Battle for Bookings: How Hotels and OTAs Compete for Clicks

The Skift Travel Podcast

Hosts Seth Borko and Sarah Kopit by their Skift Research colleague Pranavi Agarwal. Agarwal authored a recent report that looked at the prospects for hotel direct bookings. How and where consumers book their hotel rooms can have huge implications for hotels, online travel agencies, and pretty much anyone in the travel industry. This is the third time in seven years that Skift has commissioned this report, and this year it revealed significant shifts in booking trends over the years, influenced by technology, consumer behavior, and market disruptions like the COVID-19 pandemic.

3 Key Themes

Technological Advancements and Democratization: The role of improved hotel tech stacks and platforms like Google in leveling the playing field for direct bookings. How AI and other emerging technologies can make direct booking experiences more seamless for both chains and independent hotels.

Consumer Behavior and Loyalty: Post-pandemic preferences for direct bookings due to perceived trust and flexibility. The growing emphasis on personalized experiences and how loyalty programs can drive direct bookings beyond just offering discounts.

Shifts in Market Dynamics: OTAs losing ground to wholesalers and corporate agents as hotels prioritize high-volume group bookings. The fragmented nature of the hotel market, with increased opportunities for independent hotels to leverage social media and partnerships.

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