The travel booking landscape is rapidly changing, with direct bookings increasing and reshaping competition. Skift Research explores this trend in their report, “Direct Bookings vs. OTAs: Analyzing the Shift in U.S. Travel Booking Trends.” Travelers’ preference for booking directly on supplier websites over OTAs is one of the key drivers behind this shift, highlighting the need for OTAs to adapt their strategies to remain competitive.
While travelers are using OTAs for research purposes, a significant number are choosing to book directly with suppliers. For example, 26% of travelers use OTAs to research flight options, but 55% ultimately book directly on airline websites. This “billboard effect” shows that OTAs play a crucial role in initial comparisons, but travelers seek reliability, better deals, or additional benefits when booking directly with airlines. This demonstrates the importance for OTAs to refine their value propositions to convert research into actual bookings.
Despite achieving Net Promoter Scores (NPS) on par with direct bookings and strong repeat usage, OTAs lag behind in the effectiveness of their loyalty programs. Many travelers are indifferent to OTA loyalty programs compared to those offered by hotels and airlines, indicating a need for OTAs to enhance their loyalty offerings to make them more appealing. Key takeaways from the report include the importance for OTAs to focus on enhancing loyalty programs, optimizing pricing strategies, and addressing the “billboard effect” to convert research into bookings.
The report also highlights opportunities for suppliers to strengthen their online presence, offer exclusive deals, and create a compelling direct booking experience to attract and retain customers. Additionally, the report identifies opportunities in promoting bundled services and catering to older travelers who prefer direct bookings. By aligning strategies with these insights, both OTAs and suppliers can meet evolving traveler expectations and drive growth in the evolving travel market.
Key insights from the report include the importance of balancing online and offline channels in travel marketing, variations in booking preferences across different travel sectors, reasons travelers are moving towards direct bookings instead of OTAs, and the role of social media in influencing travel bookings. This report is part of a series of reports and data products released by Skift Research to help analyze trends in the travel industry. Subscribing to Skift Research provides access to a range of reports on various topics in the travel industry, as well as proprietary tools and data to help stay ahead in the market.
