The online hotel retail sector is set for a shake-up, with the position of long-standing market leaders Wotif and Webjet increasingly threatened by a handful of emerging players.

According to research firm PhocusWright, international platforms such as Booking.com and Expedia.com are becoming more of a threat as they both invest heavily in the local market.

“In terms of gross bookings, Wotif still leads and Webjet is quite close behind, more so since its Zuji acquisition,” research analyst Chetan Kapoor told Travel Today.

“But what we’re increasingly seeing is that, in terms of web traffic, Booking.com and Expedia are really closing the gap.”

And it’s not only international competition that on the rise. Recent consolidation of domestic players in the online hotel space is also stirring things up.

Disruptive Investments acquired Checkin.com.au in November, following that with Cheaphotels.com.au and, most recently, a 50% stake in recently launched Escapelounge.com.au with a 24-month option to purchase the remaining 50%.

Th company highlighted the “significant synergies and distribution potential” of the entities which it expects to accelerate its growth strategy.

“The online hotel space in ANZ is definitely seeing some exciting times right now,” Kapoor said. “In a market where Wotif was the only contender when it came to online hotels for so many years, suddenly it’s got international players at its heels, Webjet entering the hotels space and now a little bit of consolidation happening across these smaller independent brands.”

The hotel sector is where the most movement will be seen within the online landscape, because of the “duopolistic” and highly supplier driven nature of the air market, he explained.

“So if any intermediary wants to make a play, hotels is the right way.”