OTAs Secure Over $400 Billion in Annual Bookings, with Booking.com and Expedia Dominating Nearly 50% of Market
🛫 OTAs now generate over $400 billion annually in global bookings, with Booking.com and Expedia dominating nearly 50% of the market. Emerging in the late 1990s, these platforms like Expedia (launched in 1996) and Booking.com serve as two-sided marketplaces connecting hotels with travelers. McKinsey forecasts digital platforms will mediate 30% of global economic activity soon, with OTAs exemplifying indirect network effects, offering benefits and challenges for hotels such as increased bookings alongside commission costs.
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