By 2030, direct digital bookings are expected to reshape the landscape of hotel distribution, overtaking online travel agencies (OTAs) as the primary channel for global hotel reservations. Skift Research’s 2024 Hotel Distribution Outlook reveals that while OTAs currently dominate the market, hotels are increasingly focusing on direct digital channels to engage travelers more effectively and reduce dependency on intermediaries. This shift is projected to generate $409 billion in global hotel bookings through direct digital channels by the end of the decade, marking a pivotal transition in how consumers book travel accommodations.

Key Takeaways:

  1. Direct digital channels are set to lead hotel bookings by 2030: Skift Research projects that direct digital bookings will generate $409 billion globally, surpassing the OTA contribution of $333 billion and marking a significant shift in hotel distribution.
  2. OTAs and travel agents will play a reduced yet crucial role: While indirect booking channels will remain relevant, their share in hotel distribution is expected to decrease, as hotels adopt more direct digital strategies to engage customers.
  3. Hotels aim to lower reliance on indirect channels: Skift’s survey of hoteliers indicates a goal to reduce indirect bookings to 34% by 2030, a notable decline from 53% in 2024, signaling a clear preference for direct bookings as a central strategy.

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Read the full article at skift Inc.