As Online Travel Booking Market Takes a Hit due to COVID-19, Travel Technologies Market to be Impacted

Global Travel Technologies Market to Reach $12.5 Billion by 2026 ResearchAndMarkets.com said in new report. Amid the COVID-19 crisis, the global market for Travel Technologies estimated at US$8.6 Billion in the year 2020, is projected to reach a revised size of US$12.5 Billion by 2026, growing at a CAGR of 6.8% over the analysis period.

Global Distribution System (GDS), one of the segments analyzed in the report, is projected to record 6.1% CAGR and reach US$9.1 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Airline & Hospitality IT Solutions segment is readjusted to a revised 8.4% CAGR for the next 7-year period.

The U.S. Market is Estimated at $1.7 Billion in 2021, While China is Forecast to Reach $1.9 Billion by 2026 Travel Technologies

The Travel Technologies market in the U.S. is estimated at US$1.7 Billion in the year 2021. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.9 Billion by the year 2026 trailing a CAGR of 8.2% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 5.8% and 6.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.5% CAGR.

The COVID-19 outbreak has hit the travel and tourism industry, due to the restrictions on travel, lockdowns and restrictions placed in various countries affected by the pandemic. The post COVID-19 period will witness significant changes in the way people or seek holidays.

The disruption to the travel industry is having significant impact on players operating in the travel technology market with revenues reaching new lows in recent months. Though the travel and tourism industry faces risks in the form of cancellations and business disruptions amidst the ongoing pandemic, the industry is likely to regain some momentum in the coming times thus providing potential growth opportunities for the travel technology market.

Recovery will be mainly driven by essential travel needs specifically those related to business travel and personal emergencies. Domestic travel is likely to recover faster than international travel, as already being witnessed in China. This will ensure that funds designated for outbound travel will be now directed at local consumption, thus driving local economies.

The market will also benefit from the rising use of technologies such as artificial intelligence (AI) and robotic process automation (RPA). RPA facilitates the automation of certain repetitive processes, which enables in offering improved customer service. Through the automation of the booking process, the technology offers time savings.

RPA leverages software bots to function across systems and applications, to carry out repetitive manual and administrative functions and perform decision making. The use of RPS enhances the booking process, as the bots are scalable, flexible, affordable, and reliable. Also, RPA`s reporting capabilities facilitate accurate tracking, detection and resolution of errors, which lead to considerable improvement in processes.

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