Direct hotel channels lose corporate share to GDSs

HEDNA–NYU report shows GDS becoming the dominant corporate channel as business travelers move away from direct bookings

Corporate travel distribution is undergoing a structural realignment that directly affects how hotels capture high-value business demand. Between 2023 and 2025, corporate and consortia travelers have steadily shifted bookings away from Direct channels toward Global Distribution Systems (GDS), fundamentally changing the channel mix for managed travel. While overall business travel volumes have recovered, the real story for hoteliers is about where value is being created and captured. The data shows that GDS has overtaken Direct as the leading channel for corporate room nights, reinforcing its central role in delivering predictable, higher-quality revenue.

Key takeaways

• GDS overtakes Direct in corporate bookings: By 2025, GDS has become the leading channel for corporate room nights, reflecting a sustained migration away from property-driven direct bookings.
• Corporate loyalty travelers follow the same shift: Among loyalty members, GDS has surpassed Direct as the primary booking channel for corporate stays, undermining assumptions that loyalty guarantees direct demand.
• Revenue quality favors GDS channels: GDS bookings consistently achieve higher ADRs than Direct, positioning GDS as a yield-focused channel rather than a pure volume driver.
• Direct channel share continues to erode: Direct’s share of total room nights and revenue has declined since 2023, with only modest recovery in 2025 that does not offset structural loss in corporate demand.
• Negotiated travel prioritizes value over volume: Although negotiated corporate travel represents a smaller share of room nights, it generates disproportionate revenue growth through higher rates and longer stays.
• Booking behavior strengthens GDS economics: GDS travelers book further in advance and are less reliant on same-day demand, enabling more effective yield management and pricing control.
• Hotels must rethink corporate distribution strategy: Reliance on Direct channels alone is no longer sufficient for corporate acquisition; competitive performance now depends on active GDS optimization and partnerships.
• Managed travel remains commercially essential: Despite higher acquisition costs, managed corporate travel continues to deliver stable midweek occupancy, loyalty engagement, and predictable RevPAR, making GDS strategy a critical lever for hoteliers.

Download the full report at HEDNA

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