Leading hospitality consultancy, h2c, has unveiled its 2024
Global Hotel Direct Booking Acceleration Study. This comprehensive report
provides an in-depth view of the current landscape and offers actionable
insights into the latest technologies and strategies transforming direct sales
for hotels worldwide.
"As hotels work to regain control over their booking
channels in a post-pandemic world, our study highlights key technology
investments and strategic moves that will support their competitiveness,"
said Michaela Papenhoff, Managing Director of h2c.
The study, based on extensive input from global hotel
chains, reveals significant shifts and trends that are reshaping the direct
booking ecosystem. Findings cover a broad spectrum, from mobile booking growth
to AI-enhanced personalization, offering valuable insights for hoteliers aiming
to optimize direct sales channels.
Key findings from the 2024 study
- Normalizing
Online Direct Sales: Following the direct booking
surge in 2022, online-direct revenue has stabilized, with Internet Booking
Engine (IBE) growth returning to pre-pandemic trends.
- Mobile
Bookings on the Rise: The study shows that mobile
bookings are rapidly surpassing desktop sales, with mobile transactions
projected to constitute nearly half of all IBE sales within 2-3 years.
Mobile-friendly sites drive this trend, while apps remain primarily
utilized by loyalty program members.
- AI-Powered
IBEs: AI capabilities in booking engines continue to
expand, with many hotels now integrating AI for personalized bookings,
yield management, and customer engagement. Around half of the surveyed
hotel chains plan to implement additional AI features in the near future.
- Growth
in Loyalty Programs: Although loyalty programs
represent a smaller share of total revenue, they drive direct sales
through exclusive member rates, highlighting an area for revenue
expansion.
- Evolving
IBE Challenges: The study also uncovers ongoing
challenges in areas such as upselling and reporting functionalities,
underscoring the need for enhancements in these areas to streamline
operations.
- Ancillary
Revenue Opportunities: Breakfast remains a top-seller,
but hotels have yet to fully harness the potential of other ancillary
offerings. Item sales are still relatively limited among IBEs, with a
strong interest in expanding these options.
- Room
for Automation: Automation remains a largely untapped
area, with only 35% of hotel chains having dedicated teams for task
automation, presenting a significant area for potential growth.
- Data
Integration Gaps: While property management systems
(PMS) are generally integrated, many chains report challenges in
connecting loyalty systems, POS, and chatbot functionalities, especially
in Europe and APAC.
Acknowledging sponsors and partners
This study
was made possible thanks to the invaluable support of our sponsors, including Amadeus Hospitality, Blastness, Cendyn, dailypoint,
D-EDGE,
ErmesHotels, Oracle
Hospitality, P3
Hotel Software, Profitroom,
SHR, Thynk, and Zucchetti. We extend
our sincere thanks to these industry leaders for their commitment to advancing
hospitality insights.
We also
recognize the contributions of our partners ExploreTECH, hospitality INSIDE,
HSMA, and IHA, whose collaboration and support have greatly enriched this
research initiative.
Join the conversation at h2c’s upcoming webinar
h2c will
host a LinkedIn live webinar on November 14, 2024, at 11:30 CET to dive deeper
into these findings and discuss how hotels can leverage these insights to
enhance their direct booking strategies. This session is open to all hoteliers,
industry professionals, and technology vendors interested in exploring new
pathways for direct sales growth.
Download the study highlights
The public
Research Highlights will soon be available for download on h2c’s website,
featuring the most impactful findings from the 2024 study. Visit h2c.de
for the download and stay updated on the latest insights and solutions shaping
hospitality commerce.
Download
Now
2025 AI & Automation Study: Shaping the Future of Hospitality
In early
2025, h2c will launch a new study titled AI & Automation, delving
into the transformative impact of artificial intelligence and automation across
the hospitality industry. This upcoming research will explore pivotal areas,
including automation in operations, reservations, call centers, marketing, CRM,
and personalized guest services. The study will also investigate predictive
analytics, AI-powered reporting, and advancements in guest review management,
revenue management, and human resources planning.
We invite
industry leaders to partner with us as sponsors in shaping the scope and focus
of this study. As a sponsor, you’ll have the opportunity to guide research
areas and gain early insights into cutting-edge strategies that elevate guest
experiences and optimize operational efficiency. Contact us to join as a
sponsor and help define the future of AI and automation in hospitality!
For press
inquiries or interview requests with h2c’s industry experts, please contact
Michaela Papenhoff, Managing Director, at info@h2c.de.