SiteMinder’s latest study on hotel booking trends indicates that in 2024, the average revenue per direct booking made on hotel websites is $519. In contrast, bookings made through OTAs (online travel agencies) average $320. This finding highlights that hotels generate more value per booking through their websites than through distribution partners.
Additionally, the revenue from direct bookings has increased by 8.5% compared to 2023 and is 30% higher than the average booking of $380 made through global distribution systems. Furthermore, it is also 15% greater than the average booking of $446 from wholesalers and tour operators, according to SiteMinder.
Travelers often discover that hotels have more options and availability for upselling through their own direct channels. When visiting the hotel’s website, customers can see all available room types. In contrast, other distribution channels may not offer premium rooms for sale.
The annual report, which analyzes over 125 million hotel reservations, highlights that hotel websites consistently rank among the top two distribution hotel channels in most countries. For instance, in Ireland, Portugal, and Spain, hotel websites are second only to Booking com as the leading source of bookings. This ranking has been maintained for more than five years.
The hotels’ performance of hotel booking websites as a distribution channel may be attributed to the expertise of hoteliers in these regions and the availability of effective technology.
In both the United Kingdom and the United States, hotels’ own websites rank third among the top distribution channels, with Booking com and Expedia keeping the top two positions.
The report also identified new distribution partners for 2024, including Trip com, Hopper, and TBO Holidays. These companies have either ranked in the top 12 distribution sources in certain countries or are close to making the list.
It is encouraging to see hotels expanding their distribution options and recognizing the importance of additional channels. Furthermore, it’s positive to note a healthier mix of B2B (business-to-business) partners alongside B2C (business-to-consumer) distribution.
