Booking travel online has become the norm for most travelers in today’s digital and highly connected world. With 60% of all reservations being made online but only 20% coming directly through a hotel’s website, it is now as vital as it has ever been for hoteliers globally to start thinking of their direct booking strategy.
A recent study led by h2c and sponsored by Amadeus, among others, involving 96 hotel chains worldwide (representing 19,000 properties, 2 million rooms) showed that, for these chains, while the share of all bookings coming through hotel booking engines has doubled from 10% to 20% over the last five years, OTAs including bed banks still capture 35% of all bookings made online. A massive opportunity exists, therefore, for hotels looking to increase their revenue, by capturing a greater portion of that online business.
The study additionally revealed that 20% of hotel chains surveyed were not satisfied with and felt limited by their current booking systems, as they lacked personalization capabilities and proper upselling functionalities. They are therefore considering investing in new systems within the next three years to allow them to better acquire, convert, and retain guests through more direct bookings.
This is a powerful indication that staying competitive in the hospitality industry will require new strategies to maximize direct bookings and revenue potential and foster long-term guest loyalty.
Booking travel online has become the norm for most travelers in today’s digital and highly connected world. With 60% of all reservations being made online but only 20% coming directly through a hotel’s website, it is now as vital as it has ever been for hoteliers globally to start thinking of their direct booking strategy.
A recent study led by h2c and sponsored by Amadeus, among others, involving 96 hotel chains worldwide (representing 19,000 properties, 2 million rooms) showed that, for these chains, while the share of all bookings coming through hotel booking engines has doubled from 10% to 20% over the last five years, OTAs including bed banks still capture 35% of all bookings made online. A massive opportunity exists, therefore, for hotels looking to increase their revenue, by capturing a greater portion of that online business.
The study additionally revealed that 20% of hotel chains surveyed were not satisfied with and felt limited by their current booking systems, as they lacked personalization capabilities and proper upselling functionalities. They are therefore considering investing in new systems within the next three years to allow them to better acquire, convert, and retain guests through more direct bookings.
This is a powerful indication that staying competitive in the hospitality industry will require new strategies to maximize direct bookings and revenue potential and foster long-term guest loyalty.
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