European hotels maintain direct distribution lead over OTAs
HOTREC's hotel distribution study revealed that 51% of bookings are made directly with hotels, while almost 30% are made through OTAs., CredSpark is a powerful, interactive content platform that helps organizations maximize the potential of
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What It Says
According to the HOTREC European Hotel Distribution Study 2026, direct distribution channels continue to lead over Online Travel Agencies (OTAs) for European hotels. The study, which gathered data from 2,713 hotel properties across Europe, reveals that the OTA channel accounts for 29.9% of total bookings. The remaining majority of bookings are secured through direct channels, offline travel agencies, tour operators, and wholesale companies.
However, within the OTA sector itself, market concentration remains exceptionally high. Two major players, Booking Holdings and Expedia Group, dominate the space, controlling more than 85% of all European hotel bookings generated through OTAs.
Why It Matters
For hospitality operators, understanding the balance between direct bookings and third-party intermediaries is critical for managing distribution costs and protecting profit margins. While OTAs provide massive global reach, their high commission fees eat into net operating income. The resilience of direct bookings in Europe proves that properties can successfully maintain independent relationships with guests. However, the extreme consolidation of the OTA market under Booking Holdings and Expedia Group highlights how little leverage individual lodging operators have when negotiating terms with third-party platforms.
Useful Signals
- Direct Channels Lead: Direct bookings and traditional offline channels still comprise the majority (70.1%) of the European lodging market share.
- OTA Duopoly: Booking Holdings and Expedia Group control over 85% of the European OTA booking market, leaving minimal market share for smaller, alternative OTAs.
- OTA Market Share: OTAs capture nearly one-third (29.9%) of all European hotel bookings, representing a massive, consolidated block of demand.
STR Tech Report Take
While this study focuses on hotels, short-term rental (STR) operators and technology vendors should pay close attention to these distribution dynamics. The STR industry has historically been even more dependent on OTAs (specifically Airbnb, Booking.com, and Vrbo) than the traditional hotel sector.
The fact that European hotels successfully maintain a direct-booking majority should serve as a blueprint for STR operators. By investing in robust property management systems (PMS), guest loyalty tools, and direct-booking engines, STR managers can reduce their reliance on the Booking-Expedia duopoly. For STR tech vendors, there is a massive market opportunity to build sophisticated marketing, CRM, and guest-communication tools that empower property managers to drive direct business and bypass high OTA commissions.
Original Source
PhocusWire: European hotels maintain direct distribution lead over OTAs
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