Global Online Travel Agencies IT Spending - Market Research 2015-2019
Covering: This research report provides the growth projections and market analysis of the global online travel agencies IT spending market until 2019. It segments the market according to software spending, IT services, and hardware. Market shares of Americas, APAC, and the EMEA are also included in the report. The leading vendors detailed include Amadeus, Navitaire, Sabre, and Travelport.
Market outlook of the global online travel agencies IT spending
Online travel agencies depend on technology and IT services to execute airline bookings, hotels, cruise, car and other services. It necessitates continuous upgrades, maintenance, and spending on IT services to provide the best in class services to their customers. The research report predicts the global online travel agencies IT spending market to grow at a CAGR of close to 24% from 2015 to 2019.
The market is fierce, and service offerings of online travel agencies are dependent on IT offerings that consist of advanced features and functionality that match or outperform the competition. Agencies are always on the lookout for vendors that provide agile, flexible and cost effective IT infrastructure solutions for a glitch free booking experience. Thanks to the growing competition, the market is likely to witness many strategic buyouts of such technology solution companies by online travel agencies over the next few years.
Market segmentation and analysis of online travel agencies IT spending
IT services spending
The global online travel agencies software spending market was valued at nearly $400 million in 2014, and it is expected to witness manifold growth until 2019. This segment comprises content, website design, product development, computer software, ERP packages, CRM systems, computer system related software, in-house developed software, licensing and maintenance of software, and other software products. Agencies are heavily dependent on these software to run their business smoothly, and hence invest significantly in the maintenance of their software architecture.Geographical segmentation of the online travel agencies IT spending market
The Americas region has dominated the market thanks to pioneers such as Expedia, Priceline, and Orbitz in the online travel space. South America still requires enhanced IT solutions to increase the number of online consumers for travel bookings. The demand for IT services from this region is expected to drive the growth of the services segment in the Americas during the forecast period. Competitive landscape of the online travel agencies IT spending marketThe leading players are keen to penetrate emerging markets that are likely to display a faster market growth over the next four years. Vendors will look to leverage the growing use of online travel booking services through advanced apps in these markets. However, the rising threat from new entrants looking to expand their market shares in the same geographies will remain a key concern for market leaders through the forecast period.
Other prominent vendors in the market include CRS Technologies, Dolphin Dynamics, eCare Technology, Expert Travel Services, Fourth Dimension Software, Lemax, mTrip, Oracle, PcVoyages 2000, Qtech, Technoheaven, Toursys, Tramada, TravelCarma, Trip Solutions, and Web Booking Expert.
Key questions answered in the report
What are the key factors driving the online travel agencies IT spending market?
What are the key market trends impacting the growth of the online travel agencies IT spending market?
What are the various opportunities and threats faced by the vendors in the online travel agencies IT spending market?
Trending factors influencing the market shares for EMEA, APAC, and Americas?
Key outcome of the five forces analysis on the online travel agencies IT spending market?
Growth forecast of the online travel agencies IT spending market until 2019?
Technavio also offers customization on reports based on specific client requirement.
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Technavio Announces the Publication of its Research Report – Global Online Travel Agencies IT Spending 2015-2019
Technavio recognizes the following companies as the key players in the Global Online Travel Agencies IT Spending: Amadeus, Navitaire, Sabre and Travelport
Other Prominent Vendors in the market are: CRS Technologies, Dolphin Dynamics, eCare Technology, Expert Travel Services, Fourth Dimension Software, Lemax, mTrip, Oracle, PcVoyages 2000, Qtech, Technoheaven, Toursys, Tramada, TravelCarma, Trip Solutions, and Web Booking Expert.
Commenting on the report, an analyst from Technavio’s team said: “To provide enhanced user experience on websites and mobile applications, OTAs frequently purchase IT solutions that can provide a unique customer experience in the overall booking process. Firms are expanding their social media presence in the market place to drive customer usage and improve business performance.”
According to the report, GDS systems provide integrated and comprehensive solutions to OTAs to make reservations. GDS provides a platform that connects travel agents with travel suppliers such as airlines and hotels. Information such as the number of seats available in an airline and pricing is sent through the GDS system to travel agents. This real-time information helps travelers avail discounts and choose from a variety of packages according to the travel destinations.
Further, the report states that with growing consolidation over web-based platforms, issues exist between online travel agencies, hotels, and airlines. Earlier, it was difficult to synchronize room availability with the IT dashboard of booking engines and GDS systems. Visitors found it difficult to book a room and the introduction of XML provides current feeds to travel agencies that help users see updated information on travel websites and applications.