The hotel industry is witnessing a significant shift in booking behavior, with direct bookings experiencing a resurgence and surpassing pre-pandemic levels. This trend is driven by the increasing adoption of mobile platforms and the strategic integration of artificial intelligence (AI) by hospitality providers.
According to a new report, “The Hotel Direct Booking Acceleration,” released by H2c, direct online sales are stabilizing after a substantial surge in 2022. This stabilization reflects a return to pre-COVID revenue patterns and establishes a more sustainable trajectory for direct bookings. The report, set to be published on October 30, analyzes data from 88 hotel chains representing 3,885 properties and 578,653 rooms, offering valuable insights into the impact of technology and strategic shifts on the future of direct bookings.
In 2022, direct online bookings accounted for a remarkable 29% of total bookings, a figure deemed “exceptionally strong” by H2c. This spike can be attributed to travelers seeking detailed information about COVID-related policies and protocols before making bookings directly through hotel websites. While 2019 saw 19% of bookings made directly online with hotels, this figure rose to 21% by 2023. Unfortunately, data for 2020 and 2021 is unavailable due to the significant disruptions caused by the pandemic.
Mobile bookings are playing a pivotal role in this trend, steadily overtaking desktop transactions. Five years ago, mobile accounted for 36% of online direct bookings for participating hotels. Last year, this figure jumped to 42%, and H2c anticipates that mobile could soon account for nearly half of all direct bookings.
The increasing use of artificial intelligence (AI) is also a key focus for hotels as they refine their direct booking strategies. AI is playing a more prominent role in various aspects, from personalizing guest experiences to implementing chatbots and optimizing revenue management. The study reveals that approximately 50% of hotel chains participating in the research plan to roll out new AI-driven features in the near future.
The report further explores the impact of member rates on direct bookings, the challenges posed by Internet Booking Engines (IBEs), and the growing importance of ancillary sales. It also delves into innovations driven by AI, data management best practices, and untapped opportunities in automation.
The findings of “The Hotel Direct Booking Acceleration” report offer a compelling perspective on the evolving landscape of hotel bookings, highlighting the growing influence of technology and the strategic shift towards a more direct and personalized guest experience. As the industry continues to adapt to the post-pandemic travel environment, understanding these trends will be crucial for hoteliers seeking to optimize their operations and maximize revenue.
