Technologies and strategies shaping direct hotel bookings

Recent research highlights the technologies and strategies shaping the future of direct bookings, such as AI-driven engines and mobile transactions

As hotel chains around the world prioritize direct bookings, H2C, a leading hospitality consultancy, has released its 2024 Global Hotel Direct Booking Acceleration Study. Based on feedback from major hotel chains, the report provides actionable insights into the direct selling ecosystem and explores the shifting priorities and technologies impacting hospitality commerce.

Key takeaways

• Mobile bookings are quickly outpacing desktop sales, with projections that mobile transactions could account for nearly half of all IBE sales within the next 2-3 years;
• Since 2020, the use of AI in IBE has increased, with hotels adopting AI for personalized bookings, yield management, and chatbots;
• While half of hotel chains offer loyalty programs, these programs contribute less than one-third of total revenue;
• Despite advances in personalization and customization, challenges remain with upselling, unsupported rate strategies, and reporting capabilities;
• The report also found that the potential for ancillary revenue is underutilized. Breakfast is currently the top-performing ancillary item, and many chains are looking to expand this area. Currently, 25% of IBEs offer ancillary sales, with 75% expressing interest in implementing them.

Download the full report at H2C