Direct sales versus OTA’s, who dominates the market?


The variety of options that guests have at their disposal forces hotels to compete in more booking channels than ever before. Taking into account the total gross income of the accommodations that use SiteMinder, the 12 main hotel reservation channels in 2018 were:
Websites of the hotels (direct bookings)
Hotelbeds (including GTA and Tourico)
Global distribution systems
NT Incoming
HRS – Hotel Reservation Service
Welcome Incoming
On the Beach

Exponential growth of Internet sales

Taking into account the data of the annual report, the CEO of SiteMinder, Mike Ford, points out that this increase in the diversity of options is also indicative that the tourism segment has displaced that of the airlines in terms of sales made to through third-party services.

According to Euromonitor International, Internet hotel sales made through these services have exceeded 163,000 million dollars worldwide (more than 142,000 million euros, approximately), representing a growth of more than 250% in the last decade and 13% only in the last year.

This growth more than doubles that of the sales obtained by airlines made through third-party services during the last decade, which has only been 122% if we exclude the combined offers of flight and accommodation.

“Although in 2018 we saw a slight deceleration of tourism in some regions, there is no doubt that we are living a golden age for the whole industry. However, we hardly talk about the growth of internet sales that the hotel sector is experiencing, “explains Ford.

He also recognizes that hotels are “a key piece for tourism and our studies show that they are helping to boost the economy of many countries, from markets such as China or Japan to other destinations that are little known in Europe”.

“This year we have almost 20 booking channels that appear for the first time in our analyzes on a global scale. Although traditional brands continue to dominate the list, we find a greater variety of participants. This trend not only reflects the increase in options for making reservations, but also the need for hotels to be present in more channels to deal with the innumerable modes of purchase, “says Mike Ford.