Market Size of United States Online Accommodation Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 47.10 Billion |
| Market Size (2029) | USD 72 Billion |
| CAGR (2024 - 2029) | > 7.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Online Accommodation Market Analysis
The United States Online Accommodation Market size is estimated at USD 47.10 billion in 2024, and is expected to reach USD 72 billion by 2029, growing at a CAGR of greater than 7% during the forecast period (2024-2029).
The online accommodation market in the United States is experiencing a period of growth due to the prevalence of mobile apps and websites, the growth of businesses, and the implementation of modern, user-friendly portals by key market participants. Furthermore, the increasing disposable income and the country's vast tourism industry are further aiding the market's development.
Hotels' revenue is determined by the average daily rate and the number of rooms occupied, as well as the availability of food and beverages. Technology has had a significant impact on the online accommodation sector in recent years, with the number of users expected to grow by over 10 million in the United States from 2017 to 2022. The Accommodation market is keeping its pole position in the Travel and Tourism Segments when it comes to revenue and user penetration. For Asian Tourists, accommodations are the most preferred service in Travel and Tourism.
According to a report, international hotel bookings have experienced a slowdown in the fourth quarter of 2022, in the United States compared to the levels prior to the pandemic. The percentage of hotel reservations made online through an Online Booking Transfer (OBT) linked to HotelHub remained significantly elevated during the quarter in comparison to pre-COVID-19 booking trends. In the United States, around 75% of reservations were made online, which was significantly higher than the previous quarter.
US Online Accommodation Industry Segmentation
Online accommodation is the mechanism through which guests can create secure online reservations. Through the hotel reservation system software, guests can choose how long they will stay and the type of room they want, get add-ons, and pay securely online through a payment platform.
The United States Online Accommodation Market is segmented By Platform type (Mobile application & Website) & By Mode of Booking Type (third-party online portals & Direct/Captive portals). The report offers Market size and forecasts for the United States Online Accommodation Market in value (USD) for all the above segments.
| By Platform Type | |
| Mobile Application | |
| Website |
| By Mode of Booking Type | |
| Third Party online portals | |
| Direct/Captive portals |
United States Online Accommodation Market Size Summary
The United States Online Accommodation Market is experiencing significant growth, driven by the widespread adoption of mobile applications and user-friendly digital platforms. This expansion is further supported by increasing disposable incomes and a robust tourism industry. The market's growth trajectory is bolstered by technological advancements that have transformed how consumers book accommodations, with a notable shift towards online reservations. The sector remains a dominant force within the travel and tourism industry, with hotels benefiting from increased online bookings and a growing number of users engaging with digital platforms. Despite some challenges, such as a slowdown in international hotel bookings, the market continues to thrive, with a substantial portion of reservations made online.
California stands out as a key player in the online accommodation market, benefiting from its extensive tourism sector. The state's tourism industry, which includes a wide range of services from lodging to retail, has seen a significant increase in revenue, positioning California for continued growth in the online accommodation space. The market is characterized by a few major international players, such as Booking.com, Hotels.com, and Expedia, who dominate through competitive pricing and service offerings. Recent developments, like the launch of PAL Holidays by Philippine Airlines and partnerships aimed at enhancing accessibility, highlight the ongoing innovation and expansion within the market. As internet penetration continues to rise, the online accommodation market in the United States is poised for further growth, leveraging digital trends to enhance user experience and market reach.
United States Online Accommodation Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Airbnb in United States is Dominating the Market
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1.2.2 The US Online Accommodation Market is Booming due to an Increase in Domestic Trips
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1.3 Market Restraints
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1.3.1 Booking Cancellation
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1.4 Market Opportunities
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1.4.1 Social media in United States is influencing the online accomdation market
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1.4.2 Increased internet penetration and number of users
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1.5 Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Insights on Key Trends and Technological Innovations in the Market
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1.7 Impact of COVID-19 on the market
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2. MARKET SEGMENTATION
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2.1 By Platform Type
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2.1.1 Mobile Application
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2.1.2 Website
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2.2 By Mode of Booking Type
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2.2.1 Third Party online portals
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2.2.2 Direct/Captive portals
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United States Online Accommodation Market Size FAQs
How big is the United States Online Accommodation Market?
The United States Online Accommodation Market size is expected to reach USD 47.10 billion in 2024 and grow at a CAGR of greater than 7% to reach USD 72 billion by 2029.
What is the current United States Online Accommodation Market size?
In 2024, the United States Online Accommodation Market size is expected to reach USD 47.10 billion.
