Online Travel Reservation Services NAICS 561599

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Industry Summary
The 1,400 online travel reservation service providers facilitate travel purchases between travelers and a wide range of travel resources, including airline seats, lodging, rental cars, and tours. Through websites and mobile applications, online travel agencies (OTA) use proprietary technology to streamline the travel booking process and provide a one-stop platform for researching, comparing, and reserving travel services. Lodging reservations account for the vast majority of revenue.
Dependence on Changing Technology
OTAs depend on sophisticated technology to support and enable customer interaction and manage data from different travel suppliers on a single platform.
Travel Industry Recovery Ongoing
The post-pandemic recovery of the US travel market is ongoing, with the leisure market bouncing back faster than the business and group travel markets.
Recent Developments
Aug 21, 2025 - Online Travel Agency Settles High Profile Junk Fee Case
- A recent $9.5 million court settlement between online travel agency (OTA) umbrella company Bookings Holdings and the state of Texas demonstrates a willingness by regulators to crack down on junk fees in hotel bookings. Bookings, owner of OTA sites including Priceline.com and Kayak.com, was accused of hiding questionable costs like resort, amenity, and utility fees into a single, vague, “Taxes and Fees” line item. In addition to the monetary payment, Bookings has to disclose any added fees clearly and upfront. The case could be a bellwether of the effectiveness of the Federal Trade Commission’s 2025 Junk Fees Rule, which mandates added fees be clearly communicated to customers in the hotel and live entertainment industry. The rule in effect ends junk fees for those industries, with the Texas case being the first high-profile use of the new rule.
- Corporate travel managers are increasingly frustrated with their company booking systems, according to a Global Business Travel Association (GBTA) survey of managers in the US and Canada. Around 57% of those surveyed said that booking travel for guests and others without a corporate profile (job seekers, contractors) is the biggest problem with current systems. The other oft-cited downsides of business travel IT (managing ticket exchanges, cancellations, unused tickets) all demonstrate an industry frustrated with legacy systems that have become clunky to use, lack significant hotel or flight inventory, and have little informational content readily available on consumer sites. More than 80% of respondents to the GBTA said travel booking outside the system has either stayed the same or even grown in frequency. According to travel managers, the most common requests for corporate travel site expansion are better photos and visuals, improved search, and more information on loyalty programs.
- Trips and travel bookings to the US from international travelers have fallen steadily in early 2025 amid warnings to avoid the US since the Trump administration took office. New data from the US National Travel & Tourism Office and the International Trade Administration found that travel to the US from Europe has plummeted by 17% year over year in March 2025. Total international visits to the US that same month have fallen by a steep 12%. International travelers are wary of the new US administration’s trade, border, and immigration policies and are opting to stay away altogether. The trend is alarming leaders in the travel industry, which accounts for 2.5% of US GDP. Transatlantic flights, the most profitable airline routes, dipped last week for both Virgin Atlantic and Air France-KLM. US carrier Delta Air Lines recently even revised its yearly travel forecast down and is warning of a recession.
- Music tourism is a growing niche in the travel industry and is expected to be a key driver for in 2025, according to industry experts. Taylor Swift’s mega-grossing Eras tour spurred fans to buy tickets outside of their home/nearby concert market, taking advantage of cheaper tickets and hotels in other US cities and overseas. A new survey from online travel agency justify.com finds that about 75% of respondents would travel for a concert if it was cheaper away from home. Another 60% say music festivals are becoming a key reason for travel. The impact of music tourism on local economies can be significant. The California Center for Jobs & the Economy found that Swift’s six-night run in Los Angeles in 2023 generated $320 million to the local economy. Other stops on Swift’s tour reported similar local boons including Australia ($765 million), London ($380 million), Japan ($228 million), and New Orleans ($200 million).
Industry Revenue
Online Travel Reservation Services

Industry Structure
Industry size & Structure
The average online travel reservation service provider operates out of a single location, employs about 40 workers, and generates about $18 million annually.
- The online travel reservation services industry consists of about 1,400 firms that employ about 56,000 workers and generate $25 billion annually.
- The industry is concentrated with the top 50 companies accounting for about 70% of industry revenue.
- Large companies include Booking.com, Airbnb, Expedia, and AAA.
- Household consumers and individuals account for almost 60% of industry revenue, businesses account for 23%, and travel agencies and other resellers account for 16%. Less than 3% of establishments are franchises.
- Because of the global nature of travel, large firms typically have operations in foreign countries.
Industry Forecast
Industry Forecast
Online Travel Reservation Services Industry Growth

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