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eTravel Report 2018 –

Online Travel Booking
Statista Digital Market Outlook – Segment Report

June 2018
Agenda

01 Segment overview 03 Best practice

▪ Market scope ▪ The Priceline Group
▪ Customer Benefit ▪ Deep dive: Global eTravel funding trends
▪ Future developments, assumptions and
sensitivity analysis

02 KPI comparison 04 Market structure, contacts and imprint

▪ Market KPI comparison by region in the form
of charts
▪ Market KPI comparison by region in the form
of tables

2
Online Travel Booking: products and services
Segment overview (1/6)
Hotels
▪ Hotels and professionally-run
guest houses
▪ Booked directly via the provider’s
website, through a tour operator
or an online travel agency (OTA)
▪ Prerequisite is an online checkout
process
3
Vacation Rentals
▪ Private holiday homes and houses
e.g. HomeAway
▪ Short-term rental of private rooms
or flats via portals such as Airbnb
▪ Prerequisite is an online checkout
process
Package Holiday
▪ Travel deals booked via online
travel agencies (e.g. Expedia) or
directly from a tour operator
▪ Usually contains travel and
accommodation
▪ Prerequisite is an online checkout
process
Within Online Travel Booking, Hotels contribute the
highest share with 55% of total revenue
Segment overview (2/6)

Global segment sizes in million US$ and growth rate

Package Holiday Hotels Vacation Rentals

323,541
+8.8%1

100,092

212,698

62,975

174,585

117,613

48,864
32,110

2017 2022

1: CAGR: Compound Annual Growth Rate/ average growth rate per year
4 Source: Statista Digital Market Outlook 2018
Online travel agencies allow users to make well-
informed choices
Segment overview (3/6)

Customer benefit
There are four major reasons for customers to use Online Travel
Booking services.

The main reason for using Online Travel Booking services is that it is
convenient and time-saving. There is no need for customers to spend
time on finding and going to a travel agency’s office. They can book their
trip online at any time and from anywhere regardless of opening hours.
Furthermore, they can book straight away and get a confirmation
instantly.

In addition, online travel agencies offer a wide range of deals. They

provide customers with almost unlimited travel options (e.g. package
holidays, vacation rentals) to countless destinations, whereas offline
travel agencies are more limited in their offers and services.
Another major advantage that Online Travel Booking services give is the
possibility to make more informed choices. Online Travel Booking
portals provide more content (e.g. videos, maps, and experience
reports) compared to offline travel agencies. In addition, users can
Booking.com is changing to really start
compare pictures from a hotel website with genuine pictures taken by
customers. Based on those reviews, users can make well-informed
helping customers to make that journey as
decisions. Customers can also access third-party content from travel good as possible. [...] We always say we want
blogs, etc. Furthermore, a quick and easy comparison of prices to bring more trip for your money.
regarding package holidays, hotels, and vacation rentals can be made. Gillian Trans, CEO Booking.com (2016)
Users can check prices for specific dates and book their holidays
accordingly (e.g. in the off-season).

5
The global revenue of the Online Travel Booking
segment amounts to over US$212.7 billion in 2017
Segment overview (4/6)

Market size Revenue of Online Travel Booking services in 2017 in

million US$
The Online Travel Booking market is divided into three service
categories: Package Holiday, Hotels, and Vacation Rentals (see page 16
Package Holiday Hotels Vacation Rentals
for detailed definitions).

Travel booking apps offer flexibility and convenience. This is a major United States China Europe
advantage when it comes to last-minute bookings. Travel apps enable
users to quickly find a hotel on the go for the following night. Hence, 74,242
smartphone penetration has a major impact on sales. 70,065
15,800
However, some users view the collection of their data with suspicion and
are afraid that third parties might misuse their data. This is particularly
true when it comes to credit card details that need to be entered when 27,798
booking online. This hampers the growth of Online Travel Bookings.
The global revenue of the Online Travel Booking segment amounts to
US$212.7 billion in 2017. Most of the revenue is generated by the
Hotels category with a share of about 55%. However, the average 42,301
revenue per user is highest within the Package Holiday category.
27,312
When comparing figures globally, it can be noted that most of the 31,057
revenue is generated in the United States (US$74.2 billion in 2017). The 8,731
United States is followed by Europe, which had a slightly smaller revenue
of US$70.1 billion in 2017. Revenues in China are the smallest in this
comparison with US$27.3 billion in 2017. Within Europe, the United 16,919
Kingdom is the leading country with revenues of US$18.0 billion in 2017. 16,141
11,210
1,663

6 Source: Statista Digital Market Outlook 2018

Chat bots will aid customers throughout the entire
travel booking process
Segment overview (5/6)

Revenue of Online Travel Booking services in 2022 in Future developments

million US$ The main global drivers for the travel booking market are the internet in
general and smartphone as well as social media penetration.
Package Holiday Hotels Vacation Rentals Smartphones allow for an immediate access to Online Travel Booking
services through apps.
United States China Europe
As internet and smartphone penetration is already very high in the U.S.,
99,117 100,672 and because the online travel market is quite mature, we expect the U.S.
to have the lowest growth with an annual growth rate of 5.9% (’17-’22),
resulting in a total market volume of US$99.1 billion in 2022.
23,188
Europe has a slightly higher average annual growth rate of of 7.5%,
39,906 which will result in a revenue of US$100.7 billion in 2022. Europe will in
52,616 other words overtake the United States by 2022 with just a slight lead.
The fastest-growing region is China with a 14.0%, CAGR1, resulting in a
17,350 market volume of US$52.6 billion in 2022. This fast growth is caused by
an ongoing Chinese internet penetration growth period (new potential
52,778 customers) and increasing purchasing power especially in urban areas.

44,688 Social networks will keep gaining importance within online travel via
booking engines that can be integrated into social networks, for
instance. Virtual reality (VR) technologies will be incorporated into online
31,361
travel. More travel companies will use the concept of encouraging
customers to try the experience via VR before booking their trip. In
23,152 addition, we expect artificial intelligence (AI) to aid customers before,
16,078 during, and after the booking process via chat bots and virtual
3,905 assistants.

1: CAGR: Compound annual growth rate/average growth rate per year

7 Source: Statista Digital Market Outlook 2018
Terror attacks on popular holiday destinations can
impact travel sales
Segment overview (6/6)
Assumptions and sensitivity analysis
Our forecasts include the service categories package holidays, hotels,
and vacation rentals. Mobility services such as flights and trains are
subjects of a separate report. Therefore, our forecast might appear fairly
modest compared to forecasts of other industry experts.
Our forecasts expect customers to switch progressively from direct
booking of hotels and vacation rentals to indirect booking via online
travel agencies (OTA). They offer price comparisons and other features
and we assume that more customers will want to benefit from these
advantages that online travel agencies offer them.
Terror attacks have a major impact on travel sales and tourism within
the respective regions. Arrivals to these regions – e.g. Turkey, Paris –
have significantly dropped since recent terror attacks. Some OTAs even
banned these regions and do not offer any holidays to Turkey due to
security concerns. These unforeseeable events are not incorporated
into our online travel forecasts.
Other events that might impact Online Travel Bookings significantly are
political events. Particularly the Brexit might have significant influence on
the tourism industry in the UK. However, as the UK is likely to remain a
member of the EU until 2019, any changes might not come into effect
until then. As negotiations have not been concluded yet, it is not clear if
“borderless” travel will also be possible in the future. Hence, we cannot
incorporate the effects of the Brexit in our forecasts.
8
Trends
Last-minute travel booking is on the rise as more travelers travel on
impulse. Hence, travel apps are enhancing the online booking process
for these mobile-savvy travelers.
The rise of the sharing economy will also impact online travel. Business
models such as Airbnb will attract a broader audience.
Another trend is Virtual Reality (VR). An example is Zanadu, a Chinese
travel platform which has released a virtual reality concept store that
allows customers to experience their travel destination beforehand in
order to help them make a decision.
In China, Ctrip is a key player within the online travel industry. Ctrip
recently acquired Skyscanner, which will help Ctrip expand its business
into international markets.
Several European online travel platforms are testing AI technologies like
chat bots. An example is Booking.com (Netherlands). Also in Europe,
many start-ups that focus on last-minute travel booking are being
founded, like Snaptip, a London-based company offering exclusive last-
minute self-catered breaks.
China has the highest average annual growth rate
with 14.0%
KPI comparison (1/6)

Revenue forecast in million US$

Package Holiday Hotels Vacation Rentals

United States China Europe

+5.9%1 99,117 +7.5%1 100,672

23,188
74,242 39,906
70,065
15,800
+14.0%1
52,616 27,798
52,778
17,350
42,301 44,688
27,312
31,057
8,731
31,361
23,152 16,919
16,141 11,210 16,078
1,663 3,905
2017 2022 2017 2022 2017 2022

1: CAGR: Compound Annual Growth Rate/ average growth rate per year
9 Source: Statista Digital Market Outlook 2018
Within Online Travel Bookings, Package Holidays
generate the highest average revenue per user
KPI comparison (2/6)

Revenue per user in US$

Package Holiday Hotels Vacation Rentals

United States China Europe

2,308 778 1,645

2017 532 2017 189 2017 299

429 101 339

2,758 956 1,910

2022 545 2022 207 2022 330

491 127 365

1: CAGR: Compound Annual Growth Rate/ average growth rate per year
10 Source: Statista Digital Market Outlook 2018
Revenues are highest in the U.S., yet the U.S. has the
lowest growth rate with 5.9%
KPI comparison (3/6)

United States: Revenue in million US$

Segment 2017 2018 2019 2020 2021 2022 CAGR1

Package Holiday 15,800 17,210 18,671 20,166 21,678 23,188 8.0%

Hotels 42,301 44,908 47,267 49,365 51,197 52,778 4.5%

Vacation
16,141 17,949 19,546 20,937 22,133 23,152 7.5%
Rentals
Total 74,242 80,067 85,484 90,468 95,008 99,117 5.9%

United States: Users in million

Segment 2017 2018 2019 2020 2021 2022 CAGR1

Package Holiday 6.8 7.2 7.5 7.8 8.1 8.4 4.2%

Hotels 79.4 83.8 87.7 91.2 94.2 96.8 4.0%

Vacation
37.6 39.9 42.0 43.9 45.7 47.2 4.6%
Rentals
Total 112.9 119.2 124.9 130.1 134.7 138.7 4.2%

1: CAGR: Compound Annual Growth Rate/ average growth rate per year
11 Source: Statista Digital Market Outlook 2018
China is the leading country when it comes to growth,
with an average growth rate of 14.0%
KPI comparison (4/6)

China: Revenue in million US$

Segment 2017 2018 2019 2020 2021 2022 CAGR1

Package Holiday 8,731 10,806 12,811 14,603 16,118 17,350 14.7%

Hotels 16,919 20,181 23,721 27,097 29,720 31,361 13.1%

Vacation
1,663 2,009 2,404 2,851 3,352 3,905 18.6%
Rentals
Total 27,312 32,996 38,936 44,552 49,190 52,616 14.0%

China: Users in million

Segment 2017 2018 2019 2020 2021 2022 CAGR1

Package Holiday 11.2 13.1 14.8 16.2 17.3 18.1 10.1%

Hotels 89.5 104.3 120.2 134.9 145.7 151.8 11.1%

Vacation
16.5 18.8 21.3 24.2 27.4 30.8 13.4%
Rentals
Total 110.8 128.8 147.9 165.9 180.0 189.3 11.3%

1: CAGR: Compound Annual Growth Rate/ average growth rate per year
12 Source: Statista Digital Market Outlook 2018
Europe will overtake the U.S. by 2020 with a revenue
of US$90.5 billion
KPI comparison (5/6)

Europe: Revenue in million US$

Segment 2017 2018 2019 2020 2021 2022 CAGR1

Package Holiday 27,798 30,697 33,426 35,892 38,050 39,906 7.5%

Hotels 31,057 34,325 37,390 40,161 42,598 44,688 7.5%

Vacation
11,210 12,373 13,463 14,452 15,325 16,078 7.5%
Rentals
Total 70,065 77,394 84,279 90,506 95,973 100,672 7.5%

Europe: Users in million

Segment 2017 2018 2019 2020 2021 2022 CAGR1

Package Holiday 16.9 18.0 18.9 19.7 20.4 20.9 4.3%

Hotels 103.7 111.9 119.2 125.5 130.9 135.4 5.5%

Vacation
33.0 35.8 38.3 40.5 42.4 44.0 5.9%
Rentals
Total 139.6 150.5 160.3 168.8 176.1 182.1 5.5%

1: CAGR: Compound Annual Growth Rate/ average growth rate per year
13 Source: Statista Digital Market Outlook 2018
The United States has a relatively high ARPU1, while
Chinas ARPU1 is relatively small
KPI comparison (6/6)

Online Travel Booking average revenue per user in 2017 by country

US$70 US$770

1: Average revenue per user

14 Source: Statista Digital Market Outlook 2018
The Priceline Group generated global gross bookings
of over US$68 billion in 2016
Best practice: The Priceline Group (1/2)

Global presence Background

The Priceline Group is the world leader in online travel and related
services provided to customers and partners in over 224 countries
through six primary brands:
▪ Booking.com ▪ Agoda.com

▪ Priceline.com ▪ Rentalcars.com

▪ Kayak.com ▪ OpenTable.com

The company was founded by Jay Walker in 1997. Back then

priceline.com launched its signature “Name Your Own Price” bidding
model. Since 2001, the company has been profitable.

Overview Analyst opinion

▪ Headquarter: Norwalk, Connecticut, US The Priceline Group is a rapidly growing company in terms of employee
numbers, gross bookings, and revenue. In its IPO, Priceline reached a
▪ Gross bookings: US $68.01 billion (2016) US$12.9 billion market value on the first day, the highest first-day value
▪ Global revenue: US $10.74 billion (2016) for a corporation in 1999.

▪ Employees: 18,500 (December 2016) Priceline continuously develops new and innovative features to maintain
their position as a leader within the online travel industry. One example
▪ Active countries: >224 is the brand booking.com which is testing a new service that will leverage
AI and machine learning to present personalized recommendations of
▪ Founded: 1997 local events and attractions to travelers.

15 Source: Company information

While gross bookings and revenue of the Priceline
Group increased, net income dropped in 2016
Best practice: The Priceline Group (2/2)

Key performance indicators Gross bookings worldwide by region in billion US$

International Domestic

Unit 2014 2015 2016

Gross bookings billion US$ 50.3 55.5 68.1

Revenue billion US$ 8.44 9.22 10.74

58.6

Net income billion US$ 2.24 2.55 2.13 49.0

43.6

33.3
Room nights 23.4
million 346 432 557
booked 16.9
9.5
6.7 9.5
4.2 4.8 5.1 5.9 6.6
Adjusted EBITDA billion US$ 3.28 3.53 4.10
2010 2011 2012 2013 2014 2015 2016

16 Source: Company information

The most well-funded eTravel start-up is Airbnb with a
whooping US$4.4 billion in funding
Deep dive: Global eTravel funding trends (1/2)

Global eTravel funding in million US$ Most well-funded eTravel start-ups

Deals Disclosed funding

Total disclosed funding1

Rank Company
4,857 361 in million US$
323 1 Airbnb 3,400

2 LY.com 1,410

3 Tujia 455
218 2,999
204 4 Oyo Rooms 450

5 Decolar 270
1,923 124
6 Tink Labs 160
1,452
2,999
7 GoEuro 146
718
8 Hotel Urbano 135

9 Yaochufa 128
2013 2014 2015 2016 2017 YTD
10 HotelTonight 118
(05/16/17)

1: Excluding debt financing

17 Source: Crunchbase
Only a few deals within the online travel industry are
series D plus investments
Deep dive: Global eTravel funding trends (2/2)

eTravel deal share by stage

Seed/ Angel Series A Series B Series C Series D+ Other

47.4% 50.4%
57.0% 53.4%
60.5%

19.4%
18.4%
18.4%
16.0%
16.5%
8.0% 4.0%
9.0% 5.0%
11.0% 8.0%
8.5% 4.0% 6.0%
3.0% 3.0% 3.0%
3.5%
5.0% 5.0%
14.0% 12.0% 16.0%
6.0% 8.0%
2012 2013 2014 2015 2016

18 Source: CB Insights 2017

The eTravel market comprises two segments: Online
Travel Booking and Mobility Services
Market structure, contacts and imprint

Segment Definition Out of scope

Travel deals booked on Internet via online travel agencies (OTAs)

Package Holiday e.g. Opodo, Expedia or directly from a tour operator (e.g. TUI). They
normally contain travel and accommodation.

Online Travel Hotels and professionally-run guest houses booked online directly
Hotels via the provider’s website, through a tour operator or an online
Booking travel agency (OTA) e.g. Hotels.com, Booking.com.
Offline and telephone
bookings / reservations
Private accommodation arranged and booked online, e.g. private
Vacation Rentals holiday homes and houses (HomeAway), as well as short-term Price comparison and
rental of private rooms or flats via portals such as Airbnb. recommendation websites
Air travel booked over the Internet, independent of whether the without a checkout process
Flights travel is booked directly from an airline’s website or through an
online travel agency (OTA). Taxi rides booked offline (e.g.

Vehicle rentals for private use that are booked via the Internet or by telephone)
Car Rentals an app (e.g. SIXT).
Carpools organized offline
Mobility Services Tickets for long-distance travel or cross-regional travel by train or
Trains & Busses bus (e.g. Eurolines, National Express). Car sharing (e.g. car2go)

Platforms and apps that match passengers and drivers. It includes

companies that offer rides in private passenger cars (e.g. Uber).
Ride Sharing Carpooling services like BlaBlaCar are also considered as well as
taxi companies that let users book rides through apps (e.g. myTaxi).

19
About the Statista Digital Market Outlook

9 markets, 37 segments & 96 sub-segments Details

Digital Media Connected Car ▪ 50+ countries & regions
Video-on-Demand, Digital Music, Connected Hardware, Vehicle Services, ▪ Direct access & downloads
Video Games, ePublishing Infotainment Services
▪ 7-year coverage: 2016 – 2022
FinTech
▪ Revenue forecasts
Digital Payments, Alternative Financing, Smart Home
Alternative Lending, Personal Finance Control & Connectivity, Comfort & Lighting,
Security, Home Entertainment, Energy
eTravel
Management, Smart Appliances
Online Travel Booking, Mobility
Services eCommerce
▪ User count & penetration
eServices Fashion, Electronics & Media, Food &
Personal Care, Furniture & Appliances,
Event Tickets, Fitness, Dating Services,
Toys, Hobby & DIY
Food Delivery
eHealth Digital Advertising
Diabetes, Hypertension, Heart Failure Banner Ads, Video Ads, Search Ads,
Social Media Ads, Classifieds ▪ Comparable data

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Author, Imprint, and Disclaimer

Geeske Nöldeke
Analyst Digital Markets

Geeske.Noeldeke@statista.com

Geeske Nöldeke graduated in International Business Administration and

Sustainability with specializations in international market strategies,
consumer decisions and sharing economy.

Before joining Statista as an Analyst she worked at a content management

agency and a sustainable finance consultancy. At Statista she is responsible
for the eTravel market, as well as sustainability and mobility topics.

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Disclaimer
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by Statista with great care.
For the presented survey data, estimations, and forecasts Statista cannot assume warranty of any kind. Surveys and forecasts contain information not naturally
representing a reliable basis for decisions in individual cases and may require further interpretation. Therefore, Statista is not liable for any damage arising from the use
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