GDS: Travel agencies surge ahead
U.S. travel agencies see 28% growth in 2024 as leisure bookings and cruises drive a $109 billion market
Travel agencies are experiencing significant growth, with bookings surging 28% to $109.7 billion in 2023. Driven by strong demand, higher prices, and changing advisor dynamics, the sector continues its post-pandemic rebound and is projected to see steady growth ahead.
Key takeaways
- Robust growth: Travel agency bookings reached $109.7 billion in 2023, a 28% increase, with a projected growth rate of 9% annually for 2024 and 2025.
- Leisure dominance: Leisure travel remains the largest segment (65% of sales), boosted by demand for high-end experiences, tours, and cruises.
- Cruise boom: Cruise bookings surged by 152% in 2023, with agencies responsible for two-thirds of sales.
- Advisor demographics shift: Newer, younger entrants and home-based independent contractors dominate advisor roles, although traditional agency offices are regaining popularity.
- Digital marketing focus: Agencies primarily use digital channels like email, Facebook, and Instagram, while TikTok is growing slowly and AI adoption remains limited.
- Positive outlook: Despite rising travel costs, 72% of advisors remain optimistic about future business prospects, as agencies are projected to represent one-quarter of U.S. travel sales by 2027.
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