He indicates that according to a recent analysis by Skift, hotel distribution is in the midst of a profound change, with the expectation that by 2030 direct bookings will become the leading channel worldwide.
This shift not only reflects a trend in the hotel industry, but an overall reconfiguration of customer focus and business profitability.
By 2030, direct digital bookings are projected to generate more than $400 billion in gross considerations, overtaking online travel agencies (OTAs) as the leading distribution channel.
The trend toward direct bookings has multiple underpinnings. First, hotels are looking to maximize their profit margins.
OTAs, while offering visibility and reach, charge high commissions that can reach up to 20-30 percent of the booking value.
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