Travel and Tourism is one of the key sectors that play a pivotal role in any country’s economy and make a significant contribution to the country’s GDP. The growth in travel and tourism activities globally has led to the rise of travel intermediaries which makes them an important part of selling travel products to customers.
The global market size of the In-store travel sector is valued at $287 billion in 2021. North America is the market leader for in-store travel with a share of 31%, closely followed by Asia-Pacific with a 29% share. Europe makes up 19%, followed by South & Central America with 16%. Middle East & Africa contributes to 4% of the global market size.
Though there has been a rise in the number of online travel intermediaries, aided by the growth in the number of internet users, in-store travel still has its relevance and has been growing steadily for the past few years as it provides a sense of security, especially for the elderly who are generally skeptical with the usage of online platforms.
The travel industry was one of the worst-hit industries during the COVID-19 pandemic as the world went to a standstill with multiple lockdowns and heavy restrictions placed on travel by the local governments thereby forcing the players in the industry to operate at their minimal capacity.
The global in-store travel market grew at a CAGR of negative 16% during the period 2017-2021. The significant fall in market value was mainly on account of the pandemic in 2020, which lowered consumption amid travel restrictions and a decrease in the disposable income of consumers as many people suffered from job losses, and because of this, the market saw a fall of 65% globally from 2019, which accounts to $375 billion.
Asia-Pacific saw the highest fall in terms of absolute numbers with the market losing $154 billion from 2019 to 2020. It was the market leader before the pandemic hit. There was an improvement in the travel and tourism infrastructure considering the rising demand from consumers as international arrivals in Asia-Pacific have seen a significant increase in recent years in comparison to the overall global average arrivals.
As the restrictions on travel were eased, the market witnessed a recovery in the demand as In-store travel saw a growth of 39% in 2021. South and Central America saw the biggest growth, with an increase of 126% accounting for $26 billion.
Key travel destinations among consumers include Thailand, France, Dubai, Los Angeles, and Rio de Janeiro among others.
The major companies that have a strong presence in the in-store travel market include Topdeck Travel Ltd., American Express Global Business Travel, Dufry AG, Camplify, and South American Vacations among others.
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