This article was written by our expert who is surveying the industry and constantly updating the business plan for a travel agency.
Starting a travel agency in 2025 means entering a highly competitive market dominated by large online travel agencies (OTAs) and established traditional players.
The global travel agency market has reached over $355 billion as of March 2025, with online travel agencies capturing approximately 70% of all online travel and tourism bookings. Understanding who your competitors are, how they operate, and where they're vulnerable is critical to carving out your space in this dynamic industry.
If you want to dig deeper and learn more, you can download our business plan for a travel agency. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our travel agency financial forecast.
The travel agency market in 2025 is dominated by major online travel agencies like Booking Holdings and Expedia Group, which together control the majority of global bookings.
These competitors leverage advanced technology, dynamic pricing models, and massive marketing budgets to target diverse customer segments ranging from budget-conscious millennials to high-spending business travelers.
| Competitor | 2024 Revenue | Primary Segments | Commission Structure | Key Differentiators |
|---|---|---|---|---|
| Booking Holdings | $166 billion | Mass-market leisure, business travelers, younger demographics | 10-25% average 15% | Largest inventory, AI personalization, mobile-first platform, loyalty rewards |
| Expedia Group | $110.9 billion | Leisure travelers, corporate clients, price-sensitive shoppers | 5-30% average 16% | Bundled packages, vacation rentals, extensive partner network |
| American Express GBT | $30.5 billion | Corporate travelers, enterprise clients | 8-15% negotiated | Consolidated reporting, travel policy compliance, premium support |
| BCD Travel | $22.9 billion | B2B business travelers | 8-15% negotiated | Corporate travel management, cost optimization tools |
| Flight Centre Group | $15.9 billion | 50% leisure, 50% business | 10-20% | Hybrid model, personalized service, global presence |
| Traditional Agencies | Declining share | High-touch clients, complex itineraries | 8-15% | Expert curation, bespoke service, personal relationships |
| Market Growth | 7-9% CAGR | Expanding in Asia-Pacific, strengthening in North America/Europe | Performance-based models emerging | Mobile bookings now 65%, AI integration, sustainability focus |
Who are the dominant competitors in the travel agency market right now?
The travel agency market in 2025 is dominated by a handful of massive online travel agencies (OTAs) that control the majority of bookings worldwide.
Booking Holdings leads globally with $166 billion in sales in 2024, operating brands like Booking.com, Priceline, Agoda, Kayak, and OpenTable. This represents significant growth from $150.6 billion in 2023 and $121 billion in 2022. Expedia Group follows as the second-largest player with $110.9 billion in 2024 revenue, managing platforms including Expedia, Hotels.com, Vrbo, Trivago, and Travelocity.
In the business travel segment, American Express Global Business Travel recorded $30.5 billion in 2024 revenue, while BCD Travel reached $22.9 billion focusing exclusively on B2B corporate travel. Flight Centre Travel Group Ltd., operating Flight Centre, Corporate Traveler, and FCM, generated $15.9 billion with an almost even split between leisure and business travel.
The total global travel agency market surpassed $355 billion by March 2025, with OTAs accounting for approximately 70% of all online travel and tourism bookings. Traditional brick-and-mortar agencies continue to operate but hold a declining market share as digital platforms expand their reach.
What are the exact revenue figures and market shares of these competitors?
Booking Holdings maintains the largest market position with three consecutive years of revenue growth in the travel agency sector.
The company generated $166 billion in 2024, up from $150.6 billion in 2023 and $121 billion in 2022, demonstrating consistent year-over-year expansion of approximately 10-12%. Expedia Group secured $110.9 billion in 2024 sales, maintaining its position as the second-largest travel agency operator globally.
American Express Global Business Travel reported $30.5 billion in 2024, while BCD Travel achieved $22.9 billion during the same period. Flight Centre Travel Group recorded $15.9 billion, with leisure and business segments contributing nearly equal amounts. These five companies collectively represent over $345 billion of the total $355 billion global travel agency market as of March 2025.
Online travel agencies now control approximately 70% of all online travel and tourism bookings, with the remaining share split between traditional agencies and direct bookings. The market has shown compound annual growth rates of 7-9% and is projected to potentially exceed $1 trillion globally by 2030.
Which customer segments are competitors targeting in the travel agency market?
Travel agency competitors segment their audiences primarily by demographics, behavior, and travel purpose to maximize conversion rates.
Online travel agencies like Booking.com and Expedia target mass-market leisure travelers as their core segment, but they've expanded aggressively into business travel through dedicated corporate divisions. These platforms increasingly focus on digitally-savvy younger demographics, particularly Millennials and Gen Z, who prefer mobile-first booking experiences and value price transparency.
Demographic segmentation includes age groups (with special emphasis on 25-45-year-old travelers), geographic location, and income levels ranging from budget-conscious to luxury seekers. Behavioral segmentation divides customers into direct bookers versus price-sensitive comparison shoppers, solo travelers, couples, families, and group bookings. Corporate travel agencies like American Express GBT and BCD Travel exclusively target business travelers and enterprise clients who require travel policy compliance and consolidated reporting.
Traditional travel agencies focus on high-touch clients who value personalized service, typically older demographics (45+), and travelers planning complex multi-destination itineraries. Flight Centre operates a hybrid model serving both leisure and business segments equally, which differentiates it from purely digital or purely traditional competitors.
You'll find detailed market insights in our travel agency business plan, updated every quarter.
What pricing models and commission structures do travel agency competitors use?
| Agency Type | Pricing Model | Commission Range | Structure Details |
|---|---|---|---|
| Online Travel Agencies (Booking.com) | Dynamic commission, listing fees, user-free platforms | 10-25% (average 15%) | Tiered commissions based on volume, loyalty program integration, AI-driven dynamic pricing adjustments, performance bonuses for high-converting properties |
| Online Travel Agencies (Expedia) | Commission-based with bundling incentives | 5-30% (average 16%) | Variable rates depending on property type and location, higher commissions for package deals, seasonal rate adjustments, exclusive deals with preferred partners |
| Traditional Brick-and-Mortar Agencies | Negotiated commission or flat service fees | 8-15% | Custom negotiated rates with suppliers, flexibility in markup strategies, service fees for consultation and complex bookings, higher margins on luxury travel |
| Corporate Travel Agencies (Amex GBT, BCD) | Management fees plus commission | 8-15% negotiated | Volume-based agreements with airlines and hotel chains, transaction fees per booking, consulting fees for travel policy management, technology platform fees |
| Hybrid Models (Flight Centre) | Mixed commission and service fees | 10-20% | Commission from suppliers combined with optional consultation fees, tiered structure based on booking complexity, incentive-based bonuses from preferred partners |
| Emerging Performance-Based Models | Dynamic contracts with performance incentives | Variable 5-25% | Commission tied to conversion rates, customer satisfaction scores, repeat booking rates, and seasonal performance metrics using automated commission management systems |
| Subscription Models (Emerging) | Monthly/annual membership fees | No commission to customer | Agencies charge travelers subscription fees for access to exclusive rates and personalized service, earning commissions from suppliers in the background without adding customer-facing markups |
Commission structures in the travel agency market are evolving rapidly, with major players moving toward dynamic contracts and performance-based incentives that reward agencies for driving quality bookings rather than just volume.
What marketing channels and campaigns are competitors investing in?
Major travel agency competitors invest heavily in digital marketing channels that deliver measurable returns on customer acquisition costs.
The primary channels include search engine optimization (SEO), paid search advertising (Google Ads, Bing Ads), social media marketing (Facebook, Instagram, TikTok), branded content partnerships, loyalty mobile applications, and influencer collaborations. Booking.com and Expedia spend hundreds of millions annually on paid search alone to capture high-intent travelers actively searching for accommodations and flights.
Common campaign strategies include bundled package promotions (flight + hotel discounts), AI-powered chatbot customer support advertised as a convenience differentiator, price-match guarantees prominently featured in ads, and last-minute deal alerts via push notifications. Loyalty programs are heavily marketed with points accumulation systems and exclusive member rates to drive repeat bookings.
Success metrics that travel agencies track include customer acquisition cost (CAC), conversion rates from ad clicks to completed bookings, mobile app downloads and engagement rates, and loyalty program participation rates. Mobile now accounts for approximately 65% of OTA bookings in 2025, making mobile-optimized campaigns critical. Email marketing remains effective for retargeting previous customers with personalized destination recommendations based on browsing history.
Traditional agencies focus on local community partnerships, referral programs, and relationship-based marketing rather than mass digital advertising. Corporate travel agencies market through B2B sales teams, industry conferences, and direct enterprise outreach rather than consumer-facing campaigns.
Which digital tools and technologies are competitors using to operate their travel agencies?
Leading travel agency competitors rely on sophisticated technology stacks to manage bookings, customer relationships, and operational efficiency.
Proprietary booking engines form the core of OTA platforms, featuring real-time API integrations with airlines, hotels, car rental companies, and activity providers to display live availability and pricing. Booking Holdings and Expedia have invested billions in developing mobile-first platforms that support seamless booking experiences across devices with saved payment methods and instant confirmation.
AI-driven personalization engines analyze user behavior, search history, and booking patterns to recommend destinations, accommodations, and activities tailored to individual preferences. Dynamic pricing algorithms adjust rates in real-time based on demand, competition, seasonality, and user characteristics to maximize conversion while optimizing revenue.
Customer relationship management (CRM) systems track customer interactions across touchpoints, enabling targeted email campaigns, loyalty program management, and personalized follow-up communications. GenAI-powered chatbots handle routine customer service inquiries, booking modifications, and support requests, reducing the need for human agents while providing 24/7 availability.
Commission management platforms like Compass automate agent compensation calculations, track performance metrics, and optimize earnings for travel agents working within larger networks. Back-office tools manage supplier relationships, contract negotiations, payment processing, and financial reporting.
This is one of the strategies explained in our travel agency business plan.
What unique value propositions do competitors highlight to attract customers?
- Massive inventory and choice: OTAs like Booking.com and Expedia emphasize having the largest selection of accommodations worldwide, giving travelers more options in every destination and price range than competitors can match.
- Price transparency and comparison tools: Online platforms highlight their ability to show multiple options side-by-side with clear pricing, user reviews, and filtering capabilities that help travelers make informed decisions without hidden fees.
- Loyalty rewards and points programs: Competitors promote points accumulation across bookings, member-exclusive discounts, and rewards that can be redeemed for future travel, creating incentive for repeat business.
- Mobile-first convenience: Major OTAs emphasize their mobile apps with features like mobile-exclusive deals, instant booking confirmations, digital itinerary management, and push notifications for flight changes or price drops.
- AI-powered personalization: Leading platforms tout their recommendation engines that learn traveler preferences and suggest destinations, hotels, and activities based on past behavior and similar user profiles.
- Flexible cancellation policies: In the post-pandemic era, travel agencies heavily promote flexible booking options, free cancellation windows, and travel insurance to reduce customer risk and booking hesitation.
- Expert human support: Traditional agencies differentiate themselves by offering personal travel advisors who provide bespoke itinerary planning, handle complex multi-destination trips, and offer problem resolution during travel disruptions.
- Corporate compliance and reporting: Business travel agencies like American Express GBT highlight their ability to enforce travel policies, provide consolidated expense reporting, and deliver cost savings through negotiated corporate rates.
How do competitors structure their partnerships with airlines, hotels, and service providers?
Travel agency competitors negotiate partnership agreements with suppliers that determine commission rates, booking terms, and value-added benefits.
Large OTAs leverage their massive booking volumes to secure preferential commission rates from airlines and hotel chains, typically ranging from 10-25% depending on the supplier category and contract terms. These agreements often include tiered commission structures where agencies earn higher percentages once they reach specific volume thresholds, incentivizing them to drive more bookings to particular partners.
Exclusive rate agreements allow major agencies to offer "members-only" pricing that isn't available through direct booking channels, creating a competitive advantage. Suppliers agree to these exclusive rates in exchange for guaranteed booking volume and prominent placement on the agency's platform. Value-added benefits like room upgrades, late checkout, complimentary breakfast, or lounge access are negotiated as part of partnership packages to make bookings more attractive to customers.
Marketing support agreements involve cost-sharing where suppliers contribute to advertising campaigns that feature their properties or routes prominently. Technology integration partnerships enable real-time API connections for instant availability updates, booking confirmations, and seamless reservation management without manual intervention.
Business travel agencies structure long-term contracts with preferred hotel chains and airlines that guarantee corporate rates for their client companies, with consolidated billing and reporting capabilities. These partnerships often include dedicated account managers, priority customer service, and negotiated rates based on projected annual travel volume across all corporate clients.
What trends in customer behavior are competitors successfully adapting to?
Travel agency competitors are rapidly adapting to post-pandemic shifts in how customers research, book, and experience travel.
The most significant trend is mobile-first booking behavior, with mobile devices now accounting for approximately 65% of all OTA bookings in 2025. Competitors have responded by developing sophisticated mobile apps with features like saved payment methods, facial recognition login, instant booking confirmations, and mobile-exclusive deals. Gen Z and Millennial travelers particularly prefer completing entire booking processes on their phones without switching to desktop.
Demand for flexible booking terms has become non-negotiable since COVID-19, leading agencies to prominently feature flexible cancellation policies, travel insurance options, and rescheduling capabilities. Customers now expect to modify or cancel bookings without heavy penalties, and successful competitors have restructured their policies and supplier agreements to accommodate this expectation.
Personalization through AI has become a standard expectation rather than a differentiator. Travelers want destination recommendations based on their browsing history, personalized email campaigns featuring places they're likely to visit, and curated itineraries that match their travel style. Competitors invest heavily in machine learning algorithms that analyze user behavior patterns to deliver increasingly accurate suggestions.
Sustainability concerns are influencing booking decisions, particularly among younger travelers who actively seek eco-friendly accommodations, carbon offset options, and sustainable travel experiences. Leading OTAs have added sustainability badges, carbon footprint calculators, and filters for eco-certified properties to meet this demand.
Experiential travel preferences have shifted focus from traditional sightseeing to unique local experiences, cultural immersion, and authentic activities. Competitors now integrate activity bookings, food tours, and local guide services directly into their platforms rather than treating them as separate categories.
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What weaknesses and service gaps exist in competitor offerings?
Despite their market dominance, travel agency competitors face consistent customer complaints and operational weaknesses that create opportunities for new entrants.
Slow customer service response times plague major OTAs, especially when travelers need to modify bookings, resolve payment issues, or handle travel disruptions. Many platforms rely heavily on automated chatbots that struggle with complex problems, forcing customers to wait hours or days for human support. This becomes particularly problematic during crises like flight cancellations or hotel overbookings when immediate assistance is critical.
Hidden fees and unclear pricing structures frustrate customers who discover unexpected charges at checkout or after booking. Resort fees, cleaning fees, service charges, and booking fees are often not prominently displayed during the initial search, leading to negative reviews and abandoned bookings when the final price exceeds expectations.
Lack of human touch on digital platforms creates a service gap for travelers planning complex itineraries, honeymoons, or special occasion trips who want personalized consultation. While OTAs excel at straightforward bookings, they struggle to provide the bespoke planning and relationship-building that traditional agencies offer.
Inconsistent quality control across listed properties means customers sometimes arrive at accommodations that don't match photos or descriptions, leading to disputes and refund requests. Verification processes for new listings are not always rigorous, and fraudulent or misrepresented properties occasionally appear on major platforms.
Limited integration between different travel components causes friction when customers book flights, hotels, car rentals, and activities separately rather than as cohesive packages. Managing multiple confirmations, itineraries, and support contacts across providers creates unnecessary complexity.
Traditional agencies face opposite problems—they're perceived as less technologically advanced, slower to respond to market changes, and more expensive due to higher overhead costs. Their websites and booking systems often feel outdated compared to sleek OTA interfaces, deterring younger customers who expect modern digital experiences.
What regulatory, economic, and geopolitical factors are shaping competition in the travel agency market?
The travel agency competitive landscape is heavily influenced by external factors beyond direct business operations.
Data privacy regulations, particularly Europe's GDPR and similar laws in other jurisdictions, force travel agencies to invest significantly in compliance infrastructure for collecting, storing, and processing customer data. Agencies must obtain explicit consent for marketing communications, protect payment information with strict security protocols, and provide data deletion rights, all of which increase operational costs and complexity.
Visa policy changes and international travel restrictions create unpredictable demand fluctuations that agencies must navigate. When countries suddenly tighten or relax entry requirements, travel patterns shift rapidly, impacting which destinations agencies promote and how they structure refund policies. Post-pandemic travel restrictions demonstrated how quickly regulatory changes can devastate bookings.
Economic conditions including inflation, currency fluctuations, and recession fears directly affect travel demand and customer spending patterns. Higher fuel costs translate to increased airfares, making international travel less accessible to budget-conscious travelers. Currency exchange rate volatility creates pricing challenges for agencies operating across multiple countries.
Labor shortages in the hospitality industry affect service quality at hotels, restaurants, and attractions, indirectly impacting travel agency reputations when customers have negative experiences. Some destinations face capacity constraints due to insufficient staffing, limiting availability that agencies can offer.
Geopolitical tensions and conflicts immediately impact travel to affected regions and surrounding areas. Travel agencies must constantly monitor security situations, issue travel advisories, and adjust marketing strategies when destinations become unsafe or politically unstable. Insurance requirements and risk assessments become more complex in volatile geopolitical environments.
Environmental regulations and carbon emission targets are beginning to shape the travel industry, with some jurisdictions considering taxes on frequent flying or requiring carbon offset disclosures. Travel agencies must prepare for potential regulatory changes that could affect pricing structures and customer booking behavior.
What are the growth forecasts and competitive dynamics for the next three to five years?
| Forecast Category | Projection (2025-2030) | Implications for Competition |
|---|---|---|
| Market Size Growth | 7-9% compound annual growth rate, potentially exceeding $1 trillion globally by 2030 | Sufficient growth to support new entrants while existing players expand, but competition for market share will intensify as digital transformation accelerates |
| OTA Market Share | OTAs projected to maintain or slightly increase their 70% share of online bookings through continued technology investment and mobile optimization | Traditional agencies will continue losing ground unless they develop competitive digital capabilities or focus on high-touch niche markets where personal service justifies premium pricing |
| Regional Expansion | Asia-Pacific region expected to show fastest growth rates, particularly in Southeast Asia, India, and China as middle class expands | Global competitors will invest heavily in localizing platforms and partnerships in high-growth Asian markets, creating opportunities for regional specialists with local expertise |
| Consolidation Activity | Continued mergers and acquisitions as large players acquire smaller agencies, technology platforms, and niche specialists (e.g., Amex GBT's acquisition of CWT) | Smaller independent agencies face pressure to join consortiums, sell to larger networks, or specialize in defensible niches where scale advantages matter less |
| Technology Integration | AI-powered planning, voice booking, virtual reality destination previews, and blockchain-based loyalty programs expected to become standard by 2028-2030 | Agencies unable to invest in emerging technologies will lose relevance as customer expectations evolve; technology partnerships or white-label solutions become critical for smaller players |
| Corporate Travel Recovery | Business travel projected to reach 90-95% of pre-pandemic levels by 2026, but with permanent shift toward video conferencing replacing some routine trips | Corporate travel agencies must demonstrate clear ROI and enhanced service beyond basic booking to justify their role as hybrid work models reduce travel frequency |
| New Entrant Opportunities | Niche specialization (luxury, adventure, sustainable, accessible travel) and hyper-local expertise create defensible positions for new agencies despite overall market consolidation | Success for new entrants depends on identifying underserved segments, delivering exceptional specialized service, and building community rather than competing on price or inventory breadth |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
The travel agency market in 2025 presents both significant challenges and clear opportunities for new entrants willing to differentiate themselves.
While massive OTAs dominate through technology and scale, their weaknesses in customer service, personalization, and specialized expertise create space for agencies that focus on underserved niches, exceptional human support, or local market expertise. Success requires understanding not just who your competitors are, but where they're vulnerable and which customer needs remain unmet in this rapidly evolving industry.
Sources
- Travel Pulse - 2025 Travel Weekly Power List
- Bizaway - Top Online Travel Agencies 2025
- Grand View Research - Online Travel Agencies Market Report
- Condor Ferries - Travel Agency Statistics
- Mize Tech - Online Travel Agencies Market Share
- The Hotel Blueprint - OTA Market Snapshot 2025
- We Are Planet - Online Travel Agents
- Xoxoday - Commission for Travel Agents
- Mize Tech - OTAs vs Traditional Travel Agents
- MyTrip AI - Challenges to Travel Agencies in 2025