Will Your Direct Bookings Surpass the OTAs in 2030?
Did you catch this headline a few weeks ago?
"Direct bookings could top $400 billion by 2030, surpassing OTAs." - Skift’s Hotel Distribution Outlook 2024
Skift is a top travel industry platform. It provides news, trends, data, and insights for tourism and hospitality professionals.
If you have seen this, you already know that the article used vague language.
I didn't want to feed vague answers into this Bookings Boost.
So, I researched this prediction. Then, I considered its implications for Hoteliers.
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Why do they think Direct Bookings will surpass OTAs?
Direct Channels Offer More Choices for Travelers: Guests are calling for one-of-a-kind experiences and unique options, and hotels are answering. Hilton declares 2025 "The year of the travel maximizer." Maximizing dollars and time with a cocktail of experiences.
New Ways to Book: Hotels are embracing innovative booking methods—websites, apps, social media, and AI-driven search tools, making it easier and faster.
Meeting New Demands: Hotels leverage exclusive offers, like adventure packages or spa deals, to showcase their value to potential guests. This cuts out any middleman who might dilute the message.
Focus on Unique Experiences: Travelers crave personal, memorable trips. Direct channels highlight bespoke stays that OTAs can’t replicate.
These shifts in travel behaviour and demand excite Hoteliers like you and me!
Sounds like a nightmare for OTAs, doesn’t it?
Don’t be fooled. They aren’t losing sleep over it.
Why?
They’re banking on hoteliers to remain status quo.
They're counting on Hoteliers to underinvest in technology, marketing, and experience.
Ouch, right?
They're counting on you to be distracted and overwhelmed with the 24/7/365 demands of an operation.
OTAs aren’t sitting idle.
To quote Samuel L. Jackson in Jurassic Park: “Hold on to your butts.”
They’re spending billions on AI.
The OTAs aim to partner with AI agents instead of being bypassed by a hotel's direct channel.
In a follow-up article to Skift's prediction, PhocusWire recently noted:
“So while suppliers are figuring out their future AI strategy, OTAs are ready to profit from the great attention migration from human eyeballs to an AI agentic future world.”
OTAs are speeding ahead.
While many hoteliers...
Are stuck with outdated websites.
Don’t know their website conversion rate.
Haven’t committed to guest retention strategies.
Depend on OTAs, letting profits dwindle despite steady revenues.
Haven't implemented the most powerful strategies that drive direct bookings.
The result?
Hotels fall further behind while OTAs gain an even stronger foothold.
But amidst the clouds, there is always a ray of sunshine.
Here's what is in your favour, Christine
Better Revenue Management Tools: Revenue tools are now more innovative, more accessible, and cheaper than ever. They help you control your pricing and inventory, keeping you out of the OTA trap.
CRMs Prioritize Guest Retention & Profit: The best revenue is retained revenue: your repeat guests. Repeat guests know your value—and your pricing. Use a CRM like Revinate or Cendyn. It will help you understand their preferences, tailor communication, and boost loyalty. Email marketing isn’t dead; it’s just grossly underused.
Invest in Your Digital Presence: Optimize your website for conversions and user experience.Create a strong content marketing strategy. It must cover voice search, AI-driven Generative Engine Optimization, and traditional SEO. (Yes, Google still matters - No, it's not dead.)
Hoteliers who innovate now will lead and make the prediction true in 2030.
Will you be among them, or will you remain trapped in the hamster wheel of OTA dependency?
I'm cheering for you to be among the happy Hoteliers who:
enjoy increased profitability
have a high repeat guest rate
bask in high return on marketing investment
are envied by your competition for glowing reviews
have a website that converts more than 2% of your visitors
feel confident in highly effective and inexpensive marketing
and are promoted or bonused well for taking action.