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h2c unveils 2024 Global Hotel Direct…

  • Kate Harden-England
  • 30 October 2024
  • 2 minute read
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This article was written by Travolution. Click here to read the original article

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With direct bookings becoming a critical focus for hotel chains worldwide, h2c, a leading consultancy in the hospitality industry, has released its 2024 Global Hotel Direct Booking Acceleration Study. 

This in-depth research offers key insights into the technologies and strategies shaping the future of direct bookings, from AI-powered booking engines to the rise of mobile transactions.

Based on responses from major hotel chains worldwide, the study provides actionable insights into the direct sales ecosystem. It offers a comprehensive look at the shifting priorities and emerging technologies reshaping hospitality commerce.

Key findings from the study include online-direct sales normalisation. After the pandemic-triggered surge in direct bookings during 2022, online direct sales have stabilized. 

IBE (Internet Booking Engine) revenue growth has returned to a sustainable trajectory, mirroring pre-pandemic patterns.

It found that mobile bookings are rapidly overtaking desktop sales. In 2-3 years, mobile transactions could account for nearly half of all IBE sales. Mobile websites are driving this growth, with app revenue dominated by large chains through loyalty programs.

While AI use in IBEs has increased since 2020, with hotels embracing AI for personalized bookings, yield management, and AI-powered chatbots. Half of the surveyed hotel chains plan to implement AI features in the coming years.

Long processes causes nearly 50% drop out…
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Long processes causes nearly 50% drop out…

It showed that nearly half of the hotel chains offer loyalty programs, although these programs generate less than one-third of total revenue. The key benefit for members is access to lower member-only rates.

Despite enhancements in personalization and customization, issues persist with upselling, unsupported rate strategies, and reporting functionalities. These areas require more focus compared to 2020.

The report also highlighted that ancillary revenue potential remains underutilized. While breakfast ranks as the top-performing ancillary item, many chains are eyeing additional growth in this area. Item sales are currently offered by 25% of IBEs, with 75% interested in implementing them.

Though only 35% of hotel chains have a dedicated team to identify and automate manual tasks. While 22% plan to establish such teams, four in ten chains still leave significant automation opportunities unaddressed.

It detailed that AI-driven process optimization and recommendation engines top the list of anticipated innovations for 2024. 

Other emerging technologies include direct booking capabilities for local activities and AI-powered chatbots and content generators.

Finally, data cleansing remains a challenge. While PMS systems are well-integrated, significant gaps remain in connecting loyalty systems, POS, and chatbots. 

Nearly a third of hotel chains report data cleansing as a critical challenge, particularly among smaller chains in Europe and APAC.

Please click here to access the full original article.

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