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Update on the Online market in Europe

Posted Date:  January 20, 2020

OTAs remain to play a pivotal role in Europe's online travel distribution marketplace. As per the latest travel research report - Europe Online Travel Overview 2019 by Phocuswright, travel suppliers' transactions via OTAs in major country markets climbed 2% collectively to €49 billion, expecting a similar progress for the next several years.

The growth in OTA bookings, however, is highly uneven in terms of the platforms that are generating the increase. As is the case with online supplier-direct channels, the growth in OTA bookings is coming from mobile websites and apps, on which OTAs (especially the global and pan-European leaders) are making heavy investments. The research reveals that OTA mobile bookings for the European market climbed 11%, while OTA desktop bookings actually fell 1%, following a flat year in 2018. This trend will continue for the next few years and the OTA mobile growth will be in the 9-10% range through 2023, while desktop bookings will likely be flat or down slightly.

As most of the European travel segments have undergone consolidation, either a single player or a handful of suppliers tend to dominate. These deep-pocketed leaders in the air, rail and car rental segments especially have the resources to invest in their own online platforms and marketing initiatives. This, along with suppliers' ability to offer exclusive benefits directly to their customers – free Wi-Fi, legroom, upgrades and other loyalty perks – has eaten into OTAs' share of the online market.


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Author: Anush Mathews

Anush works as QA Lead in Teknokraaft and works with our OTA team.

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