Report Overview

This report offers an in-depth analysis of the evolving dynamics in the travel booking industry in the U.S., with a particular focus on the increasing preference for direct bookings over Online Travel Agencies (OTAs). It examines how the COVID-19 pandemic has accelerated this shift, highlighting key factors such as competitive pricing, trust in supplier websites, and flexible booking options that drive travelers towards direct bookings. 

The report delves into sector-specific booking behaviors, providing a detailed view of how different travel sectors—such as accommodations, vacation rentals, and cruises—are affected by changing preferences. It includes data-driven insights on the rise of direct bookings and the “billboard effect,” where travelers research on OTAs but ultimately book directly. This analysis is supported by comprehensive survey data and trends observed in the market.

In addition to exploring the current state of travel bookings, the report offers actionable recommendations for suppliers and online travel platforms. Suppliers will learn how to enhance their direct booking channels and leverage exclusive offers to attract customers. OTAs will find strategies to adapt to the increasing competition from direct bookings, including how to utilize their existing strengths in customer service and loyalty programs. The report also highlights opportunities in the connected trips market and the importance of understanding traveler preferences to stay competitive in a rapidly changing industry. 

What You'll Learn From This Report

  • 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
  • The "billboard effect," where travelers use OTAs for research but book directly
  • How OTAs can leverage a high Net Promoter Scores to foster long-term loyalty
  • Opportunities for OTAs to offer bundled services and connected trips
  • The significance of pricing in travelers' booking decisions
  • The role of social media in influencing travel bookings