This case study looks at OTA platforms in the travel and tourism industry. It discusses the concept of OTA platforms and the role it has in the travel industry by analyzing their use cases across multiple sectors within the tourism industry. The case study also discusses the challenges and opportunities facing OTA's.
According to the intermediaries database, the United States is the largest contributor to the overall global OTA’s market value, contributing 46.33% ($354.26 billion) in 2023. The tourism sector is on a growth path in the United States, owing to the country's rising number of tourists.
As per the Consumer Survey Q4 2021, 5,211 global respondents said that they prefer OTA’s to book their holidays, of which 44.69% (2,329 respondents) belong to Gen Y (Millennials), followed by Gen X with 30.57% (1,593 respondents). Millennials and Gen X are influenced by digitally smart products, owing to which they are expected to look out for advanced booking systems that offer them a personalized experience.
During 2023, as many countries started encouraging travelers to develop their tourism revenue, the OTA’s market value grew to $764.69 billion, with a 71% contribution from domestic trips ($543.65 billion) and a 29% contribution from international trips ($221.04 billion). It is expected that the contribution of OTA’s market value by domestic trips is expected to reach 72% ($871.65 billion) and 28% ($343.23 billion) by international trips due to the future positive growth of the tourism industry domestically and internationally.
In 2022, the expenditure showed a positive sign, reaching $178.18 billion. However, it is lower than its pre-pandemic level. During 2023, the expenditure surpassed its pre-pandemic level, which grew to $252.55 billion and is expected to reach $404.76 billion in 2027, with a CAGR of 12.52% from 2023 to 2027.
Key Highlights
During 2022, the OTA market value performance surpassed its pre-pandemic level by reaching $531.11 billion and reaching $764.69 million in 2023. According to the publisher, it is expected that the OTA market is to grow strongly, to reach $1,214.88 billion in market value in 2027, with a CAGR of 12.27% from 2023 to 2027. The increasing penetration of the internet, the growing popularity of mobile devices, and the growing demand for personalized travel experiences are all expected to drive the growth of the market.According to the intermediaries database, the United States is the largest contributor to the overall global OTA’s market value, contributing 46.33% ($354.26 billion) in 2023. The tourism sector is on a growth path in the United States, owing to the country's rising number of tourists.
As per the Consumer Survey Q4 2021, 5,211 global respondents said that they prefer OTA’s to book their holidays, of which 44.69% (2,329 respondents) belong to Gen Y (Millennials), followed by Gen X with 30.57% (1,593 respondents). Millennials and Gen X are influenced by digitally smart products, owing to which they are expected to look out for advanced booking systems that offer them a personalized experience.
During 2023, as many countries started encouraging travelers to develop their tourism revenue, the OTA’s market value grew to $764.69 billion, with a 71% contribution from domestic trips ($543.65 billion) and a 29% contribution from international trips ($221.04 billion). It is expected that the contribution of OTA’s market value by domestic trips is expected to reach 72% ($871.65 billion) and 28% ($343.23 billion) by international trips due to the future positive growth of the tourism industry domestically and internationally.
In 2022, the expenditure showed a positive sign, reaching $178.18 billion. However, it is lower than its pre-pandemic level. During 2023, the expenditure surpassed its pre-pandemic level, which grew to $252.55 billion and is expected to reach $404.76 billion in 2027, with a CAGR of 12.52% from 2023 to 2027.
Reasons to Buy
- Gain an understanding of OTA's in the tourism industry.
- Recognize the range of the potential challenges and associated opportunities of OTA's.
- Gain an understanding of consumers behaiours towards OTA's.
- Gain an understanding of how the market for OTA's changed.
Table of Contents
- Overview
- Evolution of OTA’s
- OTA’s Market Performance
- Key Trends and Business Models
- Industry Leaders
- SWOT Analysis
- Appendix
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Expedia group
- Booking.com
