OTAs generate benefits for the hospitality industry, consumers and society as a whole Online travel agencies (OTAs) in the Asia-pacific region play an important function in the accommodation market and for destinations. OTAs increase choice and transparency within the market, making it easier for consumers to compare the costs and quality of the accommodation facilities and ser vices offered by providers. They also make it easier for customers to search and book online. This is particularly important for booking travel in unfamiliar destinations. As a result, OTAs generate more bookings from international travelers than the market average.
OTAs particularly benefit small independent properties by providing them with global visibility. Across APAC, the share of bookings accruing to independent properties through OTAs is significantly higher than the market average. This helps preserve APAC’s unique ecosystem of independent properties.
By offering consumers more choice, OTAs also exert a downward effect on rates, making travel more affordable and increasing value for money. This benefits particularly low income households across the region, who might otherwise not be able to afford any travel at all. Offering more choice also spreads out tourism away from the centers of economic and touristic activity towards rural destinations. As a result, rural areas benefit from an increase in economic opportunities and job creation.
On an aggregate level, OTAs have generated large volumes of additional tourism nights and supported GDP growth and job creation across a wide range of destinations. If OTAs did not exist, there would be fewer overnight stays in APAC and the contribution of tourism to GDP and employment would also be lower.
This study quantifies the incremental impact of OTAs on the tourism industry and broader economy of APAC. The number of travellers organising travel through OTAs increased steadily from 2012 to 2019 to 705 million nights which represented more than 1 in 10 nights booked in APAC.
A proportion of these nights and associated economic benefits would not have happened without the trusted information, transparency and choice provided by OTAs. All travel bookings fell sharply during the pandemic, including some shift in OTA use resulting in a lower impact on the tourism market and broader economy in 2020 and 2021. OTAs still play an important role in matching evolving consumer demand with available supply.
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