U.S.-based online travel agencies maintained double-digit year-over-year gains in 2023, passing the $100 billion mark for the first time. According to Phocuswright’s latest research on the segment U.S. Online Travel Agency Market Report 2023-2027, strong travel demand and high prices lifted all segments, especially hotel, OTAs' bread and butter. It was also a year that the nation's largest OTA, Expedia, slightly decelerated as it established a new platform to consolidate all its brands. Still, demand was enough to enable Expedia, Booking and their other brands (Travelocity, Hotels.com, Priceline, etc.) to outperform the market and maintain their 21% share of U.S. travel gross bookings.
Here are 4 key takeaways from the research report:
- U.S. OTAs experienced another strong year of double-digit growth in 2023, albeit a slower pace than the previous two years as consumer demand begins to soften post-pandemic.
- All segments showed strong gains, including air and hotel, which were lifted by high airfares and record ADRs, respectively.
- Hotels, OTAs' "sweet spot," now represent 58% of OTA gross bookings.
- OTAs now account for roughly one fifth of the total travel market and one half of the online market in the U.S.
This report is part of the U.S. Travel Market Report 2023-2027 series, which features an overview of the U.S. travel market, along with detailed data and analysis of five key segments: airline, hotel & lodging, car rental, cruise and packaged travel. A standalone report dedicated to online travel agencies rounds out the coverage. Collectively, the series provides comprehensive market sizing, projections and analysis for the U.S. travel industry from 2021-2027.
Other reports in the U.S. Travel Market Report 2023-2027 series include: (available now or publishing soon):
- U.S. Travel Market Report 2023-2027
- U.S. Airline Market Report 2023-2027
- U.S. Car Rental Market Report 2023-2027
- U.S. Cruise Market Report 2023-2027
- U.S. Hotel & Lodging Market Report 2023-2027
- U.S. Packaged Travel Market Report 2023-2027
- U.S. Travel Market Data Sheet 2023-2027 (subscriber only)
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