OTAs generate benefits for the hospitality industry, consumers and society as a whole Online travel agencies (OTAs) in North America 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 services 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.

By offering consumers more choice, OTAs also lower prices for consumers, making travel more affordable and increasing the value for money. This benefits particularly low income households, who might otherwise not be able to afford any travel at all. Offering more choice also spreads out tourism away from the urban 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 North America and, as a result, the contribution of tourism to GDP and employment would also be lower.

This study conducted by Tourism Economics for Booking.com quantifies the incremental impact of online travel agencies on the tourism industries and broader economies of the United States and Canada (North America). The number of travelers organizing travel through OTAs increased steadily from 2012 to 2019 to 724 million nights, which represented almost 1 in 4 nights booked in North America - 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.