As we begin a new year, the travel industry continues to improve as consumers make up for lost vacation days and corporate travel resumes.

According to Mastercard Financial Matters Establishment estimates based on IATA data, approximately 1.5 billion more people booked trips in 2022 than in 2021, and online appointments are expected to reach pre-pandemic levels in 2023.

According to Mastercard Worldwide Bits of information, a few districts, such as North America and Latin America, have proactively outperformed 2019 (pre-pandemic) levels.

Following two years of lockdowns, the industry is also seeing a surge in "make-up" travel as customers use their excess investment funds to plan elaborate vacations.

Buyers are increasingly turning to travel services for calculated assistance. Specialists provide the responsibility and simplicity of a single resource, saving customers time and money while providing inner peace.

The hardest hit is online travel agencies (OTAs). According to data from Phocuswright and Mastercard, 57% of American travelers are likely to book their trip through an OTA since the pandemic, with millennial and Gen X travelers being the most enthusiastic.

This pattern is reflected in two-digit growth for US OTAs, which posted $65.2 billion in gross appointments in 2021 and a build yearly growth rate of 20% from 2020 to 2022.

OTAs now control roughly 40% of the global travel market, serving as a driving force for aircraft, lodgings, visit administrators, rail lines, voyage lines, and their various partners. In general, the OTA market is expected to generate $1.5 trillion in revenue by 2027.

Travel companies are restarting B2B installation practices.

Previously, most travel services served as delegates, passing on the shopper's payment information to the aircrafts, inns, visit administrators, and small providers involved in a single's agenda. However, as the provider organization grows, this "go through" model has become less secure and more perplexing for offices and purchasers alike.

As a result, an increasing number of travel services are adopting the shipper of record (MoR) model. The travel service, as the MoR, collects the client's installments for all administrations booked through them, approves the exchanges, and then pays the individual providers associated with the booking.

The MoR model also enables travel services to provide customers with payment options, such as purchase now, and pay later methods.

The transition from the pass-through model to the MoR model is significant. According to Phocuswright and Mastercard data, travel planners known as MoRs in the United States experienced a 43% CAGR from 2020 to 2022 — a rate of development that was four times that of the overall OTA market (20% CAGR).