Travel technology market: Key research findings
- Increase in online bookings
- Rise in adoption of SaaS and BI solutions
Technavio has added a new report on the global travel technology market, to its travel services portfolio. Technavio’s market research analysts estimate that the market will grow at a CAGR of around 8% between 2015 and 2019. The main driving factor is the increase in overall online travel agencies bookings, which grew over 12% in 2014. Rising internet penetration and various mobile rail booking initiatives have encouraged swift growth of this market.
Social media platforms are becoming a more preferred medium between marketers and consumers for direct interaction and instant feedbacks. Vendors are aggressively using this platform to observe consumer behaviour and target the prospective target audience. Several travel suppliers are outsourcing services through third party solutions due to increased cost efficiency and abridged IT budget. Subsequently, they have inclined towards in-house application and software by adopting SaaS and hosted solutions, which centrally deploy services, thus minimising time and lowering operational risks.
EMEA leads the travel technology market globally occupying around 46% of the market. The market growth is driven by the increased expenditure from government-controlled airports and the increasing number of passengers. With established OTAs expanding its customer base, the region is expected to generate over $6 billion by 2019.
Travel technology market in EMEA 2014-2019 ($ billion)
Source: Technavio Research
“Online travel booking has picked-up speed through several booking engine channels supported by GDS. An abundance of online travel agencies and airlines offer integrated suites of services through GDS implementation across the travel sector ranging from airline ticket booking, car rental, and hotel room booking to facilitate the end consumers. Of late, travel agents are necessitating GDS usage in electronic travel distribution system to automate the reservation process to improve their productivity,” says Navin Rajendra, Lead Analyst, IT Services, Technavio Research.
Key vendors in the travel technology market include Amadeus, Sabre, TravelPort and Navitaire. The market is dominated by Amadeus with a market share of around 40%. Sabre is the second largest vendor in the market and accounts for the major share of the North American market.
https://www.technavio.com/%3Cp%3EA%20more%20detailed%20analysis%20is%20av…
