The Skift Travel Podcast

Battle for Bookings: How Hotels and OTAs Compete for Clicks

Dec 6, 2024

Pranavi Agarwal, a Senior Research Analyst at Skift Research, dives into the shifting landscape of hotel bookings. She discusses how technology is leveling the playing field, with platforms like Google helping boost direct bookings. The rise of post-pandemic consumer preferences emphasizes trust and personalization, reshaping loyalty programs. Agarwal also highlights increased competition as OTAs falter against wholesalers and corporate agents, while independent hotels find new opportunities through social media and strategic partnerships.

35:02

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Episode guests

Pranavi Agarwal

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Episode notes

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Quick takeaways

Technological advancements and improved hotel tech stacks are crucial for enhancing direct bookings and leveling competition with OTAs.

Consumer behavior post-pandemic shows a clear preference for direct hotel bookings driven by trust, personalization, and loyalty programs.

Deep dives

The Battle for Hotel Bookings

A significant competition exists for travelers’ booking preferences between hotels and online travel agencies (OTAs) such as Expedia and Booking.com. Hotels favor direct bookings to avoid the commissions charged by OTAs, while OTAs seek to expand their market share by attracting customers through convenience and search algorithms. The discussion highlights how this dynamic impacts both consumer behavior and hotel strategies, making hotel distribution an essential topic in the travel industry. Research indicates that understanding this competitive landscape is critical for the success of business strategies moving forward.

Intro

5min

Shifts in Hotel Booking Trends

10min

Debate Over Direct Bookings vs. OTAs: Industry Reactions Explored

3min

The Evolution of Hotel Booking Preferences

4min

Evolving Hotel Booking Strategies: Technology, Loyalty, and Consumer Preferences

4min

The Evolving Landscape of Hotel Bookings

9min

Hosts Seth Borko and Sarah Kopit by their Skift Research colleague Pranavi Agarwal. Agarwal authored a recent report that looked at the prospects for hotel direct bookings. How and where consumers book their hotel rooms can have huge implications for hotels, online travel agencies, and pretty much anyone in the travel industry. This is the third time in seven years that Skift has commissioned this report, and this year it revealed significant shifts in booking trends over the years, influenced by technology, consumer behavior, and market disruptions like the COVID-19 pandemic.

3 Key Themes

Technological Advancements and Democratization: The role of improved hotel tech stacks and platforms like Google in leveling the playing field for direct bookings. How AI and other emerging technologies can make direct booking experiences more seamless for both chains and independent hotels.

Consumer Behavior and Loyalty: Post-pandemic preferences for direct bookings due to perceived trust and flexibility. The growing emphasis on personalized experiences and how loyalty programs can drive direct bookings beyond just offering discounts.

Shifts in Market Dynamics: OTAs losing ground to wholesalers and corporate agents as hotels prioritize high-volume group bookings. The fragmented nature of the hotel market, with increased opportunities for independent hotels to leverage social media and partnerships.

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