Skift Take
Hotel CEOs are talking a big game when it comes to the need for — and success of — their efforts to get more customers to book direct.
Are hotels' direct booking efforts really working? That was the question on many analysts' minds during the first quarter earnings calls hosted by major U.S. hotel companies.
While Hilton and Marriott have been leading the charge to push for more direct bookings in an effort to take away market share from online travel agencies (OTAs) like Expedia and Booking.com, they've been joined in recent weeks by their fellow hotel competitors, including Hyatt, Wyndham, and Choice, to name a few.
Judging by their collective statements, it's clear hotel CEOs aren't going to stop their campaigns for more direct bookings any time soon, even if they're quietly making arrangements to offer those exclusive lower rates to travel agents. Or even if the OTAs themselves are hoping to strike deals with them to offer those preferred lower rates, too.
Here's what the hotel CEOs had to say, put into context with comments they've made previously about booking direct.
Hilton: Direct Bookings Are Working
In February, Hilton launched its largest global marketing campaign ever, called "Stop Clicking Around," encouraging guests to become Hilton HHonors loyalty program members so they can secure the lowest possible room rates on Hilton.com or via the Hilton HHonors app.
Although, Hilton CEO Christopher Nassetta made some conciliatory remarks about the OTAs being Hilton's "good partners" during the World Travel & Tourism Council's Global Summit in April, he was much more confident about touting his company's direct booking successes during the first quarter earnings call.
"Early results are very positive with HHonors enrollments increasing nearly 90% since launch, helping drive HHonors occupancy to a record 55% in the quarter, an increase of more than four points versus last year," he said. "The business we've received through web direct is higher than it's ever been and is growing faster than ever, thanks to increasing share shift. The share of web direct channels in our distribution mix is growing five times that of the OTA share growth in the quarter, and business generated from our mobile app is up nearly 150% year-over-year with downloads exceeding 70,000 a week, an increase of
