Hotel Brand Websites Gain Popularity Over OTAs in Offering Best Rates

• The latest Hotel Guest Survey from BVA BDRC indicates increased U.K. domestic business travel intentions over the past two years. 
• Consumers increasingly perceive hotel brand websites as offering the best rates, leading to a decline in favor of OTAs.

According to a recent survey by BVA BDRC, an insight agency, the hotel sector has reported an increase in domestic business travel intentions over the past two years. The survey also revealed that the belief that hotel brand websites offer the best rates continues to grow, negatively affecting the popularity of Online Travel Agencies (OTAs).

City breaks remained the preferred reason for travel in the leisure market despite a slight decline in favor of beaches and resorts. The survey data collected during the second half of 2024 indicated an increase in domestic business travelers who have either already booked or are very likely to book travel. In contrast, the proportion of pre-booked leisure travelers dropped, offset by an increased likelihood of future bookings.

The trend of overseas business and leisure travel also continued to grow, but pre-bookings declined, with more travelers indicating a high likelihood of making future bookings.

The perception that hotel websites offer the best rates has increased, with OTAs witnessing a gradual decline in favor since 2018. In the first half of 2024, 32% of guests believed the best rate could be found on hotel websites, up from 28% in 2018. On the contrary, the belief in OTAs offering the best rates dropped from 41% to 36%.

Fiona von-Hinten, director at BVA BDRC, stated that hotel brands’ efforts to promote direct booking as a cheaper alternative to OTAs are beginning to bear fruit. This belief is consistent across business and leisure travelers, with variations among different age groups. Gen X particularly preferred OTAs, with 45% favoring them over hotel websites, which were preferred by 26%.

Regarding website traffic, Premier Inn topped the list, with 60% of respondents visiting the site. Furthermore, 40% and 25% of respondents reported using the site for leisure and business bookings, respectively. Booking.com was the second most visited website, followed by Travelodge, Hilton, and TripAdvisor.

Von-Hinten noted that business travelers are learning to shop around, with both hotel brand sites and other travel sites offering reward points and promotions. She highlighted that other travel sites continue to excel in providing one-stop shopping experiences, an area where hotel brand sites still lag. She emphasized that convenience in booking continues to differentiate the two.