Lack of innovation in online services contributed to Thomas Cook demise: Report
OTA market value has now surpassed that of in-store services for travel
Despite the fall of Thomas Cook earlier this year, the UK’s online travel agency market is booming. 39% of all UK travellers used OTAs for holidays in 2019 said GlobalData.
The report noted the rise of OTAs compared to in-store services and cited this shift as one of the reasons for Thomas Cook’s demise. OTA market value is double the rates for in-store travel agents during 2018 to 2023. Furthermore, OTA had a CAGR of 2.6% while in-store travel agents had a CAGR of 0.8%.
Globally, the OTA market is forecast to reach US$372 billion by 2023, compared to a $258 billion figure in 2018.
GlobalData’s travel and tourism analyst, Johanna Bonhil-Smith said: “With the devastating collapse of Thomas Cook earlier this year, the UK travel market experienced a mighty blow. One of the key factors that contributed to the company's collapse looks to lack of innovation and investment in online travel trends.”