OTAs, Airbnb Poised to Dominate Home Rental Distribution

If you want to know what big issues will dominate the private accommodation sector, just ask hotels. Just as they have grappled with OTAs' rising strength in distribution, a similar fate awaits property managers and owners across the rental sector. Online intermediaries, which include OTAs as well as rental brands such as Airbnb and HomeAway, are poised to wield even greater influence across private accommodation.

According to two key Phocuswright reports on the European and U.S. private accommodation markets, online intermediaries have rapidly grown their share of total rental revenue, from under 10% in 2012 to approximately 40% across Europe and the U.S. by 2018.

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"Just a handful of key brands – Airbnb, HomeAway, Booking.com, TripAdvisor and a few others – have managed to scale supply and demand at a remarkable pace over the past half-decade, and it shows no signs of slowing," said Douglas Quinby, Phocuswright senior vice president, research, and lead analyst on the two studies. "Given the far more fragmented nature of the private accommodation sector relative to hotels, it's just a matter of time before a consortium of brands account for a significant majority of sales. And vacation rental management companies, independent lodging and owners will have far fewer levers to pull."

Phocuswright's Private Accommodation in Europe: 2012-2020 and A Market Transformed: Private Accommodation in the U.S. provide comprehensive views of the state of and outlook for rentals in Europe and the U.S. Each report includes:

• Market sizing and projections for the private accommodation landscape and all distribution channels
• In-depth analysis of key online players and their position in the marketplace
• Extensive insights on U.S. and European travelers' attitudes toward renting, rental trip planning, purchasing and satisfaction
• A competitive assessment of rentals vs. other forms of accommodation and their impact on hotels
• Insights on homeowners and hosts, examining their motivations for renting, their methods, and segmentation by primary versus secondary residence rentals
• The state of property managers and the challenges they face amid a rapidly changing landscape

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Private Accommodation in Europe: 2012-2020 (Global and European)

A Market Transformed: Private Accommodation in the U.S. (Global)

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