The ongoing COVID-19 pandemic has largely hit the North American region which resulted in a sudden drop in revenues and number of transactions during 2020. However, the North American online travel market is expected to grow with the continued expansion of the travel industry. The market is expected to overserve competition and increasing activity from Asian players like Ctrip which is expanding further in the region especially in the United States and is offering potential competition to homegrown international players such as Airbnb and others.
The growing hospitality industry has been helping the market studied to record more transactions in the region. In the United States, the growing number of international travelers visiting the country for leisure trips and the rising business travel within the country is driving the online travel market in the country. On the other hand, Canada's online travel market is driven by millennials, and the increase in international travelers is also encouraging growth. The market in Canada is dynamic, and it is a combination of several internationally recognized brands and their operating partners.
Key Market Trends
The Expanding Tourism Industry in the United States is Helping the Market in Recording More Transactions
The tourism sector is on a growth path in the United States, owing to the country's rising number of tourist arrivals. The international and inbound travel and tourism are on, rising primarily driven by the increasing numbers of Chinese tourists, which accounted for a CAGR of 89.2% during 2014 and 2019 before the COVID-19 hit the world. Chinese tourists account for the highest spenders among the other tourists and have been growing in recent years, and for luxury hotel companies, the Chinese are the second-largest source. For instance, Four Seasons Hotels and Resorts stated that China is its second-largest source market. Revenue from Chinese travelers has increased steadily for Four Seasons, with double-digit growth in revenue in recent years, and thus the total number of transactions. People traveling to the United States for business purposes, health, and wellness purposes are also on the rise, and leisure travel to the country is helping the online travel market to record a growing number of transactions in the market.
High Internet Penetration in the Region is Helping the Market in High Revenue Generation
North America is one of the regions with the highest internet penetration rates globally. This high penetration rate is one of the major driving factors for the users to participate in online travel booking. The recent trends revealed that the desktop is a dominant mode of accessing and booking online travel agencies. As per recent publications in North America, more than 75% of travelers are booking tickets online through their desktops. The mobile penetration rates show the shift towards this platform it is still significantly lesser compared to desktop usage. However, the use of mobile phones especially with the launches of mobile applications by the travel booking agencies is expected to drive the market with more mobile bookings during the forecast period in the region.
The Online Travel Market in North America is expected to be competitive with the presence of major players like Airbnb, Expedia, Booking.com, among others. The market is expected to be moderately consolidated, yet due to the strong market activity like the entrance of new players from the global market and the rise fo startups within the region the market is foreseen to be volatile.
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Table of Contents
1.2 Scope of the Market
4.2 Market Drivers
4.3 Market Restraints
4.4 Market Opportunities
4.5 Porter's Five Forces Analysis
4.6 Technological Trends Influencing the Market
4.7 Impact of COVID-19 on the Market
5.1.1 Accommodation Booking
5.1.2 Travel Tickets Booking
5.1.3 Holiday Package Booking
5.1.4 Other Services
5.2 By Mode of Booking
5.2.1 Direct Booking
5.2.2 Travel Agents
5.3 By Booking Platform
5.4 By Geography
5.4.1 United States
6.2 Company Profiles
6.2.5 Booking Holdings
6.2.7 American Express Global Business Travel
6.2.8 Travel Leaders Group
6.2.9 JTB Americas Group
6.2.10 Travel and Transport Inc*
A selection of companies mentioned in this report includes:
- Booking Holdings
- American Express Global Business Travel
- Travel Leaders Group
- JTB Americas Group
- Travel and Transport Inc