--- title: "30 Years of Global OTAs: A Complete History" description: "Online travel has grown explosively over the past three decades. ONDA traces the complete history of global OTAs — from their founding to today." published: 2023-11-28T00:00:00+00:00 author: "ONDA 편집팀" category: "Weekly ON" image: "https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65b0b15dce139defc1550137_65653595fcb90a40f0315f5a_WeeklyON_vol101_webflow_cover_1200px.png" canonical: https://global.onda.me/en/blog?slug=geulrobeol-otayi-30nyeon-yeogsa-topabogi locale: en --- # 30 Years of Global OTAs: A Complete History Hello readers — ONDA is running a survey on how industry professionals experienced 2023 in hospitality and what they expect for the year ahead. We'll randomly select 20 participants to receive a Starbucks gift card. Please take part 🙇 ⚠️ All rights reserved. Cite this piece as 'ONDA (온다)' when quoting. --- #### **In This Week's Issue** 🏨 30 years of global OTAs: founding, growth, and dominance 📬 2023–24 Accommodation Industry Survey 💡 Is Jeju Island really as expensive as overseas travel? ⌨️ #YouthProtectionLawRevision #DomesticAccommodationCosts #HotelBedbugControl #E9Visa #TravelMotivators --- **🏨 Industry Story** ### **30 Years of Global OTAs:** ### **Founding, Growth, and Dominance** ![](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65d6dcd269362c964861391f_vol101_1.png) Where do you shop for flights, hotels, and rental cars before a trip? For most of us, that means an OTA (Online Travel Agency). According to the Korea Tourism Organization (KTO), the online share of global tourism distribution will continue to expand. The online travel booking platform market is expected to grow 89.8% between 2020 and 2027. Today, the global OTA market is [dominated by four giants — Expedia Group, Booking Holdings, Trip.com Group, and Airbnb — who together command over 90% market share](https://www.statista.com/statistics/934995/revenue-of-leading-otas-worldwide/). How did these players come to dominate online travel? **Hospitality tech company ONDA traces the complete history of global OTAs — from their founding to today.** ### **1. 1996–2006: Birth of the OTA and Rise of Oligopoly** ![](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65d6dcf269362c9648614c6f_vol101_2.png) From 1994 to 2006, e-commerce, portals, and search engines were being born. So were OTAs specializing in air and hotel bookings. Online travel began in 1994 when Travelweb.com [introduced the first online booking feature](https://www.theguardian.com/travel/2014/mar/12/how-25-years-of-the-web-inspired-travel-revolution). Early on, Travelweb aggregated hotels much like Yahoo, but it soon pioneered the hotel booking service — marking the true start of the OTA era. Soon after, **OTAs centered on air tickets and hotel rooms began to launch**. Three of today's four global OTA giants were founded during this period. #### **1) The Early Days of the Big Four OTAs** What did Expedia Group, Booking Holdings, Trip.com Group, and Airbnb look like at the start? [Expedia Group](https://en.wikipedia.org/wiki/Expedia_Group) began in 1996 as a small flight booking unit inside Microsoft. The name — blending "expedition" and "expedite" — became an independent company three years later when Microsoft spun it off. [Priceline.com](https://en.wikipedia.org/wiki/Priceline.com) — the predecessor to Booking Holdings — launched in 1997 with a business model built around discounting last-minute airfares. Around the same time in the Netherlands, [Booking.com](https://en.wikipedia.org/wiki/Booking.com) started as Booking.nl, connecting hotels with travelers. Booking.com went public on Nasdaq just three years later, in 1999, and was acquired by Priceline in 2005. Asia's leading OTA, [Ctrip (now Trip.com Group), launched in Shanghai in 1999](https://en.wikipedia.org/wiki/Trip.com_Group). As Chinese group tourists flooded overseas, Ctrip became the fastest-growing OTA in Asia. Meanwhile, [Airbnb launched in 2008](https://en.wikipedia.org/wiki/Airbnb) with a different model: renting out private spaces instead of hotel rooms. The name comes from their early service — providing guests with an air bed and breakfast. #### **2) Metasearch Arrives in Travel** As online travel boomed, travelers naturally wanted to compare prices across sites before booking. This opened the door for **metasearch services — and kicked off the race to the bottom on price.** The first 'metasearch engine' for travel came with [Tripadvisor's expansion in 2000](https://en.wikipedia.org/wiki/Tripadvisor). Originally a site for official guidebook and media content, Tripadvisor pivoted hard into traveler reviews — transforming into a review community and product comparison platform. In 2003, Scotland's [Skyscanner](https://en.wikipedia.org/wiki/Skyscanner) launched to help travelers compare flight prices for cheaper bookings. The U.S. followed in 2004 with Kayak, offering metasearch for travel products. The next year, 2005, saw the founding of hotel metasearch platforms HotelsCombined (Australia) and Trivago (Germany). **Five metasearch companies in a few short years — a clear signal of the brutal price war to come.** ### **2. 2006–2016: The Age of OTA Oligopoly Begins** ![](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65d6dd2ccc2464d1b08a2128_vol101_3.png) Once established, **early OTAs pursued aggressive M&A strategies to consolidate market power and expand influence**. Most experts date the M&A wave to 2006 — though the first mega-deal actually happened five years earlier. Read the full story below! ### [👉 ](https://corp.onda.me/insight-content/global-ota-history?utm_source=stibee&utm_medium=email&utm_campaign=newsletter-2023_11_27) --- **📬 ONDA News** ![](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65d6dd8be37d465273c32818_vol101_4.png) 2023 brought major shifts to the accommodation industry — overseas travel reopening, the end of COVID-19, and accelerated digital transformation. We'd like to hear from you: **how did 2023 feel from where you sit? What's your outlook for the year ahead?** The results will be featured in our upcoming '2023–24 Hospitality Data & Trends Report', set to release in 2024. The survey takes 3–5 minutes (up to 10 multiple-choice questions, 1 short answer). **We'll randomly select 20 participants to receive a ☕️ Starbucks gift card.** Thank you for sharing your time and perspective 🙇 ### [👉 ](https://docs.google.com/forms/d/e/1FAIpQLSfpxiedRaGW2rQX7iNa_zclR74la1DwBqPJlLa_nycU4SnXrg/viewform) --- **💡 Hospitality Trends** ### **Is Jeju Island Really** ### **As Expensive As Overseas Travel?** Post-pandemic, more travelers are skipping Jeju for Southeast Asia or Japan. The logic: if it costs the same, why not go abroad? According to travel research firm Consumer Insight, the average traveler spent (Jan–Oct 2023, per person, 3 nights/4 days): - ₩339,000 for domestic mainland trips - ₩528,000 for Jeju trips - ₩1,157,000 for overseas trips **Overseas travelers spent 3× what mainland travelers did — and more than 2× what Jeju travelers spent.** So why the backlash against Jeju's prices? There are many factors — local cost of living, satisfaction, things to do. But the biggest reason: **Jeju failed to respond quickly to the budget-conscious, value-seeking traveler.** **In 2022, Jeju travel costs rose 14% year-over-year — four times faster than the 3% increases for domestic and overseas travel.** And while domestic and overseas travel costs have fallen below 2021 levels, **Jeju's remain stubbornly higher than two years ago.** **Domestic and overseas destinations adapted fast to tighter budgets. Jeju didn't.** Jeju dropped to 4th place in domestic travel satisfaction this year. To win travelers back, it needs to shake off the reputation for overpricing and tourist traps. Read the full story below. ### [👉 ](https://view.asiae.co.kr/article/2023111615314417043) --- **⌨️ Keyword News** 1️⃣ **Youth Protection Law Revision** [👉\[Full Story\]](https://www.yna.co.kr/view/AKR20231122061200530?input=1195m) **TL;DR:** Accommodation operators tricked by fake IDs will no longer face fines under law revision. **The story:** The Youth Protection Act will be revised so operators who were deceived by fake or altered IDs don't face unfair penalties. Currently, even if a minor tricks an operator into letting them stay, the business still gets hit with sanctions. **When does it kick in?** The government plans to amend the law in the second half of next year. If operators follow the verification guidelines, they'll be exempt from fines. 2️⃣ **Domestic Accommodation Costs** [👉\[Full Story\]](http://www.jibs.co.kr/news/articles/articlesDetail/35518?feed=na) **TL;DR:** Domestic accommodation spending fell at the sharpest rate since COVID-19. **The story:** According to Statistics Korea's Q3 household survey, spending on domestic accommodation dropped 13.6% year-over-year — the steepest decline since Q4 2020 (-23.1%), when COVID hit. **Why?** Post-pandemic, overseas travel demand exploded — pulling travelers away from domestic trips. Base effects also play a role: last year, domestic accommodation spending surged. **3️⃣ Hotel Bedbug Control** [👉\[Full Story\]](https://view.asiae.co.kr/article/2023112216461576631) **TL;DR:** Hotels ramp up bedbug prevention and management. **The story:** With bedbugs appearing nationwide, major hotels are intensifying pest control. While there haven't been cancellations yet, inquiries about infestations and prevention measures have spiked. **What's Seoul doing?** In partnership with ONDA, the city is [displaying 'Bedbug-Safe Property' badges](http://www.hotelrestaurant.co.kr/news/article.html?no=12830) on booking platforms so domestic and international travelers can book with confidence. **4️⃣ E-9 Visa** [👉\[Full Story\]](https://www.edaily.co.kr/news/read?newsId=03381686635808344&mediaCodeNo=257) **TL;DR:** Government plans to bring in 165,000 E-9 visa workers next year — a record high. **The story:** The Ministry of Employment and Labor expects to issue 165,000 E-9 (non-professional) work visas next year through the Employment Permit System — the largest quota ever. The system allows industries facing labor shortages to hire foreign workers with government approval. **Which industries?** Starting next year, the E-9 program expands to hotels and restaurants. However, it'll roll out as a pilot, so the numbers won't be large initially. **5️⃣ Travel Motivators** [👉\[Full Story\]](https://zdnet.co.kr/view/?no=20231124083442) **TL;DR:** Local food is the #1 factor driving travel desire. **The story:** In a Yeogi Eottae survey, 64.7% of respondents said food was the top factor that made them want to visit a destination. That beat natural scenery (61.6%) and landmarks (38.3%). **Which regions?** For domestic food tourism, travelers favored Jeju (45.9%), Busan (32.6%), and Yeosu (23.7%). ---