Travel Market: Global Opportunities And Challenges

The World Travel Market (WTM) is a global travel industry event that brings together professionals from various sectors, including tourism, hospitality, and transportation. With six annual business-to-business events across four continents, the WTM facilitates networking, learning, and commercial opportunities for the travel industry. The WTM's first show was in 1980, and it has since become the most influential event in the travel industry, hosting ministers and global travel teams. The market encompasses diverse accommodation services, such as package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises. The travel and tourism industry is highly competitive, with a significant economic impact, contributing approximately 9.9 trillion US dollars to the global GDP in 2023.

World Travel Market London

The event covers various aspects of the travel industry, including tourism, transportation, destinations, experiences, accommodation, and technology solutions. Exhibitors and buyers from around the world come together to showcase their products and services, connect with potential partners, and drive innovation in the industry.

The 2024 edition of World Travel Market London, held from 5 to 7 November, continues the event's long-standing tradition of facilitating connections and deals within the travel industry. With its reputation as the ultimate destination for travel and tourism, World Travel Market London remains a key event for anyone looking to succeed and thrive in the industry.

The growth of the global travel industry

WTM hosts six annual business-to-business events across four continents, providing a platform for the global travel community to come together and shape the future of the industry. It has been the most influential event in the travel industry for 44 years, where global travel teams and ministers meet and build their networks. WTM's digital tools, expert content, and brand promotion also enable professionals to find commercial opportunities and contribute to the industry's success.

The travel and tourism market is expected to experience a significant revenue increase, with a projected market volume of US$1,114.00 billion by 2029, growing at a rate of 3.99% annually. The largest market within this sector is hotels, projected to reach a volume of US$426.50 billion in 2024, with an expected increase in users by 2029. Online sales are also expected to account for 75% of total revenue in the travel and tourism market by 2029.

Additionally, there is a growing trend towards sustainable and eco-friendly travel practices. A 2024 survey revealed that 83% of travellers worldwide believed in the importance of sustainable travel. This shift in preferences has led to the rise of experiential travel, where immersive cultural experiences and interactions with locals are highly valued. Despite the concern for sustainability, the tourism industry has shown resilience and annual growth in spending since the pandemic.

The future of travel

The travel and tourism market is projected to witness a substantial revenue increase, with an estimated US$916 billion in revenue by 2024 and a projected annual growth rate of 3.99%, resulting in a market volume of US$1,114 billion by 2029. The largest segment, the hotels market, will contribute significantly to this growth. Online sales will dominate, accounting for 75% of total revenue in the travel and tourism market by 2029.

Several trends are shaping the future of travel. Firstly, there is a growing preference for authentic and unique experiences, with travellers venturing beyond traditional attractions to explore off-the-beaten-path destinations. This shift has given rise to experiential travel, emphasizing immersive cultural interactions. Secondly, sustainability and eco-friendly practices are becoming increasingly important. Travellers are more conscious of their environmental impact and are seeking sustainable destinations and eco-tourism initiatives. This trend is expected to grow, with 83% of travellers worldwide valuing sustainable travel.

The rise of budget airlines and agreements like the Schengen Area agreement in Europe have made intra-regional travel more accessible and affordable, boosting tourism within regions. Additionally, the growing middle class in regions like Asia-Pacific has led to a surge in outbound tourism, with travellers exploring destinations beyond their borders. These trends indicate a future of increased global connectivity, cultural exchange, and economic growth driven by the travel industry.

Technology and digitalization are also transforming the travel landscape. Online travel agencies (OTAs) and metasearch engines have empowered travellers to find tailored products and services, while platforms like Airbnb have revolutionized accommodation options. Artificial intelligence (AI) and mobile devices are expected to play an even greater role in travel planning and experiences, creating a more efficient and personalized journey for travellers.

Sustainable tourism

The World Travel Market is an annual event that brings together ministers, global travel teams, and industry professionals for networking and business development. The event has been influential in shaping the travel industry for over 44 years.

The global sustainable tourism market is estimated to be worth US$1,511,465.9 million in 2024, comprising 2-5% of the parent travel and tourism industry. Between 2024 and 2034, the demand for sustainable tourism services is expected to grow at a compound annual growth rate (CAGR) of 23.8%, with a projected market value of US$12,815,005 million by 2034.

The COVID-19 pandemic and the restrictions it imposed led to a decline in the year-on-year growth rate of the sustainable tourism market from 2019 to 2023. However, the post-pandemic period has seen a surge in tourist arrivals, restoring the growth rate for the global ecological tourism market.

The importance of sustainable tourism is increasingly being recognized by travellers worldwide. A 2024 survey revealed that 83% of travellers believed in the importance of sustainable travel. This shift in preference has led to the growth of experiential travel, where immersive cultural experiences and interactions with locals are highly valued.

The United States, China, and the United Kingdom are among the countries with significant demand for and scope of growth in sustainable tourism solutions. Government initiatives focused on conservation, biodiversity, and efficient resource utilization are also driving the expansion of the sustainable tourism sector.

The sustainable tourism market encompasses various segments, including ecological tourism, eco/green tourism, soft tourism, and community tourism. Nature-based or green tourism is expected to capture a significant share of the market, with independent travellers seeking to explore unknown, natural, and remote areas.

Online travel market

The online travel market has become a multibillion-dollar industry, revolutionising the way we plan, book, and experience travel. The market size was estimated at $600 billion in 2023, with projections reaching $1,835.6 billion by 2031, registering a CAGR of 14.8% from 2022 to 2031. The growth is attributed to various factors, including the increasing disposable income of travellers, the ease of travel, and the desire for unique and immersive experiences.

Online travel agencies (OTAs) have emerged as key drivers of the market, with Booking Holdings Inc., owner of brands like Booking.com, Priceline, and Kayak, leading the way with revenues exceeding $21 billion in 2023. Expedia Group, parent company of Expedia, Hotels.com, and Vrbo, generated nearly $13 billion in the same year. OTAs provide a one-stop solution for travellers to book flights, accommodations, rental cars, and other travel services conveniently.

The market is segmented into service types, platforms, mode of booking, age group, and region. On the basis of service type, the market includes transportation, travel accommodation, and vacation packages. The platform segment is divided into mobile and desktop, with the mobile segment expected to reach $617.9 billion by 2031 due to the increasing use of mobile apps for travel bookings.

The direct travel suppliers segment held a significant share of the market in 2020, with customers constantly turning to OTA platforms for their bookings. The 22-31 years age group is a key contributor to the market, as young professionals are more likely to spend on travel and extensively use technology for their travel arrangements.

Asia-Pacific is expected to be the fastest-growing region in the online travel market, driven by increasing disposable income, a growing middle class, and greater internet penetration. India and China are the most lucrative markets in the region, with Ctrip dominating the Chinese market and MakeMytrip, Yatra, and Cleartrip leading in India.

Frequently asked questions