Hotel Distribution Outlook 2024

Report Overview

Using a proprietary Skift Research survey of hoteliers, we analyze the state of hospitality distribution today and look beyond to what an ideal distribution strategy could look like. Unsurprisingly, hoteliers want more direct bookings. But that is not to say that indirect distribution channels would fall to zero in an ideal scenario, with channels such as online travel agencies (OTAs) an important and necessary part of a hotel’s overall distribution strategy. 

Currently, OTAs are responsible for the largest amount of hotel gross bookings of any distribution channel. However, by 2030, direct channels will have overtaken them as the dominant distribution channel for hoteliers. In 2030, more than $400 billion of hotel gross bookings are expected to come from direct digital channels, compared to $333 billion from online travel agencies. 

Although there is a shift toward direct bookings, defining the perfect hotel distribution strategy has become increasingly complex, especially as consumer preferences diversify, suppliers adapt to new demand types, and innovative distribution methods disrupt traditional models. The growth of experiential travel is driving a shift toward unique, personalized hospitality offerings that cater to travelers’ desires for bespoke experiences.

What You'll Learn From This Report

• A detailed distribution channel mix from 2017 to 2024, with hoteliers’ projections for 2030

• The level of satisfaction with current distribution and an analysis of an ideal mix

• How third-party channels such as online booking platforms will remain an integral part of distribution, despite the concerted efforts of direct-booking campaigns

• How branded hotel chains and independent properties differ in their distribution mixes

• An analysis of costs and commissions for all distribution channels

• Where loyalty programs fit in the overall distribution mix

• The drivers of direct bookings

• The biggest challenges with third-party distribution