OTAs Increase Market Share at Supplier’s Expense

Online travel agents in the United States now have 39% of the digital travel market and continue taking market share from the suppliers whose products they sell, according to new research from Phocuswright. 

Phocuswright says the OTA online US travel market share will reach 41% by 2020, with US$81.4 million in online gross bookings.

Hotels dominate OTA sales, which have also been boosted by the shift to mobile, an arena in which OTAs dramatically outperform suppliers in both technical and strategic terms.

“Mobile now accounts for more than a quarter of OTA gross bookings, and will rise to 40% by 2020 – more than doubling in just six years,” the report says.

Meanwhile, “Rate parity clauses still hinder hoteliers from undercutting OTA prices, and OTAs are creatively outmaneuvering suppliers”.

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