The role of online travel agencies (OTAs) in Italy is evolving rapidly. Once viewed as a convenient booking tool, OTAs are now reshaping entire tourism ecosystems across air, hotels, and packaged services. For travel designers, DMCs, and destination managers, this means adapting to shifts in distribution, consumer behavior, and digital strategy.
A Market in Rapid Growth
In 2021, the Italian OTA market generated USD 16.2 billion in revenue, and by 2024 it had reached around USD 13 billion—a figure projected to grow to over USD 30 billion by 2033, with a CAGR of approximately 9.9%.
Meanwhile, online accommodations alone are expected to maintain a growth rate exceeding 6% through 2030.
Online bookings now account for 57% of the total Italian travel market, and they’re projected to reach 62% by 2028.
In short: Italy’s OTA segment is no longer peripheral, it’s becoming the core of tourism distribution.
Who’s Leading the Pack?
The dominant international players, Booking.com, Airbnb, Expedia, Agoda, and TripAdvisor, control the bulk of the market share in Italy’s OTA space
Booking.com alone accounts for around 69% of global OTA market share, followed by Expedia at about 11.5%.
Within Italy, platforms like Volagratis, part of the Lastminute.com Group, and eDreams ODIGEO have also become strong local players. In 2025, eDreams Prime surpassed 7 million subscribers, reinforcing its leadership in subscription-based deals and flight bundling strategies.
Consumer Behavior: Direct vs OTA
Italian consumer habits reveal important nuances. According to GlobalData’s Q4 2021 survey, 34% of Italian travelers prefer to book via OTA platforms .
Yet, the offline travel agency, especially those linked to major Italian networks, still holds significant influence for complex, long-haul trips and honeymoons.
Many travelers use OTAs to research, then complete bookings directly with hotels or airlines, seeking better service or personalized perks
Recent Shifts & Emerging Business Models
Subscription-Based OTAs
eDreams Prime illustrates a rising model: travelers pay a subscription fee for bundled flight-hotel deals and exclusive discounts. The platform’s membership surpassing 7 million in early 2025 signals strong demandMetasearch and Multi-Platform Strategies
Platforms like Trivago and JetCost now feed bookings into both OTAs and direct channels. Their role is critical in how travelers shop and distinguish value in offers.Activity & Experience Integration
Italian-based Musement, part of TUI Group, is redefining OTAs by seamlessly integrating tours, experiences, museum tickets, and show bookings alongside hotels and flights—helping to position travel as a holistic purchase.
OTA Influence on Travel Designers
A. Package Design and Bundling
Travel specialists must now design itineraries that either complement or integrate OTA packages, especially for short/medium-haul tourism, where OTAs dominate transportation bookings.
B. Pricing Transparency and Margin Pressures
OTAs often mandate strict pricing parity, affecting margins for suppliers. Travel designers need to negotiate added-value perks to differentiate (upgrades, local services, special inclusions).
C. Reputation and Reviews
An OTA page is the first destination exposure, and often includes user ratings. For premium or boutique offerings, high reviews drive discovery. A one-star difference can significantly affect visibility.
Real-World Examples
Musement & TUI’s Model: In Italy, Musement aggregates thousands of local experiences. Travel Gateway could partner to promote authentic excursions—craft workshops in Florence, culinary tours in Puglia, directly through OTA channels.
eDreams Prime’s Growth: With 7 million Prime members, including heavy mid-range and business travelers, agencies can tap into this subscriber base for exclusive luxury offers or conversion campaigns.
Forecast and Opportunity
The Italian travel market grew 8% in 2024 to €28.9 billion, with OTA growth accelerating faster than traditional agency channels.
Online travel and accommodation transactions now represent around *50% of all booking revenue in Italy, up from just over 30% in 2020.
Given this growth trajectory, aligning with OTAs is no longer optional, it’s strategic.
Strategic Recommendations
1. List Authentic Local Products on OTAs
Ensure controlled availability of curated tours, local experiences, and hotel add-ons via platforms like Musement or local-focused channels tied to Booking or Expedia.
2. Develop Direct Booking Incentives
Offer value-adds (local transfer, free upgrade, unique welcome gift) for travelers booking directly rather than via OTA, an essential balance tactic.
3. Optimize OTA Content & SEO
Use OTA back-end tools (Promoted Listings, preferred supplier features) and ensure complete, high-quality destination descriptions, updated imagery, and accurate content.
4. Leverage OTA Data and Trends
Use trends data—what destinations are trending, guest reviews, demand in shoulder seasons, to shape your itineraries and seasonal promotions.
5. Negotiate Flexible Rate Models
Where possible, negotiate exclusive perks, early seat alerts, or bundle consolidations with OTA partners to retain margin while remaining competitive.
The New OTA Reality
OTAs in Italy are becoming the primary point of entry, not just for travelers booking flights, but for discovering destinations, services, and experiences. For DMCs, boutique travel agencies, and destination professionals, the challenge is mastering this ecosystem without losing control over brand identity, client interaction, or quality.
Smart operators will:
Be present on OTA platforms for visibility, but also invest in direct channels for best customer experience.
Offer curated, high-impact experiences to stand out among commoditized listings.
Use partnerships (like Musement) to distribute unique content without complete external dependency.
OTA growth doesn’t threaten artisan hospitality, it provides a pathway for visibility. Those who adapt can leverage scale, data, and global reach while maintaining the integrity of crafted experiences.
At Travel Gateway, we support partners in navigating this landscape, ensuring that clients are visible, distinctive, and commercially sustainable in Italy’s growing OTA ecosystem.
