United States Online Accommodation Market- Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The COVID-19 pandemic had a significant effect on every sector and the hotel Industry is among the hardest hit. There was a scarcity of effective response strategies for the tourism and hospitality industry. The Online Accommodation in the United States has seen a historic low of 24.5% in April 2021. Most hotel owners felt that a 35% occupancy rate is unsustainable, which puts more than 33,000 small businesses around the country at risk of closure in 2021.

Following the COVID-19 crisis, Operating economies are also significant: economy hotels can stay open at lower occupancy rates than other chain scales. For Hotels, revenue is a function of average daily rate, number of rooms, and occupancy-plus food and beverage where available. Owing the technological advancements, the online accommodation industry has experienced numerous changes over the last few years. In the United States, the number of online accommodation users is projected to expand by more than 10 million between 2017 and 2022. The availability of different channels for online accommodation booking like mobile applications, online browsers, portals and so on. The Accommodation market is keeping its pole-position in the Travel and Tourism Segments when it comes to revenue and user penetration. For Asian Tourists, accommodations are the most preferred service in the Travel and Tourism.

Key Market Trends

Increasing Number of Domestic Flights has a Huge Impact on the Market

There is an increase in the number of domestic flights within the United States for travelling. This mainly influences people to go on leisure or business trips by comparing travelling prices. Both the category of travelers prefer to stay in accommodations according to their need of travelling. This directly influences demand for online accommodation booking services. As peoples prefer to choose different hotels based on its room type and location type there is a rise in online accommodation bookings. So, the raise in domestic trips by US residents leads to higher demand for hotel booking services, thus benefiting industry revenue. In 2021, domestic trips by US residents are expected to increase, representing a potential opportunity for the industry. The opportunity consists of raise in the number of hotel bookings around United States.

The rising use of Mobile Applications and Websites is Driving the Market

Due to the technological enhancement and digital trends the Online Accommodation Market in the United States have undergone a major transformation. There would be a boost in the markets margin over the next few years because of the increasing penetration of mobile applications for online accommodation booking. The online travel booking market is also being positively affected by the increasing online accommodations as there will be a large market for the travel industry also. As the internet penetration is growing around the globe as well as in United States, most hotel owners support digital platform to make use of the digital revolution. Some major players in the online accommodation market are providing services such as promotions, information sharing, and transactions that benefit both service providers and consumers of different accommodations.

Competitive Landscape

The United States Online Accommodation Market is consolidated in nature, In terms of market share. Some of the major international players operating currently dominate the market. The competitive factors that drive the performance of these major companies are pricing, availability and providing service as described. However, there is a need of more technological advancement in these websites so that the user experience can be increased.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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