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This report offers an in-depth analysis of the evolving dynamics in the travel booking industry in the U.S., with a particular focus on the increasing preference for direct bookings over Online Travel Agencies (OTAs). It examines how the COVID-19 pandemic has accelerated this shift, highlighting key factors such as competitive pricing, trust in supplier websites, and flexible booking options that drive travelers towards direct bookings. |
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August received a summer bump this year, with travel performance at 109, against a baseline of 100 for 2023 performance. This indicates 9% growth compared to August 2023. |
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Booking Holdings and Expedia Group are the two largest OTAs globally, collectively holding ~42% market share of global OTA gross bookings today. Both companies are predominantly in the business of selling lodging to consumers (hotel rooms, vacation rentals, and other alternative accommodations) through their eponymous brands, Booking.com and Expedia.com, respectively. A smaller share of their businesses comes from other travel verticals such as flights, experiences & activities, car rentals and restaurants. Geographically, Booking Holdings gets the majority of its business from Europe, whilst Expedia is more focused in the U.S. |
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