MarketingNew Zealand

Direct bookings: The real impact of digital marketing

D-EDGE study reveals impact and cost of digital marketing on direct hotel bookings

As the hospitality industry continues its digital transformation, D-EDGE Hospitality Solutions, a leading provider of hotel technology, has released findings from its latest study shedding light on the influence of digital advertising on direct hotel bookings.

The study, which analysed data from 1,200 independent hotels and hotel groups across Europe and Asia from 2019 to 2023, offers valuable insights into maximising profitable direct bookings amid a rapidly evolving digital landscape, especially with the emergence of artificial intelligence (AI) and the implementation of the Digital Markets Act (DMA).

Read the summer print edition of AccomNews HERE

Key highlights from the study include:

  • Surge in Online Bookings: In 2023, there was a notable increase in overall online bookings, with direct bookings maintaining a strong performance, contributing to an average revenue of 29.5 percent generated from online bookings.

  • Rise in Direct Bookings: Hotels that implemented digital marketing campaigns, such as keyword purchases and presence on metasearch platforms, experienced a significant uptick in the share of direct bookings, reaching up to 36 percent.

  • Reduced Cost of Sponsored Direct Distribution: The study indicates a relative decrease in the cost of sponsored direct distribution, providing hoteliers with an opportunity to lower acquisition costs while boosting margins.

  • Emergence of Alternative Platforms: While Google continues to dominate the digital advertising landscape, the study highlights the growing significance of Bing as a viable alternative.

  • Potential of AI: AI shows promise in enhancing hotel direct bookings performance. D-AGENCY experts conducted extensive tests to identify optimal AI applications, offering valuable recommendations for industry professionals.

Jean-Dominique Brivet, Chief Digital Agency Officer at D-EDGE, emphasised the importance of staying ahead of digital and technological strategies, especially with the impending impact of the DMA on the online booking sector.

With the DMA poised to reshape the digital market, the insights provided by this study are more relevant than ever. The complete white paper, available for download HERE, equips hospitality professionals with valuable data and strategic recommendations to navigate the evolving digital ecosystem successfully.

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