The real cost of direct hotel bookings

As the trend of booking hotels directly continues to grow, a recent report from D-Edge examines its sources and offers insights into optimizing distribution strategies

Mar 4, 2024

Based on an examination of 1,200 independent hotels and hotel groups across Europe and Asia from 2019 to 2023, this study provides unprecedented insights into optimizing direct bookings, particularly amidst the evolving digital landscape marked by the emergence of AI and the implementation of the Digital Markets Act (DMA).

Key takeaways

  • A notable upsurge in overall online bookings in 2023, with direct bookings maintaining robust performance, constituting an average revenue share of 29.5% from online bookings;
  • An evident rise in the proportion of direct bookings, reaching 36% for hotels employing digital marketing strategies like keyword purchases and presence on metasearch platforms;
  • An opportunity for enhanced direct revenue owing to the relative decline in the cost of sponsored direct distribution. This presents hoteliers with the chance to trim acquisition costs while bolstering margins.

Download the full report at D-Edge

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