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Travelers tend to search for hotel accommodation deals on online booking sites rather than approaching the traditional travel agents, as travellers can compare different offers and get the best out of them from such portals. Portal organizations widely use virtual assistants and chatbots to deliver digital customer support to portal visitors. This allows businesses to keep visitors engaged in availing their portals' booking services.
Associated companies are mainly offering various online mobility services such as flights and car rentals along with different kinds of online accommodation booking options to offer a complete package of tour services to the travellers through their portals. Additionally, they are securing necessary investments for the growth of their business. For instance, in April 2019, Klook Company, a Hong Kong-based travel activities and services booking platform, secured an investment of USD 200 million to introduce newer business verticals such as accommodation packages and car rentals in its business.
Recent introduction of innovative, user-friendly interface platforms by prominent companies such as Booking Holdings Inc, Expedia Group, and others is likely to attract the travellers towards visiting such web platforms thereby, driving market growth. For instance, in December 2020, VResorts, a Singapore-based hotel accommodation booking platform, launched its first virtual reality technology-based hotel booking platform that allows customers to browse and book hotels through their V.R. devices. Additionally, regular provision of the discounted deals and loyalty programs by such portal companies is likely to attract people towards availing such services, thereby supporting the market's growth.
Moreover, growing travellers' trends towards availing different kinds of tour services such as travel packages, hotel booking, and others is likely to provide newer opportunities for market growth. Besides this, another factor such as growing smartphone penetration and digitalization rate across the globe is likely to support the online accommodation booking revenues from the mobile applications.
However, growing incidences of the misuse of the users' financial data by the untrusted third-party booking portals reduce users' confidence towards availing such services, thereby restraining the market growth. Additionally, the shutting down of commercial settings such as hotels and resorts due to the COVID-19 lockdown restrictions in many countries worldwide is hampering the revenues from the accommodation booking-related services.
Key Market Driver -
Recent introduction of the innovative, user-friendly interface portals by the prominent companies is expected to drive the market growth
Key Market Restraint -
Incidences of Misuse of Users’ financial data by the untrusted third-party booking portals is anticipated to restrain the market growth
The prominent players associated with the global online accommodation booking market are Booking Holdings Inc., Airbnb Inc., Expedia Group, Agoda Company Pte. Ltd., PRICELINE.COM LLC, TripAdvisor LLC, Google LLC, IHG, Choice Hotels International, Inc., Gosur, Oyo Rooms, trivago N.V., and others.
The global online accommodation booking market is segmented based on category, platform, application, and geography.
The market is segmented into hotels, package holidays, vacation rentals, and others based on the category). The package holidays segment is expected to hold a major share of the market as travellers can avail themselves both of the mobility and accommodation booking facilities in such a package. Additionally, increasing the provision of customized travel booking deals by the associated companies through their online portals will support future segmental growth.
By platform, the global market is segmented into mobile applications and websites. The website segment is expected to hold a major share of the market due to the wide availability of user-friendly online booking portals, resulting in larger revenues from such a segment. Additionally, users can conveniently check the customer reviews, loyalty points, and various offers on the travel agencies’ websites compared to mobile applications. This, in turn, results in larger consumer preferences towards travel booking services through website portals.
By application, the global market is segmented into third-party online portals and direct portals. The third-party online portals' segment is expected to hold a major share of the market owing to the vast number of third-party’s accommodation booking portal sites on the search engines such as Google, Yahoo, and others. This results in larger revenues from such a segment. Additionally, the introduction of virtual reality-based web portals by such companies is further likely to drive segmental growth.
The global online accommodation booking market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa by geography.
The largest share of the North American market is attributed to the large spending of the U.S. and Canadian populations on travel and tourism-related activities, resulting in the larger revenues from accommodation booking portals from the North American region. According to the data presented by the U.S. TRAVEL ASSOCIATION, in 2019, direct spending of the domestic and international traveller in the U.S. reached USD 792.4 billion. Additionally, growing leisure and hiking trends among the population are further likely to drive the market growth in the region.
The fastest growth of the Asia Pacific region is attributed to the increasing hotel reservation rate among China's population, which is thereby likely to drive the revenues from online booking portals such as Qunar, Ctrip, and others in the region. For instance, between 30th March 2020 to 6th April 2020, Qunar, a Chinese online accommodation booking portal, reported a 24% increase in its hotel reservation rate in China. Additionally, increasing the number of middle-income groups of population and the increasing adoption of online payment methods in countries such as India and Australia are further likely to drive the region's market growth.
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