September 2024: The North American market has performed strongly with U.S.-based OTAs passing the $100 billion revenue mark for the first time in 2023, maintaining double-digit year-over-year gains. Hotels remain OTAs’ “sweet spot,” now representing 58% of OTA gross bookings in the U.S. There are strong gains across segments including air and hotel, lifted by high airfares and record Average Daily Rates (ADRs) respectively.
The OTA market share is dominated by two major players Expedia Group and Booking Holdings. It was also a year that the nation’s largest OTA, Expedia, slightly decelerated as it established a new platform to consolidate all its brands. Still, demand was enough to enable Expedia, Booking and their other brands (Travelocity, Hotels.com, Priceline, etc.) to outperform the market and maintain their 21% share of U.S. travel gross bookings. (Phocuswright).
Hopper however has emerged as a significant player in the U.S. online travel market, becoming the third largest online travel agency (OTA) in North America behind Expedia and Booking.com. This rapid growth has positioned Hopper as a competitive threat to the established OTAs. Hopper is particularly popular among Gen Z travellers, which could be seen to be eroding the younger customer base of Expedia and Booking.com in the U.S. market. (Skift) Another trend is an increasing number banks around the world incorporating travel booking into their client service portfolio like Capital One, Citibank and Chase. (Duffel)
These trends indicate a robust and evolving OTA landscape in the United States.
As with other regions, we thought it will be useful to have a handy list for the top OTAs in North America. And as we have done previously, we will repeat the few caveats:
- Only travel companies that offer standalone hotel bookings as an option in addition to everything else including packages are listed as an OTA. There are increasing overlaps between Wholesalers, Tour Operators and the traditional definition of an OTA and hence the clarifying definition.
- An abundance of options doesn’t always guarantee success and in many cases less is more. Align your strategy with the right OTA partners, as not every OTA will work for your hotel.
- Equally, the industry is ever-evolving, with changes happening all the time. Our list is curated based on industry knowledge but we have no claims that it is comprehensive or exhaustive.
- If you feel overwhelmed by a long list of choices, conduct a thorough audit of your current channel mix. Identify any gaps and explore untapped markets where certain OTAs could be valuable sources.
- Not all OTAs however will want to work with your hotel directly. It could be because they are currently sourcing inventory for hotels in your region through another provider who is already working with you (think Expedia or Hotelbeds). Sometimes it may be because they just don’t have enough volume for your destination. Always worth finding out more…
Expedia (United States): Expedia is one of the world’s largest online travel agencies, headquartered in Seattle, Washington. Founded in 1996, Expedia offers a wide variety of travel services, including flights, hotels, packages, and car rentals, to customers around the globe.
Priceline (United States): Priceline is a leading online travel agency based in Norwalk, Connecticut. Founded in 1997, Priceline is known for its “Name Your Own Price” feature, which allows customers to bid on travel deals and potentially save money on their bookings. Part of Booking Holdings.
Hotwire (United States): Hotwire is a U.S.-based online travel agency that specialises in providing discounted last-minute hotel deals and pioneered opaque hotel only bookings. Headquartered in San Francisco, Hotwire was founded in 2000 and offers a unique “Hot Rate” feature that allows customers to save on accommodations. Part of Expedia group.
Hopper (United States): Hopper is an American travel booking app headquartered in Montreal, Canada. Founded in 2007, Hopper uses advanced algorithms to predict flight and hotel prices, helping customers find the best deals and save money on their travel plans. Hopper has also provided the back end technology for the trend of an increasing number of banks that offer a travel booking portal.
AirBnb (United States): Airbnb is a global online marketplace for vacation rentals and experiences, headquartered in San Francisco, California. Launched in 2008, Airbnb has revolutionised the travel industry by connecting travellers with a wide range of unique accommodations and local experiences.
Hotel Tonight (United States): Hotel Tonight is a U.S.-based online travel agency that specializes in last-minute hotel bookings. Headquartered in San Francisco, Hotel Tonight was founded in 2010 and offers a mobile-first platform that makes it easy for customers to find and book accommodations on short notice. Part of AirBnB.
Canadian Affair (Canada): Canadian Affair is a Canadian online travel agency focused on providing travel services, including flights, hotels, and vacation packages, to customers looking to visit the United Kingdom and other European destinations from Canada. Headquartered in Toronto, Canadian Affair was founded in 1995.
Red Tag (Canada): Red Tag is a Canadian online travel agency that offers a wide range of travel services, including flights, hotels, vacation packages, and cruises. Headquartered in Mississauga, Ontario, Red Tag was established in 1997 and is known for its competitive pricing and tailored travel solutions for Canadian customers.
