Nearly half of hotel booking revenues to be online by 2022

Posted on 5 November 2018

The Global Online Accommodation Booking Market 2018 report has been added to ResearchAndMarkets.com’s offering.

Online accommodation bookings are projected to see steady growth worldwide, increasing their share of the overall lodging market. By 2022, nearly one-half of hotel booking revenues are projected to be online, and an even higher share of short-term rentals.

A major part of the online accommodation market is controlled by online intermediaries, such as online travel agencies (OTAs). The world’s top two OTAs, Booking Holdings and Expedia, together accounted for close to one trillion room nights booked in 2017, according to company data cited in the report. Direct suppliers, such as hotels, are recognising the need to ramp up their loyalty programs and highlight experiences in order to respond to the OTA threat.

Another group of market players which challenge both OTAs and hotels in the online space are peer-to-peer accommodation sharing platforms, as the report reveals. Platforms such as Airbnb appeal especially to younger travellers. In the USA, the number of Airbnb users is projected to expand by more than 10 million between 2017 and 2022, and in the UK close to one in three individuals made reservations from specialised peer-to-peer platforms and apps.