Taiwan travel agency industry structural and digital shifts

The travel agency sector in Taiwan is experiencing significant structural changes and new operational risks. Between 2021 and 2025, 235 agencies exited the market, with 52 exits occurring in 2025 alone. Despite record high outbound tourism, many agencies struggle with profitability due to intense price competition, rising costs, and the rise of independent travel through digital platforms. Administrative actions have also seen 12 agencies have their licenses revoked or cancelled, primarily for failing to pay required guarantees or report business suspensions.

Parallel to these economic shifts, the industry is facing increased cybersecurity threats driven by digital transformation. The integration of complex booking systems involving airlines and hotels has created vulnerabilities. Notable incidents include a data leak at e-go Travel affecting over 690,000 people and a hacking incident at Full Travel that resulted in a fine from the Ministry of Transportation and Communications. In response, companies are adopting defensive measures such as ISO 27001 certifications, AI-driven detection tools, and dedicated data management offices.