In the Travel App Landscape, Airline and Hotel Brands Are Nowhere to be Seen

Phocuswright - 18 October 2017
For more on the study's results, here's Maggie Rauch, director, research, Phocuswright: Click here to view the videoNew research from Phocuswright and Apptopia, The Travel App Landscape: A Study of the Top 100 Travel Apps, delves deeply into the world of travel apps to show who's on top, who's not, what's trending, and where it's all headed.And join us November 7-9 in Ft. Lauderdale/Hollywood, Florida the travel industry event of the year, The Phocuswright Conference, where you will hear from so many of the innovators and leaders in the travel app landscape. Register through October 20 to save $200.

In Search of the Next Uber

Phocuswright - 11 October 2017
Innovation Isn't Just for StartupsStartup and emerging companies take The Phocuswright Conference Summit stage on Tuesday, November 7, to showcase their travel innovations. But established companies are changing the travel landscape too. Companies 48 months or older are invited to apply for the few remaining spots at Launch, held Wednesday, November 8. Learn more about Launch here and see if you're eligible to take the stage.In Search of the Next UberFounders launched nearly 1,500 digital travel startups since 2005, attracting $62 billion in funding. Nearly 80% of that funding has been raised since 2015, and the lion's share has gone to just a handful of companies. These big winners - including Uber, Airbnb and APAC superstars Didi Chuxing and Kuaidi Dache - are almost exclusively in the ground transportation and private accommodations segments. But while these relative newcomers are still flying high (and Uber hopes to fly even higher with addition of Expedia's former CEO, Dara Khosrowshahi), investors are always looking to the future.In addition to inspiring numerous also-rans, the wild success of these outliers had another effect: They unleashed a flood of travel-focused investors, incubators and support programs, all in search of the next promising startup. Mobile and the sharing economy are already old news - what's next? It's still early days, but interest in artificial intelligence, voice and messaging is on the rise. While the horizontal category accounts for just 5% of startups, it wasn't long ago that mobile and peer-to-peer were a blip on the radar.Artificial intelligence, which combines machine learning, deep learning, natural language processing and cognitive computing, is poised to be the next major disruptor. Many of the startups and established players who are using AI to move the industry forward will be on stage at The Phocuswright Conference - fromGoogle to innovators like Freebird, Mezi, Pablow, Sift Science and Travel Appeal. And Phocuswright's Street Talk roundtable brings leading travel industry investors together to help you follow the money.Be ready for the future of travel. Register now.

10 Reasons Why You SHOULDN'T Attend the 2017 Phocuswright Conference

Phocuswright - 11 October 2017
Countdown until $200 savings expires on October 20th. Register now to save!Here are 10 reasons you shouldn't attend The Phocuswright Conference.1. You have no reason to hear from - and meet - top travel executivesHate growing your professional network? Then this isn't the conference for you. And if you prefer to log thousands of miles in business travel visiting your top clients - instead of meeting them back-to-back in one convenient location - you should probably sit this one out. Nearly 2,000 decision makers and C-level executives representing dozens of countries come ready to do business.2. You don't see value in words of wisdom from founders and investors"What do founders know that I can't get from client feedback? I don't need investors telling me which segments and technologies they're betting on ..."Avoid mistakes and missed opportunities. Hear emerging leaders and investorsfrom Silicon Valley to London to China weigh in on the global state of startups, innovation and investment trends in travel.3. You don't need to discover new technologies and innovative ideasAI, machine learning, NLP, blockchain? Buzzwords. Your product and service are built with lasting power. No virtual reality this and chatbot that is going to disrupt you.No company is disruption-proof. Our demo lineup of the most innovative startups and established companies helps you keep tabs on what's next for the industry.4. You don't like beach weather and cool nights in the mid-70sYou love London in November. After all, near-freezing temperatures give you energy to close the next deal! Ah, sunny Florida. There's no better atmosphere to make new connections, foster old relationships and be among the travel industry's savviest leaders (all while taking advantage of the warm weather and newly renovated venue).5. You hate it when conferences make it easy to meet new partners and vendorsInspired by the chase, you'd rather wander a trade show hall in search of your next customer. A VERY short coffee break between conference segments adds a welcome challenge. No other conference provides access to such an elite and motivated group ofattendees - with ample time to discover new partners and opportunities. If you're ready to meet prospective clients, The Phocuswright Conference is the perfect place to prove your worth.6. You're not interested in fast-growing markets like China, India and MexicoWho needs emerging markets? Who needs over $350B dollars of market size and nearly 20% growth rates? Who needs to know about the world's top mobile booking market? We've got the leaders of some of travel's hottest global players. $160B in online travel market cap will be represented on Center Stage, featuring companies like Ctrip, MakeMyTrip, Expedia, The Priceline Group, TripAdvisor and more. And we've even assembled the Wall Street analysts who cover them.7. You don't want to hear from industry-agnostic UX expertsHey, you just updated your mobile app last year. Right? So you should be all set.Welcome to the new UI. Whatever we want, whatever we share, however we go ... every touchpoint is up in the air. From sharing to speaking to driving, the UI is upending, and the UX is everything. Don't miss a special session, The New UX, featuring executives from Fin, Snap Inc. and Waymo, three key voices determined to reimagine how we share, re-envision how we get around, and reinvent the standard for the digital assist.8. You don't like to speak out and ask Center Stage speakers the tough questionsPR spin is your favorite.We give you a direct line to the people leading travel's biggest and most successful companies. Raise your hand and inspire the debate at the travel industry event of the year.9. You don't care about how the digital travel industry affects your businessYou're tired of hearing digital this, digital that. You've got it covered.The Phocuswright Conference program consistently features a mix of promising innovative startups, companies at the forefront of technology development, Wall Street's leading travel analysts and high-profile travel brands. It's the perfect combination of what's new, what works and where we're all headed as an industry.10. You like hearing unlabeled sponsor messages intermingled with featured programmingIf you like getting blindsided by paid content, this isn't the event for you. We never let sponsors on Center Stage. Year after year, we assemble the largest gathering of travel executives and create a program driven by Phocuswright Research. This year, the biggest names in travel return to Center Stage to share their take on market dominance, growing already-behemoth brands and working with partners big and small to make their travel product better for every consumer.It all starts here.If you're ready to attend The Phocuswright Conference, register here.(Click here to view attendee feedback.)

Tracing back online travel in India since 2005

Phocuswright - 29 September 2017
The origins of online travel in India can be traced back to 2005. Access to the Internet was scarce, and electronic payments and online travel penetration levels were abysmally low. Twelve years later, the landscape is unrecognizable. The proliferation of affordable Android-powered smartphones, cheap 4G data services and mobile payments have sparked an online revolution. Sensing the tipping point of digital services, investors are aggressively backing digital companies across travel, online retail, payments, food deliveries, logistics, taxi bookings, education and more.There are plenty of signals of bigger things to come. Indians already comprise one of the largest user bases on Facebook (241 million) and WhatsApp (200 million). Other Internet and financial behemoths such as Google, Amazon, Uber, Alibaba, SoftBank and Naspers have already invested and further committed billions of dollars to conquer the Indian opportunity.Online travel remains India's largest e-commerce vertical. Online travel gross bookings will reach nearly US$10.8 billion this year. Online travel agencies (OTAs) account for a sizeable 44% of the total online travel market, and should be credited for moving mountains to enable Indians to book travel online.OTAs' success ultimately enabled MakeMyTrip and Yatra to list on the NASDAQ in 2010 and 2016, respectively. China's leading OTA Ctrip invested $180 million in MakeMyTrip in January 2016, prior to orchestrating the latter's merger with rival ibibo Group, the operator of leading online travel brands Goibibo and redBus. And just when the incumbents thought they had cornered the market, budget hotel franchise upstarts such as OYO Rooms, Treebo and FabHotels are bringing sweeping changes to India's fragmented lodging segment. Founded in 2013, OYO has raised close to $436 million and boasts of 6,500 hotels with 70,000 rooms on its platform.Phocuswright's India Online Travel Overview Tenth Edition provides complete coverage of one of online travel's hottest geographies, including market sizing and forecasting across all travel segments and channels, and in-depth analysis of India's key online players and their prospects for the years ahead.Hear From India's Online Travel LeadersExecutives from Ctrip, MakeMyTrip and OYO take the stage at November's Phocuswright Conference ...register today to gain insight from the executive interviews and explore a startup's rise.

Phocuswright Announces the Battleground: The Americas Winners

Phocuswright - 13 September 2017
"Battleground: The Americas was Phocuswright's first standalone Innovation Platform event to present the most promising early-stage startups in the travel industry" said Phocuswright's manager, research and innovation, Michael Coletta. "By moving Battleground from The Phocuswright Conference to a standalone event we were able to eliminate application and presentation fees, reducing the barrier to entry to zero and encouraging more startups to apply. As a result, the 16 innovators we featured on stage were among the most promising applicants we had ever seen. This diverse set of companies are applying cutting-edge technologies like artificial intelligence, chat and messaging, virtual reality, the Internet of Things and blockchain to bring new ways to tackle challenges across air, dining, distribution, hospitality, tours and transportation. We look forward to seeing the winners compete at Summit this November at The Phocuswright Conference."The two Battleground: The Americas winners were chosen by the Dragons, a panel of judges comprised of travel and technology experts.The Two Winners:Winner: WayloWinner: RedeamABOUT THE COMPANIESWaylo is the first hotel price prediction and tracking app. Hotel rates fluctuate like stocks. Save up to 75% on hotels by scoring the lowest rates in time with Waylo's smart alerts and predictions. Waylo is available as a conversational app over Messenger and Email. A Slack bot and Alexa skill are on the way.Redeam enables attractions to accept paper vouchers and mobile tickets from any reseller using a low cost, tablet based validation platform.The winners - Waylo and Redeam - move on to demonstrate at Summit, held during the U.S.-based Phocuswright Conference held Nov. 7 - 9 in Ft. Lauderdale/Hollywood, Florida.

Expedia's Loss Is Uber's Gain

Phocuswright - 29 August 2017
Darren Huston's departure from The Priceline Group in April 2016 was a shock to most. But this week's news that Dara Khosrowshahi would trade the helm of Expedia Inc. for that of Uber is an out-of-left-field development, to say the least.Or is it?From an Uber perspective, Khosrowshahi is arguably one of the safest hands in the tech sector - appointed at a time when the company's reputation is in tatters and it desperately needs someone to not only steady the ship, but to figure out how to put it back on the right course.Khosrowshahi has proven to have masterful organizational, strategic and financial skills. He has instilled a professional and unique (in a good way) culture across the Expedia family of brands that Uber - and its investors - is crying out for. As anyone who has seen his interviews at The Phocuswright Conference or has had a chance to interact with him can attest to, he's far removed from the much-lamented "code bro" culture for which Silicon Valley has been famous - or infamous.Cultural issues aside, Khosrowshahi brings an incredible track record and global experience. He has navigated Expedia through extraordinary changes, out-executed major competitors in the U.S., grown the company by more than 4x in gross bookings since he took the reins, and has overseen some very successful moves (the acquisition and spinoff of TripAdvisor and the investment in Trivago are two that stand out). And his experience navigating global growth - including a retreat from China with the sale of eLong - will surely be helpful as Uber tries to figure out whether to grow at all costs, or take a more measured path to profitability.As Uber seeks to restore its brand, in almost every conceivable way (even the leak of the board's choice must be frustrating), Khosrowshahi is a smart and logical hire.Travel's Uber BrandBack at Expedia Inc., many will inevitably view his exit as surprising and a huge loss to the business. Under his tutelage, Expedia Inc. has grown from $16 billion in gross bookings in 2005 to an eye-watering $72 billion last year. It's now the largest travel company - not just online travel - by gross bookings.But there's always plenty to do at an online travel business, especially one as large and diverse as Expedia. Khosrowshahi has, in fact, been gradually assembling a portfolio of businesses and a leadership structure that will give the group plenty of footing for future growth.Succession planning - both human and strategic - has been taking place for years. The acquisition and integration of rental content from HomeAway into the main Expedia mothership will be another example of an executive who has steered a global giant through tough times and ensured that the company's position and brands continue to adapt.In short: What else is there for Khosrowshahi to do? Of course, most execs arrive at a moment when they can move on, feel that they've achieved what they set out to do and, most importantly in this case, need a new challenge.At The Phocuswright Conference in November 2016, Khosrowshahi was asked if he was ready for another big acquisition."I need my peace," he replied.What a difference nine months can make, with a war-torn Uber hardly the most obvious place to go for tranquillity.Watch: Lorraine Sileo interviewing Dara Khosrowshahi at The Phocuswright Conference 2016.For all the @Uber criticism, @dkhos is the best possible choice for CEO. Global operator, brilliant investor, and world class human being.-- Brad Gerstner (@altcap) August 28, 2017

What Spooked the U.S. Leisure Traveler?

Phocuswright - 28 August 2017
The U.S. leisure travel population fell to 145 million in 2016, decreasing for the first time since 2011. The decline came a year after leisure travel incidence surpassed the pre-recession peak for the first time to hit a new high of 72%. But instead of maintaining their confident outlook, U.S. consumers pulled back on travel, with just two thirds of Americans taking a leisure trip. New Phocuswright research found that those who did travel took fewer trips and spent less; average annual travel spend declined more than $500.Amid a contentious presidential election year and the rising threat of terrorism abroad, financial worries still held travelers back. Among U.S. adults who skipped vacationing in 2016, more than half cited financial considerations. U.S. consumers' cold feet had implications for a range of travel trends. Many Americans who did travel did so on a tighter budget, impacting trip length and destination selection.But 2017 is a new year, and the outlook is positive amid a strong U.S. economy. For essential insight into key consumer trends and traveler intentions for the next 12 months, check out Phocuswright's U.S. Consumer Travel Report Ninth Edition.

Funding to Travel Startups Nearly Doubles Over 18 Months

Phocuswright - 18 August 2017
Meanwhile, in the past few years, a flood of travel-focused investors, incubators, accelerators and entrepreneur support programs have launched to connect promising travel startups with capital, mentorship and resources. But all is not entirely rosy; big travel companies continue to get bigger, making it more difficult for startups to compete. Still, with more opportunities than ever to receive funding and strategic assistance (and with revolutionary technologies like artificial intelligence beginning to go mainstream), the future looks bright for young travel tech companies.This new report - The State of Travel Startups 2017 - is expected to publish in September 2017.See Travel Startups in Action!Register for Phocuswright's Battleground pitch competition on September 12 at Plug and Play in Sunnyvale, CA to receive a free copy of the report.Learn more about Battleground and register HERE.Related: The State of InnovationOn the August 9, 2017 webinar, Phocuswright shared data from its State of Startups research, addressing funding by travel segment, geographic trends and emerging categories poised for success in the future. The webinar also features thought-provoking conversation about the state of innovation in travel with industry experts from Plug and Play, Travelport, Amadeus and Voyager HQ. The presentation deck and audio recording are available for FREE DOWNLOAD.

Are Preferred Suppliers a Thing of the Past?

Phocuswright - 3 August 2017
It's common understanding that corporate managed travel programs require the use of preferred suppliers. After all, isn't that the purpose of corporate-supplier negotiations - to obtain special rates for the corporation, and guaranteed business for the supplier? But in reality, the consistent use of preferred suppliers is likely lower than we think. A recent Phocuswright survey of 2,300 U.S. business travelers found that fewer than half of those governed by a corporate travel policy always use preferred suppliers for car rental, air or hotel. And only about one third said they usually adhere to policy when choosing a supplier.Sure, this means that 80% or so of managed business travelers always or usually stay within policy. However, looking at this another way, more than half of them have "gone rogue" at least once to book a non-preferred supplier - and nearly 20% have done it most or all of the time.So how do they get away with it? Nothing is really holding them back. Only about 10% of managed travelerssaid they won't get reimbursed if they book outside of policy.Bottom line: Companies will keep negotiating special rates with suppliers, but travelers will often choose price or convenience first. With more corporations looking to cut travel costs, expect travelers to continue to make their own decisions going forward. That's OK, since only a few are forced to book certain suppliers anyway.

Travel's tours & activities market to reach $183 Billion by 2020

Phocuswright - 25 July 2017
The travel industry tends to get preoccupied by what is happening in air and hotel (since they drive the bulk of the global travel market), but it's the activities on the ground that inspire travelers to go places.Travel activities, the aggregate of in-destination spend on tours, activities, attractions and events, is the third-largest travel segment and accounts for 10% of global travel revenue.Phocuswright's Tours & Activities Come of Age delves into the state of travel activities - specifically tours, activities and attractions - to assess the market landscape, the challenges ahead and the opportunities for distribution in the broader travel marketplace.For tours and activities to come of age, it first needs to move out of the stone age and into the digital world. It is one of travel's longest long tails and comes with all the challenges of fragmented small businesses.Small suppliers are the driving force behind the sector; more than half of tours and activities suppliers generate less than $250,000 annual revenue. From reservation to redemption, business is still mostly manual, and more than 80% of gross bookings are made offline.Fragmentation, limited technological advancement and lack of standardization within the sector present major hurdles to centralizing inventory efficiently and distributing online to consumers on a global scale.Get a detailed look at how this dynamic segment is growing up and where it's headed with Phocuswright's newest report, Tours & Activities Come of Age: The Global Travel Activities Marketplace 2014-2020.

Phocuswright Battleground: 16 of Travel's Most Innovative Companies Compete in One-Day Event

Phocuswright - 25 July 2017
Phocuswright Innovation PlatformBattleground: The AmericasSeptember 12, 2017The Plug and Play CenterSunnyvale, CASunnyvale, CA -- Phocuswright has created a stand-alone Battleground event. Debuting September 12 at the Plug and Play Tech Center, the world's largest startup accelerator, 16 finalists will compete for a chance to take the stage at the annual Phocuswright Conference in November.Battleground will feature the most innovative early-stage travel startups from North, Central and South America. This one-day event is dedicated to bringing promising travel innovators into the limelight to demonstrate fresh ideas in front of potential investors and partners.Attendees will have an unprecedented chance to see the industry's youngest innovators live for an entry fee of just $199."We will showcase for our first-time attendees the next market-changing innovations, fresh ideas, new partners and investment opportunities," said Simon Lehmann, Phocuswright President. "With this expansion we give more members of our industry a chance to see the future on stage and get excited about the amazing possibilities for the future of the travel industry."The event will feature a keynote from Sam Shank, CEO & Co-Founder of HotelTonight, a panel conversation state of innovation and investment in travel, and a Phocuswright research presentation of insights from the upcoming The State of Startups 2005-2017 report series.During the Battleground, participants have six minutes each to demonstrate their innovations to a panel of sometimes ruthless and uncensored judges. The top two companies will move on to present at Summit during The Phocuswright Conference among 1,800 of the most influential leaders in travel.Plug and Play Tech Center in Silicon Valley is a venture fund, innovation platform, startup accelerator, and corporate innovation consultancy.For those interested in applying, applications close on July 31 - and this year, there is no fee to apply or demonstrate. Eligible applicants will be part of a startup company 4 years or younger, based in North America, Central America or South America, have $2M or less in funding and pass a rigorous Phocuswright screening.Attendee registration is also open.

Video Playlist of Phocuswright Europe Amsterdam 2017

Phocuswright - 19 July 2017
In total there are 37 videos., Phocuswright EMEA Travel Innovator of the Year and People's Choice Awards 2017 (long version)Sharewood, Joint Winner of Phocuswright EMEA People's Choice Award 2017bookingkit - Runner Up of Phocuswright EMEA Travel Innovator Award 2017Nishank Gopalkrishnan, CEO, TriposoAlastair McKenzie, interviews Neil Waller, Co-founder whalarAlastair McKenzie, interviews Sharewood, Phocuswright EMEA People's Choice Awardconichi - Winner - Phocuswright EMEA Travel Innovator Award and People's Choice Awards 2017 (short version)Udi Sharir, Save A TrainSimon Lehmann interview with Jan Peeters of Travel 360 BeneluxAXON VIBE CEO Roman OberliNeil Waller, Co-founder whalarIgor Kaloshin, iqplannerAlec Khindria, Europ AssistanceFabio Angeli Bufalini, B2BOOK.NETAmit Golan, LocoJochem Wijnands, TRVLSimone Lini, CEO, WaynautInaki Uriz, CaraveloDavid Orensanz, CROSS-TINENTALJon Fauver, TrekkSoftKayla Madsen, Translations.comAndrei Savin, dcs+Phocuswright Conference Europe, 16-18 May 2017 - The NetherlandsPhocuswright Europe Amsterdam 16-18 May 2017 - Simon LehmannSimon Lehmann, Phocuswright Europa Konferenz 2017, Mai 16-18.Simon Lehmann, Prasident, Phocuswright - Phocuswright Europa 2017 - Mai 16-18Battleground Awards - Phocuswright Europe 2017Battleground Welcome - Phocuswright Europe 2017Keynote: - Phocuswright Europe 2017Executive Interview: Airbnb - Phocuswright Europe 2017Executive Interview: Trivago - Phocuswright Europe 2017Executive Interview: Paul English of Lola - Phocuswright Europe 2017Executive Interview: Hotelbeds - Phocuswright Europe 2017Phocuswright Innovation Battle Ground - Phocuswright Europe 2017New. Power. Distribution. Simon Lehmann, President, PhocuswrightExecutive Roundtable: The Legislation Debate - Phocuswright Europe 2017Phocuswright Innovation Battle Ground - Phocuswright Europe 2017
Article by Lorraine Sileo

Mid-Year Roundup

Phocuswright - 7 July 2017
We're halfway through 2017 and it's already been a jam-packed news year, so we wanted to break down the trends and statistics that have been top of mind for our global team of Phocuswright analysts. This is what's defining the global travel market in 2017:DECEMBERElection impact. Let's start with the immediate aftermath of the U.S. presidential election. Phocuswright fielded a survey of 1,500 European travelers November 12 - 14 to gauge their sentiment around travel to the U.S. and the potential impact of the U.S. election. The results should give pause: one in five travelers in the U.K. and France and nearly one in three German travelers said they are less likely to travel to the U.S. Across all three countries, women are also significantly less likely than men to visit the U.S. - 27% vs. 19%. Read More: Election Impact: Some European Travelers May Be Less Likely to Visit the U.S.Will Experiences move the needle for Airbnb? If Airbnb continues its impressive growth and revenues for 2017 approach US$3 billion, Experiences would be only 1.1% of its overall business (using our rosy assumptions). Even under far more aggressive scenarios, Experiences would still account for a relatively small, single-digit share of the company's business. Only one third of Airbnb renters bought a tour or excursion on their last leisure trip, and Experiences would appeal to an even smaller subset. Read More: The Media Loves Airbnb Trips, but Will TravelersThe fastest growing online markets: Developed online markets will grow just 15% from 2014 to 2017, compared to 61% for emerging online markets (led by APAC). Read More: The Fastest Growing Online MarketsJANUARYOne in three U.S. rentals now in urban destinations. This is up dramatically from 13% in 2012. City rentals accounted for 18% of total rental revenue in 2015, and will rise to nearly one quarter of the U.S. private accommodation market as rentals take more demand away from hotels. Read More: The New-Gen RenterFive trends DMOs should know about. How and where travelers research vacation options is vital information to destination marketing organizations. This is the greatest opportunity for influence - especially for those who do not yet have a destination in mind. Read More: 5 Trends You Need to Know About Destination SelectionAn improving economy continues to provide a strong foundation for the European travel market. View the infographic: 6 Quick Facts on the European Travel MarketFEBRUARYAsia Pacific leads all markets in mobile booking adoption. APAC mobile bookings are projected to grow from 24% of the online travel market in 2015 to 37% in 2017. Read More: APAC Leads all Markets in MobileRental growth has surged in the past few years. Those gains will slow in 2017 and 2018, when the total private accommodations market will reach US$36.6 billion. Read More: U.S. Private Accommodation Market to Reach $36.6B by 2018U.S. online travel agencies continue their upward climb and have increased their share of the total travel market. OTAs' share of the online travel market reached 39% in 2016 and will slowly continue to increase to 41% by 2020, with $81.4 billion in online gross bookings. Read More: Hotel and Mobile Boost OTA Online BookingsMARCHAmerican travelers' desire to explore and get away remains unabated; growth in the 4-5% range is projected through 2020, bringing the total travel market to $403.3 billion that year. View the infographic: 6 Quick Facts on U.S. Online TravelChina's airlines lag far behind OTAs in the technology department. But after treating web- and then mobile-based distribution as an afterthought, these state-owned behemoths have begun to take digital distribution seriously. They're growing their in-house mobile teams, and optimization of user experience and marketing are now strategic priorities. Read More: Chinese Airlines Get Serious About Direct BookingsThe defining debate in online travel over the past two years: Hotels' battle for the customer and direct booking amid tough competition and skyrocketing growth of OTAs. Read More: This One Chart Explains the Hotel Loyalty-vs.-OTA ProblemDo pivots work? TRIP's shift to metasearch and booking seems great in theory, but consumers just aren't having it - at least not yet. Read More: The Trouble with TRIPAPRILIn the U.S., online will continue to outpace the market through 2020, but the growth gap is narrowing as the channel approaches dominance. By 2020, online channels (including mobile) will account for 49% of the total. Read More: U.S. Market Booking Channels ShiftingAirbnb is smoking its competitors on repeat booking with its hip brand, unique market positioning and devoted customer base. Airbnb's desktop repeat booking rate in 1H16 was roughly five times that of and Expedia, and roughly three times that of the top hotel brands. Read More: In Online Travel, Repeat Bookers Are Elusive, Except for AirbnbFor Southeast Asian travelers, the most common motivators when planning a leisure trip are a desire to take a break, spending time with loved ones, and available vacation time away from work. Read More: Get Inside the Mind of Southeast Asian TravelersMAYAre tours and activities the next big opportunity in online travel? We think so. But not for the reasons most might think. Read More: The Real Revolution in Tours & ActivitiesThe OTAs are crushing it. They are growing much faster than the U.S. hotel market. In fact, 2016 was the first year when OTA lodging bookings in the U.S. exceeded total hotel website gross bookings. And they're growing even faster overseas in the more fragmented hotel markets of Europe, Asia and elsewhere. Read More: Hotels vs. the (OTA) World - What's Really at Stake as Hotels Take on DistributorsJUNEThe mobile traveler population has been growing each year as more travelers own smartphones and use them to plan and book travel. Today, two in three U.S. travelers have shopped or booked either air or hotel on a mobile device (smartphone or tablet). Read More: In Mobile Travel, Comfort Leads to Confidence in BookingUse of messaging apps is increasing among travelers overall. But the numbers vary greatly across demographics, specific apps and use cases. Read More: Are U.S. Travelers Embracing Chat & Messaging?LOOKING FOR MORE?Check out our free downloads, explore our research publications, consider becoming a subscriber or contact us for more information.

Nearly 2,000 Travel Industry Leaders Expected at The Phocuswright Conference 2017

Phocuswright - 26 June 2017
Early-bird ticket pricing expires on Friday, June 30. To save $700 and be part of the future and hear what leaders predict will happen next, register today at"Change is inevitable, but understanding what interrupts the present and predicting future trends is what Phocuswright is all about. We gather decision makers and global C-level executives from every travel, tourism and hospitality sector," said Phocuswright president Simon Lehmann.The Phocuswright Conference gathers the world's most influential travel leaders to learn what technology has in store and what changes lie ahead. Thought leaders take Center Stage each day for pointed one-on-one conversations. Summit and Launch showcases the next wave of innovation in travel. And the innovator and exhibitor showcase offers one-on-one time with a roster of industry-leading companies.The most innovative startup, emerging and established companies take the stage during Summit and Launch to compete for accolades and fame. Summit features startup and emerging innovators, including the winners from Battleground: The Americas, EMEA and APAC. Launch proves that innovation isn't just for startups, featuring established companies that are breaking new ground and developing new technologies. The program is packed with market-changing innovations presented in a fast-paced, no-holds-barred environment."The Phocuswright Conference has delivered an unbeatable combination of compelling content, top-tier attendees and an electrified atmosphere for over 20 years," Lehmann said. "It's where ideas are born, partners are found, strategies are honed and deals are done."A growing roster of confirmed speakers can be found online. Executives from companies including Brand USA,, Expedia, HomeAway, Hopper, Kayak,, MakeMyTrip, Priceline, Ryanair, TripAdvisor, US Travel Association and more will offer insight and predications. And no new technology can happen without funding and venture capital. The event gathers the brightest financial minds from Brightspark Ventures, Deutsche Bank Securities, Insight Venture Partners, RBC Capital Markets, Susquehanna Financial Group, Technology Crossover Ventures, UBS, Vitruvian Partners and more.Nearly 2,000 attendees are expected to register, and early-bird registration closes June 30. To be sure you have the pulse of the industry's future, register today to attend.

Executive Interview: Airbnb - Phocuswright Europe 2017

Phocuswright - 9 June 2017
Olivier Gremillon, Managing Director, EMEA, Airbnb and Douglas Quinby, Senior Vice President, Research, Phocuswright Inc. Phocuswright, the travel industry research authority, held its fourth annual Phocuswright Europe 16-18 May 2017, in Amsterdam, The Netherlands. Phocuswright Europe brought together 500+ European travel leaders to network, learn and build strategic partnerships with the industry's most influential leaders, innovators and visionary thinkers.

How Private Accommodation is Transforming Global Accommodation - Phocuswright Europe 2017

Phocuswright - 9 June 2017
Keynote by Douglas Quinby, Senior Vice President, Research, Phocuswright Inc. Phocuswright, the travel industry research authority, held its fourth annual Phocuswright Europe 16-18 May 2017, in Amsterdam, The Netherlands. Phocuswright Europe brought together 500+ European travel leaders to network, learn and build strategic partnerships with the industry's most influential leaders, innovators and visionary thinkers.

Executive Roundtable: The Legislation Debate - Phocuswright Europe 2017

Phocuswright - 9 June 2017
Can progress be regulated? How do you keep change in check? As innovation transforms travel distribution, efforts to regulate might break down the dynamic. How to handle the challenges of European legislation? Phocuswright, the travel industry research authority, held its fourth annual Phocuswright Europe 16-18 May 2017, in Amsterdam, The Netherlands. Phocuswright Europe brought together 500+ European travel leaders to network, learn and build strategic partnerships with the industry's most influential leaders, innovators and visionary thinkers.

Hotels vs. the (OTA) World

Phocuswright - 27 May 2017
Seven years ago, airlines - one in particular - were coming to blows with the OTAs. American pulled out of Orbitz and Expedia rallied behind its competitor and booted the carrier. I wrote our take on what was going on and where it was headed: Airlines vs. the World. Now here we are in 2017 and hotels continue to ratchet up the pressure on online intermediaries, from direct booking campaigns and member-only rates to concerted lobbying efforts by the American Hotel & Lodging Association (AHLA). We get asked all the time: Why now? What does it mean? And how will it play out? So here it goes:Why now?2015 was a watershed year. Expedia acquired Travelocity and Orbitz, effectively turning the U.S. market into a two-horse race. Between a hot mix of M&A and organic growth, Expedia Inc. and The Priceline Group (really combined accounted for nearly two thirds of OTA global gross bookings. Their combined share of the U.S. OTA market is well north of 90%.The OTAs are crushing it. They are growing much faster than the U.S. hotel market. In fact, 2016 was the first year when OTA lodging bookings in the U.S. exceeded total hotel website gross bookings. And they're growing even faster overseas in the more fragmented hotel markets of Europe, Asia and elsewhere. Such aggregation of demand among two major players means enormous leverage at the negotiating table.Dive Deep in the Hotel Distribution Debate with Europe's Biggest Names in Online Accommodation at Phocuswright EuropeWe've assembled an unmatched collection of influential industry executives and innovators. Hear from the leaders in online accommodation and how they are transforming travel across Europe, only at Phocuswright Europe starting tomorrow.The Seeds of Discontent. Hotels serve several masters, but chief among them are owners. All owners ask a fundamental question: Why affiliate with a brand? The answer, of course, is obvious: to bring in more demand and more revenue. The rapid growth of OTAs has many hotels rethinking those calculations. Why pay fees to the brands and still pay more commission to OTAs as their contribution grows?We think that's the wrong way to think. Calculating the total cost of customer acquisition - and retention - is no simple task for hotels. But it needs to be done. OTA costs cannot be viewed in isolation. Is paying Google, TripAdvisor and other meta sites to drive customers to brand websites so much cheaper when all other costs are factored in? Is that even possible in today's increasingly costly search marketplace? Hence why some brands are betting the farm on loyalty and apps. Will it work? Well ...Are the direct booking campaigns working? Well, sort of. There appears to be some positive lift for the big brands that have implemented them. But they don't seem to have slowed OTA growth either. This may not be a zero-sum game, except ...The cost of those campaigns is high. Owners as well as brands are footing the bill, and not all is quiet on the Western front. In addition, these programs will not fundamentally drive those coveted but less brand-loyal millennials into the loyalty fold. Millennials are price sensitive, favor choice and have a penchant for boutique and alternative accommodation experiences. In addition, the extreme price focus of these campaigns risks reducing the value of the loyalty program to price. We wonder what it changes in the hotel website vs. OTA competitive dynamic.OTAs are channels, but they are also marketplaces. The hotel market is fragmented. Hotels that do not compete aggressively on price risk being out done by competing hotels.What about the monopoly-duopoly assertion by the hotel lobby?It depends on how you define the marketplace. We at Phocuswright talk about OTAs as a marketplace from a strategic perspective, but not a legal one in terms of consumer choice. In the U.S., OTAs account for just 22% of hotel gross bookings, and even less if the lodging market is expansive enough to include rentals and the likes of Airbnb. (Hint: consumers already do.) Travelers have many options, online and off, besides Expedia and Priceline.OTAs don't set retail prices. A central tenet of a monopoly is the ability of the monopoly entity to set pricing. But it is the hotels that set pricing, based on their revenue management practices, competitive pricing strategies, forecasted demand, etc. OTAs may set commission and contracting terms, but not pricing.How will this all play out?Hotel direct booking will grow, but so will OTAs, and independents and boutiques will continue to benefit. The key question is how long the chains and owners will hold out - and whether they can convert those new program members into long-term, higher-yielding brand loyalists.The big brands face a bigger threat - the fundamental shift in consumer accommodation choice.You've heard it all before: private accommodation, boutique hotels, authentic local experiences. Today's and tomorrow's travelers want something more, and the big brands of the future need to reinvent their portfolio today. Some are further along with this than others.And one more thing. In case you missed the latest earnings call from IAC/British Airways, the gauntlet has been thrown on distribution costs in the world of flights too. Lufthansa's bold experiment in distribution fees is taking hold, and it's likely other airlines will join. There have also been rumblings of U.S. carriers rethinking their distribution approaches as well. So buckle in. This is going to get interesting.

Phocuswright Announces the European Travel Innovator Awards

Phocuswright - 18 May 2017
Travel industry research authority, Phocuswright, has announced the award winners of the latest startup Battleground, held during Phocuswright Europe currently underway in Amsterdam. Twelve innovators took the stage to demonstrate groundbreaking applications and solutions that are set to change the travel industry. The winners represent the best of this elite group."As the research we presented today shows, Europe is ahead of the curve in mobile and technology adoption," said Phocuswright's manager, research and innovation, Michael Coletta. "We were delighted to feature a diverse set of innovators from around the continent who are applying cutting-edge technologies and bringing new ways of thinking to tackle challenges across hospitality, tours, transportation and media. We look forward to seeing how they evolve and have a real impact on how we travel."The EMEA Travel Innovator of the Year winner and runner-up are chosen by the Dragons, a panel of judges comprised of travel and technology experts. Attendees of Phocuswright Europe determined the People's Choice Award.EMEA TRAVEL INNOVATOR AWARD Winner: conichi Runner-Up: bookingkit GmbHPEOPLE'S CHOICE AWARD WINNER An unprecedented tie for 2017: conichi and SharewoodABOUT THE COMPANIES conichi provides seamless check-in, digital key and mobile payment solutions for hotels. bookingkit GmbH is building a global GDS for tours and activities. Sharewood is a P2P marketplace for listing and renting outdoor gear.The EMEA Travel Innovator of the Year Award winner - conichi - moves on to demonstrate at Summit, held during the U.S.-based Phocuswright Conference held Nov. 7 - 9 in Ft. Lauderdale/Hollywood, Florida.The next startup Battleground will be held on September 12 in Sunnyvale, Calif.

Register Now for The Phocuswright Conference 2017

Phocuswright - 9 May 2017
It's here: Your ticket to The Phocuswright Conference (November 7 - 9, Ft. Lauderdale/Hollywood, Florida)Get ready for the travel industry event of the year - the biggest gathering of influential leaders, pioneering executives and innovative startups. For almost 25 years, The Phocuswright Conference has delivered unrivaled insight, critical debate, peer talkback, audience grilling, powerful thinking and an unprecedented platform for travel industry networking. This is where travel, digital and innovation meet. If you've attended before, welcome back! If this is your first time, we can't wait to show you what we love doing year after year.Take Advantage of Early-Bird Pricing!Early-bird tickets are available for a limited time only! Save $900 by registering by May 26 at midnight (EDT).What You Can Expect:Unprecedented Speakers: An unmatched collection of influential industry CEOs and innovators (see our growing speaker list here)The Savviest Audience Anywhere: Senior executives from around the world with significant responsibilities come prepared to do business (see who came last year)Get Your Deal On: Millions of dollars of deals get done each yearResearch Pedigree: Phocuswright analysts run the show like a live research project. We study the industry issues day-in/day-out and bring it all to Center Stage - no softballs, no PR pitches, and definitely no sponsored sessions.A Show Like No Other: We invest more in production and personalized attention than other travel conferences generate in revenue. Prepare to be wowed.Register through May 26 to save $900 off final ticket pricing

Get Inside the Mind of Southeast Asian Travelers - Phocuswright

Phocuswright - 28 April 2017
To better understand consumer behaviors and preferences, it is useful to analyze the decisions travelers make in relation to a single travel experience. We asked Southeast Asian travelers to reflect on each stage of planning and travel for their last leisure trip, including motivation, destination selection, shopping and booking methods, channel and device selection, and social networking - providing timely insight into the current state of online consumer travel in Southeast Asia.For Southeast Asian travelers, the most common motivators when planning a leisure trip are a desire to take a break, spending time with loved ones, and available vacation time away from work.In Indonesia, Malaysia and Singapore, a desire to get away was the most commonly cited reason by a wide margin, with roughly two-thirds of travelers seeking a break. For Thai travelers, available vacation time away was the top motivator."Indonesian and Malaysian travelers also demonstrated some notable differences," said Phocuswright's research analyst, Asia Pacific, Chetan Kapoor. "Indonesian travelers were much more likely than those in other markets to travel for the purpose of visiting a major attraction, and Malaysian travelers were more likely to focus on spending time with friends/family."When choosing a destination, travelers across markets were influenced by a variety of factors. Indonesians were most likely to be influenced by recommendations from friends and family, while the most commonly cited influencer for Thais was natural attractions. By comparison, Malaysian and Singaporeans were more focused on practical matters: whether the destination fit with travel dates, and the price of airline tickets.Learn more about Southeast Asian traveler preferences and behaviors.

Phocuswright and GBTA Partner to Launch Innovation Series at GBTA Convention 2017

Phocuswright - 13 April 2017
Travel industry research authority Phocuswright and the Global Business Travel Association (GBTA), the voice of the global business travel industry, today announced a partnership to launch the Innovation Series. This multifaceted, interactive program will bring the business travel industry's most impactful innovators to GBTA Convention 2017, July 15-19 in Boston. The Innovation Series and Innovation Row at Convention are sponsored by Travel Leaders Group."We are thrilled to join Phocuswright in launching this Innovation Series, putting a spotlight on the top innovators in our industry at GBTA Convention 2017," said Christle Johnson, GBTA president. "The Innovation Series will bring together Phocuswright's legacy of providing platforms for startups in the travel industry with GBTA's audience of influential travel buyers and corporate travel executives.""Phocuswright is excited to launch this program for the most promising young companies to showcase solutions for the disruption of the travel space. GBTA is a great partner to help foster innovation," said Pete Comeau, Phocuswright's senior vice president, research sales. "We're thrilled to join forces and provide a platform for building the next successful B2B travel tech brands."Nine innovators will compete for the opportunity to showcase their products and services at GBTA Convention 2017. The Innovation Series will kick-off with a series of three webinars beginning on April 25, 2017, where each group of innovators will have the opportunity to present their pitch. Our esteemed panel of technology and industry leaders will interact with the innovators during each session, and Phocuswright and GBTA leadership will address the state of innovation and its role in corporate travel.The Innovators: Groups360, GlobeChat, Local Measure, Distribusion, Mezi, 30K, Airmule, metaplanner and Waygo.At the conclusion of each webinar, the business travel community will vote on the winner of each group during their respective webinar who will then go on to be featured on Innovation Row at GBTA Convention 2017. The finalists square off again at Convention during an exclusive Innovation Series education session. The finalists will also be a part of the all-new Innovation Row on the expo floor featuring the industry's leading pioneers. Held at the Boston Convention and Exhibition Center, GBTA Convention 2017 will bring together nearly 7,000 business travel professionals from more than 50 countries across the globe. It will feature world-class keynote speakers, more than 80 industry-leading education sessions, the largest business travel expo floor, a wide selection of professional development opportunities and much more, providing attendees the opportunity for professional development and to get business done. Attendee registration is open now. Register by April 25, 2017 to receive up to $300 in savings off of the regular registration rate. More info on programs and speakers will be unveiled throughout 2017. For the latest developments and more information, please visit registration is complimentary and available online. GBTA's third annual Media Day on July 16, 2017, will feature back-to-back news announcements throughout the morning from top travel companies around the world, giving media an exclusive pass to the latest travel industry news.About the Global Business Travel AssociationThe Global Business Travel Association (GBTA) is the world's premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. GBTA's 9,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA and the GBTA Foundation deliver world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. To learn how business travel drives lasting business growth, visit

Fourth Annual Phocuswright Europe Begins Next Month

Phocuswright - 11 April 2017
Phocuswright, the travel industry research authority, begins the fourth annual Phocuswright Europe this May. The two-day conference will be held 16 - 18 May 2017, and kicks off with an opening-night reception on 16 May.For the first time, the event takes place in Amsterdam, The Netherlands, at the historic Beurs van Berlage and will feature travel innovators, executive keynotes, panel discussions and debates, as well as exhibition and networking opportunities. Building on the success of last years' conference - which gathered over 400 attendees - Phocuswright Europe this year brings together 500 European travel leaders to network, learn and build strategic partnerships with the industry's most influential leaders, innovators and visionary thinkers. Registration is still open: discussions include Europe's hotel distribution, the strengths of local online travel agencies, digital holiday distribution, what lessons Europe can learn from the Asia Pacific market, how emerging technologies changing traveller interactions, and, of course, innovation in travel technology. Phocuswright Europe places the most informed and dynamic speakers in the spotlight, with a keynote from Peter Verhoeven of, and executive interviews with Cyril-Pierre Ranque and Johan Svanstrom of Expedia, Olivier Gremillon of Airbnb, Gilles Despas of Thomas Cook Group, and Paul English of Lola. View the current speaker panel below. "We are excited to be in Amsterdam for our fourth installment of Phocuswright Europe," said Phocuswright's president, Simon Lehmann. "Amsterdam is a hotbed of technology companies and start-ups, making it the perfect location for Europe's premier travel technology conference. Prepare for great sessions and even greater networking opportunities with the region's most influential travel professionals." Phocuswright Europe will feature three key events: Battleground, Center Stage and workshops, as well as an awards program, exhibit hall and numerous networking events.Battleground (17 May): Selected companies (exclusively from Europe) reveal the travel industry's latest innovations through onstage demonstrations of their technologies and tools. Attendees have open access to the innovators and are encouraged to connect and provide feedback throughout the event. Center Stage (17 - 18 May): Phocuswright analysts probe Europe's travel luminaries about what's next on the horizon and delve for the inside story on some of the industry's most noteworthy developments. Center Stage contains a mixture of one-on-one interviews, keynote addresses, roundtable discussions and Phocuswright's signature "Talkback." Workshops (17 May): Industry leaders present a range of dynamic, educational content via interactive workshops. Sponsors take the lead in tailoring the content, along with Phocuswright's expert guidance. The presentations are efficient, thought provoking and insightful.Register by midnight EDT on 13 April and save EUR100 of your ticket!Register here.PHOCUSWRIGHT EUROPE 2017 SPEAKERS Tobias Wann, CEO, @Leisure GroupLouise Daley, Deputy CEO, Asia Pacific, AccorHotelsTimothy Hughes, Vice President, Business Development, Agoda.comOlivier Gremillon, Managing Director, EMEA, AirbnbBlanca Menchaca, Co-Founder & COO, BeMyGuestPeter Verhoeven, Managing Director, Europe, Middle East, Africa, Booking.comDavid O'Flanagan, CEO and Co-Founder, BoxeverLP Maurice, Co-Founder & CEO, BusbudBobby Healy, CTO, CarTrawlerLennert De Jong, Chief Commercial Officer, citizenM HotelsAmuda Goueli, CEO, DestiniaChristoph Klenner, Secretary General, ETTSAJean-Philippe Monod de Froideville, Senior Director Government & Corporate Affairs, EMEA, Expedia Inc.Cyril-Pierre Ranque, Senior Vice President, Global Market Management, Expedia Inc.Johan Svanstrom, President, and Expedia Affiliate Network, Expedia Inc.Guillaume De Marcillac, Co-CEO, FastBookingAlex Shen, Strategic Partnership Manager, China, GetYourGuide Inc.Tao Tao, Co-Founder and COO, GetYourGuide Inc.Naren Shaam, Founder and CEO, GoEuroTerri Scriven, Industry Head of Hospitality, GoogleJoan Vila, Executive Chairman, HotelbedsHichame Assi, COO, HotelsCombined.comJared Simon, COO & Co-Founder, HotelTonightCindy Estis Green, CEO & Co-Founder, Kalibri LabsMark Lomanno, Partner and Senior Advisor, Kalibri LabsThomas Heerkens, Managing Director, Landal GreenParksFabio Cannavale, Founder and Chairman, lastminute.comPaul English, CEO, LolaMichael Simon, General Manager Distribution, EMEA & APAC, Marriott InternationalHenri Van Eeghen, Senior Director of Strategic Partnerships, Mercy CorpsJorg Trouvain, CEO, 7Travel, ProSieben Travel GmbHFritz Demopoulos, Founder, Queen's Road CapitalDirk Rogl, Founder and Consultant, Rogl ConsultRod Cuthbert, CEO, Rome2RioWill Philipson, Co-Founder and President, SilverRail TechnologiesChoon Yang Quek, Chief Technology Officer, Singapore Tourism BoardSimon Breakwell, Venture Partner, Technology Crossover VenturesGilles Despas, Chief Marketing & Digital Officer, Thomas Cook GroupMin Yoon, CEO, TideSquare Co.Norman Rose, President, Travel Tech Consulting Inc.Johannes Thomas, Managing Director, trivagoKei Shibata, Co-Founder and CEO, Venture Republic Inc.Michael Buller, Managing Director, Verband Internet ReisevertriebAlexandre Fontaine, Co-Founder and Executive Board Member, Voyage PrivePolina Raygorodskaya, CEO, WanderuYeoh Siew Hoon, Founder & Editor, WIT, Editorial Director, Northstar Travel Media AsiaSalar Shahna, Creative Director and Co-Founder, World VR Forum View the full speaker listing here. If you want to keep up with the event, follow our Twitter feed, #phocuswright for live updates.

Hotel and Mobile Boost OTA Online Bookings

Phocuswright - 24 February 2017
U.S. online travel agencies (OTAs) continue their upward climb and have increased their share of the total travel market. Bolstered mainly by hotel and mobile, OTA online bookings are now growing faster than suppliers', which are on a downward trend.OTAs' share of the online travel market reached 39% in 2016 and will slowly continue to increase to 41% by 2020, with US$81.4 million in online gross bookings.Hotels now account for more than half of OTA domestic gross bookings and will continue to increase through 2020 as OTAs focus on growing the hotel segment and widening hotel inventory. Rate parity clauses still hinder hoteliers from undercutting OTA prices, and OTAs are creatively outmaneuvering suppliers."One hotelier, Red Lion, partnered with Expedia allowing travelers to book Red Lion's rewards program rates, sign up for the loyalty program, and earn membership points and benefits through and," says Phocuswright's senior research analyst, Maggie Rauch. "Travelers receive loyalty points with Red Lion as well as Expedia Rewards Points, which in the long run could incentivize travelers to continue to book through OTAs and 'double-dip' on loyalty points."Mobile is also driving rapid growth by providing OTAs access to customers where they are increasingly connected. Mobile now accounts for more than a quarter of OTA gross bookings, and will rise to 40% by 2020 - more than doubling in just six years.OTAs outpace suppliers in the mobile space and held 55% share of total mobile bookings in 2016. With more resources than smaller suppliers to develop mobile channels and fund customer acquisition initiatives, they are expected to keep growing their share to 57% in 2017.OTAs are ideal for mobile shopping since travelers can compare many options and buy products in a consolidated location.Read more about U.S. online travel agencies.

Online Travel Agents: Winners in a hyper-dynamic marketplace

Phocuswright - By Lorraine Sileo, Alice Jong and Douglas Quinby
Few would deny that OTAs have become a force to be reckoned with within the travel distribution landscape. From humble beginnings, two companies, The Priceline Group and Expedia Inc., have grown to become the acknowledged global giants of the travel distribution space through a combination of organic growth and a series of mergers and strategically timed acquisitions. However, as Alice Jong, Douglas Quinby and Lorraine Sileo of PhocusWright explain, in such a highly dynamic and vibrant environment, even their dominant role is being gradually challenged by a series of new players arising in the East as well as by rapidly shifting business models.

Here to Stay: Increasingly Mainstream Private Accommodations Reshaping Lodging Distribution

Phocuswright - 3 February 2017
No segment of the travel industry has felt the effects of new product categories and distribution models as much as lodging. According to new research by travel industry research authority Phocuswright, while hotels represent the U.S. travel industry's fastest-growing sector, they now compete with a new and increasingly popular product category: private accommodation.For the first time, Phocuswright's U.S. Online Travel Overview Sixteenth Edition reveals shifts in traditional hotel & lodging segment distribution once private accommodation is added to the mix. These rentals account for close to one fifth of the entire hotel, lodging and private accommodation (HLPA) market, and their bookings are increasingly growing faster than hotels'.Once a largely offline alternative reserved mostly for family vacations, private accommodations have moved online thanks to intermediaries like Airbnb, HomeAway and FlipKey. The success of these pure play private rental sites has attracted the attention of Expedia and, which have made big moves to build inventory, including Expedia's US$3.9 billion acquisition of HomeAway in 2015."Hotels are just beginning to see the impact as travel shoppers consider hotel rooms alongside apartments and vacation homes," says Phocuswright senior research analyst Maggie Rauch. "And when we add those private accommodations to the traditional hotel segment, the hotel, lodging and private accommodation online marketplace is more dominated by intermediaries than traditional lodging on its own."In the future, private accommodation will play an increasingly disruptive role in the traditional hotel and lodging distribution mix as they account for a greater and greater share of traveler spend.Phocuswright's U.S. Online Travel Overview Sixteenth Edition includes focus on the traditional hotel/motel marketplace in the U.S., with private accommodation figures integrated into 2016 and 2018 projections to give a glimpse of its impact on the lodging marketplace as a whole. The report also shines the spotlight on additional segments: air, car rental, vacation packaging, rail and cruise.For detailed information relating to the paper or to speak with an analyst, please contact Eugene Ko at or +1 860 350-4084 x475.


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