13% figure shows why OTAs need hotels: air share declines
Phocuswright's U.S. Online Travel Agency Market Essentials 2026 shows OTA gross bookings rose 4% in 2025 to $100.3 billion, representing one fifth of U.S. travel bookings, projected to reach 21% by 2028. However, only 13% of airlines' online passenger revenue flows through OTAs, and air's share of OTA bookings declined to 20%. Hotels account for 63% of OTA bookings, making them the key growth driver. The report warns that if hotel growth slows, other segments may not compensate.