Recent years have seen the largest structural change in travel commerce in decades. The research all but confirms it – in 2025, travellers are booking online, on mobile, powered by AI.
Data indicates that the global online travel booking market will reach $648bn in 2025, up from $576bn in 2024. Online booking is adding roughly $72bn in new business each year – equivalent to creating an entire Airbnb-sized market annually.
The market’s 12.4% growth rate is exceptionally high for a market of this size. Most mature tech markets at this scale ($500bn+) grow at about 8% annually.
For reference, here is the growth rate (CAGR) of similar scale markets: Global cybersecurity market: 8% Ride-sharing market: 8-10% Global e-commerce: 10% Another disruptor in the travel market, Airbnb, experienced a fairly incredible 20% growth rate in 2024, but from a much lower $73bn base.
Multiple research firms confirm the explosive expansion. SkyQuest forecasts that the market will grow from $521bn in 2023 to an expected $1.2trn by 2032, marking a 9.9% annual compound growth rate. Separate analysis from Research and Markets projects the sector will hit $1.26trn by 2032, growing at 12.99% annually.
It’s mostly happening on mobile
Smartphones are behind most of this expansion. The mobile travel booking segment alone is worth $228bn in 2024 and will reach $526bn by 2032. Mobile devices now account for 52% of all online travel bookings, now overtaking desktop computers for the first time.
Internet penetration and smartphone accessibility have created new booking behaviours. Solo travel popularity increases demand, while business travellers return to pre-pandemic levels. Travelers aged 30-44 represent 42.68% of online bookings, driving the market with higher purchasing power and digital literacy.
Europe dominates overall, Asia-Pacific leads on growth
Europe dominates with 31.87% of global market share, benefiting from established tourism infrastructure and high internet penetration. Asia-Pacific shows the fastest growth at 9.8% annually through 2030, driven by rising incomes and an expanding middle class.
Krabi, ThailandThe shift from traditional booking methods is accelerating across all segments. Transportation bookings lead with 41% market share, while accommodation and vacation packages follow. Online travel agencies are now capturing more business than direct supplier websites.
Rise of business travel – haunted by “shadow booking”
Corporate travel spending reportedly exceeded $1.48trn by end-2024 and could surpass $2trn by 2028. 87% of employees consider in-person meetings crucial for company growth. 76% of CEOs believe increased travel budgets would boost revenue.
However, 30% of business travellers bypass corporate booking systems for better deals and flexibility through consumer platforms. This “shadow booking” challenges traditional corporate travel management.
AI chatbots rewriting travel customer service
Artificial intelligence integration streamlines the entire booking processes. Machine learning algorithms analyse user behaviour as well as a huge mass of online consumer data to suggest tailored travel options. Chatbots reduce operational costs and in many cases improve customer service.
The market does face cybersecurity threats and economic uncertainties, not enough to thwart continued expansion. Major players like Booking Holdings ($21bn revenue in 2023) and Expedia Group ($13bn) are maintaining a competitive edge by diversifying their services and staying mobile-friendly.
The shift in travel booking shows no signs of slowing. For business events professionals, this isn’t just about booking platforms – it’s about fundamentally different traveller expectations, mobile-first behaviours, and AI-driven personalisation that will continue to shake up the traditional travel industry for decades to come.
