# By 2023, hotel supplier-direct will again surpass OTAs

**Publisher:** Phocuswright  
**Published:** n/a  
**Category:** Research, media & analysts  
**Type:** Report  
**Access:** Free  
**Official source:** https://www.phocuswright.com/Travel-Research/Research-Updates/2022/by-2023-hotel-supplier-direct-will-again-surpass-otas  
**Canonical:** https://tourismintel.ai/reports/by-2023-hotel-supplier-direct-will-again-surpass-otas-phocuswright

## At a glance
- OTA hotel gross bookings surged 97% in 2021 to nearly $41 billion, recovering to pre-pandemic levels.
- OTAs captured 52% of online leisure hotel sales in 2021, reversing earlier supplier-direct dominance.
- Supplier-direct bookings grew 80% in 2021, driven by hotel loyalty apps and direct-booking campaigns.

## What the report covers
Phocuswright's U.S. Hotel & Lodging Market Report 2021–2025 tracks online distribution channel shifts in US hotel bookings, covering OTA and supplier-direct channels. The report examines how pandemic-induced leisure travel demand reshaped booking patterns, with OTAs rebounding sharply in 2021 before forecast supplier-direct recovery by 2023. It identifies drivers including hotel loyalty app adoption, direct-booking campaigns and traveler preferences.

## Key findings
OTA hotel bookings experienced dramatic recovery in 2021. Gross OTA bookings rose 97% from 2020 levels to reach nearly $41 billion, approaching 2019 pre-pandemic figures. This surge reflected pent-up leisure travel demand and positioned OTAs as the dominant online distribution channel for the first time since 2019.

OTAs achieved majority market share in online leisure hotel sales for the first time in the measurement period. In 2021, OTAs represented more than half—specifically 52%—of total online leisure hotel sales in the US market, indicating a significant shift in traveler booking behavior away from direct hotel channels.

Supplier-direct channels remained resilient despite OTA gains. The direct booking channel grew 80% in 2021, sustained by hotels' intensified 'book direct' marketing campaigns, increased loyalty programme member app usage seeking convenience and deals, and traveler preference for direct hotel contact. This momentum was expected to continue with strong gains forecast for 2022.

A channel reversal is forecast by 2023. Despite OTA dominance in 2021, Phocuswright projects that supplier-direct bookings will again surpass OTAs by 2023, representing slightly more than half of total online leisure sales. This swing reflects longer-term structural factors favouring direct relationships between hotels and guests.

## Key numbers
| Metric | Value | Note |
|---|---|---|
| OTA hotel gross bookings growth | 97% increase from 2020 to 2021 | Observed; reached nearly $41 billion in 2021 |
| OTA share of online leisure hotel sales | 52% in 2021 | Observed; first time exceeding 50% |
| OTA hotel gross bookings in 2021 | nearly $41 billion | Observed; almost reaching 2019 levels |
| Supplier-direct channel growth | 80% in 2021 | Observed; expected to continue in 2022 |

## Why it matters
**DMOs & destinations** — Channel dynamics directly affect how destination visitors discover and book accommodation. The shift from OTA to supplier-direct bookings influences which platforms DMOs must monitor, market through and integrate with loyalty programmes, affecting visitor data access, marketing ROI and direct relationship-building capacity.

**Hotels & hospitality** — Distribution strategy is critical to profitability. Hotels investing in loyalty apps, direct-booking incentives and brand-owned channels are forecast to capture growing share by 2023. OTA commission costs (typically 15–25%) make supplier-direct recovery economically significant. Properties must balance OTA reach against direct-channel margin gains.

**Travel tech & distribution** — OTA platforms face structural headwinds as supplier-direct gains accelerate. Tech providers enabling hotel direct bookings—loyalty platforms, reservation systems, dynamic packaging tools—will see rising demand. The forecast 2023 reversal signals market consolidation risk for pure-play OTAs reliant on hotel inventory without differentiation.

## Methodology and limits
This brief is based on the publicly available summary only. Phocuswright's U.S. Hotel & Lodging Market Report 2021–2025 uses gross booking value data and market share analysis to track US hotel distribution channels. The 2021 figures are observed; 2023 projections are forecast estimates. Note: US figures include 100% of Booking.com domestic bookings but exclude Expedia's Vrbo, Airbnb and pure-play short-term rental providers unless noted.

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© Phocuswright for the original report. This brief is an original editorial summary by TourismIntel (https://tourismintel.ai). Read the original: https://www.phocuswright.com/Travel-Research/Research-Updates/2022/by-2023-hotel-supplier-direct-will-again-surpass-otas