Online Bus Ticketing Market

Market Overview

The global Online Bus Ticketing market is projected to reach USD 22,663.59 million by 2030, from USD 6,264.67 million in 2021, and is anticipated to register a CAGR of 14.9% between 2022 and 2030.

Online Bus ticketing offers a centralized network to book, view, and cancel the reservation of bus tickets in real-time, offering an augmented solution over conventional travel booking options such as contacting local travel agents or booking tickets over the counter. In order to help customers passively accept reservations and make payments online, the Bus Ticketing System leverages reservation technology. From marketing to distribution, the growth of reservation software to manage every aspect of the bus and tourism business is a major driver of market growth.

Online bus ticketing software provides advantages, such as smarter insights into buses and their routes, reduced workload, prevents cancellations and no-shows, and improved customer experience. With real-time reporting, the number of bookings can be monitored by the bus driver or owner. Channel management can avoid double bookings from online travel agents (OTAs) and can oversee all partnerships and commissions.

The rapid penetration of the internet across the globe has increased the adoption rate of technological aspects in the travel industry. It offers bus travelers the option to discover and plan bus trips with a search tool that provides bus schedules. Further, online ticketing services provide a comprehensive solution for travelers to find, compare, and book tickets online in real-time along with travel updates and alerts relative to the trip, facilitating an enhanced travel experience for travelers across the globe.

In addition to that, as the demand for online bus ticketing services has increased, market vendors began deploying innovative marketing strategies to attract these customers. This focus on marketing and promotional strategy is a key trend expected to gain traction in the online bus ticketing market. With the market being fairly competitive, players are adopting policies, such as discounts, personalized offers, and personalized services to sustain their customer base.

Market Dynamics

Rising Demand for Intercity Bus

Long-distance, express, over-the-road, or highway bus or coach services are intercity bus services used to travel long distances with less frequent stops in cities or towns. As online ticketing offers users the convenience of booking/booking tickets from anywhere at any time, the growing demand for intercity travel modes drives the demand for online bus ticketing services. Companies that facilitate bus travel services are increasingly focusing on expanding their business to reach a wider customer base.

In October 2019, Railyatri, an Indian travel market, announced plans to expand its 'IntrCity' bus service in India and create a multi-modal intercity passenger transport solution by increasing its fleet from 65 to 2,000 over the next two years with an investment of up to USD 100 million. Flixbus, Europe's largest intercity bus company, announced plans to expand its network in November 2018 to serve Houston and the Gulf Coast region of Texas, USA.

Technological innovations are facilitating new developments in intercity bus travel services, accelerating change with the disruptive effects of several new technologies. The growth of the market for bus travel services is further enhanced by incremental technological measures such as e-tickets and improvements to the bus tracker program through aggregator sites. In July 2017, GotoBus launched the Track Bus Status Tool, which allows customers to monitor the status of buses in real-time from any device.

Attractive Revenue Growth and Low Operational Costs

The thriving travel and tourism industry is driving the online bus ticketing market significantly. Key players focus on the on-demand deployment model to deploy their software and services in a virtual environment, also known as Software-as-a-Service (SaaS) and Platform-as-a-Service (Service) (PaaS). This strategy reduces the cost of purchasing, servicing, and powering server-class machines.

With a low cost of ownership, the subscription model enables scalability. It also ensures data back-up integrity and reduces the risk of security breaches. Technological advances, the reinforcement of robust internet infrastructure, and the widespread adoption of new technologies are expected to drive the adoption of cost-effective online bus ticketing software during the forecast period, offering attractive opportunities for revenue growth.

Market Restraint

Technical Snags

The online marketplace for booking bus tickets allows travelers to compare and book city-to-city buses across several routes. With digitization paving the way for the emergence of many e-commerce travel companies around the world, the travel industry has witnessed some technological disruptions. More than 54% of global travelers prefer sustainable travel choices, according to the Booking.com Sustainability Travel report.

Technical issues such as payment failure and application errors encountered by users when booking travel tickets disturb users and hinder the booking experience, which may hinder the growth of the online bus ticketing market. Travel processes have evolved entirely with the use of technology in the travel sector; companies are now prioritizing improvements in application performance as a means of improving customer satisfaction. Several travel technology players offer itinerary management and safety monitoring applications to distinguish themselves from the competition and improve customer experience.

Increasing Number of Cashless Transactions

Travelers are now booking tickets online for a convenient and secure experience in digitizing and increasing the penetration of internet-enabled devices such as tablets and smartphones. Online ticket booking offers a simple platform for finding, comparing, and booking travel tickets for convenient and cost-effective routes across a wide range of bus lines with different payment methods.

For a sophisticated travel experience, a comparison of the best deal made by different bus service providers facilitates enhanced decision-making. Bringing offline customers with online services creates a sense of inclusiveness, enabling fully independent travelers (FITs) to create their itinerary, leading to increased customer satisfaction. In addition to the integrated payment solution, the deployment of online bus ticketing will further enhance the overall ticketing experience and help to scale up online bus ticket bookings, thus addressing accessibility and transport challenges experienced while traveling.

Travel companies are rapidly integrating payment methods into their ticketing platforms to offer better productivity while booking travel tickets to offer greater flexibility. The expansion of e-wallets, such as PayPal, Alipay, M-Pesa, and PhonePay in travel ticket booking systems is gradually increasing the rate of adoption of online bus ticketing services. BuuPass entered into a strategic partnership with Safaricom in May 2019 to launch an online service for the reservation and purchase of payment bus tickets accepted in Kenya via M-PESA.

Regional Analysis

Burgeoning Demand for Bus Ticketing in North America

Travel and tourism is a thriving industry in North America, with the leading growth contributors being countries such as the United States, Canada, and Mexico. According to Most overseas visitors coming from Europe and Asia, the U.S. The Department of Commerce is the biggest attraction for many travelers around the world. Share America, which is managed by the Office of Global Public Affairs in the United States, welcomes more than 75 million international visitors each year, with about half coming from neighboring countries, including Mexico and Canada, according to the State Department.

The demand for intercity bus transport to travel between major cities and cities is rising with increasing cross-border travel. Mexico experienced a record-breaking 10.6 million visitors in the first quarter of 2018 when visitors were unable to book ADO (Autobuses de Oriente, S.A. de C.V.) bus tickets with their tickets because only Mexican tickets were accepted for online booking. According to BlaBlaCar, the European market is expected to see a shift to online booking buses, with only 10% of online bookings represented by the multi-billion bus market in the region.

The online bus ticket service market is expected to see significant growth in the European market in the coming years, with an increase in the number of passengers in the region. According to Busfor, the market for bus transport in Eastern Europe has been valued at approximately the international bus ticketing platform. USD 9 billion, with online ticket sales accounting for only 2% to 5% in 2018. Increased focus on multimodal transport offers an accelerated transition from offline to online travel bookings to bus and passenger services, facilitating improved long-distance mobility.

Segmental Analysis

Wide Usage of Mobile Applications

Based on type, the market is segmented into mobile and desktop. The mobile segment held the largest share of the global online bus ticketing market in 2019 with a CAGR of 12.2% over the forecast period. Travelers around the world are looking for a convenient and comfortable travel experience through standard ticket booking systems with mobile-friendly solutions. Several companies are offering mobile ticket booking apps on Android and iOS devices, such as MakeMyTrip, Wanderu, redBus.in, MegaBus and others.

Customers can now easily book and plan trips to different travel destinations due to the increasing percentage of smartphone users and the increasing availability of online bus ticketing services, this is one of the driving factors for the growth of this segment over the forecast period. Smartphone accessibility exceeds desktop traffic in many countries, so providing mobile apps and mobile-friendly websites are vital for players to target a large customer base.

Mobile apps offer travelers greater flexibility over smart device platforms such as Android and iOS to book tickets online in real-time; thus providing a one-stop online ticket booking portal along with integrated payment methods such as Visa, MasterCard, PayPal, Paytm and M-Pesa facilitates improved customer satisfaction and increases the online presence of businesses.

Tourism Segment to Register a Significant Growth Rate

Based on application, the market is bifurcated into tourism, business, and others. The tourism segment is projected to register the highest market share over the forecast period with a CAGR of 10.1%. In addition to strengthening economic conditions, the tourism industry is thriving with technological innovation which is one of the primary growth factors for the global bus ticketing market.

By modernizing and capturing the market through new technologies, new destinations, and means of transport, the early adoption of evolving trends plays a vital role, leading to a change in the sector. In 2018, the global travel and tourism sector increased by 3.9% to contribute a record USD 8.8 trillion and 319 million jobs to the world economy, according to the World Travel & Tourism Council (WTTC).

In addition to a healthy demand for tourism services, the countries of North America and Asia are experiencing a wave of strong economic activity. Moreover, changing demographics and technological advances affect, among other things, the rise in tourism trends such as solo travel, local experience, personalization, IoT, and customer experience. The availability of cheaper travel solutions offered by bus services, therefore, stimulates the demand for online bus ticket services in the tourism sector.

Impact of covid-19

For most of 2020, the outbreak of the COVID-19 pandemic has kept individuals quarantine in their homes worldwide. Governments have restricted movement and prohibited travel around the world to stop the spread of the disease. Undoubtedly, this has caused individuals to want to escape from isolation and enjoy life as before.

Due to the falling GDP and the disruption of large and small businesses, governments also appear to lift travel bans and ease travel restrictions from 2021. During this period, as people begin to travel again, the tourism industry can expect to see a dramatic increase in bus ticketing, which was affected earlier this year in terms of both income and employment rates.

Recent Developments

• In October 2020, Busbud Inc. raised USD 11 million for intercity bus booking. This funding is going to bolster is grasp over the intercity bus ticketing market significantly.