The shifting landscape of travel bookings

Direct bookings are on the rise as travelers prefer supplier websites to OTAs, requiring hotels to create a compelling direct booking experience and offer exclusive deals

The travel booking industry is undergoing significant change, with a growing trend toward direct bookings changing the competitive landscape. What's driving this shift? Skift Research explores these crucial developments in its latest report, "Direct Bookings vs. OTAs: Analyzing the Shift in U.S. Travel Booking Trends."

Key takeaways

• While travelers increasingly rely on online travel agencies (OTAs) for research, they prefer to book directly. For example, 26% of travelers use OTAs to research flight options, but 55% choose to book directly through airline websites;
• This 29-point gap highlights the "billboard effect," where OTAs serve as a valuable tool for comparison shopping, but travelers often turn to airlines for perceived reliability, better deals or exclusive perks when finalizing their bookings;
• In addition, many travelers show little enthusiasm for OTA loyalty programs compared to those offered by hotels and airlines. This suggests that OTAs need to improve their loyalty initiatives to better attract and retain customers.

Get the full story at Skift