Summary

Online travel is the type of travel that is booked online through a website that has the specialty in making the travel arrangements such as flight tickets, car rentals, and packages. The online travel market in Europe is expected to observe strong growth due to the increasing online travel penetration in the region along with increasing preference from business travelers. Online bookings are advancing faster than the overall market with most of the online growth coming from suppliers' and OTAs' mobile platforms. In Europe, a focus on tourism is seen as one of the key pillars for job growth and inclusive growth. Social media platforms have emerged as a prominent marketing opportunity for online travel companies in recent years. Given the large-scale use of social media by consumers, their preferences and interests are easily tracked which helps travel companies to target those that are likely to opt for travel experiences and who can also afford travel packages. These factors offer online travel companies a highly comprehensive insight into customer wants and behavior.

With the emergence of the COVID-19 pandemic, Europe online travel industry has experienced a sharp fall in the demand, especially in 2020. The widespread outbreak of the coronavirus around the world has resulted in complete lockdown in numerous countries and the sealing of the borders. Moreover, the shutdown of airline industry and the increasing fear of catching coronavirus while traveling has pushed people to stay at their homes. All these factors have negatively impacted the growth of the market. However, the market is projected to bounce back in 2021 while growing at a significant rate from 2022 onwards.

Key Market Trends

Shift Towards Mobile Phones for Travel Booking

Over the last few years, it has been observed that there is an increasing number of consumers moving away from using desktop computers and using their mobile devices to research and book travel. Booking via smartphones is gaining more traction in the market, as smartphone penetration rises, and customers get more used to paying online and mobile. The industry has undergone a number of changes over the past decade, due to advances in technology. Service models of online travel agents provide multiple services through a single platform. The travel booking process has undergone a dramatic shift from physical booking to web booking and is now a mobile platform.

Online Travel Market in Germany Growing Steadily

Germany, with its strong economy and high consumer confidence, is Europe’s largest travel market. While the majority of Germans still book travel offline, online and mobile are growing quickly. Germany’s online travel market has grown more slowly than some other European countries due to the popularity of offline distribution and the leading role of tour operators. Digital booking growth, now fueled by mobile, will continue to outpace the overall market. Despite relatively low online travel penetration, German travelers have been quick to adopt mobile technology. High smartphone penetration and the growing availability of 5G devices will drive the adoption of new types of customer interactions throughout the travel journey, including emerging features such as voice-based services and augmented reality.

Competitive Landscape

The report covers major international players operating in the European online travel market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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