Move Over Expedia: Battle for World OTA Leader Heats Up

In the U.S., Expedia rules among online travel agencies (OTAs) – but in the rest of the world, a different story is emerging. If recent growth trends continue, the company may soon lose its standing as the world's largest OTA.

Rival Priceline has dazzled not only the travel industry, but the business world at large with its spectacular international growth over the past several years. It has outpaced Expedia in international gross bookings since 2Q10, and shows no signs of slowing down. Among the publicly held OTAs, Expedia and Orbitz increased international gross bookings by 28% and 29%, respectively, in the first half of 2011 versus the same period in 2010. Yet both were left in a cloud of dust as Priceline skyrocketed 89%.

With Priceline's Booking.com and Agoda continuing their unwavering progress in Western Europe, Asia and key emerging markets worldwide, Priceline could replace Expedia as the leading global OTA by the end of 2012.

For detailed analysis of OTA dynamics – and a robust overview of the entire U.S. travel market – purchase Phocuswright's U.S. Online Travel Overview Eleventh Edition: Online Travel Agencies (US$995 – a Global Edition publication).

Click on the image below to hear Carroll Rheem, director, research, discuss Phocuswright's U.S. Online Travel Overview.