tours. Companies such as Viator and GetYourGuide service this sector, providing tourists with the ability to see the UK on their own terms. Whether it's purchasing tickets for certain attractions or hiring a car for a countryside road trip, these companies offer alternatives that appeal to the varied tastes of contemporary travellers.
In addition, the UK's corporate travel sector remains robust with business travellers choosing luxury packages blending leisure and business travel. Executive travel agencies like Travel Leaders Group provide custom services ranging from upscale hotels to first-class airfare and special tours, all designed to be hassle-free for upscale clients.
The UK's affluent cultural heritage, superior infrastructure, and well-established travel agencies make it a prime destination for global tourists, keeping the travel agency services market growing steadily.
The international travel agency services market is expanding further, with major operators in the travel and tourism sector making investments in cutting-edge service products, technology-upgraded experiences, and personalized travel solutions. Major travel agencies such as Expedia, American Express Global Business Travel, and Viator are influencing the future of travel by launching customized travel packages, interactive tour experiences, and hassle-free booking technologies.
Some of the significant recent events in the market for travel agency services are
| Attribute | Details |
|---|---|
| Forecast Period | 2025 to 2035 |
| Historical Data Available for | 2020 to 2024 |
| Market Analysis | USD Million/Billion for Value |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia; East Asia; MEA |
| Key Segments Covered | Services Provided, Booking type, Tourist Type, Tour Type |
| Key Companies Profiled | Expedia Group; Booking Holdings; TUI Group; American Express Global Business Travel; Viator; CWT (Carlson Wagonlit Travel); Travel Leaders Group; Flight Centre Travel Group; BCD Travel; Priceline |
The size of the global travel agency services market in 2024 was USD 471.2 billion. The market will be USD 1.4 trillion by 2035 at a CAGR of 10.4% from 2025 to 2035.
Major drivers of growth are rising demand for tailor-made travel experiences, growing disposable incomes, the increased popularity of experiential travel, and technology-driven innovations like AI-driven booking platforms.
Major players in the travel agency services industry are Expedia Group, American Express Global Business Travel, Viator, TUI Group, and Booking Holdings.
Travel agencies are improving customer experience by providing AI-driven customized travel suggestions, virtual tours, real-time booking support, and exclusive travel experiences like local tours and cultural activities.
The major trends influencing the future are the emergence of sustainable tourism, the use of AI and machine learning to deliver personalized experiences, increases in solo and independent travel, and the use of virtual and augmented reality in destination marketing.
The market is challenged by volatile travel restrictions, increasing operating expenses, and the requirement to keep up with evolving consumer trends.
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Travel Agency Services Market
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