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Online Accommodation Booking Market Size (2024 - 2029)

The online accommodation booking market is poised for steady growth, increasing its market size within the broader lodging sector. Industry experts predict a significant portion of hotel booking revenues will come from online channels, with short-term rentals capturing an even larger share. The market is predominantly dominated by online intermediaries like online travel agencies, while direct suppliers such as hotels are enhancing their loyalty programs to compete. Peer-to-peer accommodation platforms, particularly popular among younger travelers, are also challenging traditional players. A notable trend is the rise of mobile booking, especially in regions like Latin America, where a substantial number of users are utilizing mobile devices for travel lodging reservations.

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Market Size of Online Accommodation Booking Industry

MS - 2020.png
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR > 10.00 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

Online Accommodation Booking Market Analysis

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.

Online Accommodation Booking Industry Segmentation

A complete background analysis of the Global Online Accommodation Booking Market, which includes an assessment of the national accounts, economy, and emerging market trends by segments, significant changes in the market dynamics, and market overview is covered in the report.

By Platform
Mobile Application
Website
By Mode of Booking
Third party online portals
Direct / captive portals
By Geographical Region
North America
US
Canada
Rest of North America
Asia Pacific
China
India
South Korea
Japan
Rest of APAC
Europe
United Kingdom
Italy
Germany
France
Spain
Rest of Europe
Latin America
Brazil
Argentina
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East and Africa
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Online Accommodation Booking Market Size Summary

The online accommodation booking market is poised for steady growth, increasingly capturing a larger share of the overall lodging sector. This expansion is driven by the dominance of online intermediaries, particularly online travel agencies (OTAs) like Booking Holdings Inc. and Expedia Group Inc., which have significantly influenced the market landscape. These platforms have been pivotal in shaping consumer behavior, with direct suppliers such as hotels responding by enhancing loyalty programs and emphasizing unique experiences to counteract OTA competition. Additionally, peer-to-peer accommodation sharing platforms, such as Airbnb, are gaining traction, especially among younger travelers, further diversifying the market dynamics. The rise of mobile booking channels, particularly in regions like Latin America, underscores the evolving consumer preferences and the increasing reliance on mobile devices for travel lodging reservations.

The global online accommodation market is characterized by its fragmented nature, with numerous established local players across various regions. Eco-friendly and sustainable accommodation options are becoming increasingly popular, with a significant portion of travelers opting for environmentally conscious choices. This trend is prompting hotels to adopt sustainable practices and communicate their efforts to address climate change challenges. Major industry players, including Airbnb, Expedia, and TripAdvisor, continue to shape the market, with TripAdvisor's influence being particularly notable due to its extensive user-generated reviews and travel tips. As e-commerce continues to grow, the online accommodation sector is expected to experience similar growth trajectories, driven by technological advancements and changing consumer behaviors.

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Online Accommodation Booking Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Industry Attractiveness -Porter's Five Forces Analysis

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Policies and Regulations

    6. 1.6 Insights on the various offers given while booking online accommodation

    7. 1.7 Insights on the price distribution of various stakeholders in the online booking systems

    8. 1.8 Technological Advancements in the information systems management

    9. 1.9 Advertising Strategies Implemented by the Market Players

    10. 1.10 Insights on the Innovative Strategies to sell the products

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Platform

      1. 2.1.1 Mobile Application

      2. 2.1.2 Website

    2. 2.2 By Mode of Booking

      1. 2.2.1 Third party online portals

      2. 2.2.2 Direct / captive portals

    3. 2.3 By Geographical Region

      1. 2.3.1 North America

        1. 2.3.1.1 US

        2. 2.3.1.2 Canada

        3. 2.3.1.3 Rest of North America

      2. 2.3.2 Asia Pacific

        1. 2.3.2.1 China

        2. 2.3.2.2 India

        3. 2.3.2.3 South Korea

        4. 2.3.2.4 Japan

        5. 2.3.2.5 Rest of APAC

      3. 2.3.3 Europe

        1. 2.3.3.1 United Kingdom

        2. 2.3.3.2 Italy

        3. 2.3.3.3 Germany

        4. 2.3.3.4 France

        5. 2.3.3.5 Spain

        6. 2.3.3.6 Rest of Europe

      4. 2.3.4 Latin America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Rest of Latin America

      5. 2.3.5 Middle East and Africa

        1. 2.3.5.1 United Arab Emirates

        2. 2.3.5.2 Saudi Arabia

        3. 2.3.5.3 South Africa

        4. 2.3.5.4 Rest of Middle East and Africa

Online Accommodation Booking Market Size FAQs

The Online Accommodation Booking Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)

Expedia Group Inc., Booking Holdings Inc., Airbnb Inc., Tripadvisor Inc. and Traveloka Indonesia PT are the major companies operating in the Online Accommodation Booking Market.

Online Accommodation Booking Market Report Snapshots

Online Accommodation Booking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)