How Europe’s hotels thrive with smarter distribution

Multi-channel strategies and online travel platforms are helping small, independent hotels boost visibility, increase occupancy, and improve profitability across Europe

The hospitality industry in Europe is thriving, with distribution playing a pivotal role in success. Built on a representative survey of 821 hotel executives from 18 countries, Booking.com's The State of European Hotel Distribution (November 2024) examines how hotels—especially small, independent ones—leverage multiple distribution channels and the growing impact of online travel agents (OTAs). It highlights how strategic use of these platforms drives profitability, enhances competitiveness, and sustains Google Europe’s position as a premier travel destination.

Key takeaways

1. Multi-homing and strategic channel mix

• Widespread multi-homing: 88% of hotels use at least two OTAs; nearly 60% use three or more.
• Dynamic optimization: 80% report having multiple effective marketing options, and 75% align channel mix with business goals.

2. OTAs boost revenue & profitability

• Occupancy uplift: 82% of hoteliers believe OTAs boost occupancy.
• Reduced acquisition costs: 63% report lower customer acquisition expenses.
• Profitability gains: 74% say OTAs make their business more profitable.

3. Direct sales on the rise

• Growing direct channels: 68% of hotels say their own booking systems (websites, newsletters) have grown in importance in recent years .

4. Not all channels created equal

• Flexible switching: 61% will switch from underperforming OTAs.
• Simplicity vs. efficiency: Among those using a single OTA, 50% prioritize simplicity and 46% find multi-homing too complex.

5. OTAs most beneficial to small hotels

• A Belgian study showed that listing on Booking.com increased hotels’ return on assets by nearly 2.9 percentage points on average—almost doubling baseline profitability—and this effect was strongest for smaller establishments.

6. Independent hotels capture the majority of bookings

• Independent establishments received 85% of the additional 133 million overnight stays attributed to OTAs in Europe, indicating OTAs help smaller properties compete effectively against chains.

Get the full report at Booking.com