Skift Take
By 2030, direct digital bookings will surpass online travel agencies as the dominant distribution channel, generating over $400 billion in global hotel gross bookings.
Online travel agencies still account for the largest share of hotel gross bookings - but that's changing fast, Skift Research shows in Hotel Distribution Outlook 2024.
We predict that by 2030, direct digital channels will have overtaken the OTAs as the dominant distribution channel for hoteliers: $409 billion of hotel gross bookings are expected to come from direct digital channels, compared to just $333 billion from OTAs.
It is no surprise that hoteliers want more direct bookings: Direct bookings are generally a more profitable channel as compared to indirect bookings and they allow hoteliers to retain data about their consumers. But the contribution from indirect channels, including OTAs and travel agents, isn't going to zero. They will remain an important part of hotels' distribution strategy.
An ideal contribution from indirect channels would be 34%, according to a proprietary Skift Research survey of hotel owners and operators.