Hotel Distribution: The real cost of direct sales at the dawn of AI
As a partner to over 10,500 independent hotels worldwide for distribution and marketing strategies, D-EDGE closely monitors hotel distribution and advertising trends.
We have observed that direct booking trends were increasing: the direct revenue share increased from 23.6% in 2019 to 29.5% in 2023, a growth of 24% over the same period.
So we conducted further research to find where this increase was coming from. We discovered that digital advertising campaigns played a significant role. Consequently, we aimed to quantify their impact and associated costs precisely. Additionally, we explored the influence of artificial intelligence in the industry, testing various scenarios.
This paper shares our findings and insights, offering valuable conclusions for hoteliers.
Revenues from Hotel Direct Distribution are at a high level and powered by Digital Marketing
Through an analysis of the source of reservations, you will discover the incremental increase in direct bookings attributable to Digital Marketing and its subsequent impact, unveiling the most successful advertising media.
Concurrently, digital advertising costs are decreasing, enhancing the cost-effectiveness of direct distribution for hotels
We’ll see how the cost of digital advertising has decreased since 2019, consequently improving the ROI for Hotels. Additionally, we’ve successfully computed the real cost of direct distribution apart from mere guesstimates we often come across.
AI can improve hotels Digital performance
We looked at how AI was already used today by key digital players such as Google and Bing. Additionally, we conducted our own tests, comparing various AI usage scenarios within a digital marketing strategy.
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