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U.S. Online Travel Agencies Market Hits Plateau – Image Credit Expedia
After years of high-demand momentum, the U.S. OTA market is hitting a plateau. While global expansion keeps the overall trajectory positive, domestic performance tells a more nuanced story.
In 2024, U.S. OTA sales reached $108.5 billion according to Phocuswirght’s latest research report U.S. Online Travel Agency Market Essentials 2025, marking only modest year-over-year growth. Market share remains steady for now, but subtle shifts—especially toward supplier-direct bookings—could reshape the landscape through 2028.
Expedia’s headwinds are mounting, as it grapples with a softening U.S. market and intensifying competition. Booking.com appears more insulated, but neither player is immune to the shifting tides.
Hotel bookings remain the backbone of OTA profitability, but that strength may be fading. With average daily rates stabilizing and traveler demand cooling, the pressure is on to find fresh growth engines, from short-term rentals and dynamic packaging to global markets and business-to-business solutions.
Tech is the new battleground, with generative and agentic AI playing a growing role in shaping how OTAs sell and serve. These tools are more than just bells and whistles — they’re becoming vital in personalizing offers, bundling services, and boosting conversion.
And while B2B distribution strategies are gaining traction, helping OTAs embed their inventory into third-party platforms, consumer-facing innovations like combination packages remain an uphill climb, still representing just a sliver of overall bookings.
Curious about the full picture? This is just the surface. The complete report dives deep into market sizing, segment performance, and what the future holds for the OTA model.
U.S. Online Travel Agencies Market Hits Plateau – Image Credit Expedia
After years of high-demand momentum, the U.S. OTA market is hitting a plateau. While global expansion keeps the overall trajectory positive, domestic performance tells a more nuanced story.
In 2024, U.S. OTA sales reached $108.5 billion according to Phocuswirght’s latest research report U.S. Online Travel Agency Market Essentials 2025, marking only modest year-over-year growth. Market share remains steady for now, but subtle shifts—especially toward supplier-direct bookings—could reshape the landscape through 2028.
Expedia’s headwinds are mounting, as it grapples with a softening U.S. market and intensifying competition. Booking.com appears more insulated, but neither player is immune to the shifting tides.
Hotel bookings remain the backbone of OTA profitability, but that strength may be fading. With average daily rates stabilizing and traveler demand cooling, the pressure is on to find fresh growth engines, from short-term rentals and dynamic packaging to global markets and business-to-business solutions.
Tech is the new battleground, with generative and agentic AI playing a growing role in shaping how OTAs sell and serve. These tools are more than just bells and whistles — they’re becoming vital in personalizing offers, bundling services, and boosting conversion.
And while B2B distribution strategies are gaining traction, helping OTAs embed their inventory into third-party platforms, consumer-facing innovations like combination packages remain an uphill climb, still representing just a sliver of overall bookings.
Curious about the full picture? This is just the surface. The complete report dives deep into market sizing, segment performance, and what the future holds for the OTA model.
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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