Mobile bookings are the fastest-growing segment in the US travel market â€" and online travel agencies (OTAs) are leading the pack, OTAs are reaping the rewards from their investments in a superior shopping and purchase experience on smartphones and tablets.
A new report from travel industry research authority Phocuswright â€" Online Travel Agencies: Consolidation, Cross-Shopping and Channel Shift â€" provides a detailed overview of travel distribution in the U.S., with analysis of trends in market share, technological innovation and consumer behavior.
OTA mobile bookings continue their blistering growth pace and reached US$16.3 billion in 2015, up 63% from $10 billion in 2014.
By 2017, more than four in 10 dollars spent in the U.S. OTA sphere will come through smartphones or tablets.  OTAs  are responsible for nearly two thirds of all mobile bookings.
"The ability of large OTAs to invest more heavily in mobile technology gives them an important advantage over suppliers and smaller players," said Phocuswright's senior vice president, research, Lorraine Sileo. "OTAs are in a better position to solicit last-minute travelers and attract app downloads â€" creating further share shift away from suppliers."
Enabled by mobile technology, OTAs are also increasing their focus on the "in-destination" portion of the trip, pursuing the growing trend of online reservations for tours and activities, restaurants, ground transportation and more.
For these and other reasons, OTA share of all U.S. online travel bookings will jump to 39% in 2017 from 37% in 2014.
Phocuswright's Online Travel Agencies: Consolidation, Cross-Shopping and Channel Shift provides comprehensive market sizing of the U.S. travel industry with a focus on the online travel industry segment.
For more on the U.S. travel industry, explore Phocuswright's U.S. Online Travel Overview Fifteenth Edition. This report provides a detailed overview of travel distribution in the U.S., with analysis of trends in market share, technological innovation and consumer behavior. For detailed information relating to the report or to speak with an analyst, please contact Eugene Ko atmedia@phocuswright.com.
