Hotel direct bookings hold steady as AI and OTAs gain research share
Direct bookings are stable. SiteMinder's latest Hotel Booking Trends report shows revenue share stayed within 1.5 percentage points of the prior year in 95% of markets analyzed. The dataset covers 130 million bookings across 20 markets, plus feedback from 700 hoteliers.
The takeaway: fundamentals still win. Hotels that invest in website optimization, metasearch visibility, and a frictionless checkout continue to attract higher-value guests and tighter relationships.
What the data says
- Direct stays valuable: Hotel websites delivered the highest average value per booking at $516. Wholesalers averaged $445, GDS $392, and OTAs $312.
- Behavior shifts: Cancellations dropped 19.15% on average. Booking windows extended to 32.15 days.
- Stays lengthened: 27% of bookings were for two nights or more in 2025.
- Rates up in most places: ADR increased in 14 of 20 markets. The global ADR averaged $194, with Austria posting the largest average jump (+$15).
Channel shifts to watch
- North America: Expedia Group was the top revenue-driving channel in the U.S., Canada, and Mexico-its first sweep since 2020 and first U.S. lead since 2021.
- Asia growth: Trip.com gained across multiple markets; Agoda rose in the Philippines and Taiwan; India's Goibibo and MakeMyTrip grew in Thailand and Malaysia.
- Outbound demand: Travel from China and India exceeded pre-pandemic levels in 2025, with projections pointing to 3.5 billion middle-class consumers in Asia by 2030.
Why this matters for sales and marketing
OTAs and AI tools are widening their role in trip research. That influences discovery, but it hasn't displaced the direct channel's revenue quality. Direct bookings still carry better margins, stronger upsell potential, and cleaner data.
Your job is to capitalize on both: ride OTA demand to fill the funnel, then convert high-intent guests on your site with speed, clarity, and value.
Actions you can take now
- Own the direct journey: Improve mobile speed and checkout. Aim for a sub-60-second path to purchase with clear room differentiation, fees shown upfront, and one-click wallet options.
- Strengthen metasearch and rate integrity: Maintain rate parity, push member-only perks on direct, and use metas to capture shoppers who compare before they commit.
- Package for higher value: The data favors longer, richer stays. Bundle 2+ night offers with breakfast, parking, or late checkout. Add pre-arrival upsells and on-site "extras."
- Reduce cancellations: Use clear policies, timely reminders, and easy self-service modifications. Offer flexible rates with small incentives for nonrefundable tiers.
- Work the booking window: With a 32-day average lead time, line up advance purchase deals (30-60 days). Shift paid media and email cadences earlier and segment by lead time.
- Balance channels by market: Lean into Expedia in North America for reach, and watch Trip.com, Agoda, Goibibo, and MakeMyTrip where they're surging. Retarget OTA bookers into your CRM for repeat direct.
- Prepare for Asia demand: Add language support, trusted local payment methods, and customer service coverage for key time zones. Highlight visa tips and connectivity (Wi-Fi, SIM options) on your site.
- Instrument your data: Track lead time, LOS, ADR, and cancellation rate by channel and segment weekly. Use UTMs, clean source codes, and a single source of truth for pricing decisions.
- Use AI where it helps: Test ad copy, landing page variants, and FAQs. Automate response workflows for pre-stay questions. Keep strategy in-house; let AI accelerate execution, not dictate distribution.
Bottom line
AI and OTAs are gaining research share, but direct bookings are holding their ground-and delivering higher value. Keep the fundamentals tight, watch market shifts in real time, and match your channel mix to where demand is actually growing.
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