When
Phocuswright began tracking the
travel agency distribution landscape in 2006, the rise of online travel
agencies was forcing travel advisors to prove their value - or risk extinction.
As the online travel market has continued to evolve, changing business models
and pandemic-era disruption have challenged agencies and advisors.
Throughout,
travel agencies have proven resilient, and the market is thriving.
According to Phocuswright’s travel research
report U.S.
Travel Agency Landscape 2023,
today's travel advisors have evolved to
adopt new technologies and
specializations to meet the needs of travel agency clients via strong
relationships, service and expertise.
As
leisure travel demand exploded in 2022 and 2023, travel agencies achieved
unprecedented growth.
After plunging 74% in 2020, the recovery that started in
2021 accelerated as travel agency gross bookings jumped 120% in 2022.
Following a
projected 26% growth in 2023, the travel agency market will exceed its 2019
value in 2024. At that time, market growth will normalize to single digits, and
gross bookings will reach $141.3
billion in 2026.