Online Travel Bookings in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: November 2023
ANZSIC OD4163Revenue
$2.0bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
2,502
Businesses
33
Wages
$XXX.Xm
Online Travel Bookings in Australia industry analysis
The Online Travel Bookings industry is on the road to recovery, following the COVID-19 pandemic downturn. In 2019-20 and 2020-21, demand collapsed as federal and state governments imposed heavy travel restrictions. From March 2020 to February 2022, Australia's international border was closed and the number of international visitors to Australia plummeted. To generate revenue, online travel booking providers were forced to rely on the domestic tourist market, but state border closures and intermittent lockdowns heavily disrupted revenue from domestic travellers. Industry-wide revenue and profitability fell sharply. As restrictions were lifted in 2021-22, these trends reversed. Overall, revenue is anticipated to fall an annualised 2.9% over the five years through 2023-24, to $2.0 billion. This includes a 17.7% surge in 2023-24 as inbound and outbound travel demand roared back after the COVID-19 pandemic outbreak.
Trends and Insights
- Consumers are increasingly organising their travel plans online. This development has grown the online travel booking market in Australia, encouraging an influx of online travel agents over the past decade.
- Travellers who book their own accommodation are more willing to shift online. Online travel booking services have capitalised on this shift by launching platforms that specialise in short-term rental accommodation, like Airbnb or VRBO.
- Most businesses are located in major cities, because they need access to skilled IT staff to maintain their online platform capacities. This trend has concentrated many businesses in Victoria and New South Wales.
- The industry is highly concentrated, dominated by the two largest multinationals, Expedia and Booking.com. These platforms have the highest website traffic and have engaged in aggressive acquisition activity to build their market share.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 2.9 % over the past five years, to reach an estimated $2.0bn in 2023.
Trends and Insights
Online booking revenue is roaring back in the wake of COVID-19 pandemic-led disruptions
- Industry revenue collapsed during the pandemic, driven largely by Australia's international border closure from March 2020 to February 2022. Domestic travel restrictions – especially lockdowns and state border closures – also restricted online travel booking volumes.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A tourism boom will drive an industry-wide recovery
- Australia’s inbound and outbound tourism in is set to boom in the coming years, ensuring growth in online bookings and driving up industry-wide revenue and profitability.
Biggest companies in the Online Travel Bookings in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Expedia Australia | 552.9 | |
Booking.com | 453.2 | |
Webjet | 149.0 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Flight bookings, Accommodation bookings and Other services. Flight bookings is the largest segment of the Online Travel Bookings in Australia.
Trends and Insights
Consumers are more readily switching to booking accommodation online
- Travellers often look for a hotel, motel or serviced apartment after they have made transport arrangements. Yet, they have been adopting online accommodation booking services more rapidly than online flight booking services. Many consumers use online travel agents to research flight deals but then book them directly with the airline.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Travel Agency and Tour Arrangement Services in Australia
Complementors
- International Airlines in Australia
- Domestic Airlines in Australia
- Online Shopping in Australia
International industries
- Global Travel Agency Services
- Travel Agencies in the US
- Travel Agencies in Canada
- Travel Agency and Tour Arrangement Services in New Zealand
- Online Travel Agencies in the UK
Table of Contents
About this industry
Industry definition
Industry players provide online travel reservation and booking services, taking a percentage of the total transaction value booked through their websites to generate revenue. The industry excludes firms that also have a physical retail presence. The industry also excludes metasearch websites that do not allow travel bookings.
What's included in this industry?
Flight bookings Accommodation bookingsCar hire Travel insuranceCruisesOnline bookings of equipment and gear for outdoor activitiesCompanies
Expedia AustraliaBooking.comWebjetPurchase this report to view all 5 major companies in this industry.
Related Terms
TOTAL TRANSACTION VALUE (TTV)BANDWIDTHMETASEARCH WEBSITESPEER-TO-PEER PLATFORMIndustry Code
ANZSIC 7220 - Online Travel Bookings in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Consumers are increasingly organising their travel plans online. This development has grown the online travel booking market in Australia, encouraging an influx of online tra...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Travellers who book their own accommodation are more willing to shift online. Online travel booking services have capitalised on this shift by launching platforms that specia...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Most businesses are located in major cities, because they need access to skilled IT staff to maintain their online platform capacities. This trend has concentrated many busin...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry is highly concentrated, dominated by the two largest multinationals, Expedia and Booking.com. These platforms have the highest website traffic and have engaged i...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Expedia has expanded through acquisitions and organic growth. As consumers have shifted online, Expedia and other OTAs have used their position as dominant online platforms t...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Expedia Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Booking.com's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Webjet's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Expedia Australia, and factors influencing its performance in the industry
- Description and key data for Booking.com, and factors influencing its performance in the industry
- Description and key data for Webjet, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Total tourist visitor day fluctuations have heavily affected online travel agents’ performance. Tourist volume is a key indicator because most revenue is generated through tr...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profitability collapsed when revenue collapsed following the COVID-19 outbreak. Since 2022-23, higher accommodation and travel booking prices underpinned a strong profit marg...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Online Travel Bookings industry in Australia in 2024?
The market size of the Online Travel Bookings industry in Australia is $2.0bn in 2024.
How many businesses are there in the Online Travel Bookings in Australia industry in 2023?
There are 33 businesses in the Online Travel Bookings industry in Australia, which has declined at a CAGR of 1.2 % between 2018 and 2023.
Has the Online Travel Bookings industry in Australia grown or declined over the past 5 years?
The market size of the Online Travel Bookings industry in Australia has been declining at a CAGR of 2.9 % between 2018 and 2023.
What is the forecast growth of the Online Travel Bookings industry in Australia over the next 5 years?
Over the next five years, the Online Travel Bookings industry in Australia is expected to grow.
What are the biggest companies in the Online Travel Bookings market in Australia?
The biggest companies operating in the Online Travel Bookings market in Australia are Expedia Australia, Booking.com and Webjet
What does the Online Travel Bookings in Australia include?
Flight bookings and Accommodation bookings are part of the Online Travel Bookings industry.
Which companies have the highest market share in the Online Travel Bookings in Australia?
The company holding the most market share in Australia is Expedia Australia.
How competitive is the Online Travel Bookings industry in Australia?
The level of competition is high and increasing in the Online Travel Bookings industry in Australia.
