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Rick Garlick, Ph.D., Consulting Partner, BVA BDRC, HSMAI Foundation Board Member
For years, online travel agencies (OTAs) dominated the perception game, widely regarded by travelers as the go-to source for scoring the best hotel deals. But new insights from BVA BDRC’s Hotel Guest Survey (HGS) in the UK suggest a meaningful shift in consumer thinking: travelers are increasingly turning to hotel-branded websites, viewing them as the most reliable source for the best rates.
HGS, which monitors hotel brand performance and consumer behavior across 25 countries, shows that this trend is particularly pronounced in the UK, where the findings offer a telling snapshot of changing attitudes. In the first half of 2024, 32% of UK guests believed that hotel websites offered the best rates—up from 28% in 2018. Meanwhile, belief in OTAs as the lowest-price option declined from 41% to 36% over the same period.
This perception shift is evident among both business and leisure travelers, although generational differences remain. Gen X travelers still show a notable preference for OTAs (45% versus 26% for hotel websites), likely a reflection of their early digital travel habits formed during the rise of third-party booking platforms.
Whether this trend mirrors U.S. consumer sentiment remains to be seen. The most recent U.S. data from 2021 showed OTAs still leading in rate perception (47% vs. 39% for hotel websites). However, hotel brands have increasingly promoted direct booking through price guarantees, loyalty perks, and member-only deals—factors that may be eroding OTA dominance in the U.S. as well.
At the same time, OTAs themselves are evolving. Once squarely focused on attracting price-sensitive travelers, platforms like Expedia are repositioning around convenience, personalization, and discovery. With AI-powered tools, they now offer tailored recommendations, interpret vague or flexible travel searches, optimize itineraries, and synthesize post-trip reviews—all enhancing the planning experience rather than simply competing on price.
As a result, the market may be moving toward a new segmentation of traveler behavior: on one side, loyal brand followers who seek out the best rates through direct booking; on the other, open-minded explorers who prioritize variety, inspiration, and digital convenience over strict price competition. The price perception pivot suggests that for many travelers, value is no longer just about cost—but about the total experience of booking and traveling. Understanding this shift will be critical for both hotel brands and OTAs as they refine their strategies in an increasingly segmented marketplace. The US edition of HGS launches in early May and will reveal how direct booking preferences have evolved among American hotel guests.