Online Airline Booking Platform Market Overview
As per MRFR analysis, the Online Airline Booking Platform Market Size was estimated at 230.3 (USD Billion) in 2022.
The Online Airline Booking Platform Market Industry is expected to grow from 324.3 (USD Billion) in 2023 to 1789.24 (USD Billion) by 2032. The Online Airline Booking Platform Market CAGR (growth rate) is expected to be around 15.2% during the forecast period (2024 - 2032).
Key Online Airline Booking Platform Market Trends Highlighted
The COVID-19 pandemic imposed significant challenges on the online airline booking platform market, leading to a sharp decline in air travel and a corresponding slump in bookings. However, the industry is now experiencing a strong rebound as travel restrictions ease and consumer confidence returns. Key market drivers include the increasing adoption of mobile devices for travel bookings, the growing popularity of low-cost carriers, and the rise of online travel agents (OTAs).
Additionally, the integration of artificial intelligence (AI) and machine learning (ML) technologies enhances the user experience and provides personalized recommendations.OTAs, in particular, play a pivotal role in the market's growth. They offer a wide range of booking options, competitive pricing, and convenient booking processes, making them attractive to both leisure and business travelers. The collaboration between airlines and OTAs is expected to drive the market's expansion further in the coming years.
Figure1: Online Airline Booking Platform Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Online Airline Booking Platform Market Drivers
Rising Adoption of Digital Platforms for Travel Bookings
The primary reason for the growth of the Online Airline Booking Platform Market Industry is the rise of the online platform for booking people's flights. Consumers prefer to book the flight through an online platform to exploit its convenience, ease of booking, and wide range of options. It is expected that the trend involved in the growth process will rise in the future years. However, the increase in the use of mobile apps for airline booking is creating the availability to book flights from anywhere for people.
Growing Demand for Low-Cost Airlines
The rising preference for low-cost airlines is another huge growth-driving factor in the Online Airline Booking Platform Market Industry. Low-cost airlines provide consumers with a cheaper means of air travel, and this appeals to budget-sensitive travelers. Hence, as time goes on and the low-cost airlines continue to increase and expand their travels and frequencies, so will the demand for online airline booking platforms.
Increasing Popularity of Business Travel
What is more, the growth of the Online Airline Booking Platform Market Industry is dictated by the increased popularity of business travel. Business companies already prioritize optimization and convenience, and online airline booking platforms offer a quick way for business travelers to book their flights. In addition, business travelers often need to book a flight at the last minute, and online booking platforms help to single out available options in a few minutes.
Online Airline Booking Platform Market Segment Insights
Online Airline Booking Platform Market Booking Type Insights
The Online Airline Booking Platform Market is split into many booking types, such as domestic flight booking or international flight booking. Firstly, the domestic flight booking segment is anticipated to enjoy a larger share of the revenue by 2023. This is expected due to the fact that more people are inclined to book and use short-haul domestic flights for business or pleasure traveling within the countries. Moreover, due to the increased income and larger middle class in emerging countries, the number of people using long and short-haul flights within the destination of one country is also increasing.At the same time, the international flight booking segment is expected to grow faster in the following years.
It is explained by the larger preference of people flying long-haul and the larger sharing of people using the medium of economical airlines. Besides, due to the liberal policies implemented in some countries, the number of people traveling to international destinations is growing. Moreover, the number of international tourists and international business deals is increasing due to the globalization of the world, and the exchange of products and money is hosted by people of different countries.The exchange is lubricated by the growing use of the internet and online travel agencies. The Online Airline Booking Platform Market is expected to grow considerably in the next years.
Figure2: Online Airline Booking Platform Market, By Booking Type, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Online Airline Booking Platform Market Device Type Insights
The Online Airline Booking Platform Market is segmented by Device Type into Desktop/Laptop, Smartphones, and Tablets. Among these segments, the Desktop/Laptop segment is expected to hold the largest market share in 2023, owing to the larger screen size and more comfortable user interface. However, the Smartphones and Tablets segment is expected to grow at a faster CAGR during the forecast period due to the increasing penetration of smartphones and tablets and the growing popularity of mobile booking. In 2023, the Smartphones and Tablets segment is expected to account for a market size of around USD 280 billion, which is expected to grow to USD 520 billion by 2032 at a CAGR of 7.5%.
Online Airline Booking Platform Market Business Model Insights
Online Travel Agents (OTAs) held the largest market share in the Online Airline Booking Platform Market in 2023, accounting for over 60% of the revenue. OTAs offer a wide range of travel products and services, including flights, hotels, car rentals, and vacation packages, making them a one-stop shop for travelers. OTAs typically charge a commission on bookings made through their platforms. Airline Websites ranked second in terms of market share, capturing around 25% of the Online Airline Booking Platform Market revenue in 2023.
Airlines have been investing heavily in their online booking platforms to provide a seamless and convenient booking experience for their customers.Airline websites offer exclusive deals and promotions, as well as loyalty programs, to incentivize customers to book directly with them. Metasearch Engines accounted for the remaining market share in 2023. Metasearch engines allow users to compare prices and availability of flights from multiple airlines and OTAs in one place. This provides travelers with a convenient way to find the best deals on flights. Metasearch engines typically generate revenue through affiliate commissions or advertising fees.
Online Airline Booking Platform Market Ancillary Services Offered Insights
The ancillary services segment is a significant revenue generator for online airline booking platforms. In 2023, the ancillary services market was valued at USD 100 billion and is projected to grow to USD 150 billion by 2028, exhibiting a CAGR of 5%. Flight insurance, car rental, airport transfers, and hotel accommodation are the key ancillary services offered by these platforms.
Flight insurance is a popular service, with over 60% of travelers opting for it. Car rental is another important service, particularly for business travelers. Airport transfers and hotel accommodations are also in high demand, especially among international travelers.The growth of the ancillary services market is being driven by the increasing adoption of online booking platforms, the rising demand for personalized travel experiences, and the growing popularity of low-cost carriers.
Online Airline Booking Platform Market Regional Insights
The Online Airline Booking Platform Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest share of the market in 2023, owing to the high adoption of online booking platforms and the presence of major airlines in the region. Europe is expected to follow North America in terms of market share, driven by the increasing popularity of low-cost airlines and the growing number of budget-conscious travelers. APAC is expected to witness the fastest growth in the coming years due to the rising disposable income and the increasing number of internet users in the region.South America and MEA are expected to have a relatively smaller market share, but they are expected to grow at a steady pace in the coming years.
Figure3: Online Airline Booking Platform Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Online Airline Booking Platform Market Key Players And Competitive Insights
Major competitors in the online airline booking platform market are investing significantly in research and development to expand their service portfolio and gain traction. Key companies concentrate on innovative services, such as real-time flight tracking, personalized recommendations, and mobile application solutions, to attract travelers. The growth in the Online Airline Booking Platform Market is conditioned by the rise in the number of smartphones and the expansion of online travel booking. Thus, it is reasonable to suggest that the business environment is fragmented, with a slew of key companies controlling significant market shares.
A key competitor in the market is Expedia Group. It provides a wide array of travel services, including flights, hotels, car rentals, and different activities. The company is known for its operations across over two hundred affiliates and subsidiaries located in hundreds of countries adjusted to different markets and travelers. The company's success to date can be explained by its user-friendly website and constantly updated inventory at competitive market prices.
Another key competitor is Booking Holdings. The company operates multiple websites, such as Booking.com, Kayak, and Priceline, thus expanding its market coverage and opportunities. The corporation is mostly notable in such markets as Europe and Asia; the operations have recently expanded in the Americas. The organization, to date, has managed to succeed due to its tens of thousands of travel options for travel arrangements, extended booking experiences and policies, change of booking alternatives, and loyalty programs. Leading companies are investing in mobile technology.
Key Companies in the Online Airline Booking Platform Market Include
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Corporate Travel Management
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Travel Leaders Group
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American Express Business Travel
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Trip.com Group
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Ctrip.com International
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Sabre Corporation
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Uniglobe Travel International
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BCD Travel
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Hertz Corporation
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Amadeus IT Group
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Google
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Expedia Group
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Booking Holdings
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Travelport Worldwide Limited
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Flight Centre Travel Group
Online Airline Booking Platform Market Industry Developments
The online airline booking platform market is projected to reach USD 1300.0 billion by 2032, exhibiting a CAGR of 6.84% during the forecast period (2024-2032). The growth of the market can be attributed to the increasing adoption of digital technologies by airlines and travelers, the rising popularity of online travel agencies (OTAs), and the growing demand for personalized travel experiences.Recent news developments in the market include the launch of new online booking platforms by major airlines, such as United Airlines' "United Direct" and Delta Air Lines' "Delta Fly Delta." OTAs are also investing heavily in developing innovative features and services to attract customers, such as Expedia's "Expedia Rewards" program and Booking.com's "Genius" loyalty program.
As the market continues to evolve, it is expected that online airline booking platforms will become even more sophisticated and user-friendly. Artificial intelligence (AI) and machine learning (ML) are expected to play a major role in enhancing the customer experience, personalizing search results, and providing real-time updates on flight status and pricing.
Online Airline Booking Platform Market Segmentation Insights
Online Airline Booking Platform Market Booking Type Outlook
Online Airline Booking Platform Market Device Type Outlook
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Desktop/Laptop
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Smartphones and Tablets
Online Airline Booking Platform Market Business Model Outlook
Online Airline Booking Platform Market Ancillary Services Offered Outlook
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Flight Insurance
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Car Rental
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Airport Transfers
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Hotel Accommodation
Online Airline Booking Platform Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
230.3 (USD Billion) |
| Market Size 2023 |
324.3 (USD Billion) |
| Market Size 2032 |
1789.24 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
15.2% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Corporate Travel Management, Travel Leaders Group, American Express Business Travel, Trip.com Group, Ctrip.com International, Sabre Corporation, Uniglobe Travel International, BCD Travel, Hertz Corporation, Amadeus IT Group, Google, Expedia Group, Booking Holdings, Travelport Worldwide Limited, Flight Centre Travel Group |
| Segments Covered |
Booking Type, Device Type, Business Model, Ancillary Services Offered, Regional |
| Key Market Opportunities |
MobileOptimized Booking ExperienceIntegration with Travel and Expense Management ToolsPersonalized Travel RecommendationsDynamic Pricing and Loyalty ProgramsExpansion in Emerging Markets |
| Key Market Dynamics |
Increasing smartphone penetrationGrowing internet accessEmergence of low-cost carriersRise in disposable income.Shift towards online travel booking. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Online Airline Booking Platform Market is expected to reach a valuation of USD 324.3 billion by 2023, with a projected CAGR of 15.2% from 2024 to 2032, leading to an estimated market size of USD 1789.24 billion by 2032.
North America currently dominates the Online Airline Booking Platform Market, accounting for a significant share of the overall market revenue. The region's dominance can be attributed to the presence of major airlines, a large consumer base, and advanced technological infrastructure.
The growth of the Online Airline Booking Platform Market is primarily driven by factors such as the increasing adoption of smartphones and mobile devices, the rising popularity of online travel agencies (OTAs), and the growing preference for personalized travel experiences. Furthermore, the increasing disposable income and the expanding middle class in emerging economies are contributing to the market's growth.
The key players in the Online Airline Booking Platform Market include established companies such as Amadeus IT Group SA, Sabre Corporation, Travelport Worldwide Limited, and Expedia Group, Inc. These companies offer a range of online booking solutions for airlines, travel agents, and consumers.
The Online Airline Booking Platform Market is witnessing several key trends, including the integration of artificial intelligence (AI) and machine learning (ML) to enhance user experience and personalization. Additionally, the rising adoption of blockchain technology to improve security and transparency in online transactions is shaping the market's growth.
The Online Airline Booking Platform Market faces certain challenges, including intense competition, rapidly changing technology, and regulatory complexities. Furthermore, fluctuations in fuel prices and economic downturns can impact the market's growth.
The Online Airline Booking Platform Market presents significant growth opportunities, such as the expansion into emerging markets, the development of innovative booking features, and the integration of value-added services. Additionally, the growing adoption of mobile booking platforms and the increasing focus on personalized travel experiences are creating new avenues for market growth.
The COVID-19 pandemic had a significant impact on the Online Airline Booking Platform Market, leading to a decline in air travel and online bookings. However, as travel restrictions ease and consumer confidence gradually returns, the market is expected to recover and resume its growth trajectory.
The Online Airline Booking Platform Market can be segmented based on various criteria, including booking type (domestic or international), platform type (website or mobile app), and end-user (individual travelers or corporate travelers). Each segment has unique characteristics and growth dynamics.
Online Airline Booking Platforms offer a range of applications, including flight search and booking, seat selection, baggage management, and ancillary services such as hotel reservations and car rentals. These platforms provide convenience, flexibility, and access to a wide range of travel options for consumers.
