78 Online Travel Booking Statistics and Facts
The travel industry has been consistently investing in its online presence. With most travel getting booked online these days, key players in the industry are banking on the success of their digital offerings.
With so many people using online travel booking, it comes as no surprise that this sector of the service industry is one of the largest.
Analyzing the numbers associated with this sector is an enlightening experience. Let’s take a look at the most exciting statistics and facts related to online travel booking.
- Online Travel Booking Stats Highlights
- Final Thoughts
Online Travel Booking Stats Highlights
Online travel booking has been making travel more convenient and accessible. It shows how much we are using technology in aspects of our lives, including managing our trips and holidays through e-commerce.
Here is an overview of the most interesting online travel booking stats:
- In 2023, over 700 million people around the world are expected to make travel bookings online.
- Around 83% of adults in the United States want to book online instead of going to an in-person travel agent.
- Smartphones are the preferred method of research for travel. Over 70% of would-be tourists research holiday locations on their phones.
- Every year, around 150 million travel bookings are made online.
General Online Travel Booking Stats
Online travel booking is consistently used to plan and manage holidays worldwide. Let’s take a look at the general facts and figures relevant to this part of the industry.
Users Prefer Booking with Online Travel Agencies
Statistics show that when the same price is displayed on a hotel website and on an online travel agency or booking comparison site, consumers prefer booking with the online travel agency.
70% of those who encounter this situation end up booking with the online travel agency rather than directly through the website of the desired lodgings.
Sustainability Is on the Mind of Tourists
The climate crisis is starting to routinely be at the forefront, even when booking holidays. In 2022, over 71% of respondents stated that they want to make more sustainable choices regarding travel.
This percentage was 10% higher than it was in 2021. These choices included eco-friendly booking hotels and reducing traveling by plane whenever possible.
Travelers Visit Numerous Sites Before Deciding
On average, people planning a holiday will visit around 38 sites before making a decision on what to book.
This shows the importance of research when it comes to travel and how seriously travelers take this part of the process. With online travel booking facilitating the process once the decision is made, it provides the perfect fit for those doing their research on the Internet.
Travelers Love Virtual Travel Assistants
Over 33% of consumers like to use virtual travel assistants during their online travel booking process. They find the virtual assistants helpful as a part of the streamlined booking process provided online, as well as a suitable replacement for in-person agents.
Travelers Use Voice Activation for Online Travel Booking
Consumers are frequently incorporating other technology to help them with online travel booking. 43% of consumers in the United States use voice searches during the online travel booking process, along with 38% in Germany and 33% in the United Kingdom.
The popularity of voice activation in this sector is continuing to grow as more and more consumers embrace the functionality of this technology.
Online Travel Booking Is Inspired by Social Media
Social media has become very influential in many aspects of our lives, and online travel booking is not the exception to the rule.
In the United States, 21% of adults in the 18 to 29-year-old bracket use social media for inspiration before they decide to go for an online travel booking. Those over 45 years old follow at 14%, and 30 to 44-year-olds at 9%.
The highest percentage is found among 18 to 29-year-olds living in Spain, with 24% of respondents declaring that social media is an inspiration for their holidays.
There is a growing correlation between seeing a location on Instagram and then opting for an online travel booking there soon after.
COVID-19 Was Influential to the Growth of Online Travel Booking
While the sector was already growing prior to the pandemic, it gave it a huge boost. In-person travel booking was off the table for a prolonged period, and once lockdowns ended, people were very ready to travel to whichever location was possible.
Online travel booking is also much safer, and consumers don’t have to worry about taking the right precautions in the comfort of their homes.
After losses during 2020, the travel industry recovered 50% of gross revenue in 2021, in large part due to online travel booking. By the end of 2022, this figure was estimated to have reached 85%.
Digital Travel Advertising Is Growing
In 2023, $4.5 billion are projected to be used in digital travel advertising. This shows a growth from the previous years, with $2.99 billion spent in 2020, $3.54 billion in 2021, and $4.05 billion in 2022.
While this figure is growing, it has not yet surpassed its highest peak in recent years, which was achieved in 2019 at $6.09 billion.
Online Reviews Are Taken into Consideration
Where online travel booking is concerned, a vast majority of consumers take into account reviews before they decide on the particulars of a holiday. 96% of users on TripAdvisor, for example, think reviews are important to the process.
83% usually include them in their pre-booking research. Of these, 63% consider themselves more influenced by reading the reviews, while 76% are swayed by photos posted with the reviews.
Fewer Americans Choose Physical Agencies
Despite this study showing that going to an in-personal travel agent could potentially save consumers time and money, most of them opt for online travel booking instead. Only 24.3% of Americans go to physical travel agencies to get their holidays sorted.
Online Travel Booking Market Stats
Online travel booking has become one of the most profitable sectors of the service industry. There are plenty of intriguing numbers showing the impact of online travel booking on the market. Here’s an overview of the most fascinating market stats.
The Worldwide Online Travel Market Size Is Growing
In 2020, the worldwide online travel market size ended the year with a worth of $396.08 billion. This increased in 2021, with its worth estimated at $433.2 billion.
By 2026, the estimates suggest that the market size will keep growing. It is expected to be worth $690.71 billion that year, which shows that the online travel market size will continue to flourish.
The Tourism Sector Is Improving
With online travel booking now an essential part of the sector, it looks like things are brightening overall. In 2019, the worldwide market size of the tourism sector was estimated at $1.86 trillion. It then dropped sharply to $1.09 trillion in 2020 due to the pandemic halting travel for most of the year.
In 2021, the worth of the tourism sector on the market was $1.3 trillion and projected at $1.67 trillion by the end of 2022.
Online Travel Has the Largest Revenue Share of Global Tourism
The online travel sales channel has been consistently growing and taking over the larger part of the revenue share in global tourism. Online sales had 60% of revenue share in 2017, with offline sales trailing behind at 40%. In 2020, online travel sales reached 65%, with offline travel sales at 35%.
This revenue share is expected to keep growing in favor of online travel sales. By 2026, the forecast expects 74% of the revenue share to go to online sales and only 26% to offline sales.
Booking Holdings Is the Leading Travel Company with Most Employees
By the end of 2021, Booking Holdings was at the top of the leading travel companies worldwide. It also had the largest number of employees. At the time, Booking Holdings employed over 19,500 members of staff across its many brands, including booking.com, KAYAK, and Agoda.
American Express Global Business Travel was the second leading travel company with the most employees, numbering over 16,680 members of staff. BCD Travel was third in line, with 14,900 employees in 2021. Expedia was closely behind with 14,800.
The Past Decade Has Been Huge for the Market
Since 2012, the online travel market has been booming. Back then, 80% of consumers were already choosing online travel booking for their holidays.
Since then, this figure has been consistently stable, but this shows that the popularity of online travel booking hasn’t just been happening in the last few years. In 2012, 90% of consumers also did their holiday research online.
The Online Travel Market Has an Impressive Projected CAGR
Between 2021 and 2027, the online travel market is expected to have a compound annual growth rate of 10.58%. The stability and growth of this projection is further proof that this sector is a major player within the overall industry.
The Highest Growth Potential Is in the Asia-Pacific
While the worldwide online travel market is flourishing, the highest growth is expected in the Asia-Pacific region.
By the end of 2021, Indonesia was leading the way with $3.4 billion in market size. Thailand is following the same trend, with $2.8 billion, along with Singapore, with $2.3 billion. Malaysia stood at $2.2 billion, and Vietnam at $1.4 billion.
This is expected to continue growing thanks to social and economic progress in the region.
Vietnam Travelers Have a High Annual Frequency
Vietnam is one of the markets with the highest growth potential in the Asia-Pacific region, and it is already making a difference in online travel bookings.
Statistics show that 40% of online booking users in Vietnam have a travel frequency of 3 times a year, followed by 39% opting for twice a year. Only 21% of Vietnam online travel booking users travel just once a year. This highlights the growing market in this country and its usefulness to the global market share.
Online Travel Sales Are Growing in Latin America
Latin America is another region that is proving influential to the growth of worldwide online travel sales. In 2018, Latin America generated $20.7 billion in online travel sales. By the end of 2019, it accounted for $22.5 billion of online sales.
In 2020, Latin America experienced a huge decrease in online travel sales, just like the rest of the world. Only $9.1 billion were raised across the region from online travel sales then, but by the end of 2022, the figures had already bounced back to over $22.3 billion.
Hotels Had the Largest Share of Online Market Distribution in Latin America
Continuing to observe the online travel booking statistics in Latin America shows that hotels have the largest share of the market when it comes to distribution. At 47%, hotels are well ahead of air travel at 37%, tour operators at 11%, and car rentals at 5%.
These strong figures for hotels indicate what online travel booking users in Latin America consider the most important aspect of traveling. Accommodation is at the forefront of what consumers are looking at most before booking online travel.
Online Travel Booking Key Player Stats
The online travel booking sector is dominated by specific key players. When it comes to brands, the same names will keep popping up as the leaders, with many of them owned by the same companies.
Booking Has the Largest OTA Revenue
Of all the leading online travel agencies or OTAs, Booking continues to be at the top when it comes to annual revenue. In 2019, it had $15.07 billion in revenue, and while this dropped to $6.8 billion in 2020 due to the pandemic, it bounced back to $10.96 billion in 2021.
In comparison, second-placed Expedia had $12.07 billion in revenue in 2019, followed by $5.2 billion in 2020 and $8.6 billion in 2021. Airbnb is third in the revenue rankings, with $4.81 billion in 2019, $3.38 billion in 2020, and $5.99 billion in 2021.
Booking Is Spending the Most on Marketing Expenses
Part of the success of Booking in the online travel booking sector derives from the company’s marketing strategies. It comes as no surprise that Booking is the OTA spending most overall on marketing expenses, with $4.97 billion invested in 2019, $2.18 billion in 2020, and $3.8 billion in 2021. In turn, Expedia actually spent more in 2019 but has been just behind Booking since then.
The 2019 marketing expenses investment for Expedia was $5.03 billion, followed by $1.73 billion in 2020 and $3.5 billion. Airbnb is once again third in line, with $1.62 billion spent on marketing in 2019, $1.18 billion in 2020, and $1.19 billion in 2021.
Booking Is the Most Visited Travel Website Worldwide
By the end of 2022, Booking’s website had 511 million visits. This number more than doubled Tripadvisor’s worldwide visits, which only amounted to 149.7 million. Here’s even more proof of Booking’s popularity around the world. Airbnb is in third place with 92.9 million visits during the year.
Mexico Is the Country with Most Expedia App Downloads
The Expedia mobile app was very popular in Mexico in 2021, with over 2 million downloads throughout the country. Brazil followed in second place based on the number of downloads of the Expedia app, with a little over 1 million.
These 2 countries are the worldwide leaders in Expedia downloads in the region, with Colombia in third place with 260,000 downloads, and Argentina in fourth with 190,000.
Booking Is the Most Downloaded OTA App Worldwide
Around the world, users kept downloading the Booking mobile app in 2022. The aggregated number of downloads across the App Store and Google Play reached over 80 million.
Airbnb was the second most downloaded OTA app worldwide in 2022, with 52 million aggregated downloads. Expedia followed with 27 million downloads, and Agoda at 21 million. There are a variety of online travel booking apps, but Booking app downloads tend to soar far ahead of the competitors.
Tripadvisor’s Revenue Grew in 2021
By the end of 2021, Tripadvisor earned $526 million in revenue in the United States and $259 million in the United Kingdom. This shows a recovery after 2020 when revenue fell to $302 million in the United States and $169 million in the United Kingdom.
The company’s highest revenue figure in recent years came in 2017 when it earned $877 million in the United States. This market continues to be Tripadvisor’s biggest source of profit, with many American users opting for the company’s services when it comes to online travel booking.
Most of Tripadvisor’s Revenue Comes from Hotels, Platform, and Media
In 2021, the largest share of revenue for Tripadvisor came from the hotels, platform, and media segment of the business.
This segment had $549 million in revenue, followed by experiences and dining at $307 million. The platform refers to the Tripadvisor website, so this shows the impact that the importance of accommodation is only a part of the revenue shared with marketing.
Most of Airbnb’s Worldwide Revenue Comes from North America
Airbnb has been steadily growing more popular around the world, but it continues to trail after other leading OTAs. North America is the most successful region for the brand.
Airbnb had $2 billion in revenue there in 2019, followed by $1.8 billion in 2020, then $3.2 billion in 2021. These numbers show that the popularity of Airbnb in the region is growing.
In comparison, Airbnb had $1.9 billion in revenue in the EMEA region in 2019 and 2021, with $1 billion achieved in 2020. In the Latin America and Asia Pacific regions, it has yet to reach $1 billion in revenue per year.
Expedia Makes Most of the Revenue from the Merchant Line
Expedia gets the largest part of its revenue from the merchant billion line, with $5.5 billion earned in 2021, compared to the $2.3 billion from the agency line and $751 million from advertising and media.
The merchant business line is responsible for establishing online travel booking partnerships with pre-approved travel suppliers.
Expedia’s highest revenue from the merchant business line came in 2019, with $6.7 billion in earnings. At the time, the agency line was almost double than what it was in 2021, with $3.8 billion in earnings.
Expedia Is Also Bouncing Back
While it suffered a huge decrease in revenue in 2020 due to the pandemic that also affected its competitors, the Expedia Group has been inching closer to normal figures since then. In 2019, the Expedia Group earned a little over $12 billion in revenue.
The pandemic in 2020 dropped that figure to $5.2 billion. Despite that setback, Expedia is returning to form and saw $8.6 billion in revenue in 2021. This is projected to grow again as the business continues.
Online Travel Booking Consumer Stats
Consumers are essential to the success of the online travel booking sector. Shedding light on what drives consumers can help ensure that businesses continue providing what they are looking for in online travel.
The Most Booked Product Online Was Accommodation
In 2022, consumers in the United States used online travel booking mostly for hotels. 36% percent of travelers stated that they used a travel website or app to book a holiday online.
Flight tickets were the second most booked product online, at 23%, with car rentals following at 15%. Of the over 9,000 respondents, 40% stated that they had not booked anything online in the past 12 months.
British Consumers Prefer TUI
While Booking and Expedia tend to lead in other regions, TUI is the most preferred website for online holiday searches in the United Kingdom.
In the third quarter of 2022, over 13% of British consumers used TUI to find and book their desired holiday. This was followed by LoveHolidays at 7.44% and by flight and hotel search engine EasyJet at 5.7%. This shows a wider variety of preferences for online travel booking in different countries.
Most Age Groups Prefer Booking Online
Based on a worldwide survey from the fourth quarter of 2021, most respondents preferred booking holidays via the computer. All age groups present in the study expressed this preference. 18 to 29-year-olds and 30 to 44-year-olds were 55% in favor of computers, while over 45-year-olds were 56%.
The second most preferred booking channel was face-to-face with an agent. 20% of 18 to 29-year-olds chose it, along with 22% of 30 to 44-year-olds and 21% of those over 45 years old.
Influencer Marketing Has an Impact on Online Travel Booking
The rise of influencers on social media has also had a direct impact on booking travel online. As of August 2021, influencers had an effect on marketing of 18% on travel services, including the online segment.
This shows that consumers are responding to strategic marketing and advertising, which many of the leading OTAs are taking into account.
Consumers Prefer Specific Days When Booking Online Travel
Booking air travel on a Sunday can save consumers up to 15% of the regular price. Flying on a Wednesday also reduces the price between 10% and 15%. Knowing when to book online and how is one of the best perks of using this medium.
Pertinent information that can significantly impact the cost of travel is generally taken into account by travelers whenever possible. Getting the right air travel will also impact what other products consumers book online.
Travelers Are Seeking Authentic Experiences
When booking travel online, consumers like to research what each location has to offer them. More and more travelers are looking for authentic connections while traveling over the typical tourist experience.
66% of respondents want to book travel and experiences that represent the culture in each particular location. 25% of them are even willing to pay more for experiences if it ensures that they are giving back to the local community in some way.
Despite this, 34% of respondents do not know how to seek out these experiences or how to give back. 32% rely on the advice of travel agents to best guide them in this endeavor.
Boring Rooms Are Deal Breakers
According to surveys, consumers are put off by boring rooms when booking online. 21.6% of respondents stated they wouldn’t book a room if it looked too boring and without character, while 17.6% considered unappealing food photos a deal breaker.
Only 7.4% found bad reviews deal breakers, in comparison, while 13.7% considered a boring presentation of the product unappealing. These figures show travel booking companies what the consumers want, which they can, in turn, discuss with providers.
Videos Have a Say During the Research Stage
While considering their options, consumers can be swayed by videos. 19.8% of them think of videos as an influencing factor that can convince them either way. Product presentation is also important, at 16.4%, while photos follow at 14.4%.
Food photos are in a separate character and attract 12.4% of consumers, while experience demonstrations slot in at 12.2%. There is a range of criteria that can convince travelers into deciding on one place over the other, but the most influential seems to be the visual aspects.
Consumers Are Becoming Ashamed of Flying
With sustainability inching its way to the core of planning holidays, 30% of travelers have admitted to feeling ashamed of booking air travel because of its contribution to pollution levels.
20% of travelers have been making concerted efforts to take the train instead, whenever that is a possibility. When booking online travel, 22% of consumers spend time on researching the available public transportation options in the area.
If public transportation is unavailable or undependable, travelers opt for a bike. 11% of them opt for a low-emissions car whenever renting one is necessary.
Consumers Feel Safer Booking Online
In this post-pandemic world, 63% of consumers have stated that they prefer online travel booking because it reduces the anxiety of the overall process. It also involves less direct interaction with people while booking it. These consumers are attracted to how technology can best help them in these ever-changing times.
Mobile Users Are Starting to Book Online More
In the past, consumers overwhelmingly preferred to make their online travel booking on a desktop computer or a laptop.
Now, most leading companies have invested in the mobile versions of their websites to make sure travelers still have the features they need to hand.
In 2022, 44% of online travel bookings were made on mobile, while 64% were made on the desktop version of the website. These figures have been steadily growing, with 41% of bookings made in 2021 done on mobile.
Online Travel Booking Trends Stats
The trends in the world of online travel booking are influenced by the consumers and the market. Following the right ones is also one of the best ways of maximizing revenue through the year.
As technology changes, the industry follows suit, which can be seen in these statistics that are looking to set the pace.
Most Online Travel Bookings on Mobile Happen After Specific Searches
(Source: Google Trends)
Analyzing Google Trends shows that 72% of online travel bookings on mobile are made within 48 hours of users searching the terms ‘today’ and ‘tonight’ on the popular search engine.
This shows that mobile users tend to make bookings that are more immediate based on either having to travel for work or indulging in a city break. These types of bookings tend to involve less research than those done over a longer time period.
Millennials Prefer Spending Money on Experiences
78% of millennials prefer booking experiences rather than spending money on material things. The leading online travel companies have been responding to this trend by offering a wider range of experiences in their packages.
This allows travelers to fully immerse themselves in a location and will generally create a more memorable experience. Booking agents and suppliers alike should take note of this trend and adapt their offerings.
Travelers Want to Visit New Destinations
When asking travelers from Australia, the United Kingdom, Singapore, Japan, and the United States, 33% of them stated that traveling to new locations is more important to them than ever.
This continues a pre-pandemic trend, but in the wake of it, there has been an increased thirst for seeing and experiencing completely new places.
With travelers from around the world so invested in fresh experiences, online travel booking is set to be influenced by this trend for a while. Many marketing strategies seem to have already adapted to travelers seeking new and original experiences while away from home.
Longer Stays Are Becoming the Preference
(Source: GlobalData, Expedia, Airbnb)
By the end of 2022, a clear trend had been set, showing that travelers now preferred longer trips to short getaways. 44% of respondents indicated that they want leisurely trips of at least 7 nights.
26% of them prefer at least 10 nights away per trip. This shows this consistent need to have an immersive experience rather than a simple touristy getaway. 20% of Airbnb users in the third quarter of 2021 invested in stays of at least 28 nights.
This was a significant increase from the 14% in the third quarter of 2020. Longer stays involve a higher investment, but it seems consumers are willing to pay more to get the most that they can out of a trip.
Personalized Experiences Are Becoming a Must
90% of travelers now expect a personalized experience with every stay at a hotel. This will remain the trend for 2023 and beyond. Potential guests want to feel special and like they’re staying in a location full of character.
Online travel agencies and hotels are working together on making sure to provide each traveler with what they are seeking from the process.
This highlights the importance of making sure to stand out and that high standards of service are no longer the only details noticed by guests. Memorable stays are the trend, and the need for them influences how consumers use online travel booking.
Reviews Remain Helpful
Reviews are one of the most essential aspects of pre-booking research. While 22% of consumers leave a review anyway, data shows that 80% will leave a review if asked or prompted. Of these reviews, respondents claim that 95% of the ones they leave are usually positive.
TV Creates Sought-After Locations
Around 70% of respondents indicated that seeing a particular location in a TV show or movie made them consider traveling there. Of these, 39% ended up booking online travel to one of these locations.
The United Kingdom continues being a TV-driven destination, thanks to the period dramas set there. The real locations behind many impressive landmarks featured in trendy sweeping fantasy shows are also huge draws, as are Hawaii and Italy.
When consumers watch a show or a movie with exciting locations, they tend to Google where they were filmed, which can then lead to a successful booking.
Wellness Breaks Are Increasing
The developing focus on self-care and wellness has also had an impact on travel. 46% of consumers from around the world would consider a wellness break, with many of them seeking an original, even quirky stay.
This shows a 30% increase in wellness breaks, along with variation in where travelers seek these trips, from the US to Norway. Online travel booking is offering more alternative stays that take into account this interest.
Hidden Gems Are Becoming Mainstream
Travelers continue to book trips to some of the most typical tourist destinations around the world, but interest in hidden gems and unconventional locations has increased by 30%.
These locations tend to be idyllic and with a more tranquil atmosphere. Examples include Greensboro in North Carolina, Missoula in Montana, Nampa in Idaho, and Oneonta in New York state.
The Aesthetic Is Cowboy Western
Many consumers are looking for cowboy charm in their holiday locations. When online travel booking, there has been a 30% increase in demand on Vrbo for fully private vacation homes in states like Montana and Colorado.
Travelers are looking for impressive landscapes, exclusivity, and plenty of outdoorsy activities. The Australian outback is another sought-after location, with farmhouses near wineries providing rugged beauty and plenty of comfort.
Online Travel Booking Growth and Future Stats
The future looks rosy for the online travel booking sector, with constant investment in e-commerce. Closely following the progress of technology and implementing changes as soon as they happen is key to ensuring this future. Here’s what the sector has to look forward to in the future.
Cryptocurrency Is Going to Continue Impacting the Sector
Online travel is a largely crypto-friendly sector. In the second half of 2021, 22% of consumers in the United States stated they would pay for travel with cryptocurrency.
Respondents to an Airbnb survey on Twitter wanted the company to implement payments with cryptocurrency as soon as possible. 70% of those seeking to spend cryptocurrency on travel prefer Bitcoin, while 45% prefer USDT, 37% prefer Ethereum, and 35% choose AVA.
Chatbots Are Increasing Sales
Chatbots for ecommerce are driving the increasing automation in the industry. These chatbots emulate the natural flow of human conversation while reducing the need for human agents.
Consumers are reacting well to chatbots, with 6.5% of conversion rates related to this new technology. Travelers love the immediate response from chatbots and the support around the clock.
Crypto Bookings Are Driving a Significant Percentage of Sales
65% of bookings made through Travala in March 2021 were paid for with cryptocurrency. The company made $1.7 million from bookings that month. Online travel agencies that include cryptocurrency in their payment methods are starting to see big results.
Crypto Users Pay for Accommodation and Flights
Consumers using cryptocurrency to pay for online travel booking spend it on hotels and flights. 51% of crypto bookings go on hotels and other accommodation, while 50% go on air travel.
This shows that crypto is here to stay, and the leading online travel agencies are aware of how it shapes the future.
The Industry Is Ready for the Highs and Lows of Crypto
The market is still getting used to the ebb and flow of cryptocurrency, but travel is accommodating quicker.
According to CheapAir, crypto bookings made through the platform go either up or down by 5%, depending on whether the currency is going up or down by 10%. This shows that online travel booking systems accepting cryptocurrency are ready to follow the typical highs and lows associated with it.
China Will Take the Lead in Revenue
Online travel booking will be affected by the change of leadership in global revenue. By 2027, China is projected to have a total revenue of $218 billion across the travel and tourism industry.
This will allow it to dethrone the current leader, the United States. User penetration in China is projected to reach 20.2% by 2027, showing the growth of the sector in this country.
Mobile Apps Will Have More Revenue
With online travel booking getting increasingly better mobile features, apps will consistently earn more revenue throughout this decade. By 2026, mobile travel apps will have an estimated value of $0.54 billion.
This will be its new peak, but there is constant improvement every year. In 2019, the revenue from mobile apps was at $0.25 billion. In 2021, it was $0.3 billion, while in 2022, it was $0.36 billion. By the end of 2023, it is expected to see a revenue of $0.42 billion for mobile apps.
The Global Travel Insurance Market Will Grow
Many online travel agencies are already including insurance options in their packages. This is a very useful strategy, seeing as the global travel insurance market is set to continue growing.
By 2030, the global travel insurance market size is projected to reach $58.9 billion. In 2022, it was $19.7 billion. This shows that insurance will become much more substantial going forward.
Biometric ID Management Will be Developed
Data shows that 77% of airports and 71% of airlines will be investing in research and development for biometric ID management in the next 5 years. This will influence the features offered by online travel booking.
Biometric identity management will further automate this sector by streamlining the recognition process. This can save time and money while increasing revenue in the sector by reducing the need for other types of identification.
Online Sales and Bookings Have Grown Worldwide
Around the world, the online travel sector has experienced steady growth. There has been a 15.4% growth in online travel sales, while online hotel bookings have grown by 10.3%. The strength of the online travel sector is showing that consumers are opting for it more and more with each passing year.
Online Travel Booking Searches
Searches are an essential aspect of online travel booking. Consumers are known to research for at least several days before booking travel, and they use various search terms and websites to get to what they need. Let’s take a look at the influence of searches on online travel booking.
Consumers Look at Websites for Inspiration
Worldwide, consumers of every age search through websites to get inspiration for holidays. This happens before deciding on online travel booking.
Around the world, 22% of 30 to 44-year-olds looked at websites for inspiration in the last quarter of 2021. 20% of over 45-year-olds did the same, while only 18% of 18 to 29-year-olds searched websites before online travel booking.
In Canada, 27% of 30 to 44-year-olds lead the way, while in Italy, 27% of over 45-year-olds accounted for the leading age range of those searching websites. Holiday inspiration has an effect on what consumers end up booking, and it has at least a slight influence on all age ranges, no matter where.
The Most Searched Travel Term Is Hotels
In the third quarter of 2021, consumers in the UK searched ‘hotels’ over 18,280 times. This was the most searched travel term at that time, followed by ‘flight tracker,’ which was searched 2,000 times.
The data continues to show that accommodation tends to lead search terms and interest. Hotels are by far much more interesting to those seeking to book online travel, even above air travel.
The third most searched term was ‘cheap flights’ at 1,223, along with ‘flights’ at 1,100. Hotels are a stable search term, while air travel involves more variation.
Experiences Are Starting to Be Searched More than Hotels
Data shows that in the 12 weeks leading to a trip, experiences in the area are searched 3 times more than accommodation in the same place. This shows the ever-growing importance of experiences when it comes to online travel booking.
While travelers ultimately seek the advice of travel agents or hotel staff to get the best experiences where they are going, they also prefer familiarizing themselves with the options prior to the holiday starting.
In the same time frame, experiences are also searched 8 times more than air travel.
Research Time Can Be Short
Once a holiday location has been decided, 51% of consumers in the United States declare that they spend less than a week on research.
This indicates that most travelers do their research before deciding on a location, and then that urge decreases. Google trends show that many holidays are booked 12 weeks in advance of the departure date. From then on, experiences become the focus of the research.
Many Hotel Bookings Begin on Search Engines
Search engines are the preferred way to start a search for hotels in desired holiday locations. The role search engines play in leading to online travel booking can’t be dismissed.
31% of hotel and other accommodation searches in 2018 were first done on search engines. This showed an increase compared to the 23% recorded in 2017. Searches are necessary to the process that ultimately leads to an online booking.
Smartphone Users Like to Research on their Phones
In the United States, 48% of smartphone users prefer doing all their online travel booking preparation on their phones.
From the initial search through a search engine to managing the booking, smartphone users are becoming more intent on just using one device. This once again highlights the importance of having travel apps and websites that are designed to work well on mobile devices.
Google Searches Went Up in 2021
(Source: Google Trends)
After the pandemic, 2021 showcased the resurgence of the travel industry, including searches. That year, Google searches for hotels went up by 92%, air travel searches went up by 79%, and cruise searches went up by 88%.
Floridians Are the Most Active Travel Searchers
Floridians top the ranking of most active travel searchers in the United States. People living in the state of Florida loved to search for flights most of all, at 56%, followed by 38% of searches spent on hotels. 6% of searches went to cruises. South Carolina was the 2nd state in the ranking, followed by Mississippi, Nevada, and Utah.
Some States Had Large Increases in Travel Searches
Some states had overall increases in searches for travel in 2021. Alabama ranked 30th in 2019, but 2 years later jumped 24 positions to rank 6th.
Tennessee followed a similar trend, going from 27th in 2019 to 11th in 2021. Mississippi jumped 21 positions to go from 21st to 3rd in the 2021 ranking. While some states are consistently at the top, others fluctuate depending on the year.
The Most Searched Travel Destination in 2022 Was London
Travel-related terms are searched all the time on Google, but only some shoot to the top of the flight lists. The most searched travel destination on Google during 2022 was London.
It was followed by Ho Chi Minh, Paris, Delhi, and Toronto. Only one US city appeared in the top 10 of most searched travel destinations for flights, and it was New York City.
Other Intriguing Online Travel Booking Stats
There are numerous fun and fascinating online travel booking stats in many categories. Here is another selection of exciting data to sate all interests.
US Citizens Have Outbound Interest in Mexico
20% of US citizens want to travel to Mexico. That is their primary searched destination when taking into account outbound travel. 6.72% searched for Italy, while 5.92% searched for the Dominican Republic.
Canada and the United Kingdom follow, at 5.64% and 5.63%, with France, Japan, Spain, Puerto Rico, and India completing the top 10.
Canadians Have the Most Interest in Traveling to the US
The most inbound interest demand in the US is registered by Canadians. 28.3% of Canadian residents want to travel there, while 15.07% want to go to the United Kingdom, and 6.7% want to go to Germany.
France, Australia, and Mexico follow when it comes to interest.
The Majority of Consumers Don’t Remember the Last OTA They Used
60% of American travelers don’t remember what the OTA they used for their latest booking was. This is also true of 46% of consumers around the world.
Of the ones who can’t recall, 54% of consumers around the world would categorize their experience as above average or excellent, while 44% described it as average, below average, or poor.
Slow Mobile Websites Are Abandoned
53% of consumers using a mobile website will abandon the search if it takes longer than 3 seconds to load.
Up to 87% of consumers will abandon a mobile website if it takes more than 2 seconds to load. This can have an influence on online travel booking by not providing users with the experience they want. It can also send them from one online travel agency to another.
Travel Agencies Are Investing in Cloud Computing Services
Travel agencies are reacting to the demand for e-commerce and automation tools. They are investing more than ever in cloud computing services. In 2021, 54% of travel agencies in the European Union bought cloud computing services over the Internet.
43% of travel agencies bought email as part of cloud computing services, while 41% bought file storage services. These figures have been consistently growing every year.
The Majority of Americans Have Brand Awareness of Online Travel Agencies
78% of Americans are aware of Booking, whether or not they use it. 77% are aware of Expedia, while 73% are aware of Airbnb. These are the main three brands that Americans are most aware of in relation to online travel.
This shows that the marketing strategies for these companies are working well, which can lead to plenty of future online travel booking opportunities.
Customer Satisfaction With Online Travel Websites Is Steady
The American Customer Satisfaction Index score for online travel websites has been consistently over 70 since 2002. In 2022, the ACSI score for online travel websites was 75, slightly higher than the 74 in 2021 but lower than the 77 achieved in 2020.
What Do Online Travel Agencies Need to Offer?
Online travel agencies need to be aware of what the consumers want from them. The most sought-after feature in online travel agencies is the ease of use.
Consumers want a straightforward booking process that takes as little time as possible and that is as clear as possible. They’re also looking for a responsive and streamlined app or website design.
Consumers also want advanced search filters to find exactly what they are looking for, along with multiple languages and currencies.
What Are the Main Benefits of Online Travel Booking?
The main benefit of online travel booking is its convenience. Consumers can book their desired holiday on a smartphone or a desktop computer at any time of day or night.
This process also makes sure consumers only pay what they can see without adding hidden fees or commissions. Reviews are another main benefit, along with the photos included with them.
Consumers using online travel booking can also extensively research their desired flights and accommodation before choosing them. Online travel booking allows travelers to preview their rooms through photos and even virtual tours.
How Many Airline Bookings Are Made Online?
63% of bookings are done online. This indicates that the vast majority of those using air travel prefer to use online travel booking to purchase it. Getting access to booking airlines online directly allows consumers to have full agency over what is on offer to them.
What Are the Priorities for Travelers Looking to Get Online Travel Booking?
Consumers looking at online travel booking as an option prioritize two things above all else: great deals and flexibility.
They want to be able to adjust dates and itineraries as much as possible, usually on the go. 84% have stated that they can be swayed by a discounted fee when booking air travel online. 83% can be convinced by a specific booking if it offers fare flexibility.
What Do Workers Prioritize?
Workers around the world have discovered a newfound appreciation for vacation days. 84% have a greater appreciation for it, with many now choosing extra vacation days in lieu of getting a raise.
Is Travel a Priority?
Travel has become a priority for most, to the point where many consumers will budget specifically for it. 34% of travelers have a separate budget for travel, with most of them planning to travel in the next 6 months. 18% of consumers expect to spend more on travel than on anything else.
The online travel booking sector has a huge impact on the rest of the service industry. The rise of ecommerce and the automation of the travel booking process has influenced consumers. Many now prefer to book online without the extra step of talking to a face-to-face agent in an office somewhere.
The pandemic has influenced some of this, too, as most consumers feel less anxious about booking online instead of booking in-person. With travel quickly becoming a priority for many, online travel booking systems are ready to receive increased demand.