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Gross revenue for the U.S. travel sector fell 61% to just $156 billion in 2020 as the COVID-19 pandemic impacted the sector. However, a rapid recovery is underway, and gross revenue is expected to grow to $289 billion in 2022 with a full recovery expected by 2025.
Online travel intermediaries, including online travel agencies (OTAs), metasearch services and travel management companies (TMCs) (supported mainly by GDS technology) represent a significant source of indirect business for most travel suppliers, and delivered over one third of overall industry gross revenue in 2020.
Indirect distribution, at $182 billion, accounted for just over 45% of the total travel sector in 2019, falling to 36% in 2020 as consumers turned to direct channels during the pandemic. However, indirect channel distribution is expected to return to pre-pandemic levels by 2024.
Laura Knapp Chadwick is President & CEO of the Travel Tech Association.
Brandon Palumbo is a seasoned government relations professional with a diverse background across both the public and private sectors.
Bethany Reitsma is the Senior Manager of Industry Relations and Senior Advisor to the CEO at the Travel Technology Association.
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