US Travel Booking: Direct vs OTAs Market Report 2022
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Description
Topics Analyzed in this Report
- What features consumers want in a booking service
- How far out travelers book travel, and what contributes to those booking windows
- How booking habits changed during the pandemic, and how platforms have addressed new needs
- The factors driving more people to book direct, and where OTAs can make up ground
Expert Insights from a Travel Analyst
This report, written by Mike Gallinari, a leading travel analyst, delivers in-depth commentary and analysis to highlight trends in the US travel booking market and add expert context to the numbers.
Travel is recovering, and with it, the booking industry. In fact, some trends present pre-pandemic were undeterred by the pandemic, as booking windows remain short and mobile platforms are ascendant. However, other factors – such as guarantees about health and safety and ease of rescheduling/getting a refund – drove consumers into the arms of direct providers, leaving OTAs to figure out how to gain ground in the future.”
Mike Gallinari
Travel & Leisure Analyst
Table of Contents
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Overview
- What you need to know
- This Report looks at the following areas
- Definition
- Market context
- COVID-19: US context
- Economic and other assumptions
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Executive Summary
- Top takeaways
- Market overview
- Figure 1: Total US sales and fan chart forecast of travel arrangement and reservation services, at current prices, 2016-26
- Impact of COVID-19 on travel booking
- Figure 2: Travel booking outlook, 2022-27
- Opportunities and challenges
- Gut check: direct booking continues to hold consumers’ favor
- Figure 3: Platforms used to book, 2019-22
- Omicron has less of an effect on travel plans vs prior variants
- Figure 4: Coronavirus exposure concern, 2020-22
- Activity booking poised to surge
- Figure 5: Comfort with select activities, 2021-22
- Economic headwinds will hold revenue back
- Figure 6: Personal household financial assessment, 2020-21
- Individual players will be hampered by privacy measures
- Key consumer insights
- Opportunity: Travel was down in 2021, but not out
- Figure 7: Leisure trips booked in the last 12 months, 2019-22
- Opportunity: Booking through apps is surging
- Figure 8: Platforms used to book – Nets, 2019-22
- Opportunity: BNPL is good for big-ticket travel
- Figure 9: Attitudes toward travel booking, by gender, 2022
- Challenge: Short booking windows are the new normal
- Figure 10: Booking windows for travel segments – Within 48 hours, by age group, 2022
- Challenge: For OTAs, the youth shift to direct is concerning
- Figure 11: Platforms used to book, by age group, 2022
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Market Size and Forecast
- Revenue was hampered by Omicron, but recovery is nigh
- Figure 12: Total US sales and fan chart forecast of travel arrangement and reservation services, at current prices, 2016-26
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- Figure 13: Total US sales and forecast of travel arrangement and reservation services, at current prices, 2016-26
- Revenue was hampered by Omicron, but recovery is nigh
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Market Factors
- Impact of COVID-19 on travel booking
- Booking likely to continue despite Omicron
- Figure 14: Coronavirus exposure concern, 2020-22
- Activities should see an upswing in booking
- Figure 15: Comfort with select activities, 2021-22
- The economy will affect booking habits
- Inflation puts more emphasis on bargains
- Households are in a precarious place in the face of inflation
- Figure 16: Personal household financial assessment, 2020-21
- The coming “cookiepocalpyse” will change advertising
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Key Players
- Booking Holdings, Inc.
- Expedia Group, Inc.
- Airbnb, Inc.
- TripAdvisor, Inc.
- Figure 17: OTA revenues, in millions of dollars, 2019-21
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Marketing Strategies
- OTAs out of step with consumer habits
- Figure 18: OTA online ad spending, in thousands, 2021-22
- Figure 19: OTA online ad spending by platform, 2021-22
- Outbreaks underscore lodging brand differences
- Figure 20: Accommodations online ad spending, in thousands, 2021-22
- Airlines are still under the thumb of the pandemic
- Figure 21: Airline online ad spending, in thousands, 2021-22
- OTAs out of step with consumer habits
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Market Opportunities
- Free cancellations can give airlines advantage over OTAs, competitors
- Figure 22: Air France & KLM Voluntary Rebook Policy email, 2022
- Workbnb intensifies the competition for corporate lodging
- Volario provides so much more than pricing info
- Figure 23: Volario twitter post, 2022
- Ticketmaster
- Free cancellations can give airlines advantage over OTAs, competitors
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The Travel Booker: Fast Facts
- How was travel doing in 2021?
- What kinds of vacation did people take?
- How far in advance are people booking?
- Who’s winning – Direct or OTAs?
- What in-demand booking services can OTAs provide?
- What do OTAs do well? Direct providers?
- Is there an emerging trend in how people want to book?
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Number & Length of Vacations
- Travel dipped in 2021 as frequent travelers were hampered
- Figure 24: Leisure trips booked in the last 12 months, 2019-22
- COVID-19 weakening as a barrier to travel
- Figure 25: Leisure trips booked in the last 12 months, by age group, 2019-22
- More affluent travelers are looking to leave home
- Figure 26: Leisure trips booked in the last 12 months, by HHI, 2022
- Vacations remain shorter in length
- Figure 27: Leisure trip length in the last 12 months, 2019-22
- Middle- and lower-income travelers don’t stay long
- Figure 28: Leisure trip length in the last 12 months, by HHI, 2022
- Travel dipped in 2021 as frequent travelers were hampered
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Vacation Type
- Travelers want familiar places and familiar faces
- Figure 29: Vacation types in the last 12 months, 2022
- Young, high-income travelers book more varied, complex trips
- Figure 30: Vacation types in the last 12 months, by age and HHI, 2022
- The future of workcations would flow through Gen Z
- Figure 31: Workcations booked in the last 12 months, by generation and by number of children, 2022
- Travelers want familiar places and familiar faces
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Booking Windows
- Short lead times continue to be the norm
- Figure 32: Booking windows, 2022
- Supply issues won’t deter last-minute habits
- Figure 33: Booking windows for travel segments – Within 48 hours, by age group, 2022
- Large groups don’t mean long lead times
- Figure 34: Booking windows, by parental status, 2022
- Short lead times continue to be the norm
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Booking Platforms
- Mobile adoption for booking is rising
- Figure 35: Platforms used to book – Nets, 2019-22
- OTAs, agents lag in pandemic-era bookings
- Figure 36: Platforms used to book, 2019-22
- Younger bookers moved toward direct during the pandemic
- Figure 37: Platforms used to book, by age group, 2022
- Black and Hispanic travelers are most likely to book through mobile
- Figure 38: Platforms used to book, by race and Hispanic origin, 2022
- Mobile adoption for booking is rising
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Desired Booking Service Features
- Cost and flexibility surpass sanitation as priorities
- Figure 39: Desired booking features, 2022
- Personalization in booking is an emerging priority for young travelers
- Figure 40: Desired booking features, by age group, 2022
- Parents look for on-the-ground efficiency
- Figure 41: Desired booking features, by parental status, 2022
- Cost and flexibility surpass sanitation as priorities
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Booking Associations
- OTAs are lagging in usefulness for flight booking
- Figure 42: Flight booking associations, direct vs OTA, 2022
- Accommodations can be a bright spot for OTAs
- Figure 43: Accommodation booking associations, direct vs OTA, 2022
- Activities are where travelers turn to OTAs
- Figure 44: Activities booking associations, direct vs OTA, 2022
- OTAs are lagging in usefulness for flight booking
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Attitudes toward Travel Booking
- BNPL has reached travel
- Figure 45: Attitudes toward travel booking, 2022
- Booking providers can do more to increase women’s trust
- Figure 46: Attitudes toward travel booking, by gender, 2022
- Higher incomes have OTA trust issues
- Figure 47: Attitudes toward travel booking, by HHI, 2022
- Payment plans and pet care can bring in parents
- Figure 48: Attitudes toward travel booking, by parental status, 2022
- BNPL has reached travel
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Appendix – Data Sources and Abbreviations
- Data sources
- Forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
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Appendix – The Market
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- Figure 49: Total US sales and forecast of travel arrangement and reservation services, at inflation-adjusted prices, 2016-26
- Figure 50: Additional best/worst forecast for travel arrangement and reservation services, 2016-26
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