OTAs to combat direct booking surge with enhanced loyalty initiatives

New data highlights a significant shift in the hotel booking landscape, with travelers increasingly favoring direct bookings through hotel digital channels over OTAs. As this trend gains momentum, mobile connectivity is poised to become the critical battleground in the fight for customer loyalty.

The rise of direct bookings

A recent Skift report predicts that by 2030, direct digital channels will generate $409 billion in hotel bookings, outpacing OTAs at $333 billion. Travelers are gravitating toward seamless, personalized experiences that direct bookings are uniquely positioned to offer.

Hotels can’t hope to achieve this predicted shift without upping their loyalty initiatives. By leveraging mobile connectivity via apps, loyalty programs, and user-friendly websites, hotels can enhance personalization and create memorable guest experiences.

OTAs to grow loyalty initiatives

To counter the growing preference for direct bookings, OTAs will most likely have to double down on loyalty initiatives, integrating new value-adds like eSIM-enabled connectivity and offering eSIMs as handy perks for VIP customers. This will allow them to offer travelers uninterrupted access to booking tools, destination guides, and exclusive offers, even while on the move. By fostering connectivity, OTAs can create deeper relationships and maintain their relevance in the hospitality ecosystem.

Experiential travel: The key to loyalty

The rise of experiential travel is driving a shift toward more distinctive, personalized hospitality offerings. Hotels are moving beyond simply selling rooms, focusing instead on loyalty, unique experiences, and tailored services—key factors that now define success in the competition for market share.

As experiential travel redefines expectations, there is an opportunity for hotels and OTAs to enhance their approach to customer loyalty, by delivering added value in the very travel essentials that their customers will use - data connectivity. This connectivity enables:

  • Real-time engagement during a guest’s journey.
  • Tailored follow-ups to convert initial bookings into long-term loyalty.
  • Enhanced experiences that align with travelers’ need for personalization and immersion.

Why are eSIMs the answer? They offer a strong value proposition for both hotels and OTAs while delivering added benefits to travelers. At eSIM Go, we are committed to empowering the travel industry to thrive in this connected era. By integrating eSIM solutions, businesses can meet evolving customer expectations, strengthen loyalty, and secure their competitive edge in the future of travel.