OTAs’ Influence on the Travel Industry – Case Study
Powered by
All the vital news, analysis, and commentary curated by our industry experts.
OTAs’ in the Travel Industry Report Overview
The OTA market value was $764.69 million in 2023. The proliferation of the internet and the increasing demand for personalized travel experiences will drive the market to grow at a CAGR of more than 12% from 2023 to 2027. The United States is the largest revenue contributor, accounting for over 46% of the global OTA market in 2023. The tourism sector in the US is on an upward trajectory owing to the rising number of tourists in the country. Brazil was the second-largest contributor to the overall OTA’s market value, followed by China and Germany.
OTA Market Outlook, 2023-2027 ($Million)
Buy the Full Report for More Insights into the OTA Market Forecast, Download a Free Report Sample
The “OTAs’ in the Travel Industry Report” analyzes the importance of OTA platforms in the tourism industry. The report includes market trends, opportunities, and challenges the OTAs endure in the tourism sector.
Key Trends | · Machine Learning (ML) & Artificial Intelligence (AI)
· Conversational Platforms · Augmented & Virtual Reality (AR/VR) · Sustainability and Responsible Tourism · Contactless Travel |
Key Business Models | · Advertising Models
· Merchant Models · Agency Models · Subscription Models · Partnership Models · Peer-To-Peer Networks |
Leading Players | · Booking Holdings Inc.
· Expedia Group. · Airbnb Inc. · Trip.com Group Ltd. · Flight Centre Travel Group |
Enquire & Decide | Discover the perfect solution for your business needs. Enquire now and let us help you make an informed decision before making a purchase. |
OTA Market Trends
Online travel agencies (OTAs) are gaining popularity due to their convenience, price transparency, wide selection, user reviews, accessibility, and special deals. Online travel platforms have made it easier for travelers to access information about destinations, accommodations, transportation, and activities, democratizing travel planning and booking. They have also expanded the reach of tourism businesses by allowing small and medium-sized enterprises to showcase their offerings to a global audience, attracting international travelers. Moreover, the ability to compare prices across multiple online travel platforms encourages competition among suppliers and leads to better deals and value for travelers.
The COVID-19 pandemic had a severely damaging effect on the travel and tourism sector. However, the industry has shown its strength to recover and adapt to the new tourist perceptions and behaviors, leading to changes in travel patterns, and resulting in new travel trends. For instance, the COVID-19 pandemic has accelerated the adoption of contactless travel technologies and processes. OTAs are integrating features such as mobile check-in, digital boarding passes, and contactless payments to enhance safety and hygiene measures for travelers. Similarly, the use of AR/VR applications will play a vital role in improving visitor experiences by providing virtual guided tours.
OTA Business Models
Most travel platforms employ a variety of business models such as advertising models, merchant models, agency models, subscription models, partnership models, and peer-to-peer networks to suit their business objectives.
Advertising model: Advertising remains a valuable revenue source for OTAs. In the digital era, hotels, airlines, and other businesses get featured on the OTA’s websites through pages, advertisements, or suggestions.
OTA Business Models
Buy the Full Report for More Information on the OTA Business Models, Download a Free Report Sample
OTA Market – Competitive Landscape
A few of the industry players making their mark in the OTA market include Booking Holdings Inc., Expedia Group., Airbnb Inc., Trip.com Group Ltd., and Flight Centre Travel Group among others. In 2023, Booking Holdings accounted for the highest share of the OTA market.
Booking Holdings Inc.: The company offers various online travel and related services, including accommodation reservations, price comparisons, rental car reservations, restaurant reservations, airline ticket bookings, vacation packages, cruise bookings, and travel reservations. It operates businesses under brands such as Booking.com, Agoda, Priceline, KAYAK, Rentalcars.com, and OpenTable.
Expedia Group Inc.: The OTA company provides a wide range of services, which include the booking of hotel rooms, airline seats, car rentals, and destination services through its travel suppliers. It offers these services under various brands, including Expedia.com, Hotels.com, Vrbo, Orbitz, ebookers, CheapTickets, Hotwire, CarRentals.com, Travelocity, Traveldoo, Expedia Partner Solutions, and Wotif Group.
OTA Market Analysis by Leading Players, 2023 (%)
Buy the Full Report for More Information on the Leading Players in the OTA Market, Download a Free Report Sample
Key Highlights
During 2022, the OTA market value performance surpassed its pre-pandemic level by reaching $531.11 billion and reaching $764.69 million in 2023. According to GlobalData, it is expected that the OTA market is to grow strongly, to reach $1,214.88 billion in market value in 2027, with a CAGR of 12.27% from 2023 to 2027. The increasing penetration of the internet, the growing popularity of mobile devices, and the growing demand for personalized travel experiences are all expected to drive the growth of the market.
According to the GlobalData intermediaries database, the United States is the largest contributor to the overall global OTA’s market value, contributing 46.33% ($354.26 billion) in 2023. The tourism sector is on a growth path in the United States, owing to the country’s rising number of tourists.
As per the GlobalData Consumer Survey Q4 2021, 5,211 global respondents said that they prefer OTA’s to book their holidays, of which 44.69% (2,329 respondents) belong to Gen Y (Millennials), followed by Gen X with 30.57% (1,593 respondents). Millennials and Gen X are influenced by digitally smart products, owing to which they are expected to look out for advanced booking systems that offer them a personalized experience.
During 2023, as many countries started encouraging travelers to develop their tourism revenue, the OTA’s market value grew to $764.69 billion, with a 71% contribution from domestic trips ($543.65 billion) and a 29% contribution from international trips ($221.04 billion). It is expected that the contribution of OTA’s market value by domestic trips is expected to reach 72% ($871.65 billion) and 28% ($343.23 billion) by international trips due to the future positive growth of the tourism industry domestically and internationally.
In 2022, the expenditure showed a positive sign, reaching $178.18 billion. However, it is lower than its pre-pandemic level. During 2023, the expenditure surpassed its pre-pandemic level, which grew to $252.55 billion and is expected to reach $404.76 billion in 2027, with a CAGR of 12.52% from 2023 to 2027.
Reasons to Buy
The report helps to:
- Understand the influence of OTA’s in the tourism industry.
- Understand the potential challenges and associated opportunities of OTA’s.
- Understand consumer behavior towards OTA’s.
- Understand the evolution of the OTA market in recent times.
Booking.com
Table of Contents
Frequently asked questions
-
What are the key trends influencing the OTAs in the travel industry?
Machine learning (ML) & artificial intelligence (AI), conversational platforms, augmented & virtual reality (AR/VR), sustainability and responsible tourism, and contactless travel are a few of the OTA market trends impacting the travel industry.
-
What are the key business models of online travel agencies?
Most OTAs employ a variety of business models such as advertising models, merchant models, agency models, subscription models, partnership models, and peer-to-peer networks to suit their business objectives.
-
Who are the leading players in the OTA market?
A few of the industry players making their mark in the OTA market include Booking Holdings Inc., Expedia Group., Airbnb Inc., Trip.com Group Ltd., and Flight Centre Travel Group among others.
Get in touch to find out about multi-purchase discounts
reportstore@globaldata.com
Tel +44 20 7947 2745
Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.