Flight bookings through online travel agencies (OTAs) rose sharply in May 2025, even as traditional leisure and corporate travel agencies reported a decline in sales.
OTAs saw an 8% year-over-year increase in flight sales. This growth reflects a continuing shift toward self-service platforms, with more travelers booking directly online instead of going through travel agents.
At the same time, both corporate and leisure agency-managed bookings dropped.
Data from Travel and Tour World showed corporate travel fell 8%, while leisure agency bookings declined by 5%. This resulted in a combined 13% dip in agency-managed flight sales.
Passenger volumes held steady, with around 25.76 million trips taken in May. That figure is just slightly above May 2024 numbers. Despite this stability in volume, total airfare revenue dropped nearly 5%, from $9.03 billion to $8.58 billion. International fare revenue saw the largest hit, falling by 9%. Domestic fares were down by nearly 3%.
Ticket prices also saw a slight dip. The average ticket price in May was $530, down 2% from the previous month. Economy fares averaged $462, and premium fares came in at around $1,201.
Interestingly, cash payments surged, with a 9.3% rise in offline and non-credit purchases. This trend shows that while travelers are moving online for booking, they are not necessarily sticking with credit cards.
Airline distribution methods are also evolving. About 21.5% of May bookings were made using New Distribution Capability (NDC) systems. That’s up from 20.3% in May 2024, according to Travel and Tour World.
Overall, the market is shifting. Passenger numbers are stable, but revenue is dropping, signaling more price-sensitive travelers. Travelers prefer to book online, on their own time, and are looking for cheaper options.
Traditional travel agencies, especially in the leisure and corporate segments, are losing market share. Airlines are responding by focusing more on digital platforms and updated booking systems like NDC.