Hotel brands cheer direct bookings trend

But not all major hotel companies are so keen
One of the biggest trends on hotel chief executives’ minds this year is setting up direct bookings as a way to give discounts to loyalty members.
Marriott and Hilton have led the way and Hyatt, InterContinental, Wyndham, Choice and others are not far behind. But there may be short-term pain in return for the very long-term gain.
Hilton CEO Christopher Nassetta said back in April that direct channels – and the Hilton app – accounted for 25% of Hilton’s business, while “OTAs are, plus or minus, 10 percent of our business.” He added: “The direct channels are significantly larger than those channels and they are growing at a much faster pace.”
Hilton’s HHonors enrolments are up 80% so far this year, with 2.4 million new members in the second quarter, totaling more than 55 million members. HHonors occupancy rates are at around 56%.
But not all brands are positive about direct booking. Sebastien Bazin, chief executive of AccorHotels, for example, tells Skift: “Are they going to be successful in taking market share away from Booking and Expedia? I doubt it.”


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