U.S. Online Accommodation Market: Current Analysis and Forecast (2021-2027)

U.S. Online Accommodation Market: Current Analysis and Forecast (2021-2027)

The U.S. online accommodation market is expected to register a CAGR of around 7% over the period of 2021-2027. The U.S. online accommodation market is uplifting on account of the rising use of mobile applications and websites, the increasing number of businesses, and introduction of the innovative, user-friendly interface portals by key market players. Moreover, the rising disposable income followed by a large number of international students due to the presence of a large number of ivy league universities in the country is positively stimulating the industry landscape. The existence of a huge tourism industry in the country is further contributing to the market growth. For instance, according to the Travel and Tourism Satellite Account (TTSA), the industry produced USD 1.6 trillion in total economic output in 2018. The travel and tourism industry is one of the United States’ largest employers, directly supporting 5.9 million jobs in 2018, of which 1.2 million were supported by travel and tourism-related exports. Travel exports represented 26.0% of total service exports in 2018. However, the market was heavily impacted by the arrival of Covid-19, tourism is one of the sectors most hit by the Covid-19 pandemic, affecting the economies, livelihoods, public services, and opportunities of all states.

Booking Holdings Inc., Hotels.com LP, Hotwire Inc., Orbitz LLC, Agoda Company Pte. Ltd., Airbnb Inc., Hays Travel Limited, Marriott International Inc., First Choice Holidays PLC, and Hilton Worldwide Holdings Inc. are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report
"Amongst platform types, the website segment held a prominent share in the market in 2020”

On the basis of platform type, the market is bifurcated into mobile application and website. Among these two, the website segment accounted for a significant share of the U.S. online accommodation market in 2020 and is expected to grow at a robust growth rate during the forecast period owing to the wide availability of user-friendly online booking portals. Moreover, the mobile and internet penetration rate is further contributing to the growth of this segment. According to the World Bank, in 2020, 91% of the total U.S. population was using the internet.
"Amongst mode of booking type, third-party online portals captured a prominent share in the market in 2020”

Based on the mode of booking type, the market is classified into third-party online portals and direct portals. The third-party online portals segment held a commendable share of the U.S. online accommodation market in 2020 and is anticipated to witness a robust CAGR during the forecast period. The growth of this segment can be attributed to the benefits associated with third-party online portals such as exposure & visibility, capturing additional inventory, opaque rates, and others. Moreover, the presence of a vast number of third-party accommodations booking sites on different search engines.
"California held a prominent share of the U.S. online accommodation market”

California accounted for a significant share of the U.S. online accommodation market and is expected to grow at a steady growth rate during the forecast period. The growth of the online accommodation market in this state is mainly attributed to the presence of gigantic tourism industry in California. Tourism is the economic driving force of California. In 2021, 213.5 million visitors traveled to this state, bringing $100.2 billion in direct spending to the economy, and supporting nearly 2 million jobs.

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• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
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• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.