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.
Impact and considerations
The report reveals OTA growth relies on hotels, while air distribution is largely controlled by airlines, impacting corporate travel procurement and distribution strategies.
Key points
- U.S. OTA gross bookings rose 4% in 2025 to $100.3 billion
- OTAs represent one fifth of U.S. travel bookings, projected to reach 21% by 2028
- Only 13% of airline online revenue flows through OTAs; air share of OTA bookings declined to 20%
- Hotels account for 63% of OTA bookings, key growth driver
- Report warns hotel slowdown may not be offset by other segments
Sources and time
- Primary source
- PhocusWire / Phocuswright
- Other sources
- 0
- First source publication
- 23 Jul 2026, 15:00
- Page published
- 13 Aug 2026, 08:12
- Last updated
- 23 Jul 2026, 15:00
- Original links
- PhocusWire All News：13% is the number that explains why OTAs need hotels to keep working (opens in a new tab)Primary source · en · Published 23 Jul 2026, 15:00