Insight
Guests who book directly with hotels are cheaper to acquire and provide data for personalization.
Direct Booking Tug-of-War: Hotels’ Long Bid to Take Back Power
Summary
Major hotel chains like Hyatt are battling online travel agencies (OTAs) for direct bookings, a decade-long struggle costing them significant operating margins. Hotels seek to reduce commission costs and gain guest data for personalization, resulting in lower customer acquisition costs. Despite large investments, OTAs still control a substantial market share.
Key takeaway