January 17, 2014

Online travel spending on the rise in Europe

Expedia and Priceline’s Booking.com division could control about half the European OTA market by the end of the year, as the expanding presence of the two companies among American travelers is replicated across the pond.

Booking.com, which launched its first U.S. TV advertising campaign in early 2013, boosted its European market share in 2012 to 31% from 25%, while Expedia’s market share held steady at 15%.

“Cultural, legal and other nuances across Europe’s diverse travel marketplace have created a fragmented OTA landscape that is moving toward great consolidation,” wrote the authors of the PhoCusWright study, which was released late last month.

Both companies stand to benefit from the fact that online booking is growing substantially faster than overall booking in Europe. OTA bookings from Europeans were expected to rise 10% in 2013, to about $58 billion, and are predicted to advance 12% and 11% in 2014 and 2015, respectively.

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