The projection is contained in a global travel industry
database released by Statista.
The database indicates that revenue is expected to show a
yearly growth rate: Cumulative Annual Growth Rate (CAGR 2023-2027) of 6.13 per cent, resulting
in a projected market volume of $3.746 billion by 2027.
The market’s largest segment is package holidays with a
projected market volume of $1.239 billion in 2023.
In the hotels segment, the number of users is expected to
amount to 17,450 kilometres users by
2027.
User penetration is projected to be 10.5 per cent
in 2023 and is expected to hit 12.1 per cent by 2027.
The average revenue per user (ARPU) is expected to amount to
$126.80.
In the travel and tourism market, 66 per cent of total
revenue will be generated through online sales by 2027.
The global travel management solution market is estimated to
grow by 10.86 per cent in the next four years, according to statistics from
industry research and markets.
The market was valued at $42.6 billion in two years ago and
is projected to spike to $70.1 billion by 2026.The growth of the market,
experts said, is driven by increasing globalisation, rising adoption of managed
travels by small companies and technology adoption with tie-up and consolidation of travel
management companies.
Nigeria, which plays in this huge travel space, has
witnessed the increasing influence of travel management companies, with the
companies partnering domestic carriers on flexible fares, route management and
flight inventory.
Besides, some of the companies, including Wakanow Limited,
Travelstart, Sabre Travel Solutions, Sixth Continents, Boku Travel, Landover
Travel Centre, among others, have inked deals to make the booking, payment and
facilitation of travel, competitive and seamless.
Experts said the impact of travel management firms not only
reduces the cost of travel for corporate organisations, because the companies
engage airlines for volume sales for tickets, they also support with other
anciliary services.
Stakeholders familiar with the development said the
volatility in average ticket price due to complex pricing strategies and limited
effective price regulations in air travel are some of the factors that are
restraining the growth of the market.
The introduction of enhanced corporate booking tools and
on-the-go mobile applications and growing demand have also created
opportunities for the market.
But experts said transaction security challenges and other
privacy concerns are big challenges plaguing the market.