May 08, 2024

4 Key Takeaways from Latest U.S. OTA Research

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,, 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:

  1. 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.
  2. All segments showed strong gains, including air and hotel, which were lifted by high airfares and record ADRs, respectively.
  3. Hotels, OTAs' "sweet spot," now represent 58% of OTA gross bookings.
  4. OTAs now account for roughly one fifth of the total travel market and one half of the online market in the U.S.

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