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The Real Impact and Cost of Digital Marketing on Direct Hotel Bookings
D-EDGE Hospitality Solutions
Friday, 23rd February 2024
 

In a world where the digitalisation of hotel bookings has reached unparalleled heights, a latest study unveils the impact of digital advertising on direct hotel bookings.

Based on an analysis of 1,200 independent hotels and hotel groups from 2019 to 2023 in Europe and Asia, this study offers unprecedented insights into optimising the most profitable direct bookings for hotels in an ever-evolving digital landscape, particularly with the rise of AI and the implementation of the Digital Markets Act (DMA).

The study highlights:

  • A surge in overall online bookings in 2023, with direct bookings maintaining strong performance (29.5% average revenue generated from online bookings),
  • A significant increase in the share of direct bookings, up to 36% for hotels that have implemented digital marketing campaigns, such as keyword purchases and presence on metasearch,
  • An opportunity for increased direct revenue with the relative decrease in the cost of sponsored direct distribution, offering hoteliers the chance to reduce their acquisition costs while increasing their margins
  • The notable growth of Bing in a landscape still dominated by Google,
  • The enormous potential of AI in improving hotel direct bookings performance. Experts from D-AGENCY* conducted a series of large-scale tests to identify the optimal uses of AI, and share their observations and recommendations.

With the DMA (Digital Market Acts) poised to redefine the rules of the game for the digital market, this study is more relevant than ever.

"The DMA could upset the current balance of forces in the online booking sector, making it essential for hoteliers to stay at the forefront of digital and technological strategies," says Jean-Dominique Brivet, Chief Digital Agency Officer at D-EDGE.

The complete white paper can be downloaded here, offering hospitality professionals valuable data and strategic recommendations to successfully navigate the current digital ecosystem.

*D-AGENCY is a Digital Marketing Agency within D-EDGE, dedicated to the hospitality industry. Its 60 experts assist hotels worldwide in developing and optimising their digital strategies from website design and SEO optimisation to the implementation of multi-platform advertising campaigns.

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