rise of online travel agency

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Online travel market - statistics & facts

How big is the online travel market, what are the leading online travel agencies (otas), what travel products do consumers book online, key insights.

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How Online Travel Agencies Have Changed The World

Published: November 29, 2023

Modified: December 28, 2023

by Vonny Pedersen

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Introduction

Traveling has always been an exhilarating experience, allowing people to explore new destinations, immerse themselves in different cultures, and create memories that last a lifetime. In the past, planning a trip involved tedious tasks such as contacting travel agents, researching accommodations, and arranging transportation. However, with the advent of online travel agencies (OTAs), the way we plan and book our adventures has undergone a dramatic transformation. OTAs have revolutionized the travel industry, providing a convenient digital platform for travelers to browse, compare, and book various travel services all in one place. These platforms offer a wide range of options, from flights and hotels to car rentals and vacation packages, allowing travelers to customize their trips according to their preferences and budget. Gone are the days when travelers had to rely solely on traditional brick-and-mortar agencies. Online travel agencies have made the process of booking travel more accessible, streamlined, and efficient. With just a few clicks, travelers can access a vast array of options, read reviews from fellow travelers, and make informed decisions about their travel plans.

Evolution of Online Travel Agencies

The rise of online travel agencies can be traced back to the late 1990s when the internet became widely accessible to the general public. The first wave of OTAs, such as Expedia and Travelocity, emerged during this time, offering users the ability to search for and book flights, hotels, and other travel services online. These early platforms laid the foundation for the online travel industry we know today. As technology advanced, OTAs evolved to meet the changing needs of travelers. They began offering more comprehensive travel services, including vacation packages, car rentals, and activities. This shift allowed users to plan and book their entire trip from a single online platform, eliminating the need to visit multiple websites or contact various service providers. Furthermore, as mobile devices became increasingly prevalent, OTAs expanded their platforms to include mobile applications, making it even more convenient for travelers to access and book their trips on the go. Today, most leading OTAs have user-friendly mobile apps that offer the same functionalities as their desktop websites, providing a seamless user experience across different devices. In recent years, OTAs have also embraced emerging technologies such as artificial intelligence (AI) and virtual reality (VR) to enhance the user experience. AI-powered chatbots and virtual assistants are now common features on OTA platforms, providing personalized recommendations, answering queries, and assisting with booking processes. VR technology allows travelers to virtually explore destinations and accommodations before making a decision, further enhancing their confidence and satisfaction with their travel choices. Overall, the evolution of online travel agencies has revolutionized the way we plan and book our trips. The convenience, accessibility, and technological advancements offered by OTAs have made travel more accessible to a wider audience, empowering individuals to embark on new adventures and explore the world in ways that were once unimaginable.

Impact on Travel Industry

The emergence of online travel agencies (OTAs) has had a profound impact on the travel industry, transforming the way people plan, book, and experience their trips. The following are some key ways in which OTAs have influenced the travel industry:

• Increased Accessibility: OTAs have made travel more accessible to a wider audience, breaking down barriers and empowering individuals to explore new destinations. With just a few clicks, travelers can access a vast array of options, compare prices, and make informed decisions about their travel plans.
• Disintermediation: OTAs have disrupted the traditional distribution channels of the travel industry. In the past, travelers relied heavily on travel agents, who acted as intermediaries between travelers and airlines, hotels, and other service providers. With the advent of OTAs, travelers can now directly book their flights, accommodations, and other services, bypassing the need for intermediaries.
• Competitive Pricing: The rise of OTAs has fostered increased competition among service providers, leading to more competitive pricing in the travel industry. OTAs allow travelers to compare prices from various providers, ensuring that they get the best deal possible. This has forced service providers to offer more competitive prices and incentives to attract customers.
• Market Transparency: OTAs have brought transparency to the travel market by providing travelers with access to information and reviews from fellow travelers. This enables travelers to make informed decisions about their travel plans and ensures that service providers maintain high standards to attract positive reviews.
• Global Reach: OTAs have expanded travel options by offering a wide range of destinations and accommodations from around the world. Travelers are no longer limited to popular tourist destinations; they can now explore lesser-known locations and discover unique experiences.

Overall, the impact of online travel agencies on the travel industry has been transformative. They have democratized travel, making it more accessible, competitive, and transparent. Travelers now have the power to plan and customize their trips according to their preferences and budget, while service providers have to adapt and innovate to meet the evolving demands of the market.

Increased Convenience for Travelers

One of the significant advantages of online travel agencies (OTAs) is the increased convenience they offer to travelers. With the click of a button, travelers can access a myriad of options, compare prices, and book their travel arrangements. Here are several ways in which OTAs have enhanced convenience for travelers:

• 24/7 Access: OTAs are available 24/7, allowing travelers to plan and book their trips at any time that is convenient for them. There is no longer a need to adhere to traditional business hours or wait for travel agencies to open.
• One-Stop Shop: OTAs serve as a one-stop-shop for all travel needs. Travelers can search for flights, accommodations, car rentals, and even activities or tours, all on the same platform. This eliminates the need to visit multiple websites or make separate inquiries for each component of the trip.
• Flexible Booking: OTAs offer flexibility in terms of booking. Travelers can easily modify their travel plans, change flight dates, or upgrade hotel rooms online without the hassle of contacting various service providers individually. This convenience makes it easier for travelers to adapt to shifts in their schedules or preferences.
• Mobile Accessibility: Most OTAs provide mobile applications, allowing travelers to access their platforms from smartphones or tablets while on the go. This makes it incredibly convenient for travelers to search for and book travel arrangements, even while in transit.
• Real-Time Updates: OTAs provide real-time updates on flight schedules, hotel availability, and other travel-related information. This ensures that travelers have the most up-to-date information at their fingertips, allowing them to make informed decisions and respond to any changes or disruptions in their travel plans.
• Secure Online Transactions: OTAs prioritize the security of online transactions, providing encrypted payment gateways and secure booking processes. This gives travelers peace of mind, knowing that their personal and financial information is protected.

Overall, the increased convenience offered by online travel agencies has transformed the way travelers plan and book their trips. With the ability to access a wide range of options, make changes on the fly, and have real-time information at their disposal, travelers can now enjoy a smoother and more convenient travel experience.

Comparison Shopping and Competitive Pricing

One of the significant advantages of using online travel agencies (OTAs) is the ability to engage in comparison shopping and take advantage of competitive pricing. OTAs have revolutionized the way travelers search for and book travel arrangements by providing a platform that allows them to compare prices from multiple service providers. Here’s how comparison shopping and competitive pricing benefit travelers:

• Wide Range of Options: OTAs aggregate a vast array of travel options, including flights, hotels, car rentals, and vacation packages, from various providers. This gives travelers access to a wide range of options in terms of destinations, dates, and amenities.
• Transparent Pricing: OTAs provide transparent pricing, allowing travelers to see the costs associated with different travel services upfront. They display the total price, including taxes and fees, making it easier for travelers to compare and evaluate the value they will receive for their money.
• Instant Price Comparison: With just a few clicks, travelers can compare prices from different providers for the same travel service, such as a flight or hotel. This saves time and effort, as they can quickly identify the most competitive options and make informed decisions.
• Bargain Hunting: OTAs often offer exclusive discounts, promotional deals, and special packages that are not available elsewhere. This allows travelers to find the best bargains and secure cost-effective travel arrangements that suit their budget.
• Dynamic Pricing: Many OTAs leverage dynamic pricing algorithms that adjust prices based on supply and demand. This means that travelers can find varying prices for the same service depending on factors such as time of booking, availability, and popularity. Keeping an eye on price fluctuations can lead to significant savings.
• User Reviews and Ratings: OTAs also provide user-generated reviews and ratings for hotels, airlines, and other services. Travelers can read these reviews to gauge the quality and value of different options, helping them make more informed decisions based on the experiences of previous customers.

Overall, the ability to compare prices and take advantage of competitive pricing offered by online travel agencies gives travelers the power to find the best deals and maximize the value of their travel budget. Whether it’s scoring discounted flights, securing affordable accommodations, or finding budget-friendly vacation packages, comparison shopping through OTAs ensures that travelers can make cost-effective choices without compromising on quality or convenience.

Expansion of Travel Options

Online travel agencies (OTAs) have greatly expanded the travel options available to travelers, offering a vast array of destinations, accommodations, and experiences that were previously difficult to access. Here are several ways in which OTAs have expanded travel options:

• Global Reach: OTAs have opened up travel opportunities to destinations all around the world. Travelers can now explore and book flights, accommodations, and activities in lesser-known or remote areas, expanding their travel horizons beyond traditional tourist hotspots.
• Diverse Accommodation Options: OTAs offer a wide range of accommodations to suit various preferences and budgets. Travelers can choose from luxury hotels, boutique bed and breakfasts, vacation rentals, hostels, and more, ensuring that there is an option available for every type of traveler.
• Unique Experiences: OTAs provide access to unique travel experiences that go beyond simply booking flights and hotels. Travelers can now discover and book activities such as guided tours, cooking classes, adventure sports, cultural immersions, and wildlife expeditions, enhancing their travel experiences and creating lasting memories.
• Package Deals: OTAs often offer packaged travel deals that combine flights, accommodations, and activities into one convenient bundle. These packages provide travelers with an all-in-one solution and sometimes include added perks, such as discounted rates, complimentary meals, or guided tours.
• Flexible Travel Planning: OTAs allow travelers to customize their itineraries and create unique travel plans. Travelers can choose the duration of their stay, select specific dates, and even tailor their activities to suit their interests and preferences. This flexibility enables travelers to plan trips that suit their individual needs and desires.
• Specialized Travel: OTAs cater to various niche markets, offering specialized travel options such as eco-tourism, adventure travel, family-friendly vacations, solo travel, and more. This ensures that travelers with specific interests can find relevant options that align with their travel preferences.

Overall, the expansion of travel options provided by online travel agencies has made it easier for travelers to explore diverse destinations, find accommodations that suit their needs, and discover unique experiences that make their trips truly memorable. Whether it’s embarking on a safari in Africa, staying in a traditional ryokan in Japan, or indulging in a culinary tour of Europe, OTAs have made it possible for travelers to create their dream trips and embark on new adventures.

Rise of User Reviews and Ratings

The rise of online travel agencies (OTAs) has coincided with the proliferation of user reviews and ratings, which play a significant role in shaping the travel industry. Travelers now have access to a wealth of information and firsthand experiences shared by fellow travelers, allowing them to make more informed decisions. Here’s how user reviews and ratings have impacted the travel industry:

• Transparency and Trust: User reviews and ratings provide transparency in the travel industry. Travelers can read about the experiences of others, gain insights into the quality of accommodations, airlines, and other services, and make informed decisions based on real-life experiences. This transparency builds trust between travelers and service providers.
• Unbiased Feedback: User-generated reviews are seen as unbiased and trustworthy because they come from real travelers who have experienced the services firsthand. This enables travelers to get a more authentic and balanced perspective on the quality of the services they are considering.
• Quality Assurance: Positive reviews and high ratings act as endorsements for service providers. Accommodations, airlines, and other travel services that consistently receive positive feedback and high ratings are perceived as offering quality experiences, which can attract more customers.
• Improving Service Quality: User reviews and ratings provide valuable feedback for service providers, highlighting areas of improvement and commendation. Service providers can analyze the feedback and make necessary adjustments to enhance the quality of their offerings, ultimately benefiting future travelers.
• Enhanced Customer Satisfaction: User reviews give travelers a platform to express their opinions and share their experiences. Positive reviews can reinforce the satisfaction and happiness experienced by travelers, while negative reviews can help address any issues or concerns and improve the overall customer experience.
• Personalized Recommendations: OTAs can use user reviews and ratings to provide travelers with personalized recommendations based on their preferences. By analyzing past reviews and understanding a traveler’s preferences, OTAs can suggest accommodations, activities, or destinations that align with their interests.

As user reviews and ratings continue to grow in importance, the travel industry is incentivized to consistently deliver exceptional customer experiences, as a negative review can have a significant impact on a service provider’s reputation and business. Travelers, on the other hand, have become more discerning and empowered, relying on user feedback to make decisions that align with their expectations and preferences.

Challenges Faced by Online Travel Agencies

While online travel agencies (OTAs) have brought significant advancements to the travel industry, they also face several challenges. These challenges can impact their operations, customer satisfaction, and overall success. Here are some key challenges faced by OTAs:

• Competition: The online travel industry is highly competitive, with numerous OTAs vying for customers’ attention. Competing with other established players, as well as emerging startups, requires OTAs to constantly innovate, provide unique offerings, and differentiate themselves to attract and retain customers.
• Price Comparison: Price comparison is both a benefit and a challenge for OTAs. While it allows travelers to find the best deals, it also makes it easier for customers to find cheaper options on different platforms. This puts pressure on OTAs to continuously offer competitive pricing and value-added services to stay ahead.
• Dependency on Suppliers: OTAs heavily rely on collaborations with airlines, hotels, car rental companies, and other service providers to offer comprehensive travel options. Changes in terms, contract disputes, or disruptions in the supplier’s operations can impact the availability and reliability of services, and consequently, the OTA’s reputation.
• Technical Challenges: OTAs need to manage complex technical infrastructure to ensure seamless booking processes, real-time inventory updates, and secure payment transactions. Managing website uptime, handling high traffic volumes, and addressing potential cybersecurity threats requires continuous investment in technology and skilled IT resources.
• Customer Service: Providing efficient and prompt customer service can be challenging for OTAs due to the volume of customers and the potential for issues with bookings, cancellations, or refunds. Ensuring customer satisfaction and resolving complaints promptly is vital to maintain a positive brand image and retain customer loyalty.
• Dependency on Online Advertising: OTAs heavily rely on online advertising channels to drive traffic to their platforms. This not only requires significant financial investment but also means competing against other companies for ad space and managing advertising costs to ensure an adequate return on investment.
• Regulatory Compliance: The travel industry is subject to various regulations and licensing requirements, which can differ across different countries and regions. Compliance with local laws, taxes, and regulations can be complex and time-consuming for OTAs operating globally.

Despite the challenges, OTAs have demonstrated their resilience and adaptability in the face of evolving market dynamics. By staying updated with the latest trends, investing in technology, offering exceptional customer service, and fostering strong partnerships with service providers, OTAs can overcome these challenges and continue to shape the travel industry.

Online travel agencies (OTAs) have revolutionized the travel industry, providing unprecedented convenience, access to a wide range of options, and the ability to make informed decisions. The evolution of OTAs has transformed the way we plan, book, and experience our trips, making travel more accessible, transparent, and tailored to individual preferences. By harnessing the power of the internet and digital technology, OTAs have expanded travel options, allowing travelers to explore destinations and accommodations beyond traditional tourist hotspots. They have also facilitated comparison shopping and competitive pricing, empowering travelers to find the best deals and make cost-effective choices. Furthermore, the rise of user reviews and ratings has brought transparency and trust to the travel industry. Travelers can now rely on the unbiased feedback of fellow travelers to make informed decisions, while service providers are incentivized to maintain high standards and continuously improve their offerings to satisfy customers. However, OTAs are not without challenges. They face fierce competition, technical complexities, and the need to ensure reliable partnerships with service providers. Additionally, customer service and regulatory compliance are vital considerations for successful operations. Despite these challenges, OTAs continue to innovate and adapt, leveraging technologies such as artificial intelligence and virtual reality to enhance the customer experience. By staying ahead of market trends and investing in customer satisfaction, OTAs can continue to shape the travel industry and provide travelers with seamless, convenient, and personalized travel solutions. In conclusion, the emergence of online travel agencies has transformed travel planning and booking, offering travelers unprecedented convenience, access to a wide range of options, and the ability to make informed decisions. As the travel industry continues to evolve, OTAs will play a crucial role in shaping the future of travel, meeting the needs and expectations of travelers around the world.

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Online Travel Agencies Market Share Across the World

The OTA market in North America

The ota market in south america, the ota market in europe, the ota market in apac.

• What are the Top online travel agencies in the world?

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The rise of online travel agencies (OTAs) is one of the most dramatic examples of the digital transformation of business and society over the last 25 years. The travel industry growth statistics are very favorable as well and OTAs are taking advantage.

In a relatively short space of time, OTAs – from giants such as Booking.com, Expedia and Trip.com to the estimated 400 smaller players – have captured an average of 40% of the total global travel market (hotels, airlines, packaged tours, rail and cruises), according to research by PATA . It is essential to know how many people travel a year and who manages their travel arrangements.

OTAs have evolved into digital marketplaces that connect both B2B and B2C customers directly with a full range of travel products. In fact, OTAs can be viewed as a hybrid of an e-commerce platform and a travel agency.

Although OTAs have certainly taken market share from traditional travel agents, they have not replaced them. In many travel markets across the world, OTAs and traditional travel agencies co-exist because they perform different roles.

Many tourism businesses (hotel groups, tour operators, visitor attractions etc…) will use OTAs for a percentage of their distribution while using traditional travel agencies for specific segments – perhaps an older demographic or consumer groups who are less comfortable using travel tech .

The United States is the largest travel market in the world, accounting for $2.1 trillion in 2019 .  In the same year, the number of international tourist arrivals to the U.S. reached nearly 80 million after being on the increase for more than a decade. The two OTA giants, Expedia and Booking Holdings, continue to dominate in the US, representing 92% of the OTA market , says Phocuswright , although US online travel agency bookings fell sharply by 59% during 2020 as a result of the global pandemic.

Despegar , BestDay.com , and Price Travel are the main OTA players in South America . OTAs are top of the list for consumers looking for flights and accommodations in Argentina, and for accommodation in Mexico.

On the other hand, search engines are the number one channel to start searching for flights and accommodations in Brazil and for flights in Mexico, says a 2020 survey .

Although South America has been particularly hard hit by the global pandemic, one positive trend across the region’s travel market is the continued growth of online distribution.

Internet access is expanding significantly – Argentina boasts a 92% internet penetration rate , while Mexico’s mobile internet penetration jumped from 36% to 55% in 2019 , second only to Uruguay in South America. As a result, South American online travel revenue rose in 2019.

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Chart 1: OTA market share in Europe in 2019

Booking.com is the biggest player in the European OTA market with a 67.7%  share in 2019, according to Statista. Expedia and HRS had the second and third largest shares of the market, at 12.8% and 6.3% respectively.

Taking a look at individual countries, the UK’s online travel market is the largest in Europe , and the country’s online travel penetration is among the highest in the world, according to Phocuswright . Compared to Continental Europe, OTAs themselves play a smaller role in the UK market. In 2020, online supplier-direct booking share of the total market remained at 51% , while OTA share increased one percentage point to 18%.

In Spain, by comparison, OTAs accounted for 29.9% of the country’s travel market, making it one of the most popular booking distribution channels in Europe. Spain is home to a number of successful OTAs, including B2B bedbank Hotelbeds , which has its headquarters in Palma de Mallorca, and eDreams and Altrapálo , both based in Barcelona.

At $44.7 billion, China had the world’s second-biggest OTA market in 2018 , compared to the US at $77.1 billion, and its 27% growth compared to 2017 was more than four times that of the US, according to Phocuswright .

Trip.com ( formerly known as Ctrip) is the largest OTA in China with a 36.6% share of the online travel market. In next place comes Qunar (also owned by the Trip.com Group) with a 16.5% share. One of the key competitors to Trip.com’s dominance is Fliggy , which is owned by Alibaba , the Chinese e-commerce giant often compared to Amazon in the west. The Chinese OTA market displays a more competitive range of challenger players when compared to the duopoly of Booking.com and Expedia that exists elsewhere.

Chart 2: Popular OTAs in China

Looking outside China to other east and southeast Asian countries, MakeMyTrip, Rakuten and Recruit are the leading OTAs in Japan and Traveloka is the dominant player in Indonesia.

As measured by gross merchandise value, Thailand ($4b), Indonesia ($3b) and Vietnam ($3b) are the biggest online travel markets in the region outside China, according to data supplied by Statista.

Chart 3: APAC online travel market scale by country (2020)

In India, MakeMyTrip is the leading OTA. Excluding the four major international OTAs – Booking.com, Expedia, Airbnb and Agoda – that also operate successfully in the Indian online travel market, the sub-continent has a dynamic range of home-grown challenger OTAs, including Cleartrip, Yatra, and Via.com

What are the Top online travel agencies in the world ?

Booking Holdings (formally Priceline Group), the company that owns Booking.com , was the leading online travel agency worldwide in 2019. Its gross sales were $96.4 billion and EBITDA were at $5.9 billion, up 2% compared to the previous year.  

Chart 4: Booking Holdings Gross Travel Bookings 2019

As previously mentioned, Booking Holdings and Expedia dominate the global OTA market, particularly in North America and Europe. They have succeeded in capturing maximum market share through a series of mergers and acquisitions making them essentially travel conglomerates. Here is a full list of the brands owned and operated by Expedia Group and Booking Holdings.

Chart 5: Brands owned by Expedia and Booking Holdings

As standalone online businesses, based on their 2019 results , the top five OTAs in the world are:

• Booking.com ($15.07b)
• Expedia ($12.07b)
• Trip.com ($5.10b)
• Tripadvisor ($1.56b)
• Trivago ($0.84b)

However, in terms of revenue growth , the picture was different in 2019, with On The Beach leading the list with the biggest increase in revenue that year:

• On The Beach (+41%)
• Lastminute (+20%)
• Trip.com (+12.3%)
• eDreams Odigeo (+8.2%)
• Expedia (+7.5%)

Obviously, 2019 marks our final year of the ‘old normal’ before the COVID-19 pandemic changed everything but some travel industry facts show that we’re going to witness a resurgence. You can also check out travel industry podcasts to get more insights. Still, with vaccine rollouts underway across the globe, it won’t be long before we are enjoying travel again , perhaps more than ever before!And OTAs will once again be playing their important roles in improving customer service and taking digital innovation forward.

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Ben Walker has 18 years of experience in the hotel and travel sectors. He has worked as PR & communications manager for TRI Hospitality Consulting London, the creators of HotStats, the hotel market benchmarking, financial analysis, and performance reporting solution. He has also been the business editor of The Caterer, and communications manager and editor for the international professional body, the Institute of Hospitality.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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Online Travel Agencies Market

Exploring the Online Travel Agencies Market: A Comprehensive Examination by Transportation, Vacation Packages, Accommodation

Transforming the Travel Landscape- Exploring the Expanding Online Travel Agencies Market and the Influence of Artificial Intelligence on Personalized Travel Experiences. Find more with FMI

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Online Travel Agencies Market Outlook (2023 to 2033)

As per newly released data by Future Market Insights (FMI), the online travel agencies market is estimated at US$ 465.1 million in 2023 and is projected to reach US$ 1,694.2 million by 2033, at a CAGR of 13.8% from 2023 to 2033.

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Revenue of Online Travel Agencies from 2018 to 2022 Compared to Demand Outlook for 2023 to 2033

As per the FMI analysis, the market for online travel agencies secured a 6.70% CAGR from 2018 to 2022, touching US$ 355.4 million in 2022.

The technological development in the tourism industry has digitalized the entire process of travel bookings. Nowadays traveler makes more use of online services for travel booking as they feel it is a convenient and hassle-free process.

The online process has led to the growth of the tourism and hospitality industry. Therefore, online travel agencies play a significant role in the tourism industry.

Online travel agencies comprise various travel bookings, hotel bookings, transportation service bookings, and many more.

Online travel agencies serve the purpose of selling travel services on online platforms. In the last few years, there is a significant rise in the growth of online travel agencies. The growth has helped to revolutionize the tourism industry.

The above-mentioned factors augur well for the online travel agencies market future trends, where it is predicted that the market likely reaches US$ 1,694.2 million by 2033 at 13.8% CAGR through 2033.

What are the Features and Convenience of Use that Drive the Demand for the Online Travel Agencies?

• Online travel agencies offer a range of services either directly from their own companies or act as intermediaries between travel and booking agencies and end users.
• The main purpose of online travel agencies is to provide booking services online, covering everything from selecting a service to the point of sale on the Internet.
• Online portals offered by these agencies provide various services including price comparison, cost estimation, accommodation options, destination information, transportation modes, and even tour packages.
• The convenience, speed, and ease of booking provided by online travel services attract travelers, offering a convenient and efficient way to plan their trips.
• By utilizing online travel services, travelers can save both time and money, making it an appealing option for those seeking efficient and cost-effective travel arrangements.

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What is Fostering the Expansion of the Market Size: The Rise in Disposable Income and New Development Initiatives?

• Increasing disposable income among individuals has played a significant role in driving the demand for online travel agencies, as people now have more financial resources to explore and travel to various destinations worldwide.
• Online travel agencies have successfully established a global reach, expanding their services and operations across different regions and countries, catering to the diverse travel needs and preferences of customers.
• To meet the evolving demands of the market, online travel agencies continuously adopt new strategies and upgrade their technologies, ensuring enhanced service offerings and improved customer experiences.
• The inclusion of travel insurance and baggage insurance by online travel agencies provides an added layer of security and peace of mind for travelers, contributing to the overall convenience and reliability of their services.
• Transparency throughout the booking process is a key focus for online travel agencies, ensuring customers have access to comprehensive information and pricing details, fostering trust and confidence in their decision-making.
• The initiatives taken by online travel agencies, such as integrating advanced technologies and providing comprehensive travel solutions, have successfully attracted the new generation of tech-savvy travelers, generating a strong demand in the market.
• Despite the challenges faced during the pandemic, the online travel agencies market remains resilient and continues to evolve, adapting to changing customer expectations and emerging market trends.

What Impact Does the Increasing Number of Solo Travelers Have on the Growth of the Online Travel Agencies Industry?

• There has been a significant increase in the number of solo travelers in recent years, driven by specific reasons such as leisure, recreation, and engaging in activities like water sports, hiking, riding, skiing, and more.
• The influence of social media has played a major role in attracting a wide audience to explore different regions, leading to a rise in online travel agencies' booking transactions.
• Online travel agencies offer comprehensive tour plans, including vacation packages, and assist solo travelers in making travel, food, and accommodation arrangements through convenient platforms such as phones or other devices.
• This convenience and affordability make online travel agencies a preferred choice for solo travelers, who may lack extensive knowledge or prefer cost-effective options.
• In recent years, online travel agencies have surpassed offline tour operators and travel agents in terms of popularity and usage among solo travelers.

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Country-wise Insights

What is the growth outlook for the europe online travel agencies industry.

The growth outlook for the Europe online travel agencies industry is positive, with a value share of 22.30% in 2022. The industry is expected to continue growing steadily, supported by various factors such as increasing online travel bookings, technological advancements, and evolving customer preferences.

The CAGR of the United Kingdom at 5.00% from 2023 to 2033 indicates a promising growth trajectory for the market. The rising adoption of online platforms for travel planning and booking, along with the convenience and extensive range of services offered by online travel agencies, are driving the industry's growth.

The industry is likely to witness further advancements in mobile applications, personalized travel experiences, and innovative marketing strategies, contributing to the expansion of the Europe online travel agencies market in the coming years.

How Online Travel Agencies Market is Progressing in India?

In India online leading companies like Yatra.com, Kesari Tours, Veena World, Make My Trip, others are dominating the tourism industry in India, contributing to the country’s anticipated CAGR of 6.0% from 2023 to 2033.

India attracts many foreigners to discover and explore its culture and diversity. Foreigners find Indian travel agencies more affordable than booking tours from abroad. Hence, they use Indian online travel agencies’ websites for booking accommodation and transportation.

Meanwhile, India being one of the leading countries in the count of internet users, it can be concluded that the vast majority of the population is tech-savvy. Thus, online travel agencies try various marketing tools to connect with travelers and encourage them to avail of their services.

The attractive advertisements, loyalty programs, and offers from leading online travel agencies have influenced the domestic market. Therefore, the known online agencies have gained the trust of domestic travelers of the country over the years.

What are the Factors Driving the Online Travel Agencies Industry in the United States of America?

As per the FMI analysis, the market for online travel agencies in the United States was predicted to garner a value share of 5.50% in 2022.

United States is one of the major markets of tourism with millions of travelers visiting every year. Domestic travelers in the United States of America use online travel agencies’ websites and applications extensively.

Apart from this, the airline service is availed by United States citizens majorly. Therefore, there is a high demand for travelers using online travel agencies’ websites for airline travel booking.

With the high standard of living and high disposable income due to the high value of currency travelers are ready to spend a high amount of money on traveling and exploring new adventures. Thus, there is a high demand from travelers for luxury tourism, adventure sports, and various type of outdoor activities.

Category-wise Insights

Which service type is more preferred by travelers in online travel agencies market.

According to the analysis, in terms of service type the transportation service is widely preferred by travelers with the sub-segment holding a 22.0% value share in 2022.

Transportation services generate a high demand for their services. Few the transport services such as car rentals or bus travel agencies are in heavy demand as they are the part of daily mode of transport for many travelers.

Apart from this the attractive offers and schemes from the transportation services attract travelers to use these online services more often. Lastly, the transportation services are having a wide coverage of travelers as compared to the tour/vacation packages or accommodations as they generate demand only when there is a need.

How is the Competitive Landscape in the Market for Online Travel Agencies?

Leading players operating globally in the market are focusing on the expansion of their business. Also working on their service and creating advanced technology to attract new customers.

The competitive landscape in the market for online travel agencies is intense and dynamic. Numerous players, ranging from established companies to emerging startups, compete for market share.

Key industry players strive to differentiate themselves by offering unique features, enhanced user experiences, and a wide range of travel services.

They invest in advanced technologies, such as artificial intelligence and machine learning, to provide personalized recommendations and streamline booking processes. Additionally, partnerships with airlines, hotels, and other travel service providers are crucial to expand their offerings and provide competitive pricing.

Continuous innovation, customer-centric strategies, and effective marketing campaigns are vital for online travel agencies to gain a competitive edge in this rapidly evolving market.

Key Players

• Expedia Group Inc.
• Booking Holding Inc.
• Trip Advisor Inc.
• MakeMyTrip Pvt. Limited
• Hostelworld Group PLC (HSW)
• Trivago N.V
• Thomas Cook India Ltd.
• Lastminute.com Group
• Orbitz Worldwide
• Walt Disney World

For instance:

• In the year 2018, Booking.com announced a new product version of the booking.com application and website at Vacation Rental Management Association (VRMA). The new product features allow users to select the product of a partner’s brand beyond booking.com own products. Also, they introduced group connect, guest management, and enhance connectivity features in their new application.
• Recently in 2022, Expedia Group announced an Open World Technology platform. The technology is developed for partner agencies. The platform has a complete e-commerce suit, with various blocks like payments, chatbot, services, and fraud detection, and is perfect for the agency planning to enter the newly in online travel business.

Segmentation Analysis

By service type:.

• Transportation
• Vacation Packages
• Accommodation

By Device Platform:

By payment modes:.

• Debit / Credit Card
• Others (Vouchers, Discount Codes)

By Booking Type:

• Online Travel Agents
• Direct Travel Agents

By Customer Segment:

• Corporate Traveller
• Individual Traveller

By Age Group:

• 15-25 Years
• 26-35 Years
• 36-45 Years
• 46-55 Years
• 66-75 Years
• North America
• Latin America

Frequently Asked Questions

How is the historical performance of the market.

During 2018 to 2022, the market grew at a 6.70% CAGR.

Who are the Key Market Players of this market?

Airbnb, Trip Advisor Inc., and Trivago N.V. are key market players.

What factors contribute to the attraction of this market in Europe?

Increasing online travel bookings raises the market.

How Big is this market?

This market is valued at US$ 465.1 million in 2023.

How Big will be this Market by 2033?

This market is estimated to reach US$ 1,694.2 million by 2033.

Table of Content

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Travel and Tourism

Travel Agency Services Market

REP-GB-3038

Managed Travel Distribution Market

REP-GB-3011

October 2022

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What are you looking for?

50 online travel booking statistics (latest 2024 figures).

Did you know that online travel booking had a $521 billion market size in 2023 ? And that this is estimated to hit $1 trillion in 2030 ?

As technology becomes a crucial part of our lives, the way that travellers plan and book their trips today have evolved. 

There are now websites and mobile apps to buy flight tickets, reserve cheap hotel rooms , and book travel experiences.

With the constant changes in traveller’s behaviour and consumer trends, it can be important to understand how researching is done for travels.

This includes understanding more deeply about the online travel booking market, the global leaders in this industry, as well as the current trends and how mobile booking compares to websites.

Today we have some interesting statistics about online travel booking for you. 

From the number of online travel companies there are currently to how the Coronavirus pandemic has impacted online booking.

Sources: With each stat, I have included the source for the data. Please go to the end of this post for a complete summary of all the sources and articles used here.

Travellerspoint

Online travel booking popular questions

What percentage of bookings are made online.

By 2019, 57% of all travel bookings were made online. Meanwhile, 68% of all sales in travel & tourism are made online in 2022.

What is the most popular travel booking site?

Booking.com was the most globally visited travel and tourism website in September 2023, when it received 554.5 million visits .

Which are the two largest online travel agencies worldwide?

In September 2023, Booking.com and Tripadvisor received around 554 million and 156 million visits, respectively.

How much is the global online travel sales?

In 2018, global online travel sales made $694 billion, a 10.4% increase compared to the previous year

Online travel booking main findings

• Online sales will generate 76% of revenue in the travel & tourism sector by 2028
• Among the many online travel agencies worldwide, Booking reported the highest revenue in 2021
• Marketplace bookings experienced a dramatic increase from 3.2% in 2017 to 9.1% in 2018, while direct online bookings fell from 79.2% to 66.7%
• 39% of users would download an app over using the mobile website because of the speed, while 30% enjoy the increased functionality of a mobile app
• 4 in 5 hotel customers who have been asked to leave a review do so
• Between 2016 and 2021, the portion of online travel sales via mobile has been steadily increasing compared to desktop or laptop, from only 36% to nearly 50% of all digital travel sales
• Around 50% of users in 2020 claimed that they made more last-minute travel bookings during the pandemic

Online travel booking market

What percentage of travel bookings are made online?

1. According to Statista, online sales will generate 76% of revenue in the travel & tourism sector by 2028.

Online travel booking is continuously taking up the travel booking market, and Statista estimates that by 2028, online sales will make up 76% of all revenue in travel and tourism.

2. In 2021, the online travel market size worldwide was $432 billion.

3. this figure rose slightly to $475 billion in 2022 and $521 billion in 2023..

The latest data on the global online travel agent industry stated that the market size in 2023 was $521 billion.

4. The online travel market size is predicted to reach over $1 trillion by 2030.

And with the rise of the digital nomad movement , the Internet will continue to play an increasingly large role in the travel industry.

5. The Singaporean online travel market size was the highest amongst selected Southeast Asian countries, with the gross merchandise value (GMV) recorded at $7 billion in 2023.

In comparison, in 2023, the Philippines saw an online travel market size of $3 billion.

6. In 2018, global online travel sales made $694 billion, a 10.4% increase compared to the previous year.

[JerseyIslandHolidays]

7. By 2019, 57% of all travel bookings were made online.

Travel bookings include accommodation, flight, tour, and other related activities.

8. Even back in 2012, 9 in 10 people researched their holiday online before making reservations, whereas 8 in 10 booked their holiday online.

[TravelWeekly]

Online travel booking has been a huge thing this past decade. In 2012, 90% of people conducted online research before booking their holidays. Meanwhile, 80% of people did their bookings online.

Online travel companies

What are the leading online travel agencies in the world?

9. Among the many online travel agencies worldwide, Booking reported the highest revenue in 2021.

In 2021, Booking.com was the online travel agency with the highest revenue.

10. Their revenue has consistently increased from $1.41 billion in 2007 to a record high of $15.07 billion in 2019.

11. as of december 2022, booking.com has a market cap of $78,171 million, making it the global market leader..

In terms of the online travel company market, Booking.com dominated with $78.17 billion in market capitalization in December 2022.

12. The second place goes to Airbnb with a market cap of $54,137 million.

Meanwhile, Airbnb has the second highest market capitalization with $54,137 million .

13. In the US in 2018, Tripadvisor used to be the leading travel website as it attracted 18% of all online users.

In 2018, the most popular travel website in the US was Tripadvisor, which was used by 18% of American online travel users .

14. Hotels.com ranked fourth at 11%, while Booking.com and Expedia placed sixth and seventh with 9% each.

15. booking.com was the most globally visited travel and tourism website in september 2023, when it received 554.5 million visits..

In terms of website visits, Booking.com is the most visited travel and tourism website in the world. It received 554.5 million visits in September 2023 alone.

16. With 156 million visits in September 2023, Tripadvisor is the second most visited travel and tourism website worldwide.

Online travel booking trend.

How many people make travel bookings online?

17. The majority of travellers in the US claim that they’d spend less than a week researching once they have decided to travel.

[Facebook IQ]

Most travellers from the US spend less than a week researching their travels.

18. The most popular day of the week for people to book trips on is Monday, while Saturday is the least popular.

[TrekkSoft]

TrekkSoft referred to 3 random data points between August and September 2019.

19. Meanwhile, the busiest time of day for booking is 10am CET. 6am CET is usually the least busy time.

20. marketplace bookings experienced a dramatic increase from 3.2% in 2017 to 9.1% in 2018, while direct online booking fell from 79.2% to 66.7%..

From 2017 to 2018, there was a significant increase in marketplace booking from 3.2% to 9.1%. On the other hand, less people booked directly on travel accommodation and company websites (from 79.2% to 66.7%).

21. By 2023, 700 million guests will book hotel rooms online.

It is estimated that 700 million guests will be booking their hotel rooms online by 2023.

22. A survey in the US in 2023 revealed that the most popular brand for flight search engine online bookings was Expedia.

This was a representative online survey with 2,405 consumers in the US.

23. Meanwhile, the most popular option for hotel and private accommodation online bookings in the United States was Booking.com, with Hotels.com and Expedia following.

Mobile and app travel booking.

How do mobile travel bookings compare with app bookings?

24. 39% of users would download an app over using the mobile website because of the speed, while 30% enjoy the increased functionality of a mobile app.

[SaleCycle]

Two of the most popular benefits of mobile apps compared to websites are the increased speed and functionality.

25. 1 in 5 users also report better user experience as a major reason for downloading a travel booking app.

20% of users also report that they download travel booking apps because of the better user experience.

26. Moreover, 11% download the app for the reward and discount the company offers.

Meanwhile, only 11% of users download a travel booking app for the reward and discounts they get.

27. Between 2016 and 2021, the portion of online travel sales via mobile has been steadily increasing compared to desktop or laptop, from only 36% to nearly 50% of all digital travel sales.

The last 5 years have been an important period for the growth of online travel sales via mobile as it increased from 36% to almost 50% of all digital travel sales.

28. In 2018, 82% of travel bookings were online either through websites or mobile applications.

29. nearly half (48%) of mobile phone users would be happy to book and plan a trip to a new place only using their mobile device..

37% of millennial parents actually rely on online reviews when picking where to visit.

30. The conversion rate for bookings made via mobile phone is only 0.7%, less than half of bookings made through desktop at a 2.4% conversion rate.

People are more likely to go through with their bookings when accessing websites through desktop (2.4% conversion rate) than mobile (0.7%).

31. 46% of all solo travellers make their hotel bookings by mobile.

[Phocus Wire]

Online travel booking is very important for solo travellers. In fact, 46% rely on mobile apps and access to book their hotels.

32. In 2022, the most downloaded OTA app worldwide was the Booking.com mobile app, which had 80 million total downloads on iOS and Google Play in that year.

The second place was secured by Airbnb, which had approximately 52 million mobile app downloads in 2022.

33. Between 2023 and 2027, the travel segment of the mobile app market is expected to increase by a total of 64%, or $0.8 billion, until it reaches $2 billion by 2027.

Reviews in online travel booking.

How many customers leave reviews when booking travels online?

34. 4 in 5 hotel customers who have been asked to leave a review do so.

35. meanwhile, 22% of customers would write a review without being requested..

22% of hotel customers always leave a review without being asked.

36. 95% of all reviews by travellers are positive.

An overwhelming majority (95%) of hotel reviews by customers are positive.

37. Tripadvisor’s report states that 96% of users think that reading reviews is important for their booking process.

[TripAdvisor]

83% of users usually refers to reviews before deciding on a hotel, while 76% depends on guest-uploaded travel photos for decisions.

38. According to SaleCycle, 54% of guests have written at least one review in the last 12 months.

More than half of all guests have written at least one review in the last year.

Coronavirus and online travel booking

How did the Covid-19 pandemic affect the online travel booking sector?

39. Booking.com’s revenue dropped from $15 billion in 2019 to only $6.8 billion in 2020.

The Covid-19 pandemic has caused Booking.com’s revenue to decrease by more than half in 2020, to just $6.8 billion.

40. Expedia, the online travel agency making the second highest revenue, experienced a similar decrease from $12 billion the previous year to around $5.2 billion in 2020.

41. tripadvisor’s revenue fell by almost 55% from $1.56 billion in 2019 to $604 million in 2020..

The popular travel destination and accommodation website, Tripadvisor, also saw a dramatic 55% decrease in revenue from $1.56 billion in 2019 to $604 million in 2020..

42. Around 50% of users in 2020 claimed that they made more last-minute travel bookings during the pandemic.

The future of online travel booking

What will online travel booking look like in the future?

43. According to SaleCycle, 30% of guests in a hotel who interact with a Chatbot would spend more than those who don’t.

Chatbots in hotel websites can play a crucial role in customer spending.

44. Almost 7 in 10 travellers use voice search technology when planning their trip.

70% of all travellers worldwide use voice search technology during the planning stage of their trip , and it’s reasonable to assume that this percentage would increase.

45. 67% of high-income tourists choose to spend money on experiences over expensive hotel rooms.

A majority of high-income tourists claim they would choose to spend more money on travel experiences than expensive hotel rooms.

46. 73% of tourists say that they plan to stay in an eco-friendly accommodation within the next year.

Region specific online travel booking statistics, 47. in canada, the top two products on a “travel product online bookings” survey in 2023 were hotels and flight tickets..

The travel survey was done online among 2,006 respondents in Canada , in which the top answers had been hotels and flight tickets.

48. The same top two answers came up in a similar survey in the US.

In the US, the travel survey was conducted among 10,011 respondents.

49. In 2023, the “travel product online bookings” survey in the UK also revealed hotels and flight tickets as the most common answers.

British respondents of a 2023 travel survey revealed that the most booked travel products online were hotels and flight tickets.

50. The same series of survey showed that in India, the top two most popular type of online booking for travel products were long distance train tickets and hotels.

Interestingly, when the survey was conducted among 4,034 participants in India , the top two answers changed.

In 2023, the most popular type of travel products that Indians tend to book online are hotels and long distance train tickets.

To conclude, it’s safe to say, based on data at least, that the online travel booking market will only grow and become more prevalent. 

As we expect the market size to increase and take over traditional booking methods, travel-related businesses would benefit from developing their online booking system, especially where corporate and business travel is concerned.

Among the many online travel companies worldwide, Booking.com was the one to record the highest revenue back in 2020. 

Meanwhile, Tripadvisor leads in terms of website visits as it became the most visited travel and tourism website.

While revenue for most companies had fallen due to the Coronavirus pandemic, this was to be expected as other businesses also experienced a decrease during this trying time.

At the same time, people have made more last-minute travel decisions in this pandemic era.

We can easily assume that online websites and mobile apps play a crucial role in their planning and booking.

We hope these statistics have been useful to help you understand more about online travel booking! 

Did we miss any important information? 

Drop your comments and thoughts down below.

Interested in our other statistic guides?

• Europe Travel & Tourism Statistics
• Female Travel Statistics
• Family Travel & Tourism Statistics
• RV Industry Statistics
• Travel Weekly
• Trip Advisor
• Phocus Wire
• Facebook IQ

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The rapid rise of online travel agents

Following our recent interactive graph showing movement of the top 20 ATOL holders read our post on the rise of online travel agents.

Yesterday, we shared an interactive graph showing the movement of the top 20 ATOL holders from 2013-2020. We also gave some initial insights extracted from our deep dive into the data. 

Over the next couple of weeks, we will be drilling down into these insights. 

Firstly, we’re exploring the rise of online travel agents.

Over the past eight years, we have seen the rapid rise of online travel agents (OTAs).

They are built on slick, scaleable technology, selling primarily ‘fly and flop’ holidays and allowing customers to dynamically package a wide range of low-cost carrier flights and accommodation offers. 

By October 2020, six of the top 20 ATOL holders could be classed as OTAs, where online distribution is their dominant channel as well as their key characteristic. Given the business model barely existed a decade ago, their growth rate has been phenomenal. For example, the largest UK OTA, On the Beach increased its ATOL from 639,000 passengers in 2013 to 1.65 million by 2019, a compound annual growth rate (“CAGR”) of 17%. 

Loveholidays, a prominent PE-backed OTA grew from just 167,000 pax in 2015 to 1.37 million in 2019, a staggering CAGR of 69%! 

Faced with the onset of the pandemic, both businesses reduced their licence projections by around a fifth as the UK went into the first lockdown in March 2020. However, this was far less than the market as a whole which is down 33 % . 

Will online travel agents continue to grow? To answer this question, we have to look at how consumer spending habits have changed as a result of the pandemic. 

How has Covid-19 changed consumer spending?

UK consumers continued to spend money in spite of the pandemic. However, the closure of shops and restrictions on mobility drove an unprecedented shift to online channels over the past eight months. 

Data from the Office of National Statistics (ONS)* shows that over the past decade, consumers have been shifting online at a rate of around 1% per year. This leapt 9% in the 12 months to September 2020.  

Sadly, travel spending was a negligible proportion in the last eight months, but it is clear that consumers are far more comfortable transacting online than they were pre-pandemic.

In addition, a recent study f rom McKinsey indicat ed that the shift online transcends demographics, with older and historically more-technophobic generations turning to online purchases to ease the boredom of lockdown.  

So the prospects look great for OTAs post-pandemic?

Not so fast! COVID-19 has been indiscriminate in its devastation of the outbound travel sector and OTAs have had as tough a time as any. Their technology has been unable to cope with huge numbers of cancellations, forcing them into laborious manual refunding processes. On top of this, the OTAs have been disproportionately affected by the delayed refunds from the low-cost airlines, resulting in customers receiving only part of their money back. 

Without a strong human relationship to fall back on, they have been roundly condemned in the consumer media. For example, On the Beach, loveholidays, lastminute.com and Travel Republic, all score poorly in this Money Saving Expert ‘ 70 best and worst firms for travel refunds ‘ list.

Incidentally, the report named Trailfinders and Travel Counsellors as the top two. Both are businesses where human interaction powers the vast majority of distribution. 

It’s all to play for.

Going forward, we think travel will remain complicated for the foreseeable future. We expect travel restrictions to remain inconsistent, corridors to remain dynamic and testing and quarantine requirements to differ country by country. 

In this environment, it’s easy to imagine customers returning to service-led, knowledgeable, human travel professionals. This Advantage Travel Partnership study in October 2020 appeared to support this theory. 44% of 25-34-year-old respondents said they are likely to consider using a travel agent in future. 

At the same time, we know consumers have notoriously short memories. Customers at the value end of the market can always be enticed by bargain prices, leaving plenty of room for OTAs to recover when the great refund crisis fades from memory. 

However, we think the biggest opportunity is change itself. That same Mckinsey study reported unprecedented levels of customer habit changes over the past eight months, with over 63% of UK respondents reporting switching to a new brand, new service or new retail outlet for the first time. 

In that kind of environment, it’s all to play for.

If you enjoyed this post, why not sign-up to our newsletter? Get our latest travel blog posts, industry updates and exclusive content. Join the mailing list below. 

* ONS data , the proportion of total non-food sales online increased 9ppts from 14.7% in September 2019 to 23.7% in September 2020. The change from September 2018 to September 2019 was 0.3ppts. The average annual increase over the last five years to September 2019 was 1.1ppts per year. 

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Global Online Travel Market by Service type (Transportation, Travel Accommodation, and Vacation Packages), by Platform (Mobile and Desktop), Mode of Booking (Online Travel Agencies (OTAs) and Direct Travel Suppliers); By Region (U.S., Canada, Mexico, Rest of North America, The UK, France, Germany, Italy, Spain, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, the Netherlands, Luxembourg), Rest of Europe, China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa, Brazil, Argentina, Rest of Latin America) – Global Insights, Growth, Size, Comparative Analysis, Trends and Forecast, 2021-2030

The Global Online Travel Market size was valued at USD 354.2 Bn in 2021. The market is projected to grow USD 1,835.6 Bn in 2030, at a CAGR of 14.8 %. Review sites and travel e-commerce sites make up the majority of the internet travel sector. It provides the convenience of reserving from the comfort of one's own home and frequently entices customers with package deals and cost-cutting choices. As a result, many tourists are opting to book their trips online rather than through traditional brick-and-mortar travel firms. Furthermore, the primary global online travel market is being driven by greater consumer spending power, a government initiative to promote tourism, growing internet and credit card usage, and the creation of new online segments. The increasing penetration of international flight and hotel bookings supplied by online portals such as Booking.com, TripAdvisor.com,  .  

Get more details on this report -

The emergence of the travel and tourism business, as well as shifting patterns in standard of life, has resulted in a steady increase in the online travel market. The demand for online travels varies depending on the property type and is impacted by factors including location, size, and on-site amenities. The market is likely to be driven by rising disposable income, popularizing weekend culture, the introduction of low-cost airline services, and the developing service industry. The rise in spending power and the style of living are two of the most important factors driving people to luxury resorts. The demand for online travels is also fueled by a city's or country's hosting of sporting events. The development of the market has been hastened by the emergence of online lodging booking services. Marriott International, for example, published a new edition of its mobile app, Marriott Bonvoy, on February 10, 2021, with new features like better booking possibilities, greater personalized experiences, and customizations in earning and redeeming points. As a result, the industry is expected to consolidate due to growing demand for premium services with better booking options.  

COVID-19 Analysis

The epidemic of COVID-19 has had a significant influence on the tourism and travel industries. The global implementation of social distancing, stay-at-home, and travel restrictions has stifled the expansion of the online travel industry. According to the American Hotel and Lodging Association 2021 study, hotel occupancy in the United States fell from 66 percent to around 40 percent in 2020, compared to the previous year. As a result of the pandemic, the hotel industry is likely to suffer a severe slowdown; nevertheless, the market is expected to return to its prior growth trajectory in the coming years.  

Service Type Outlook

The travel accommodation segment accounted largest market share for the global online travel market in 2020. Market competitors are gradually providing travellers with a varied selection of hotel options at reasonable prices. Customers evaluate lodging options across multiple websites in order to get the most cost-effective option. Because they offer a diverse range of housing options, travelers prefer specialized online accommodation providers such as Airbnb, Inc. and OYO Rooms. As a result, the aforementioned reasons are responsible for the market's rise in the travel accommodation segment. These hotels usually have high-end designer interiors created with cutting-edge technology propels the demand for the growth of the global online travel market.  

Global Online Travel Market Report Coverage

Platform Outlook

The mobile segment accounted largest market share for the global online travel market in 2020 owing to the expansion of the market through the mobile sector is mostly due to an increase in mobile usage and the development of novel mobile travel apps. The way people communicate and travel throughout the world has changed as a result of technological advancements. With the advancement of technology and the increased usage of mobile phones, simple and effective techniques are being developed to make travelling simple and comfortable, hence boosting the travel industry's growth. Travelers prefer to make their travel reservations using mobile travel apps, which are gradually gaining traction in the market. As a result, the expansion of the internet travel business is projected to be fueled by an increase in smart phone usage and a rise in digital literacy.  

Mode of Booking Outlook

The online travel agencies (OTAs) segment accounted largest market share for the global online travel market in 2020. Online travel firms are becoming the most popular method of making reservations around the world. The rise of online travel agencies has been one of the most striking examples of industry and society's digital revolution in the last 25 years. OTAs have evolved into digital marketplaces that provide direct access to a wide range of online travel options for both B2B and B2C consumers. OTAs can be thought of as a cross between an e-commerce platform and a travel agency. Expedia, Booking.com, and Trip.com, among others, have dominated the global online travel business (hotels, airlines, packaged tours, rail and cruises).  

Regional Outlook

Asia Pacific dominated largest market share for the global online travel market in 2020 owing to has the most potential for growth in the internet travel business, with India and China being the most profitable areas. The increase in discretionary income, rise in the middle-class section, and increasing penetration of internet facilities are all factors contributing to the expansion. In China, Ctrip is the most popular online travel agency (OTA), whereas in India, MakeMyTrip, Yatra, and Cleartrip are the most popular OTAs.  

Europe is anticipated to emerge as the fastest-growing region over the forecast period. This is due to the presence of some of the world's most popular tourist spots. According to the UNWTO's Foreign Tourism Highlights 2019 Edition, Europe accounted for half of all international visitor arrivals in 2018. The survey also reveals that five major European countries are among the top ten destinations based on foreign tourist arrivals in 2018.  

Key Companies & Recent Developments

Partnerships, strategic mergers, and acquisitions are expected to be the most successful strategies for industry participants to get speedy access to growing markets while also improving technological capabilities.  

In addition, product differentiation and developments, as well as service expansion, are projected to help organizations thrive in the market.  

Market Segmentation of Global Online travel Market

By Service Type

• Transportation
• Travel Accommodation
• Vacation Packages

By Platform

By Mode of booking

• Online Travel Agencies (OTAs)
• Direct Travel Suppliers

Key Players:

• Alibaba Group
• Elong, Inc.
• Tuniu Corporation
• AirGorilla, LLC
• Hays Travel limited
• Airbnb, Inc.
• Yatra Online Private Limited, India
• Trip Advisor Inc.
• MakeMyTrip Limited
• Hostelworld Group PLC (HSW)
• Trivago N.V
• Despegar.com, Corp
• Lastminute.com Group
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The Past, Present, and Future of Online Travel

Executive summary, booking vs expedia, the online distribution landscape has re-fragmented and gotten more competitive , new competition from banks and credit cards powered by b2b partnerships now selling travel, direct hotel brands are gaining market share , hotels vs otas: company financials performance shows otas are investing to maintain market share in a more competitive environment , case study: a look into booking holdings’ growth and investment into lower margin businesses, related reports.

• State of Travel 2024: Travel in 350 Charts August 2024
• Booking Vs. Expedia: A 50 Chart Factbook August 2024
• A Deep Dive into Google Travel Part III: Hotel Distribution From East to West April 2024
• India’s Travel Booking Landscape March 2024

Report Overview

The rise of OTAs during the post-GFC era marked a golden decade of market share gains for Booking and Expedia, fueled by the shift to online bookings and a consolidated distribution landscape. However, today the legacy OTAs face slowing growth, heightened competition, and shrinking profit margins. With increased competition from tech-savvy direct hotel brands and new players entering the market, the future of OTA market share hangs in the balance. Yet, Booking and Expedia are not backing down, doubling down on innovation and expansion efforts to maintain their foothold in the industry – albeit at the cost of lower profit margins. Ultimately, the future of the online travel market will likely be shaped by who can best balance innovation with efficiency whilst establishing enduring customer loyalty.

What You'll Learn From This Report

• The Rise of the OTAs: Understand how Booking and Expedia leveraged industry trends following the Great Financial Crisis to become the dominant players in online travel.
• Challenges to OTA dominance: Gain insights into the ongoing battle for market share and the factors that will shape the future of the online travel industry. Discover how a re-fragmented distribution landscape, resurgent direct hotels, and new entrants into the space such as banks and credit cards, are challenging the market shares of the legacy OTAs
• The Future of online travel: In the face of new competition, explore how the OTAs are adapting through innovation and new ventures, while facing the trade-off of lower profit margins.

This report is split into three sections. 

The Past: The golden era of OTA market share gains . First we look at the period spanning the Great Financial Crisis (GFC) in 2008/09 till 2019, which defined a golden decade for OTA market share gains. We consider how in the aftermath of a global recession, the OTAs Booking and Expedia were able to benefit from industry wide shifts to online bookings, a consolidation of the online distribution landscape and share gains from direct hotels –  in order to become the most powerful duopoly in online travel. 

The Present: Are the heydays of Booking and Expedia over? In the second section, we consider how Booking and Expedia, once riding the wave of easy double-digit growth are today facing slower growth, stiffer competition and increased pressure on profit margins. The tailwinds which drove extensive market share gains in the decade spanning from the GFC are now diminishing, with increased competition from a re-fragmented online distribution landscape, smarter and more tech-enabled direct hotel brands which are gaining share and fighting back with renewed investment into tech and loyalty, and new entrants into the travel space such as banks and credit cards. 

The Future: The OTAs won’t give up without a fight. In the third section, we look at how the OTAs aren’t going to relent market share without a fight. For the OTAs, whilst share gains in the last decade were dominated by economies of scale, the next decade will be led by innovation and new ventures. In the face of new competition, Booking and Expedia are increasingly investing in new types of innovation such as Booking expanding its flights business as part of its connected trip vision and investing into merchandising efforts (i.e. discounting and couponing) and Expedia building out its B2B business and investing in a new centralized tech and loyalty system. These efforts are necessary to maintain growth and retain market share but crucially come at the expense of lower profit margins. 

The golden era of online travel market share gains

The decade spanning the 2008/09 Great Financial Crash (GFC) till pre-Covid 2019 was an illustrious period for the online travel agencies Booking Holdings and Expedia Group, collectively gaining significant share of the global hotels market, from ~5% in 2010 to ~22% by 2019, as shown in the chart below. The OTAs benefited from the widespread adoption of smartphones and the mobile internet, riding the wave of rising online penetration of hotel bookings and gaining share from offline players such as traditional travel agents. 

Within the online market, Booking and Expedia have been able to more than double their market share from 20% in 2010 to 48% in 2019, taking share from both the direct hoteliers and smaller OTAs. The fact that Booking and Expedia were able to clearly distinguish themselves through more advanced algorithms, user-friendly online interfaces, and competitive pricing has been fundamental in the formation of their powerful duopoly in online travel in the last decade. 

The 2008 financial crisis proved to be fertile ground for the OTAs to gain market share. For the consumer still wanting to travel in a post-crisis landscape, the OTAs were able to offer greater convenience, price value, and more choice, with the CEO of Priceline in 2008 saying “our extensive inventory, availability, and pricing allows consumers to shop the largest hotel inventory for the lower price”. Firstly, OTAs, with their user-friendly websites and efficient search functionalities, offered a more convenient and transparent booking experience compared to traditional methods like contacting hotels directly. Secondly, price sensitivity heightened during the economic downturn, and OTAs, through their ability to aggregate and compare deals across various hotels, were able to offer lower prices to budget-conscious travelers. Finally, OTAs provided greater choice to consumers, showcasing a wider range of hotels and accommodation options than individual hotel brand websites. 

For the hotel supplier, pre 2007, the OTAs were considered as just a clearing house for unsold rooms and a channel to gain the incremental customer. Post the GFC, the OTAs had evolved to become a mainstream booking engine and direct competitor to direct hotel sites. In 2008/09, hotels, struggling to attract guests through traditional channels, began offering OTAs significant discounts on their inventory in exchange for increased visibility on the platforms and the potential for higher bookings. These discounted rates, often not available through direct booking with the hotels, fueled the perception of OTAs offering lower prices, further enticing cost-conscious travelers during the economic downturn. In 2008, the CEO of Priceline was quoted as saying “ if [our hotel suppliers] are starting to feel the pinch a little bit, they should be aggressive in giving us inventory and ultimately demand is elastic and if hotels reduce their prices, we’re the best place for somebody to come to find those low prices.” 

A 2008 study by the Cornell School of Hotel Administration showed that by providing inventory to the OTAs as a means to increase visibility of their room supply, hotels were able to increase both their reservation value and – surprisingly – their average daily rates. This effect was coined the “billboard effect” similar to brands advertising on billboards as a means to raise brand awareness. 

A closer look at Booking and Expedia’s financials show just how quickly these companies were able to grow. On a gross bookings level (i.e. the dollar value of the amount of bookings across flights, hotels, private rentals, car hire, cruise etc made by users), Booking and Expedia collectively saw a huge 20% CAGR (Compounded Annual Growth Rate) from 2003-2019.

Booking Holdings in particular has seen an outpaced growth trajectory versus OTA peers such as Expedia and Airbnb, as shown in the chart below.

On a total revenue basis, in the decade before 2019, Booking Holdings’ growth rate materially outpaced not just other lodging companies such as Expedia and Marriott but also other internet companies such as Microsoft and Apple. As can be seen in the chart on the left below, the GFC was a key event in Booking breaking away from its peers.

Though both Booking and Expedia benefited hugely from the shift to online in the early 2000s, there are differences between the two companies which help explain Booking’s relatively faster growth vs Expedia. Booking being largely focused in Europe where the underlying hotel supply is more fragmented than in the U.S., as shown below, allows it to access a higher percent of independent hotels which are more reliant on online aggregators as compared to the large hotel brands found in higher concentration in the U.S. 

Additionally, Booking has largely focused its efforts in the opportunistic hotels and lodging market, unlike Expedia which has ventured further into lower take rate opportunities such as flights and private rentals. As shown in the charts below, the hotels sector accounts for the largest percentage of total consumer travel spending and is also the vertical with one of the highest OTA take rates and thus the largest and most opportunistic commission pool available to the OTAs. 

Furthermore, Booking has largely followed a single brand approach under its umbrella brand booking.com (though also owns other brands such as Priceline and Agoda) unlike Expedia’s patchwork of brands which were acquired through the 2000s and 2010s such as Hotels.com, Travelocity Wotif, Orbitz and HomeAway. This single brand approach allows greater brand recognition and a cleaner loyalty program. In the last year Expedia too has invested into a unified brand approach through its launch of ‘One-Key’ which aims to consolidate all its sub-brands under one company-wide loyalty scheme. 

For our readers who are further interested in the behind-the-scene dynamics of how Booking and Expedia became so powerful in the travel industry, we would highly recommend Skift’s The Definitive Oral History of Online Travel for further insight into the “dreams, challenges and acquisitions that battered and buttressed the early years of online travel and e-commerce”. 

Are the heydays of Booking and Expedia over?

Booking and Expedia, once riding the wave of easy double-digit growth are today facing slower growth, stiffer competition, and increased pressure on profit margins. The tailwinds which drove extensive market share gains in the decade spanning from the GFC are now diminishing with Expedia’s CEO Peter Kern admitting at Skift’s Global Forum in 2022 that “the easy money, where we’ll just be online and we’ll just collect everybody who’s decided to book online has certainly lessened over time”. 

Booking and Expedia, once seeing 20-30% YoY revenue growth, are expected to post <10% growth from 2024 onwards. For example Booking, which posted 24% growth even through the GFC in 2009(!) and more than 40% growth in 2011 saw growth slowing down to just 4% in 2019, with similar growth levels expected through the next decade. 

A comparison between the major OTAs (Booking, Expedia) and major U.S. hotel groups (Hilton, Marriott) shows that though pre-Covid the OTAs were growing revenues 2-3x faster than the hotels, from 2024 onwards OTA revenue growth is expected to slow down to be in line with the hotel groups.

Why is growth slowing down for the OTAs? Online penetration rates are slowing, direct hotels are aggressively fighting back, and the OTA landscape is saturating with formidable new players which won’t be as easily acquired as they were in the past. For example, our proprietary survey data tracking U.S. travelers show that since 2020 Booking and Expedia have collectively lost share to other OTAs, with Expedia in particular feeling the pressure from both Booking aggressively expanding into the U.S. and new entrants taking market share.

Customer satisfaction data for the OTAs versus hotel brands also show that though the index for both fell during the pandemic, the hotels have been able to recover their satisfaction scores much faster than the OTAs which are currently sitting on a score only 1pt above 2008/09 trough levels. On an absolute level, though the OTAs have a satisfaction index higher than the hotels, the gap between the two has converged over time – from a difference of 6 pts in 2002 to just a 1 pt gap today. 

Furthermore, new forms of competition from Google Hotels and non-travel related companies such as banks and credit cards entering the space through B2B partnerships pose further threats in an increasingly competitive landscape. 

Whilst share gains in the last decade were dominated by economies of scale, the next decade will be led by innovation and new ventures. In the face of new competition, Booking and Expedia are increasingly investing in new types of innovation such as Booking expanding its flights business as part of its connected trip vision and investing into merchandising efforts (i.e. discounting and couponing) and Expedia building out its B2B business and investing in a new centralized tech and loyalty system. These efforts are necessary to maintain growth and retain market share but crucially come at the expense of lower profit margins. 

In this section we will take a deeper look at where new competition is coming from:

• First, from the re-fragmentation of the online distribution landscape thanks to the launch of organic results by Google Hotels which allows direct hotels and smaller, newer OTAs to compete head-on with the legacy OTAs Booking and Expedia.
• Second, from the entrance of new players in the travel ecosystem such as banks and credit card companies which are now selling travel on their own platforms, with supply powered by the OTAs, GDSs and Bedbanks through B2B partnerships.
• Third, from the direct hotel brands which gained share through the pandemic and are fighting back hard with investments in tech, M&A, and loyalty.

The introduction of free organic listings by Google Hotels in March 2021 has democratized the online distribution landscape, allowing direct hotels and smaller OTAs to compete head-on with Booking and Expedia. It has created increased fragmentation of distributors, heightened price competition and allowed for the disruption of the legacy players. 

What changes has Google Hotels made to its search platform? In March 2021 Google Hotels launched free organic listings in addition to paid ads, with Google Travel’s VP of product management at the time saying : “This is an opportunity for us to show that we have a full range of pricing” and to “drive more traffic for the ecosystem as a whole”. The screenshot below shows how the Google Hotels platform looks like on a desktop, with the paid sponsored results taking the first four positions, followed by a list of free organic results. This layout is similar to that of the traditional Google search engine results page, where sponsored ads appear before organic results. In March 2022, Google expanded the reach of organic booking links to include both maps and search results. 

We conducted an extensive data scraping exercise across 5,000 U.S. hotels listed on Google’s map-based Google Hotels platform in order to understand Google’s role in the hotel distribution landscape: how hotels are listed on Google, which OTAs are bidding for bookings and whether Google is aiding direct bookings and smaller OTAs to compete more head-on with the online intermediaries. 

Our analysis showed three key insights. 

First, paid sponsored listings continue to be dominated by the largest OTAs, whereas smaller OTAs are less likely to bid in the sponsored results box. There are also clear signs that Booking.com is targeting market share in the U.S., with it being the most likely to feature in the sponsored results, followed by U.S. incumbent Expedia.com. 

Second, the introduction of organic results is leveling the distribution playing field – allowing the direct site and smaller OTAs opportunity to compete head-on with Booking and Expedia. Whilst the largest OTAs dominate the paid sponsored listings, in the free organic results, there is no one commanding player, with Expedia.com and Booking.com as likely to appear as the official direct site and OTAs such as cheaptickets.com and bluepillow.com. 

Third, Google Hotels is actively prioritizing the direct site in its organic results, with the official site most likely to appear top of the organic list, even when it is not the cheapest option. Google is playing an increasingly important role in the dis-intermediation and disruption of the legacy OTAs by aiding the shift to direct bookings.

These results show that the introduction of free organic listings by Google Hotels has marked a significant shift in the online distribution landscape, leading to heightened market fragmentation and increased price competition. This has challenged the established duopoly of Booking and Expedia and in turn is seeing a democratization of the online travel marketplace, ripe for new entrants to make their mark.

For further analysis of this web-scraping exercise, refer to our series on Google Travel: A Deep Dive into Google Travel Part I: U.S. Hotel Distribution and A Deep Dive into Google Travel Part II: U.S. vs Europe in 20 Charts

Online travel is increasingly shifting away from direct consumer relationships and business-to-business (B2B) has become an important strategy for companies like Expedia, where B2B is a key revenue driver, making up more than 25% of its total revenue, as shown below. 

B2B is also an important segment for newer players such as Hopper, which expanded into the B2B space in 2021 with the launch of Hopper Cloud, powering the travel capabilities of keynote partners such as Capital One (which also led Hopper’s latest funding round) and Uber. Hopper Cloud also provides Hopper’s suite of fintech products to partners already within the travel ecosystem, such as Agoda, Kayak and Air Asia, amongst others. Through its acquisition of tours, activities and experiences provider PlacePass in 2021, Hopper also powers the experiences arm of Marriott’s Bonvoy loyalty program. As we see in the chart below, much of Hopper’s growth can be attributed to the launch of its B2B business Hopper Cloud, as well as its expansion of fintech products (rolled out early 2019) – each making up close to 40% of Hopper’s total revenue today. Read more about Hopper in our report Hopper’s Rise in Travel 2023 . 

Why would the OTAs move into the B2B space? We have already seen that B2B partnerships are a lucrative source of revenue growth that allow the OTAs to access 3x the number of loyalty members (as shown in the chart below) through a new form of distribution channel that bypasses Google, with CEO of Expedia Peter Kern at Skift’s Global Forum in 2021 saying “I prefer to spend money on almost anything than spend it with Google”. However, this comes at a cost – besides the OTAs only receiving half the commission, the OTAs are now actively powering the supply of their competitors, with fintech players such as Chase Travel and Revolut having a large enough customer base to potentially dis-intermediate the OTAs themselves. As shown in the chart below, today ~150m consumers own a Chase credit card in the U.S. This is only slightly shy of the 168m global loyalty members at Expedia and 180m members at Hilton.

Our proprietary survey data, as per our latest report Navigating Q4 2023: Analysing the Value of Travel Credit Cards in the U.S. , further highlights the opportunity available to fintech players – and the threat they can pose to the OTAs. As shown in the chart below, today consumers aged 25-44 make up the highest adoption rates among travel credit card usage – compromising 40% of total users. This is higher than the representation of 25-44 year olds in the U.S. population – making up 33% of the general population, going to show the popularity of credit cards by younger consumers. Of the credit cards owned, 80% of U.S. travelers have at least one bank-branded travel credit card (such as by Chase, American Express or Capital One), versus 40% owning a co-branded cards such as those offered by travel companies like Marriott and Delta – i.e. there is a 2x penetration of bank branded credit cards vs those offered by travel brands. 

The key chart is shown below. Today, Gen-Zs and Millennials are making travel reservations more frequently through the credit card booking platforms than through the OTAs. For example, as per our survey, 25% of consumers aged 18-24 use OTAs to make airline and hotel bookings, but 36% are booking through the platforms of credit cards such as Chase Travel or Capital One. Interestingly direct bookings are also more popular than the OTAs for every age group. 

Leeny Oberg, CFO of Marriott, has also voiced concern about the entrance of banks and credit card companies now selling travel. At the New York University International Hospitality Industry Investment Conference 2023 she said “when you ask me about sleepless nights, it’s this topic [of fintech players].The reality is there’s tremendous capital and good digital know-how in these spaces”. 

 A deeper look into Chase Travel shows just how quickly these fintech x travel programs can grow. In 2022, JPMorgan Chase & Co. officially launched Chase Travel, an end-to-end travel and rewards program for its U.S. customers, with supply originally powered by Expedia. In an investor day presentation in May 2023, Chase Travel considered itself to be a ‘top 5 consumer leisure travel provider’, with ‘1 in 4 leisure travel dollars spent on Chase cards’(!). In 2022 Chase Travel made ~$8bn of gross bookings, expecting to hit ~$10bn in 2023 and ~$15bn by 2025 – outpacing booking levels seen by even rapidly growing companies such as Hopper. In fact, Chase Travel, today powered by cxLoyalty , is likely to be the third largest OTA after Booking and Expedia. 

Chase Travel highlights a ~$140bn addressable spend opportunity for travel spend on Chase cards, of which it has already penetrated 6% by 2022, with this near doubling to 11% by 2025 according to their forecasts. 

We have written about Chase Travel’s entrance into travel in detail in a 2023 Megatrend piece: Big Banks Chase a Much Bigger Piece of the Travel Market . 

In the wake of the GFC, direct hotel brands faced a harsh reality: that their slow embrace of technology allowed the OTAs to capture a significant market share. Today, however, the tide is turning. Direct hotel brands are actively fighting back by investing heavily in technology and loyalty programs. The hotel brands are now pouring resources into mobile booking platforms, personalized guest experiences, and data-driven marketing strategies. Hotel brands are also heavily investing in M&A activity (such as in the midscale segment) and hotel development – all contributing to growing their network of properties which can be plugged into their loyalty offering. Additionally, revamped loyalty programs with exclusive benefits and tiered rewards are incentivizing guests to book directly, fostering brand loyalty and ultimately regaining lost ground in an increasingly competitive hospitality landscape. 

For example, Hilton’s campaign ‘Stop Clicking Around’, as shown below, emphasizes the benefits of booking directly through their loyalty program, Hilton Honors. They highlight features like a best rate guarantee, free Wi-Fi, and exclusive member benefits such as instant points and free breakfast. Marriott’s ‘It Pays to Book Direct’ campaign uses the tagline “See why direct is better” and showcases various benefits of joining their loyalty program and booking directly, including exclusive access to experiences and special offers such as the redemption of loyalty points towards entertainment, activities, and culinary experiences – suggesting that booking directly unlocks a wider range of perks and benefits. 

Such marketing campaigns target potential guests who are already familiar with the brands and encourage them to bypass the OTAs and book directly through the hotel’s website or app. They do this by highlighting the advantages of joining their respective loyalty programs, such as: lower prices or exclusive discounts, additional benefits and perks and a more streamlined booking process. 

Our survey data (per our report Exploring Gen Z and Millennial Travel Habits ) shows that the drivers for signing up for travel loyalty programs are no longer simply about an emotion associated with a brand or personal consumer preferences. The concept of loyalty in travel has instead grown to encompass exclusive access to premium services and influencer recommendations. The hotel loyalty programs which are able to offer differentiated service beyond just the redemption of points towards discounted nightly rates will be best placed to grow their programs fastest and as a result see a greater mix of their distribution coming from direct channels. 

For example, in Accor’s 2019 annual report, Accor presents how their brand and partnership strategy has evolved since 2014 – from investing primarily in other hotel chains to today partnering with ‘new brands, new services and new rewards for its customers’ through its loyalty program ALL – Accor Live Limitless. 

As a result of marketing campaigns and increased investment into loyalty, the major hotel groups have grown their loyalty programs by double-digits since 2019, with brands like Hyatt doubling its members over the last 4 years. 

Loyalty program members tend to book directly, spend more and book more frequently than non-loyal members. Additionally, as loyalty membership grows and their contribution to hotel occupancy increases this “ translates to lower customer acquisition costs and higher margins for our franchisees” (CEO of Choice Hotels at their full-year 2023 earnings call). 

As a result of rapidly growing loyalty programs, investment into digital booking platforms, and an industry-wide shift to direct bookings through the pandemic, the hotel brands such as Marriott have seen direct digital channels gain share of their total distribution mix since 2019, as shown below. In turn this has boosted owner and franchise profitability and contributed to margin expansion. 

We note that the shift to direct is not just a Covid-era trend, with direct booking gaining share even prior to the pandemic. For example, at a Morgan Stanley Global Consumer & Retail Conference in December 2021, CEO of Marriott Anthony Capuano said that in 2019 Marriott saw the OTA share of its room nights drop for the first time in several years, and that “over time, we expect our direct share will continue to increase in the same sort of way we saw it between 2017 and 2019”. 

There is a long-term structural shift towards direct bookings. The chart below shows that hotel brands are expected to gain share from independent hotels in every region of the world…

…with there being a strong correlation between branded market share and share of bookings made directly, as shown in the scatter chart below. 

As the underlying hotel supply increasingly gets consolidated under an asset-light branded franchise network and more bookings are made directly, the value proposition of a third party online aggregator – such as Booking or Expedia – slowly diminishes. As the pool of independent hotels – which are most reliant on OTAs for distribution – reduces, so do the commissions the OTAs can charge for their distribution services. 

For example, a highly concentrated airlines industry serves as the cautionary tale for OTAs looking to sell an increasingly consolidated hotels market. The chart below from our report The State of Airline Distribution 2018 shows that the largest four U.S. air transport carriers have grown their control of industry revenue from only 22% in 2022 to 62% by 2017. As a result of a more concentrated revenue at the source level, third party travel agents have struggled to gain share of bookings. 

As a result of the consolidation of the underlying U.S. airline industry and the subsequent transition to direct booking channels, overall airline distribution costs have fallen substantially since the 1990s. Reservation and sales expenses paid out by airlines (e.g. the commission) have decreased both in absolute terms and as a % of total expenses. For instance – the peak year for distribution expenses was 1993 where major U.S. airlines spent $13.2 billion on reservation and sales expenses, representing 17% of industry operating expenses. However the last two decades have ushered in a dramatic improvement in distribution costs with reservation and sales expenses at major airlines now making up 4% of operating expenses with the absolute dollar figure fluctuating between $6–8 billion a year.

What defines the future? The OTAs won’t give up without a fight

In the face of new competition, the OTAs are hardly going to relent market share without a fight. They are pushing back with new initiatives such as expansions into new verticals, investment into increased efficiencies (such as Expedia’s one-key loyalty program), and ways to bypass Google through B2B and social media marketing. 

Whilst share gains in the last decade were dominated by economies of scale, the next decade will be led by innovation and new ventures. Booking and Expedia are increasingly investing in new types of innovation such as Booking expanding its flights business as part of its connected trip vision and investing into merchandising efforts (i.e. discounting and couponing) and Expedia building out its B2B business and investing in a new centralized tech and loyalty system. These efforts are necessary to retain market share but crucially come at the expense of lower profit margins. 

Travel is back and bigger than before. As shown by the chart below, since 2019, the majority of the OTAs and major hotel groups have grown both their top and bottom lines by double digits. For example, Airbnb has gone from being unprofitable in 2019 to making more than $3.6bn of EBITDA in 2023. Booking Holdings has grown its revenue more than 40% over the last four years, significantly outpacing Expedia’s relatively slower 6% growth. The major hotel groups Hilton and Marriott have posted more than 15% revenue growth and impressive EBITDA growth of more than 30%. Companies like Hyatt have benefitted from acquisition of Apple Leisure Group which has boosted revenues more than 40% since 2019. 

Though most travel companies have recovered above and beyond pre-pandemic levels, a closer look at the financials gives us a more nuanced understanding of the wins and losses. A consideration of EBITDA margins (i.e. EBITDA as a % of total revenue) shows us which companies are having to invest profit margins to fund top-line growth. 

For the OTAs, as a reflection of the increasing competitiveness of the online travel landscape, companies such as Booking Holdings have seen a significant drop in EBITDA margins from 39% in 2019 to 33% in 2023. Lower margins are likely to be a permanent feature at Booking, with expansion into the U.S. market through low-margin segments such as flights and the development of its connected trips vision through the lower take-rate generating merchant model all contributing to margin compression. We discuss Booking’s growth strategy in more detail further on in this section of the report. 

Tripadvisor, like Booking, also has lower EBITDA margins in 2023 versus 2019. Its core metasearch business continues to struggle against its main competitor Google and though its top line is aided by its rapidly expanding tours and activities (Viator) brand, Viator is not yet a material contributor to EBITDA growth. 

Expedia, being less exposed to the high pricing growth in Europe and the rapid recovery in Asia grew its top line less than its closest competitor Booking in 2023, with the majority of its revenue growth stemming from its B2B business. However, unlike Booking, Expedia has expanded its EBITDA margins since 2019, largely due to the success of VRBO and stricter cost-cutting practices across the company. 

Unlike the mixed bag of results for the OTAs – with Booking dropping a huge 6ppts of margins since 2019 versus Airbnb going from being unprofitable in 2019 to having the highest margins of any OTA by 2023 – the major hotel groups have largely all reported impressive margin expansion over the last four years. Increased operational efficiencies and a shift to direct bookings have allowed companies like Marriott and Hilton to gain an additional 7-9ppts of EBITDA margin since 2019, with Leeny Oberg, CFO at Marriott saying at Q3 2022 earnings that “our direct digital bookings do help the hotel margins by coming through that channel rather than coming through the OTAs, as well as all the productivity efforts that we’ve done to help improve our productivity per room. We’ve obviously worked very hard to make sure that we can make the most out of every revenue dollar that comes through the hotels.”

The strategic moves taking place at Booking Holdings are a prime example of how the largest OTAs are having to innovate in the face of new competition. We see three key business expansions at Booking: shift to the merchant model, price discounting practices, and expansion into flights and the ‘connected trip’. All three strategies contribute to permanently lower take rates and lower margins. As we can see in the two charts below, there is a strong positive correlation between take rates and EBITDA margins, with consensus expectations showing that analysts don’t expect Booking to ever recover to pre-Covid EBITDA margin as a result of these strategies.

Booking’s historical model relied mainly on the agency model, where hotels listed and set their own prices, collected payments directly, and paid Booking.com a commission (15-30%). The agency model comes with very little costs, and is essentially a 100% gross margin business, allowing Booking to post impressive company EBITDA margins (40% in 2014).

However, since 2017, Booking.com has been shifting towards the merchant model. This involves negotiating a net rate with hotels upfront. Booking.com then collects payments from guests and is responsible for pricing. This provides greater control over pricing, allows them to bundle services like flights and car rentals (and sell the ‘connected trip’) and offer in-house payment services. However it is also a lower margin business compared to the agency model due to additional processing costs paid out to credit cards and the like. As we can see in the chart below, as of 2023, Booking gets more of its gross bookings through the merchant model than the agency model. 

In a quote from Booking’s most recent annual 10-K SEC filing, Booking is very clear in the fact that its shift to the merchant model is a lower margin endeavor, saying how a “significant increase in these costs” (such as “payment processing costs” and “costs related to fraudulent payments and fraud detection”) could see “profit margins [being] materially adversely affected.”

The merchant model allows Booking to have control over the pricing of hotel rooms listed on its platform. In recent years, Booking has expanded into merchandising efforts (i.e. discounting and couponing) in a bid to offer more competitive prices in the marketplace – clearly referencing the discounting practices conducted by companies such as Trip.com in Asia which is well known for giving up its own take rate in order to fund lower prices. Booking very openly acknowledges that “these initiatives may result in lower ADRs and lower revenue as a percentage of gross bookings [i.e. the take rate]”.

Finally as part of their connected trip vision whereby consumers look to book every part of their trip on Booking.com’s platform, Booking has invested heavily into “non-accommodation services”, i.e. the flights business, such as attempting to acquire flights parter Etravel i.The airlines industry, having a highly consolidated underlying supply base, is of less value to an aggregator such as Booking, with OTAs only able to make 3-5% commission on flight bookings. In its most recent annual 10-K SEC filing, Booking is very clear that “ to the extent that our non-accommodation services (e.g., airline ticket reservation services) have lower margins and increase as a percentage of our total business, our operating margins may be negatively affected”. 

Though Booking will gain some operating efficiencies as its expansion into new verticals comes to scale, it is clear that gone are the days of easy growth and rapid margin expansion – today, in the face of new competition, Booking is having to innovate and expand into new areas of business – at the cost of lower profit margins. 

The tailwinds of the post-GFC era are fading, replaced by a more competitive online travel landscape with resurgent direct hotels, fragmented distribution channels, and new entrants to the space. To adapt, the OTAs are investing in technological innovations and new ventures, but these efforts crucially come at the expense of slower growth and lower profit margins. The future of the online travel market will likely be shaped by who can best balance innovation with efficiency and establish enduring customer loyalty. The fight for market share is far from over, and whether Booking and Expedia can retain their crown remains to be seen.

CRM Tactics to Regain Online Travel Agency Customers

Daniel Eisenhut, Group VP, CRM. The travel sector has undergone significant changes with the rise of Online Travel Agencies (OTAs), such as Expedia, Booking.com, and Airbnb, dominating the market. While OTAs offer customers unmatched convenience and competitive prices, traditional travel businesses face hurdles in maintaining direct customer connections.

To combat the increasing influence of OTAs and win back OTA customers, companies must employ robust Customer Relationship Management (CRM) tactics.

CRM systems serve as crucial instruments for recognizing and comprehending customer behaviors, preferences, and patterns. Through a strategic blend of primary and secondary identifiers, travel companies can cultivate direct customer relationships, tailor their services accordingly, and ultimately entice back OTA customers upon check-in.

This article will explore several essential CRM strategies that can aid in regaining OTA customers.

Understand the OTA Customer Base

Prior to delving into CRM tactics, it is imperative to grasp the typical characteristics of OTA customers. These individuals are frequently driven by factors like convenience, affordability, and variety. They value the convenience of comparing multiple options on a single platform and often prioritize cost-efficiency. However, their brand loyalty tends to be limited as they primarily favor the OTA platform itself rather than any specific businesses featured on it.

To effectively win back OTA customers, enterprises should pinpoint these unique motivators and create a compelling value proposition that encourages direct bookings.

Collect and Interpret Data

The cornerstone of any successful data strategy lies in comprehensive data gathering and analysis at each touchpoint with the customer. Companies should collect data from various online interactions such as website visits, social media engagements, previous reservations alongside on-site activities like check-ins or restaurant bookings.

Vital data elements encompass demographic details, booking records, preferences, and customer feedback. When clients make reservations through online travel agencies (OTAs), the brand does not directly receive personally identifiable information (PII) of the traveler; however, the OTA booking ID can serve as a secondary identifier for establishing a profile and recording the reservation.

During check-in at the property, when requesting customers’ PII like their email address to send post-checkout invoices, the email becomes a primary identifier linked with the anonymous OTA booking ID. This allows for direct marketing to consumers and monitoring subsequent interactions with a first-party customer.

Utilizing sophisticated analytics, companies can categorize their clientele into various segments based on their behaviors and preferences. By identifying recurring travelers, budget-minded individuals, or luxury enthusiasts, businesses can tailor marketing strategies more effectively. These insights empower businesses to craft personalized marketing initiatives that cater to each segment’s distinct requirements and tastes.

Personalize Customer Experiences with CRM

Customization plays a pivotal role by significantly elevating the customer journey . Leveraging collected data, organizations can develop bespoke promotions, suggestions, and communications. Tailored emails, for instance, can feature offers relevant to recipients based on their previous bookings or stated interests.

For instance, if a client frequently books family vacations, sending customized promotions for family-oriented destinations, discounts on children’s activities, or special family packages can yield positive results. Similarly, providing exclusive offers for loyal patrons or personalized loyalty programs can incentivize direct bookings.

In cases where businesses lack these insights—especially with first-time bookings—employing a data enrichment solution such as Zeta Data Cloud aids in swiftly understanding customers’ needs and preferences from their initial reservation. Details like travel purpose (leisure or business), number of children and their ages/genders, preferred locations, room bed counts, or culinary preferences are among the data points enhancing customer experiences to create an unforgettable first-travel experience.

Enhance Customer Loyalty Programs

Customer loyalty programs remain an effective method for fostering retention and driving direct bookings within businesses. Businesses can incentivize OTA bookers to switch to direct bookings by offering exclusive rewards not available elsewhere.

These rewards may include points systems, special discounts, upgrades, or complimentary services. For example, a hotel could offer a free night’s stay for a set number of direct bookings or unique perks for loyalty program members. The goal is to make the loyalty program enticing enough to outweigh the convenience of using OTAs.

To attract back OTA bookers, companies need to ensure their websites and booking processes are as user-friendly and seamless as those offered by OTAs. It is essential to invest in a mobile-responsive website with an easy booking process that includes features like real-time availability, secure payments, and immediate confirmations. Personalizing website content based on customer data and providing live chat support or responsive customer service can enhance the user experience and address any concerns promptly. Monitoring user behavior can help identify dissatisfaction early on and proactively offer benefits to retain customers.

Content marketing and social media are crucial for engaging customers and fostering brand loyalty. Creating high-quality content such as blogs, travel guides, and customer testimonials can attract new travelers while maintaining interest from existing customers.

Employing automated cross-channel experiences helps share consistent content and promotions seamlessly across various platforms. Encouraging user-generated content like reviews and photos can boost credibility and entice new customers to engage with the brand. Interactive initiatives, such as contests and sharing travel narratives, have the potential to nurture a feeling of community and loyalty among clients.

Read next!: How to Measure Loyalty Program Success (Beyond Sign-Ups)

Engage Customers After Booking

It is essential to sustain customer engagement beyond the booking phase. Following up after bookings through personalized emails, SMS messages expressing gratitude, and seeking feedback can demonstrate appreciation for customers’ patronage.

Moreover, conducting post-stay surveys can offer valuable insights into customer satisfaction levels and areas that necessitate enhancement. Encouraging participation in loyalty schemes or extending discounts on future reservations can serve as incentives for repeat business.

This is also a great time to encourage new customers to join the loyalty program, making it easier to continue the conversation with them through offers and incentives.

Harness Technological Resources

The integration of advanced CRM technologies can significantly improve the ability to regain OTA customers. Deploying Artificial Intelligence (AI) and Machine Learning (ML) tools enables the anticipation of customer preferences and behaviors, facilitating enhanced personalization.

For instance, AI-driven agents like Zeta’s ZOE can deliver immediate assistance and tailored recommendations, elevating the overall customer service experience. Similarly, ML algorithms can scrutinize extensive datasets to detect patterns and forecast future booking trends, empowering businesses to proactively engage with their clientele.

Reclaiming OTA customers presents a multifaceted endeavor that demands a strategic outlook. By employing CRM methodologies effectively, businesses can deepen their comprehension of customers, customize their offerings, and cultivate direct connections. Through data-informed insights, personalized marketing strategies, loyalty programs, user-friendly interfaces, compelling content creation, post-booking interactions, and cutting-edge technology adoption; travel and hospitality enterprises stand poised to successfully recapture OTA customers while fostering enduring customer allegiance.

In navigating the dynamic landscape of the travel industry’s evolution, embracing innovative CRM tactics will be pivotal for enterprises striving to excel amidst competitive surroundings.

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Global online bookings growing 2x as fast as overall market

Phocuswright's recent travel research report Global Online Travel Overview 2019 provides and compares total and online travel gross bookings for six regions: U.S./Canada, Europe, Eastern Europe, Asia Pacific (APAC), Middle East and Latin America (LATAM). The market sizing and analysis presented here is sourced in part from several Phocuswright publications and data products:

• U.S. Online Travel Overview 2018
• Europe Online Travel Overview 2018
• Asia Pacific Online Travel Overview 2019
• Middle East Online Travel Overview 2019
• Phocal Point: Global Market Sizing

The global travel industry performed better than most other economic sectors in 2018, beating GDP gains in most markets. According to Phocuswright's latest travel research report, Global Online Travel Overview 2019 , total travel bookings increased a projected 7.3% to US$1.4 trillion. Critical to global travel companies, online travel bookings are growing twice as fast as the overall market.

Here are seven key developments and trends from the Phocuswright report:

• Online bookings growing twice as fast as overall market
• APAC is now the world's largest regional travel market
• Online share of total bookings approaches milestone
• APAC to overtake U.S. online
• Suppliers lead online, but OTAs rule hotel segment
• Top travel markets remain unchanged (U.S., China, Japan, Germany, and U.K.)
• APAC widens its lead in mobile

This in-depth Phocuswright study includes the following analysis and data:

• Size of the global travel market, with regional comparisons and breakdowns
• An overview of online travel market growth, plus a look at developed vs. emerging economies
• The OTA distribution landscape
• Growth of mobile
• Country market highlights and trends
• State of the segments

Global Online Travel Overview 2019 is available for purchase here . (Free for subscribers.)

If you subscribe to Phocuswright Open Access, your entire company can access this report as well as the full Phocuswright research library. Learn more about the subscription benefits (including discounted Phocuswright Conference tickets) here .

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What are online travel agencies? The ultimate guide to OTAs

Love them or not, online travel agencies (OTAs) play a critical role in every property’s distribution strategy. According to Expedia Group’s 2023 Path to Purchase report, OTAs captured 51% of online hotel & lodging bookings and possess the visibility and marketing power that most individual properties cannot achieve on their own. 

Working with OTAs isn’t just a matter of signing up and hoping for the best. To take advantage of the opportunities and avoid the pitfalls, you need to actively manage your listings, pricing, and inventory and take a strategic approach to online distribution. 

If done correctly, adopting the right OTAs as part of your distribution strategy can actually help drive direct bookings through the “billboard effect.” Building a comprehensive channel mix incorporating different types of OTAs will ensure you reach your target audience and secure a steady stream of reservations. 

See which OTAs dominate globally, regionally, and across property types based on Cloudbeds customer data and how properties like yours use OTAs as part of their distribution strategy. 

At Cloudbeds, we know the world of OTAs and distribution channels can be complex. We’ve created the Big Book of OTAs to help demystify this process and explain how to create a recipe for success when working with third-party distribution channels.  

What is an online travel agency (OTA)?

An online travel agency (OTA) is a website that acts as a search engine for travel. They connect providers across the travel industry to help travelers easily plan their trips. On OTA sites, travelers can often access package deals with accommodations, airfare, cruises, rental cars, and more.

On average, travelers view 141 pages of travel content in the 45 days before booking a trip, with OTAs making up 67 of those pages. Therefore, properties must be active on as many channels as possible to increase brand awareness and drive bookings — both OTA bookings and direct bookings (more on this later). With the increased popularity of OTAs around the world, hoteliers now have access to markets once unattainable.

How do OTAs work?

Online travel agencies emerged in the 1990s, using the internet’s extensive reach to aggregate global travel supply into a single place so consumers could book their own travel online. These self-service tools reshaped the hotel industry and booking experience with functionality that allowed the general public to easily plan their trips and reserve their airfare, accommodations, vacation packages, car rentals, and tours on their own rather than rely on a physical travel agent.

Sites such as Expedia.com, Booking.com, Airbnb, Orbitz, Hotels.com, and TripAdvisor are often consumers’ first stop when researching and booking their next trip. These apps offer a seamless user experience at all stages of the buying process: problem/need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Properties of all types and sizes can connect to multiple OTAs through an integrated channel manager . A distribution system, like a channel manager, shares room inventory and rates from your property management system (PMS) to your booking engine and OTAs. Properties that use a channel manager can streamline hotel operations, increase hotel revenue via revenue management best practices , and increase occupancy across channels (all without the fear of overbookings). 

OTA business models

Hotels form partnerships with OTAs by basically outsourcing marketing to OTAs, who then make money through two business models: the merchant model (guest pays the OTA  in advance) and the commission model (guest pays the hotel at check-in or check-out). Most OTAs offer a blended model so that hotels can let guests choose which option they’d prefer. 

The merchant model

In this model, the online travel agency acts as the merchant of record and collects payments from guests at the time of booking. Once the guest has checked out, the OTA pays the hotel. Contracts exist between hotels and OTAs to provide a set number of rooms to the OTA at a favorable rate. The OTA then makes a profit off each room sold but must meet its contractual thresholds.

The agency (commission) model

In this model, the consumer books via the OTA but pays the hotel directly at the time of checkout. The hotel then pays the OTA a commission on the total value of the booking after checkout. There are no contracts, and rates are set by hotel management. 

The advertising model

This model has increased in popularity and exists on metasearch sites such as Google Hotel Ads, Tripadvisor, Trivago, and KAYAK. Metasearch engines work primarily on a cost-per-click basis where hotels can promote their rooms with links to their direct booking engine, and pay a fee based on the number of clicks they receive. Some of these sites, such as Google, also offer a cost-per-acquisition model (also known as “pay per stay”) where the property pays a percentage of the total reservation cost upon completion of the stay.

For hotels, it can be frustrating to watch distribution costs rise without getting more in return, but there are costs associated with direct bookings too. Demand doesn’t appear without at least some sort of distribution or marketing strategy in place, and those marketing campaigns, loyalty offers, special deals, and direct booking tools have a cost to the hotel. That’s why it’s important to use OTAs wisely and in conjunction with your own direct marketing strategy. 

Online travel agencies vs. online travel agents

Before the rise of OTAs, it was the role of a travel agent to book leisure and business travel. This is because travelers back then did not have access to hotel availability and rates the way we do today. While the internet has made it easier for travelers to book their own trips online, some segments like luxury, corporate, and group travelers still prefer to utilize a person, or online travel agent, to help plan and book a trip.

Travel agents are beneficial when planning complex trips such as a destination wedding, honeymoon, or corporate trip. They have the expertise and connections to find unique accommodations at better rates than most people can find themselves.

Travel agents such as Kuoni have a team of destination experts who work behind the scenes to curate tailor-made accommodations, experiences, and itineraries. Their in-person stores allow travelers to enjoy a glass of champagne while meeting with a travel expert to plan their dream vacation.

Travel agents usually have a portfolio of properties they recommend to travelers and take a commission fee, similar to OTAs. Strong relationships with travel agents can help properties drive more bookings in alternative segments than the OTA market.

Difference between OTAs and metasearch

With so many online booking channels available today, it can be challenging to understand the difference between certain channels.

Metasearch websites like Skyscanner act as aggregators and display hotel information and room rates from a variety of online channels, including OTAs like Agoda, Trip.com, Travelocity, or Priceline.com and a hotel’s website. It enables travelers to compare all of their hotel booking options in real time across the web so that they can book the best deal.

OTAs provide room rates and booking capabilities for only one channel — their own. Meanwhile, metasearch sites can display up to twenty or more results.

Properties can invest in hotel marketing efforts through metasearch engines. Metasearch sites rank listings and it pays off to be near the top. Paying to have your listing higher in the ranks to drive more direct bookings can drive serious results. 

Is Google an OTA?

Google is often a traveler’s first stop when looking for a hotel room. In recent years, Google has changed the hospitality industry with its products. Google offers Google Hotel Search, which acts as a hotel metasearch platform. When a traveler enters a property’s name into Google, it will show all of the rates and listing information from across the web.

Google also has free booking links , a game-changer for independent hotels as they can list their direct rates and links to their own website within the Google Hotel Search box. This option encourages potential guests to book direct.

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The Pros and Cons of Booking Through Online Travel Agencies

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

You’re likely already familiar with online travel agencies, even if you don’t travel often. These companies — such as Priceline , Expedia and Orbitz — act as intermediaries between you and a travel provider.

Booking your travel through an OTA can be a good idea in some circumstances, but you’ll want to be wary of its pitfalls. Let’s take a look at the pros and cons of online travel agencies, so you’ll know what to use to book your next vacation.

Pros of booking through online travel agencies

There are certainly advantages booking through online travel agencies, though you’ll find different experiences whether you’re using public OTAs — such as Kayak — or private ones like those offered by your card issuer, such as the Chase's travel portal .

✅ It may be cheaper

When searching for flights online, you may see different prices for the same routes that vary across websites. Although it may be a result of fare type — for example, some search results may not clarify that a fare is basic economy rather than main cabin or economy — other times, the difference comes down to competition for your business.

Online travel services will often offer slightly lower prices on flights in an effort to entice you as a customer. This is true for both hotels and airlines.

» Learn more: Best credit cards for online travel-booking websites

✅ It can earn you more rewards

Have you ever heard of shopping portals ? By logging into a shopping portal, you can earn rewards for purchases made with many online merchants. Some hotel chains, such as Hilton , Marriott and IHG , can be accessed through shopping portals while still booking directly on the hotel website. In this way, you can earn rewards with the hotel directly as well as with the shopping portal.

The same isn’t true for shopping portals and most airline sites. However, many public online travel agencies are accessible through shopping portals, which can then earn you rewards for airfare bookings. By opting to book in this way, you’ll be able to earn points or cash-back rewards through the shopping portal that you’d otherwise miss.

Some card issuers will also reward you heavily when using their online travel services. Clear examples of this can be seen with Capital One and Chase. With the Capital One Venture X Rewards Credit Card , for example, you’ll get 10 miles per dollar spent on hotels and rental cars booked through Capital One Travel .

The Chase Sapphire Reserve® is similar. With this card, you can get 10 Ultimate Rewards® points per dollar spent on hotels and rental cars booked through Chase's portal.

While these numbers are high, it’s important to remember that there are trade-offs when booking through an OTA rather than directly with a hotel or airline. We’ll get into that a little later.

Online travel agencies offered by your card issuer may not feature the same prices as booking directly; you’ll want to compare these before committing to a purchase.

Some card issuers will go so far as to give your points more value when redeeming through their online travel agencies.

This is true with the Chase Sapphire Preferred® Card . When redeeming points on Chase's travel portal, you’ll get 1.25 cents in value per point rather than 1 cent elsewhere.

» Learn more: How much are your airline miles and hotel points worth this year?

Cons of booking through online travel agencies

There are several downsides when it comes to using online travel services for booking travel. It mainly comes down to the fact that travel providers prefer that you book directly with them — and offer more perks to woo your business.

❌ It can be harder to change a booking

Ever needed to change a flight after it's booked? No matter the reason, attempting to alter or otherwise cancel a flight can be a hassle — especially if you’ve booked through a third party.

Generally speaking, rather than offering you direct assistance, both hotels and airlines will recommend you contact the online travel agency you’ve booked with in order to make any changes.

While you may be able to make changes or get refunds with the travel agency, airlines and hotels can — and will — offer much more flexibility when you’ve booked with them directly. You may also be subject to additional fees charged by the online travel agency, which can erase any savings you’ve received.

❌ You may not receive elite benefits

This is the real kicker for anyone wanting elite status. Although airlines will almost always recognize your elite status and allow you to earn miles even for bookings made through an online travel agency, hotels and rental car companies will not.

This is especially important for hotel chains. Earning elite status with hotels generally relies on elite night credits. Although these can be earned in a variety of ways — including having complimentary status by holding certain credit cards — the main method of acquiring elite night credits is by spending nights in hotels. Rooms booked through an online travel agency do not count toward elite status as elite night credits.

Additionally, you will not receive any of the benefits of your existing elite status if your booking is through a third party. This can mean the loss of perks such as room upgrades, complimentary breakfast and even free Wi-Fi.

» Learn more: The best airline and hotel rewards loyalty programs this year

❌ It may be more expensive

Did you know that many hotel chains have best price guarantees? Hyatt, Hilton, Marriott and IHG all have a guarantee that’ll give you either points or a discount if you find a better rate elsewhere.

These guarantees are generous; Hilton, for example, will match the rate and then discount it by a further 25%.

Although you’ll need to file claims for these guarantees and they face limitations — such as a 24-hour window from when you made the booking — you can save a lot of money on your stay if your request is approved.

Online travel agencies can be hit or miss

There are two sides to every coin and this is no different, as there are several benefits and limitations of online travel services. Depending on your needs and loyalty program status, you’ll want to choose whether to book directly with a travel provider or rely on OTAs to do the job for you.

Booking travel through credit card portals from issuers like Chase and Capital One can earn you big rewards. But if you anticipate altering your travel plans or aim to earn elite status instead, booking directly is the way to go.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are some of the best travel credit cards of 2024 :

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Wells Fargo Autograph℠ Card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Chase's website

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1.5%-5% Enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Up to $300 Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!

on Capital One's website

2x-5x Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options

75,000 Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel.

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Tomsk Tourist Information and Tourism

(tomsk, siberia, russia), tomsk tourist information and tourism: top sights, more tomsk information / fast facts and orientation.

• Country: Russia (Russian Federation)
• Location: Siberia / South-West of Siberian Federal District / Tomsk Oblast
• Status: city
• Area: approximately 114 square miles / 295 square kilometres
• Population: approximately 485,000
• Language: Russian (Slavic Language)
• Currency: Russian Ruble (RUR)
• Time zone: UTC / GMT + 3
• Country dialing code: +7
• Telephone area code: 3822
• Average daily Tomsk January temperature: 14°C / 7°F
• Average daily Tomsk July temperature: - 25°C / 77°F

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