Europe’s travel market is remapping the hotel booking journey

Segment-level changes point to new opportunities—and new competition—for hotels

Europe’s online travel market is expanding quickly, but the most important shifts are happening beneath the surface—directly affecting how hotels will be found, compared, and booked over the next five years. Growth is increasingly shaped by segment-level dynamics: transportation remains the largest category, but vacation packages are accelerating fastest; direct suppliers still hold the majority of bookings, yet OTAs are gaining momentum; desktop dominates today, while mobile is set to reshape traveller behaviour; and mature markets like the UK still lead, even as high-growth regions such as Spain rise. These shifts signal a more fragmented and competitive distribution environment where hotels must adjust their commercial strategies. For hoteliers, the message is clear: understanding channel-level divergence—not just overall market growth—will be essential for profitable distribution in the years ahead.

Key takeaways

• Transportation remains the anchor segment: With 30.33% of the market in 2024, transportation continues to dominate online demand flows, shaping upstream travel planning and influencing hotel discovery.
• Vacation packages are the fastest-growing category: With a projected 12.27% CAGR through 2030, packaged travel is expanding rapidly, offering hotels opportunities to join curated bundles while increasing competition from integrated platforms.
• Direct suppliers hold the largest share today: Direct channels captured 54.37% of Europe’s online travel market in 2024, reflecting strong consumer familiarity and loyalty — though this lead is expected to narrow.
• OTAs are gaining relative momentum: With a projected 9.28% CAGR from 2025 to 2030, OTAs are poised to capture additional share, increasing the pressure on hotels to strengthen direct conversion and loyalty strategies.
• Mobile-first behaviour is accelerating quickly: Although desktop still accounts for 62.32% of bookings, mobile is forecast to grow at 13.83% CAGR, requiring hotels to ensure mobile-optimised UX, rate clarity, and seamless checkout.
• Regional divergence shapes opportunity: The UK held 21.32% of online market share in 2024, while Spain is set for the strongest growth through 2030 at 11.93% CAGR—guiding where hotels may focus performance marketing and partnerships.
• Direct booking trends impact traditional GDS flows: Increasingly, airlines and hotel chains are strengthening direct channels with NDC-like infrastructure and applying surcharges on GDS bookings, a shift that may push some corporate buyers toward direct rather than traditional GDS or OTA channels — with long-term implications for hotel distribution strategy.
• Channel growth will not be evenly distributed: The next phase of online expansion will differ by segment, platform, and geography, meaning hotels that track these divergences will have an advantage in allocating budget and optimising channel mix.

Source: Mordor Intelligence