The travel industry is expected to record significant growth until 2019, driven by a steady rise in tourist flows. The online travel category is currently experiencing rapid change with expansion of mobile bookings, personalization and peer-to-peer travel services being the main disruptors.
The rise of the mobile bookings is changing booking patterns, consumer behavior and business models in travel. Global mobile travel sales accounted for $96 billion in 2014, and are expected to reach $260 billion in 2019, which is 25% of total online travel bookings.
Online travel services are a $250 billion business in the U.S. with over 75% of travel bookings being made exclusively online. Google predicts that the further rise in mobile devices will have a major impact on online travel services, which could have a major impact on the decline of the in-person travel industry.
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- The industry has benefited from an increase in travel to emerging economies.
- Technology has revolutionized the industry over the past decade in the favor of online travel agencies.
- The industry will benefit from the improving economy and increased consumer spending.