Global Online Accommodation Booking Market Overview
Online Accommodation Booking Market Size was estimated at 176.09 (USD Billion) in 2022. The Online Accommodation Booking industry is expected to grow from 202.61(USD Billion) in 2023 to 716.5 (USD Billion) by 2032. The Online Accommodation Booking Market CAGR (growth rate) is expected to be around 15.06% during the forecast period (2024 - 2032).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Online Accommodation Booking Market Trends Highlighted
The online accommodation booking market is experiencing significant growth, driven by the increasing popularity of online travel and the growing number of accommodation options available. Key market drivers include the rising disposable income of consumers, the proliferation of mobile devices, and the increasing use of social media to research and book travel.
Opportunities to be explored or captured in the market include the development of new technologies to improve the user experience, the expansion of the market into new geographic regions, and the creation of new customer segments. Trends in recent times include the increasing use of virtual reality and augmented reality to provide immersive experiences, the growth of the bleisure market, and the rise of subscription-based travel services.
Online Accommodation Booking Market Drivers
Growing Popularity of Online Travel Agencies (OTAs)
Online Travel Agencies are changing the way how a traveler can book his preferred accommodation. First of all, by using OTA, clients are able to find the best option among the list available, compare prices, and read clients’ reviews. Secondly, the rising interest towards these online platforms determines the growth of the Online Accommodation Booking Market. In fact, Online Travel Agencies allow booking a trip in one place. In addition, OTAs often provide clients with certain deals and discounts that is especially beneficial for those, who have to travel on a budget.The further progress of Online Travel Agencies is supported by the popularity of smartphones and the development of the internet. In other words, as long as potential customers can reserve their accommodation on the fly, OTAs will keep growing.
Rising Disposable Income and Increased Travel Spending
Increasing disposable income as well as growing travel spending is another driver responsible for the expansion of the Industry of Online Accommodation Booking Market. When average incomes per person increase, people are likely to spend this money on pursuing entertainment opportunities, so chances are people will spend their money traveling. It is, in turn, a reason behind the rise in popularity and high demand for online services allowing the booking of accommodations.The increasing interest in booking short-term rentals or vacation houses is also a major source of this growth. In turn, such applications as Airbnb turn out to be extremely efficient in taking a larger portion of the market and therefore increasing the size of the Industry.
Technological Advancements and Innovation
Besides the aforementioned factors, key role in the growth of the Online Accommodation Booking Market is also played by technological advancements and innovation. Development of new technologies such as artificial intelligence and machine learning has allowed online accommodation booking platforms to provide personalized recommendations and experiences to travelers. In addition, the use of virtual reality and augmented reality makes it easier for travelers to visualize and book accommodation.This factor is expected to ensure a steady growth of the market in the future.
Online Accommodation Booking Market Segment Insights
Online Accommodation Booking Market Accommodation Type Insights
The Online Accommodation Booking Market is segmented by Accommodation Type into Hotels, Motels, Guest Houses, Bed and Breakfasts, Vacation Rentals, and Hostels. Hotels dominate the market since they are present in both urban and rural areas, including most tourist destinations. Furthermore, hotels can cater to virtually all types of travelers. Currently, the market share of hotels makes up over 60% of overall revenue in the Online Accommodation Booking Market . The second segment, motels, have over 20% of the market share. These accommodations are often situated near highways and provide simple services to travelers at accessible prices.Guest Houses and Bed and Breakfasts make up a smaller proportion of the market, yet their share is rising due to the personalized services provided by such accommodations. Vacation Rentals is a rapidly expanding segment of over 10% of current market shares. This is largely a result of a growing preference for travelers to stay at a person’s home or apartment and experience homely accommodation away from home. Finally, Hostels are the smallest segment in the market, with less than 5% of revenue . Hostels are budget accommodations with dormitory-style rooms and sometimes shared bathrooms.The market growth has been supported by the impressive characteristics of Online Travel Agencies, higher payments received by the population, and travel-related trends in the market. The market is expected to maintain an upward trajectory, with a CAGR over 10% between 2023 and 2032.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Online Accommodation Booking Market Booking Platform Insights
The Online Accommodation Booking Market is segmented into various platforms, including Online Travel Agents (OTAs), Hotel Chain Websites, Aggregation Websites, Metasearch Websites, and Direct Hotel Booking. Among these segments, OTAs hold a significant market share due to their extensive inventory, user-friendly interfaces, and loyalty programs. In 2023, the OTA segment accounted for approximately 65% of the Online Accommodation Booking Market revenue, which is projected to grow to 70% by 2026. Hotel chain websites are another major segment, capturing around 20% of the market share, owing to their strong brand recognition and direct access to hotel inventory.Aggregation websites, which provide a comprehensive comparison of accommodation options from multiple sources, are gaining popularity and are expected to experience significant growth in the coming years. Metasearch websites, which allow users to search across multiple OTAs and hotel websites, are another emerging segment that is contributing to the growth of the online accommodation booking market. Direct hotel booking, which involves booking directly with the hotel, is a segment that is gradually gaining traction due to the increasing preference for personalized experiences and loyalty rewards.
Online Accommodation Booking Market Purpose of Travel Insights
The Purpose of Travel segment plays a crucial role in the Online Accommodation Booking Market, with each sub-segment exhibiting distinct characteristics and growth patterns. In 2023, the Leisure segment held a dominant share of the market, accounting for approximately 65% of the Online Accommodation Booking Market revenue. This dominance is attributed to the increasing popularity of leisure travel, driven by factors such as rising disposable income, flexible work arrangements, and a growing desire for unique and memorable experiences.Business travel, on the other hand, accounted for around 30% of the market, and is expected to witness steady growth in the coming years due to the resumption of business activities and the increasing adoption of hybrid work models. Notably, the Both segment, which caters to individuals who combine business and leisure travel, is projected to grow at a significant rate, indicating a trend towards "bleisure" travel, where business trips are extended for personal vacations. This segment is expected to gain further traction as remote work becomes more prevalent, allowing individuals to seamlessly blend work and leisure activities while traveling.
Online Accommodation Booking Market Star Rating Insights
The star rating segment plays a crucial role in the Online Accommodation Booking Market, with each category catering to distinct customer preferences and budgets. 1-Star and 2-Star properties, while representing a smaller market share, offer budget-friendly options for price-sensitive travelers. These properties typically provide basic amenities and are often located in less desirable areas. 3-Star properties strike a balance between affordability and comfort, offering a wider range of amenities and more convenient locations. They account for a significant portion of the market and cater to value-conscious travelers seeking a comfortable stay without breaking the bank.4-Star properties offer a premium experience with upscale amenities, stylish decor, and convenient locations. They are popular among business travelers and leisure tourists seeking a higher level of comfort and service. 5-Star properties represent the pinnacle of luxury and exclusivity in the online accommodation booking market. They offer exceptional amenities, personalized service, and prime locations. These properties command a higher price point and cater to discerning travelers seeking an unforgettable experience. The Online Accommodation Booking Market revenue for the star rating segment is expected to grow steadily in the coming years, driven by increasing travel demand and the growing popularity of online booking platforms.
Online Accommodation Booking Market Price Range Insights
The Online Accommodation Booking Market segmentation by Price Range is categorized into Budget, Mid-Range, and Luxury. The Luxury price range segment is projected to lead the market growth with a CAGR of 8.2% over the forecast period 2023-2032. The growing demand for premium travel experiences and the increasing disposable income of consumers are the key factors driving the growth of this segment. The Online Accommodation Booking Market revenue from the Luxury segment is expected to reach USD 251.2 billion by 2032. Mid-Range segment is anticipated to witness a steady growth rate of 7.6% during the forecast period, owing to the increasing popularity of budget-friendly travel options.The Budget segment, on the other hand, is expected to grow at a CAGR of 6.8% during the same period. The growing popularity of budget airlines and the increasing number of budget-conscious travelers are contributing to the growth of this segment
Online Accommodation Booking Market Regional Insights
The regional segment of the Online Accommodation Booking Market is expected to remain competitive, with North America and Europe dominating the market. APAC is expected to grow at the highest CAGR during the forecast period due to the increasing number of internet users and the growing popularity of online travel agencies. South America and MEA are also expected to witness significant growth, driven by the increasing disposable income and the growing middle class. As of 2023, North America held the largest market share of 38.1%, followed by Europe with 29.2%.APAC is expected to reach a market size of USD 254.6 billion by 2032, growing at a CAGR of 16.5%.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Online Accommodation Booking Market Key Players And Competitive Insights
Major players in Online Accommodation Booking Market are constantly striving to gain competitive advantage by offering innovative services and expanding their global reach. Leading Online Accommodation Booking Market players are investing heavily in technology and marketing to attract and retain customers. The Online Accommodation Booking Market development is driven by the increasing popularity of online travel booking, the growing demand for personalized travel experiences, and the rise of mobile-based travel booking.One of the leading companies in the Online Accommodation Booking Market is Airbnb. Airbnb is a peer-to-peer online accommodation booking platform that connects travelers with local hosts. Airbnb offers a wide range of accommodation options, from private rooms to entire homes, in over 220 countries and territories. Airbnb has a strong brand presence and a large customer base, making it one of the most popular online accommodation booking platforms in the world.A key competitor in the Online Accommodation Booking Market is Booking Holdings. Booking Holdings is a global online travel and technology company that operates several online accommodation booking platforms, including Booking.com, Priceline, and Agoda. Booking Holdings has a wide network of travel suppliers and offers a comprehensive range of accommodation options. Booking Holdings also has a strong focus on mobile-based travel booking, making it a formidable competitor in the online accommodation booking market.
Key Companies in the Online Accommodation Booking Market Include
- Airbnb, Inc.
- InterContinental Hotels Group PLC
- com International, Ltd.
- Vrbo LLC
- eDreams ODIGEO S.A.
- MakeMyTrip Limited
- Booking Holdings, Inc.
- com Group Limited
- Tripadvisor, Inc.
- HomeToGo GmbH
- Agoda Company Pte. Ltd.
- Trivago GmbH
- Accor SA
- Expedia Group, Inc.
- Oyo Hotels Homes
Online Accommodation Booking Market Developments
The Online Accommodation Booking Market is projected to reach USD 716.5 billion by 2032, exhibiting a CAGR of 15.06% during the forecast period (2024-2032). The market growth is attributed to the increasing adoption of smartphones and the internet, rising disposable income, and growing popularity of online travel agencies (OTAs).Recent developments in the market include the emergence of new technologies such as artificial intelligence (AI) and machine learning (ML), which are being used to personalize the user experience and offer tailored recommendations. Additionally, the increasing focus on sustainable travel is driving the demand for eco-friendly accommodation options.Key players in the market include Booking Holdings, Expedia Group, Airbnb, Vrbo, and Tripadvisor. These companies are investing in strategic initiatives such as acquisitions and partnerships to expand their market reach and enhance their offerings.
Online Accommodation Booking Market Segmentation Insights
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Online Accommodation Booking Market Accommodation Type Outlook
- Hotels
- Motels
- Guest Houses
- Bed and Breakfasts
- Vacation Rentals
- Hostels
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Online Accommodation Booking Market Booking Platform Outlook
- Online Travel Agents (OTAs)
- Hotel Chain Websites
- Aggregation Websites
- Metasearch Websites
- Direct Hotel Booking
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Online Accommodation Booking Market Purpose of Travel Outlook
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Online Accommodation Booking Market Star Rating Outlook
- 1-Star
- 2-Star
- 3-Star
- 4-Star
- 5-Star
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Online Accommodation Booking Market Price Range Outlook
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Online Accommodation Booking Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
176.09(USD Billion) |
| Market Size 2023 |
202.61(USD Billion) |
| Market Size 2032 |
716.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
15.06% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Airbnb, Inc. ,InterContinental Hotels Group PLC ,Ctrip.com International, Ltd. ,Vrbo LLC ,eDreams ODIGEO S.A. ,MakeMyTrip Limited ,Booking Holdings, Inc. ,Trip.com Group Limited ,Tripadvisor, Inc. ,HomeToGo GmbH ,Agoda Company Pte. Ltd. ,Trivago GmbH ,Accor SA ,Expedia Group, Inc. ,Oyo Hotels Homes |
| Segments Covered |
Accommodation Type ,Booking Platform ,Purpose of Travel ,Star Rating ,Price Range ,Regional |
| Key Market Opportunities |
Rising Travel Expenditure Growing Internet and Smartphone Penetration Expansion of Online Booking Platforms Niche Market Targeting Technological Advancements |
| Key Market Dynamics |
Rising popularity of alternative accommodations Growth of mobile bookings Personalized travel experiences Integration of artificial intelligence Increasing demand for sustainable accommodations |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Online Accommodation Booking Market is expected to have an overall valuation of 202.61 billion USD in 2023.
The Online Accommodation Booking Market is expected to have an overall valuation of 716.5 billion USD in 2032.
The Online Accommodation Booking Market is expected to grow at a CAGR of 15.06% from 2023 to 2032.
The key regions driving the growth of the Online Accommodation Booking Market include North America, Europe, Asia Pacific, and the Middle East and Africa.
The key applications of the Online Accommodation Booking Market include business travel, leisure travel, and group travel.
The key competitors in the Online Accommodation Booking Market include Booking Holdings, Expedia Group, Airbnb, and Vrbo.
The key factors driving the growth of the Online Accommodation Booking Market include the increasing popularity of online travel booking, the growing number of travelers, and the rising disposable income of consumers.
The key challenges facing the Online Accommodation Booking Market include the increasing competition from traditional travel agents, the regulatory challenges, and the security concerns of consumers.
The key opportunities for the Online Accommodation Booking Market include the growing adoption of mobile booking, the increasing popularity of alternative accommodation, and the rising demand for personalized travel experiences.
The key trends in the Online Accommodation Booking Market include the increasing use of artificial intelligence, the growing popularity of sustainable travel, and the rising demand for immersive travel experiences.
