Online Accommodation Booking Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is expected to grow steadily in the future by increasing its share in the overall lodging market. It is anticipated by industry experts that by 2022, about 50% of the hotel booking revenues are to be derived online with an even higher share for short term rentals. The majority of the online accommodation market is presently controlled by several online intermediaries, such as online travel agencies (OTAs). The world's top two OTAs, Booking Holdings Inc., and Expedia Group Inc., together accounted for nearly 1 trillion room nights booked in 2017, according to company data. Direct suppliers, such as hotels, are recognizing the need to rack up their loyalty programs and highlight experiences in order to respond to the OTA threat. A group of market players that challenge both OTAs and hotels in the online category is peer-to-peer accommodation sharing platforms such as that of Airbnb which appeal to younger travelers especially. 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 specialized peer-to-peer platforms and apps. Recently, the prominent market trend which is on the rise of the mobile channel. The trend is especially pronounced in Latin America, where a double-digit share of mobile Internet users in Mexico and Argentina booked travel lodging on a mobile device according to the consumer surveys.

Key Market Trends

Increasing Internet Penetration has Huge Impact on the Market

Ecommerce is growing at an unprecedented rate in the entire world. People from every age right from children to the old get excited to shop online from numerous e-stores. Online shopping provides much more joy as compared to physical shopping stores. The reason being simple as there are a lot of websites and apps focusing on e-commerce. Thus, it has gotten easy to find anything one-store that one decides to buy immediately. Future suggests that it is expected to see unprecedented growth of the e-commerce that will further increase like never before with all the present technologies. The rate of online shopping is growing beyond measure and this is driving e-commerce owners crazy to keep their solid place in the online race. Thus, the online accommodation is gaining pace on similar lines across various regions in the world.

Sustainable Booking Practices are on the Rise to Encourage Eco-friendly Tourism

Eco-friendly accommodation bookings are mostly preferred in the global market with about 70% of the global travelers choosing to go the green way. Hotels are increasingly under pressure to react to the environmental changes and are actively informing customers about the factors that were making difference to meet the Climate Change challenges. Sustainable accommodation is the new trend observed across the globe. Many people are choosing to give back to the planet while enriching their travel and holiday stay experiences with sustainable hotels and their environmentally friendly business practices.

Competitive Landscape

Global Online Accommodation Market is fairly fragmented with a large number of established local players in each region across the globe. Few of the major players profiled in the global industry include Airbnb, Expedia, Tripadvisor, Trip.com Group Ltd., etc. Presently, TripAdvisor is considered to be one of the most influential travel and accommodation booking portals online. TripAdvisor claims 80% of all travelers will spend around four weeks researching a destination, taking the time to read reviews and hunting for unique travel tips to make their trip even better before booking. Studies suggest that more than 90% of travelers are influenced by traveler's reviews online, which makes TripAdvisor still leading the way in the entire market.

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• The market estimate (ME) sheet in Excel format
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