Explore Travel Agency Stats on Industry Trends, Bookings, Sales, Fees & More!
The travel agency market totalled £29.4 billion in 2024, and both online travel agents and traditional travel agents saw consistent growth. In 2024, the traditional travel agency market reached a market size of $149.14 billion. This market is projected to reach $157.74 billion in 2025, with a compound annual growth rate (CAGR) of 5.8%.
OTAs still drive the market, and in 2024, the online travel market was valued at over $640 billion. The rise of AI is also changing the industry, with 62% of Gen Z travellers using AI to help them save money on travel.
Read on for more on this industry as we dive into the statistics below.
KEY TRAVEL AGENT STATISTICS:
The travel agency market in the UK totaled £29.4 billion in 2024.
There were 5000 travel agency businesses in the sector in 2024.
The global travel agency industry's revenue is estimated at over $355 billion as of March 2025.
The tour operator industry totalled over £17 billion in 2024.
In January 2025, the leading travel agent was Hays Travel, which had nearly 500 stores, followed by TUI, which had over 300 stores.
Jet2holidays was the leading ATOL-licensed tour operator in the UK, with over 6 million passengers licensed as of January 2025.
In 2024, the traditional travel agency market reached a market size of $149.14 billion.
This market is projected to reach $157.74 billion in 2025, with a compound annual growth rate (CAGR) of 5.8%.
The traditional travel agency market size is expected to increase to $195.5 billion in 2029 at a compound annual growth rate (CAGR) of 5.5%.
Online channels, including OTAs (online travel agencies), generated roughly 70% of the total travel and tourism revenue in 2024.
OTAs' gross bookings exceeded $150 billion and a market share of 22% in 2024.
Booking.com dominated the European hotel industry with 69.3% market share, followed by Expedia Group at 11.5% in 2024.
Booking Holdings (which own Booking.com) had the highest revenue among OTAs, reaching almost $24 billion in 2024.
77% of online hotel bookings in Europe came from OTAs in 2024.
26% of travellers said they used an OTA to research flights, and 36% said they used OTAs for booking flights.
In the UK, traditional travel agencies employed approximately 54,229 people in 2024.
In 2024, the traditional travel agency market reached a market size of $149.14 billion.
This market is projected to reach $157.74 billion in 2025, with a compound annual growth rate (CAGR) of 5.8%.
The traditional travel agency market size is expected to increase to $195.5 billion in 2029 at a compound annual growth rate (CAGR) of 5.5%.
In the UK, traditional travel agencies employed approximately 54,229 people in 2024.
In January 2025, the leading travel agent was Hays Travel, which had nearly 500 stores, followed by TUI, which had over 300 stores.
In 2024, Hays Travel Limited saw significant growth, with a turnover of £457.44 million.
Gross sales reached £2.55 billion, a 17% increase compared with 2023.
Hays Travel reported a net profit of over £50 million.
Abta’s 2024 Holiday Habits report found that the proportion of 18-24-year-olds booking with a travel agent had risen from 26% in 2019 to 48% in 2024.
In 2024, 55% of young families were also booked with an agent.
58% of Baby Boomers used travel agents to book their trips in 2024.
The "World's Leading Travel Agency" for 2024, according to the World Travel Awards, was Regency Travel & Tours.
Over 3,000 travel shops remained operational in March 2025.
Although online travel agents continue to dominate the travel industry, traditional travel agents still have their place, with the market projected to reach $157.74 billion in 2025. Baby Boomers remain the biggest generation to book through traditional agents; however, increasing global travel and preference for personalised and luxury travel continue to support the need for a traditional in-person experience.
The growth forecast can be attributed to growing post-pandemic travel demand, increasing middle-class populations, and rising interest in experiential travel. For travelers seeking more complex travel plans, the benefits of using traditional travel agents include expertise, valuable insights, and guidance when booking unique or customised trips.
In 2024, the online travel market was valued at over $640 billion.
Online channels generate roughly 70% of total travel and tourism revenue.
80% of global travelers feel it's important to book trips entirely online.
86% of Millennials and 83% of Gen Zers are leading the way for online bookings.
The global online travel industry is expected to reach $1.26 trillion by 2032.
A projected compound annual growth rate (CAGR) of 12.99%.
Total global downloads of travel apps have reached more than $2 billion in 2024.
Revenue from global travel apps is around $180 million.
In 2024, 26% of travellers said they used an OTA for researching flights.
36% said they used OTAs for booking flights.
43% used OTAs for booking hotels
28% of travellers booked paid activities using OTAs.
38% of travellers booked packages using OTAs.
62% of Gen Z travellers used AI to help them save money on travel.
Online travel agents see no signs of slowing down, and the rise of travel apps and AI is driving online growth further. Total downloads for travel apps have reached more than $2 billion in 2024, and the rise of AI is changing the way younger generations make their travel plans.
AI is significantly impacting the travel industry by personalising experiences, streamlining bookings, and improving customer service. AI-powered chatbots, for example, can handle inquiries and reservations, while algorithms analyse data to offer tailored itineraries and pricing. They are frequently used to find the best offers and create itineraries. The future will likely keep growing and changing with AI automating more aspects of the travel experience.
Sources: Travel Perk, Hilton,
The travel agency market in the UK totaled £29.4 billion in 2024.
There were 5000 travel agency businesses in the sector in 2024.
The global traditional travel agency market was worth approximately $149.14 billion in 2024 and is projected to reach $157.74 billion in 2025.
The traditional travel agency market was valued at $143.9 billion in 2022 and is estimated to reach $212.9 billion by 2032.
Growing at a CAGR of 3.7% from 2023 to 2032.
The proportion of people who booked a holiday with a travel professional in the past 12 months has risen to 38%, up from 34% last year.
55% of families with young children booked a holiday with a travel professional.
48% of 18-24-year-olds booked with travel professionals this year.
The global travel agency market was worth a whopping $149.14 billion in 2024. The rise of families booking holidays with travel professionals has increased from 36% in 2019 to 55% in 2024, and in those aged 18-24, rising from 36% to 48%.
54% of those booking with a travel professional cited ease of booking as their top reason for booking with them, and 43% said it was so they have someone to help and support if something went wrong, and 43% said it helped save them time.
Sources: Findabusinessthat, Hotelmarketing, Trekksoft, Thinkwithgoogle, Dcsplus, ABTA
On average, 78% of travel agents’ revenue was made up by commission, with 22% generated by service charges.
Travel agents typically earn between 10% to 15% of the booking cost from service providers like hotels, airlines, and tour operators.
OTA commission rates vary, but typically range from 15% to 30%.
For an airline ticket, a travel agency might charge 8% of the public price.
Travel agencies can earn a commission from hotels, ranging from 8% to 15% of the booking price.
Travel agencies typically earn between 10% and 15% commission on tour bookings.
Travel agents primarily earn money through commissions from travel suppliers such as airlines, hotels, tour operators, and cruise lines, for which they book travel for clients. They can also earn income through service fees charged for itinerary planning and expertise.
Commission and charges aside, the agents make money through pricing up fares, commission and for the bigger agencies, compensation awarded for reaching pre-determined sales goals.
SOURCES – Hostagencyreviews, Statista, Mize, Fair Jungle, Travel Franchise,
54% of people chose travel agents due to the ease of booking.
43% wanted to have someone to help and support if something goes wrong.
43% chose travel agents to save them time.
39% said travel agents provided value for money.
36% feel more confident booking through travel agents.
35% wanted expert help and advice.
It’s unlikely that travel agencies would be popular if they provided no benefits over other booking methods, so what are the advantages that sway customers from booking directly? Ease of booking is the most common reason people opt to book through an agent, along with getting support and advice and saving time. Researching the best deals, hotels, and destinations can be time-consuming, and consulting an expert can alleviate the stress involved, give you additional savings and provide support should something go wrong on your trip.
The ASTA survey also found that around two-thirds of people believe that one of the benefits of a travel operator is that they help travellers avoid costly mistakes when booking. With holidays and travelling experiences being highly anticipated and often expensive, travellers will do all they can to steer clear of potential issues and inconveniences. Outsourcing the booking to a travel expert like an agent can put customers at ease.
Another benefit is that a travel company can help people book specific, tailored experiences for their travels. This is something that 55% of Millennials are taking advantage of as they strive for “transformative travel” that will change them for life.
Sources – Vox, Hotelmarketing, Dcsplus
In 2020, the world travel and tourism sector suffered a massive loss of nearly $4.5 trillion due to COVID-19.
More than 43% of travel agencies said that they had laid off or furloughed three-quarters or more of their staff.
Accommodation and travel agencies saw the sharpest decline in turnover during the first lockdown, falling to 9.3% of their February levels in May 2020.
As of June 2021, revenues for travel agents and tour operators were consistently down between 86-90% each month since February 2020.
26,800 travel agents and tour operator staff were still on furlough on July 31, 2021.
57% of SME travel agents said they would not be able to survive more than 3 months based on June 2021 trading conditions and Government support.
A huge number of businesses had to close during and post-COVID-19. Lack of revenue and high demand for refunds has taken its toll on many traditional travel agencies.
UK-based STA Travel was forced to close in mid-2020, closing more than 50 shops.
Australian travel agency Flight Centre closed 421 out of its 740 stores.
German tour operator TUI closed 166 stores throughout the UK and Ireland in 2020, and a further 48 in 2021.
British travel company Hays Travel closed 89 of its stores following the UK’s third national lockdown in early 2021.
Upside Business Travel was the first major business-focused travel agent to go out of business when it ceased operations in 2021.
Since vaccinations and travel restrictions eased the industry has started to recover, but with some changes.
76% of travel agents saw an increase in customers in 2021 compared to before the pandemic, with 81% saying they were hearing from customers who had never used a travel agent before.
27% always or often used a travel agent prior to the pandemic. But 44% said they were more likely to use a travel agent after the pandemic is over.
As of 2023, there are over 400,000 people employed in the Travel Agencies industry in the US.
The market size of the travel agency industry worldwide reached 475 billion U.S. dollars as of January 2023.
Roughly 201.4 thousand businesses operated in this market, while this industry employed approximately 2 million workers.
Covid had a catastrophic impact on travel agents, with the industry coming to a halt in 2020.
Where a huge amount of job losses and furloughs took place, those left in the travel agency industry were left to deal with the fallout of cancelled trips and refunds, putting a huge amount of pressure on those still employed.
Travel agencies used various tactics to deal with the outbreak.
- 74.8% preferred to reduce costs.
- 48.8% started to operate in non-tourism areas.
- 39.1% focused on digitalization
- 27.3% used methods such as changing the business market and product portfolio.
It has been determined that Covid-19 causes a decrease of 81% or more in the turnover of most of travel agencies (59.5%).
Due to the uncertainty, COVID brought with it, travel agents have become planners and providers, offering customers more security if things go wrong with a trip. Most customers expect travel agents to have a plan if things go wrong and manage issues for them, taking the worry and pressure off.
It’s been suggested that travel agents are now increasingly playing the role of a crisis manager. Some companies even offer 24-hour text messaging support to help serve this demand.
Staff furloughs and remote working has allowed for an increase in independent travel agents. Many travel professionals have adapted to this new environment by working for independent contractor companies or choosing to join host agencies.
Traditional travel agencies may have made a comeback in 2021, but they are still facing many problems. With most consumers opting to book through online OTAs. In 2021, the online travel industry generated revenue worth more than $800 billion, with two-thirds of revenue in the global travel and tourism industry coming from online sales.
Although physical stores are declining, traditional companies are offering online services and support. However, competing for this business online will be tough and they will need to ensure they offer a quick, seamless, and easy journey for customers to book and browse online. Travel agencies have had to evolve, but with the rise of issues COVID caused, the services they can offer customers have increased.
Sources: Travel Perk, Statista, AA, Aerospace, ONS, ResearchGate, TTGMedia, National Geographic,
INFORMATION
MORE
CONDOR BREAKS
- Condor Ferries
- New Jetty
- White Rock
- St. Peter Port
- Guernsey
- GY1 2LL
- +44 3456 091 024
FOLLOW US
