Market Trends of Japan Online Accommodation Industry
Advancement in Technology has led to Growth in the Online Accommodation Market
The emergence of the Internet has led to intense exposure, and travelers are now exposed to a diverse range of hotel options at reasonable costs by various market players. Customers compare accommodation options at several websites to get the best affordable deal. Travelers choose specialized online accommodation providers such as Airbnb Inc. and OYO Rooms because they provide a wide range of lodging alternatives.
Technology has changed how people communicate, travel, and stay across the globe. With evolving technology and the increase in the use of mobiles, easy and efficient methods are being for booking a comfortable stay, thus increasing the growth of the online accommodation market. Mobile apps are gradually gaining pace in the market and are preferred by people to make their online bookings. Thus, an increase in the usage of smartphones and growth in digital literacy is likely to increase the growth of the online accommodation market.
With the advancement in technology, the online hotel market is rising quickly. COVID-19 has also accelerated the digitization of the accommodation market.
Online Travel Agencies (OTA’s) Accounts for Major Bookings
Based on the booking mode, the online travel agencies (OTAs)segment accounted for a considerable share of the Japanese online accommodation market. The OTAs have gained popularity due to the low-cost booking options and variety of hotels. They allow travelers to plan and book hotels as and when required. Currently, OTA majorly contributes to the revenue generation of hotels. The players operating in the online travel industry have adopted product launch and business expansion as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market.
