Online travel agencies (OTAs) operating in the European travel market find themselves in an interesting position in 2018. On the one hand, these intermediaries have been instrumental in the maturation of the region's online travel marketplace, and the key players in the category are household names among European travelers.

Recent Phocuswright research identified seven key trends and developments in the European online travel market. Phocuswright Europe (15-16 May in Amsterdam) provides more sought-after research, valuable industry data and expert analysis.

The U.S. travel market is projected to grow a healthy 5% in 2018, benefiting from positive economic performance, particularly in the first three quarters of the year. Despite ongoing political turmoil and a contentious midterm election, consumer confidence and spending remained high.

Despite a variety of economic and political challenges throughout the region, Europe's total travel market continues to expand. Gross travel bookings will climb 2% to €286 billion in 2018. Read on to see the seven key trends and developments in Europe's online travel market.

Scandinavia's well-deserved reputation as a safe travel destination continues to boost the region's travel market. Travel gross bookings are projected to increase to €16.7 billion in 2018, and rise 3% annually to reach €18.7 billion by 2022. Denmark, Norway and Sweden each rank among the top 15 countries worldwide in 2017 nominal per capita GDP, a strong indicator of the region's economic health. Overall, Nordic GDP grew ...

Following several highly challenging years due to repeated terrorist attacks coupled with a weak economy, the French travel market began mounting a recovery in 2017. Since the election of reformist President Emmanuel Macron, the country has reduced its budget deficit to within European Union (EU) guidelines, while at the same time curtailing unemployment and restoring consumer confidence. Stronger security measures have also allayed concerns about terrorism, and the overall outlook for the travel sector is favorable.

With technology, online, mobile and user experience all firmly entrenched in travel, where does the travel agent (adviser) fit in the buying cycle? Phocuswright has been researching the travel agency distribution landscape in the U.S. since 2006. In the initial study, we assumed travel agency extinction - and were proved wrong. With business models changing, the need for professional and personal services remained high through 2013. What about now?

On the face of it, things might appear to be business as usual. According to Phocuswright's just-released travel research report, the U.K.'s travel market is poised to grow 3% in 2018, with additional growth expected in 2019. But with the March 2019 Brexit deadline looming, making projections about the long-term prospects for the U.K. travel industry can get a bit dicey.

Hotels and air have historically been the biggest pieces of OTA business, but 2018 kicked off with a flurry of activity around the less-talked-about segments like activities, packaging, rail and car. Public online travel companies made alignments and acquisitions, and rolled out technology and product enhancements, all in the name of offering a fuller plate of travel services.

For hoteliers, guest service has always been the key factor that drives the higher average daily rates that grow profitability. With guests seeking more memorable experiences, service expectations will only continue to increase as they become accustomed to hyper-personalization and real-time conveniences that technology provides in their everyday lives.