Traditional Travel Agency Market Report 2026

The traditional travel agency market size has grown strongly in recent years. It will grow from $157.43 billion in 2025 to $166.02 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to rising tourism activities globally, increasing trust in physical travel agencies, growing demand for guided bookings, expansion of international travel trends, rising need for reliable travel planning.

The traditional travel agency market size is expected to see strong growth in the next few years. It will grow to $205.05 billion in 2030 at a compound annual growth rate (CAGR) of 5.4%. The growth in the forecast period can be attributed to growing preference for curated travel experiences, rising reliance on expert travel consultation, increasing demand for hassle free travel arrangements, expansion of premium tourism segments, rising focus on personalized travel planning. Major trends in the forecast period include increasing demand for personalized travel planning, rising preference for expert guided travel assistance, growing dependence on agency based international travel support, expansion of customized vacation and package services, strengthening role of human consultation in travel decisions.

The rising demand for corporate travel is expected to drive the growth of the traditional travel agency market in the coming years. Corporate travel involves work-related trips undertaken by employees or business representatives, including meetings, conferences, and client visits. This demand is driven by expanding business activities, the adoption of remote and hybrid work models, and a focus on face-to-face client interactions to strengthen relationships and secure deals. Traditional travel agencies manage bookings, itineraries, and travel support, providing tailored services that simplify business travel processes. For instance, in January 2024, according to a survey of over 700 business travel professionals from 41 countries conducted by the Global Business Travel Association (GBTA), a US-based organization, 83% of travel buyers reported an increase in global business travel bookings for 2023 compared to 2022, with 31% seeing a significant rise, 37% a moderate increase, and 15% a slight improvement. Additionally, 59% of buyers anticipate further growth in business trips within their companies in 2024. Therefore, the increasing demand for corporate travel is driving the growth of the traditional travel agency market.

Major companies operating in the traditional travel agency market are focusing on high-growth business development strategies, such as digital loyalty platforms, to gain a competitive edge. Digital loyalty platforms are integrated systems that consolidate customer engagement, track travel behavior, and deliver personalized rewards to improve client retention and encourage repeat bookings. For instance, in September 2024, Trevolution Group, a UK-based travel services company, launched a single loyalty program across all its brands, featuring centralized points management, tiered rewards, and personalized travel recommendations. This approach strengthens customer relationships, drives repeat business, and provides actionable insights into traveler preferences. While these platforms require investment in IT infrastructure and data security, they enable traditional travel agencies to remain competitive in a market increasingly dominated by online travel booking platforms.

In January 2023, Flight Centre Travel Group (FLT), an Australia-based travel services provider, acquired Scott Dunn for £121 million (approximately $149 million). This acquisition aims to expand Flight Centre's luxury travel portfolio, boost revenue growth, and achieve cost efficiencies by integrating Scott Dunn's high-margin, premium brand. Scott Dunn Ltd. is a UK-based tour operator specializing in traditional travel services.

Major companies operating in the traditional travel agency market report are TUI AG, CWT Global BV, American Express Global Business Travel, Flight Centre Travel Group Limited, Frosch International Travel, Thomas Cook (India) Ltd, BCD Travel, Abercrombie & Kent, Corporate Travel Management, JTB Corporation, G Adventures, Contiki, Travel Leaders Group, STA Travel, Classic Travel, HRG (Hogg Robinson Group), Kuoni Travel Ltd, Airtreks, National Geographic Expeditions, AAA Travel, Journese.

Europe was the largest region in the traditional travel agency market in 2025 The regions covered in the traditional travel agency market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the traditional travel agency market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The traditional travel agency market includes revenues earned by providing services such as travel support and assistance, group travel coordination, travel loyalty programs, and custom itineraries. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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