In addition to generating significant economic impacts in terms of GDP and jobs, OTAs benefit the accommodation markets in both the United States and Canada (North America) through downward effects on rates and by expanding the number of room nights available to consumers.
This study conducted by Tourism Economics for Booking.com quantifies the incremental impact of online travel agencies on the tourism industries and broader economies of the United States and Canada. The number of travellers organizing travel through online travel agencies (OTAs) increased steadily from 2012 to 2019 to 724 million nights, which represented almost 1 in 4 nights booked in North America – 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.
Watch here to find out more about The Economic Impact of Online Travel Agencies in the US.
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
You might be interested in
Higher prices not denting travel recovery in Europe
Services inflation in the Eurozone has remained persistent and within this the price of travel related items such as international flights and hotels have risen significantly this year.Find Out More
Luxury cruising, the new “Gold Rush”, growing at three times the rate of the overall industry
Luxury cruise capacity is set to nearly double by 2028, with Luxury Segment capacity on track to expand 87% compared to 2019 fuelled in part by new entrants.Find Out More
Heatwaves and headaches for Europe this summer
Destinations across the world have been faced with sustained temperatures in excess of 40C (104F) since June. The combination of climate change and the warm phase of the El Niño climate pattern is widely believed to be the cause of this.Find Out More
Travel Weekly: The environment is tourism’s most valuable asset
Matthew Tinsley, Lead Economist at Oxford Economics reviews the economic impact the environment has on the travel industry.Find Out More