OTA Trends for 2024: What Lodging Businesses Should Know

2024 is set to witness significant changes in how travelers book accommodations, with online travel agencies (OTAs) playing a crucial role. From the return of corporate and group travel to the advent of AI-powered travel planning, these new OTA trends are reshaping how accommodations are researched, booked, and experienced.

4 Most Important OTA Trends for 2024

Lodging operators who aim to stay ahead in a competitive market must understand and prepare for these trends. This article looks at four key OTA trends in 2024 and what they mean for properties.

1. OTAs Are Back with a Vengeance

Let’s start with the first OTA Trend for 2024. Over the past few years, lodging businesses experienced increased direct bookings due to the flexibility they offered to change or cancel reservations. While direct bookings won’t disappear, lodging operators should expect to see the resurgence of OTAs in a big way.

This resurgence is not just about regaining lost ground; it represents a shift in how travelers book accommodation. The dominance of OTAs can be attributed to their adaptability and technological innovations that have greatly enhanced user experience. These platforms have evolved, offering more personalized services, comprehensive travel packages, and user-friendly interfaces that appeal to the modern traveler.

The rise of Expedia Group and Booking Holdings is a testament to this trend. These OTAs, commanding over $250 billion in travel bookings in the months leading into Q1 2023, have expanded their services beyond hotel bookings to include flights, car rentals, and travel experiences, making them one-stop shops for travelers.

The success of regional OTAs like Despegar in Latin America and Trip.com in China indicates a global trend. These platforms have capitalized on localized content, regional travel preferences, and customized offerings to cater to specific markets.

What This Trend Means for Lodging Businesses

Developing a well-rounded OTA strategy is crucial. Consider each channel’s unique value proposition and what will attract the best guest for your property. For example, some OTAs are more effective in reaching international travelers, while others might be better for last-minute bookings. It’s about finding the OTAs that align with your target market and operational strengths.

2. New Segments Gear up for Significant Growth

The following OTA trend will help you reach new segments for growth. While leisure travel shows signs of slowing, indicating that the post-pandemic surge may be leveling off, other segments, including group, corporate, and international travel, are gearing up for significant growth.

The decline in leisure travel suggests a return to pre-pandemic patterns, where leisure trips were more evenly distributed throughout the year rather than concentrated in a post-crisis surge. An uptick in corporate and group travel is counterbalancing this softening. According to Booking.com, companies are increasingly organizing team trips and conferences to maintain company culture, especially as remote and hybrid work models become more prevalent.

International travel and events are also emerging as significant growth drivers. Deloitte’s survey of travel managers in the U.S. and Europe reveals an optimistic outlook, with over half expecting industry events to boost travel. The growing popularity of remote and hybrid work models will drive this trend as face-to-face interactions become more valuable for professional and corporate purposes.

What This Trend Means for Lodging Businesses

To capitalize on the growing corporate and group travel market, lodging businesses must be active on channels favored by these segments, such as global distribution systems (GDS) and bed banks. These channels are essential for visibility and accessibility in these sectors.

Additionally, lodging businesses must understand the unique requirements of corporate and group travelers. Consider offering flexible booking policies, efficient check-in and check-out processes, communal co-working and networking spaces, and tailored services like shuttle transportation and catering options.

3. Loyalty and Retention Are Top Priorities for OTAs

In a challenging economic environment with high inflation, travelers will be more price-sensitive, possibly reducing the frequency of their trips. This scenario presents a significant challenge for hotels in attracting repeat guests and fostering loyalty.

In response, OTAs are intensifying their efforts to secure traveler loyalty through innovative loyalty programs and initiatives. Booking.com’s Genius loyalty program is an excellent example of this trend. It offers tiered discounts to members, with first-tier members enjoying a 10% discount on accommodations at participating hotels. These discounts increase for higher tiers, but they come at a cost to hotels through lower rates and increased commissions.

Expedia Group’s recent introduction of the One Key loyalty program is another strategic move in this direction. This program consolidates Expedia’s previous loyalty offerings, allowing members to accumulate points and redeem rewards across its various brands, including Expedia, Hotels.com, and Vrbo. With an impressive base of 168 million members globally, the program aims to boost demand and attract high-value travelers.

What This Trend Means for Lodging Businesses

Lodging businesses should be active on affiliated channels to take advantage of the demand and exposure offered via OTA loyalty programs. While these channels can help drive demand, hotels must collect guest information upon arrival to enable direct marketing efforts post-stay, helping to build loyalty and encourage direct bookings in the future.

Consider utilizing software systems that allow you to follow up with personalized communication throughout and after a guest’s stay. This personalized approach can foster a deeper sense of loyalty and connection with the guest.

4. OTAs Embrace AI to Support Travel Planning

The last OTA trend that probably won’t surprise is that OTAs will also embrace AI. 2023 marked a significant shift across industries with the widespread adoption of ChatGPT. OTAs have been at the forefront of this shift, recognizing the potential of AI to revolutionize travel planning.

Trip.com’s TripGen exemplified this trend. Expedia Group announced a ChatGPT-powered AI chatbot in its mobile app following suit. These innovations allow users to interact with AI for assistance and travel ideas, enhancing the planning experience.

As we move into 2024, the integration of AI in OTAs will deepen, delivering more personalized and efficient travel planning experiences. This evolution will significantly influence how travelers research, plan, and book accommodations, with AI-powered platforms providing tailored suggestions based on user preferences and behaviors.

What This Trend Means for Lodging Businesses

Being recommended by AI-driven platforms will become increasingly important. Lodging businesses should focus on SEO best practices to increase the likelihood of being suggested by AI tools. Best practices include optimizing your Google My Business profile, ensuring your website aligns with Google’s E-E-A-T (Expertise, Authoritativeness, Trustworthiness) guidelines, and maintaining high-quality images on your website and OTA profiles.

Reviews will also be crucial for maintaining a positive online presence and improving rankings on AI-based recommendation systems. Ensure you have a process to collect and respond to reviews consistently.

The 2024 OTA Landscape

The OTA landscape in 2024 presents exciting opportunities that will shape the future of travel and accommodation bookings. By understanding and strategically responding to these trends, lodging operators can optimize their presence on various platforms, enhance guest experiences, and ultimately drive greater success in an increasingly competitive market. Embracing these new OTA trends and adapting to the evolving preferences of travelers will be key to thriving in the dynamic world of travel and hospitality.

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