According to the latest report by PhocusWright, online bookings continue to outpace the broader market. In 2017, online bookings were projected to total 138 billion, representing 51% of the total market.
Mobile channels supplier and online travel agency (OTA) apps and mobile websites are driving most of the growth. Mobile travel bookings were projected to climb 21%, and will have represented nearly one fourth of all online bookings in 2017. Online supplier direct channels will have captured two thirds of online bookings in 2017, compared to just one third for the supplier OTA channel.
The hotel category is the only segment where OTAs have a strong lead over suppliers in attracting online bookings. But large chains are expected to reduce their dependency on the two dominant OTAs Booking.com and Expedia as they focus on promoting their own online booking channels. Recent legal rulings that ban hotel rate parity clauses also favour online direct hotel bookings.
Photo: MGallery Victory House Leceister Square, London, UK