OTAs generate additional travel demand for accommodation in APAC boosting GDP and job creation. Consumers in APAC also benefit from OTAs through more affordable rates offered to travellers.
Online travel agencies (OTAs) in the Asia-pacific region play an important function in the accommodation market and for destinations. OTAs increase choice and transparency within the market, making it easier for consumers to compare the costs and quality of the accommodation facilities and services offered by providers. They also make it easier for customers to search and book online. This is particularly important for booking travel in unfamiliar destinations. As a result, OTAs generate more bookings from international travelers than the market average.
This study quantifies the incremental impact of OTAs on the tourism industry and broader economy of APAC. The number of travellers organising travel through OTAs increased steadily from 2012 to 2019 to 705 million nights which represented more than 1 in 10 nights booked in APAC. A proportion of these nights and associated economic benefits would not have happened without the trusted information, transparency and choice provided by OTAs. All travel bookings fell sharply during the pandemic, including some shifts in OTA use resulting in a lower impact on the tourism market and the broader economy in 2020 and 2021. OTAs still play an important role in matching evolving consumer demand with available supply.
- OTAs generated 169,000 additional jobs in APAC in 2021, in comparison to 202,000 jobs in 2020 and 975,000 in 2019
- OTA generated $4.0 BILLION in APAC in 2021, in contrast to $4.3 BILLION in 2020 and $15.5 BILLION in 2019
- Of the 705 million nights booked through OTAs in 2019, 10% would not have taken place without the benefits OTAs provide. 70.2 million additional nights were generated through the increase in choice, transparency, and trust by OTAs.
About the team
Our consulting team at Tourism Economics are the world’s leading analysts of the global tourism and travel sector. They combine their expert insight with our state-of-the-art economic models and tools to answer the crucial questions facing our clients. Lead consultants on the project were:
Associate Director, Tourism Economics
+44 (0)289 263 5419
Associate Director, Tourism Economics
Belfast, United Kingdom
Since joining Oxford Economics Matthew has built on his expertise in economic consultancy, developing a specialty in economic impact assessments, cost-benefit analysis and policy development. Currently, Matthew helps lead the EMEA tourism consultancy unit within Oxford Economics.
Matthew has completed a number of tourism impact and policy studies for destinations around the world as well as for discrete parts of the accommodation and aviation sectors. He has also been the lead analyst for the development of a number of tourism satellite accounts and has been heavily involved in our work to assess the total economic value of various cultural and environmental assets.
Previously Matthew worked at KPMG, where he focused on winning and delivering economic consultancy work in key local, national and European markets. Matthew holds a first-class economics degree from the University of Ulster.
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