The future of hotel booking channels: How AI and technology are changing distribution

The hotel industry is undergoing a seismic shift in how bookings are made, driven by advancements in technology and evolving consumer behaviours. Hotel booking channels are no longer limited to traditional OTAs or call centres; instead, they are being transformed by AI, automation, and new digital platforms. With innovation unfolding at an unprecedented pace, the question is no longer if hotels should adapt to these changes but how.

This article explores the future of hotel distribution. We’ll discuss the key trends to watch, the emerging booking channels that are set to dominate, and what strategies hotels can adopt now to stay competitive:

• Trends to watch in hotel distribution channels
• Key hotel booking channels of the future
• Outdated and declining booking channels
• The growing challenge: Too many channels to manage?
• Advice and tips for staying ahead
• Hotel booking channel comparison

The shift in hotel booking channels: Trends to watch

Declining reliance on traditional OTAs

While OTAs (Online Travel Agencies) like Booking.com and Expedia still play an essential role, many hotels are looking to reduce their dependency on these platforms due to high commission rates. Increasingly, hotels are diverting their focus toward strengthening direct channels. By owning the booking process, hotels not only improve profitability but also gain access to valuable guest data, fostering long-term loyalty.

Growth in instant, conversational booking experiences

Today’s guests demand easy, on-the-go solutions. From messaging apps to AI-powered assistants, many consumers now prefer real-time conversations for making bookings. Instant communication allows for quicker decision-making, and platforms like WhatsApp and Facebook Messenger are fast becoming critical touchpoints in the booking process.

Rise of AI-powered personalisation

AI is redefining guest interaction by enabling hyper-accurate recommendations and customisation. For example, AI tools can analyse user preferences and behaviour to provide tailored solutions such as the perfect room type or package. This shift toward personalisation significantly improves booking conversion rates and fuels guest satisfaction.

The key hotel booking channels of the future

Hotel websites: The power of AI-driven direct bookings

A hotel’s official website is set to become its most important sales channel. AI-backed innovations like chatbots, smart widgets, and automated chats are transforming direct bookings.

For example, solutions like HiJiffy’s chatbot provide instant guest support, guide users through the booking process, and even handle upselling or cross-selling. Advanced solutions also integrate other hotel management systems to provide real-time availability and pricing updates, ensuring frictionless booking experiences.

Why it works:

• Around-the-clock support means guests can book at any time without delay.
• Personalised service increases the likelihood of conversion.
• Reduced reliance on OTAs lowers overall costs.

Social media: Booking meets engagement

Social platforms like Instagram and Facebook are becoming more than just channels for marketing – they’re booking platforms in their own right. With features like integrated booking links and instant replies through AI, social media is poised to handle reservations directly within its interface.

Take, for instance, Instagram DMs (Direct Messages). Hotels can engage with guests in real-time, answer pre-booking queries, and encourage reservations – all within the app.

Why it works:

• Guests can book while scrolling, creating a smooth experience.
• Social media allows hotels to combine marketing, engagement, and booking in one platform.

Messaging apps: The next big front for booking

Messaging apps such as WhatsApp, WeChat, and Telegram are gaining traction as booking channels. These platforms allow instant communication, personalisation, and even secure bookings directly within the app.

HiJiffy, for instance, leverages WhatsApp Business API to facilitate inquiries, provide instant offers, and even secure payments. AI ensures responses are prompt and tailored to guest needs.

Why it works:

• Popularity and familiarity make messaging apps intuitive for users.
• Hotels can engage guests in real-time, building trust and rapport.
• Secure booking options and instant replies improve overall efficiency.

Here’s an example of how AI can automate WhatsApp to send campaign messages at every stage of the guest journey:

Traditional digital channels: Email & SMS evolve

Despite being “traditional” digital channels, email and SMS are evolving. Emails remain highly effective for personalised promotions and loyalty offers, while SMS is becoming popular for instant communications like booking confirmations and re-engagement campaigns.

AI-powered tools like HiJiffy refine email and SMS marketing strategies by automating personalised messages and reminders – ensuring guests feel valued throughout their booking experience.

Why it works:

• Personal, targeted communication enhances guest loyalty.
• High ROI compared to digital ads.

OTAs: Staying relevant while changing their role

Despite diminishing reliance, OTAs will remain relevant for capturing a global audience. However, their role is evolving, with many guests using OTAs for browsing before completing their booking directly with the hotel – a behaviour often referred to as the “billboard effect.“

Hotels are optimising their OTA listings while funnelling users to more cost-effective direct-booking channels.

Why it works:

• OTAs provide massive visibility, especially for new or independent hotels.
• Combining OTA reach with strong direct strategies increases profitability.

Outdated or declining hotel distribution channels

Call centres: Too slow for the digital age

With the rise of instant messaging and chatbot technologies, call centres are becoming less relevant for day-to-day bookings. While they can still be useful for managing high-value reservations, they lack the efficiency and cost-effectiveness of AI-powered solutions.

Walk-in bookings: Falling out of favour

With nearly all travellers now researching and booking online before arrival, relying on walk-in bookings is risky. Hotels are better off investing in mobile-friendly solutions that optimise direct bookings.

Print advertising & offline travel agencies: Low ROI

Offline methods like print advertising and traditional travel agencies provide limited value in today’s data-driven and digital-first environment. Unlike online platforms, they lack the ability to track and measure results effectively.

Managing multiple hotel booking channels: the growing challenge for hotels

Guests expect quick replies across platforms like hotel websites, messaging apps, social media, and OTAs. For hotel teams already stretched thin by staff shortages, this can be a real challenge. Missed messages don’t just mean frustrated guests – they mean missed revenue. Managing multiple booking channels is getting trickier, and staying competitive means finding a smart, efficient way to keep up.

The need for an omnichannel solution

An omnichannel communication system makes life easier by bringing all guest interactions into one simple dashboard. Your team can handle website chats, WhatsApp messages, Facebook inquiries, and even OTA bookings – all in one place. Want to save even more time? AI can step in to handle FAQs, flag urgent messages, and make sure important requests get to the right person fast. This means quicker, more accurate responses for guests, even during the busiest times.

The benefits of centralising guest communication

Centralising guest communication makes a big difference for hotels. Faster responses mean happier guests who are more likely to return. By reducing the time spent juggling multiple platforms, hotel staff can focus on what really matters – delivering memorable, personalised experiences. Plus, keeping all communication in one place helps avoid missed opportunities, leading to higher conversion rates. For example, hotels using AI-powered messaging systems handle guest enquiries more efficiently, boosting direct bookings and increasing revenue. It’s a smarter, simpler way to stay connected and drive growth.

What hoteliers can do now to stay ahead

1. Invest in AI-driven tools:
   Start integrating AI chatbots and automation solutions like HiJiffy to optimise direct bookings and streamline guest engagement.
   
   
2. Diversify booking channels:
   Explore emerging platforms like messaging apps to reduce reliance on OTAs and increase profitability.
   
   
3. Leverage guest data:
   Use AI to analyse booking behaviour and tailor marketing strategies to specific preferences, boosting conversions and loyalty.
   
   

Comparison table of hotel booking channels

Distribution Channel	Opportunities	Challenges
Website chat	Low-cost, direct guest interaction	Requires a good number of website visitors
Social media	High engagement, instant communication	A high volume of messages may need heavy moderation
Messaging apps	Instant responses, personalisation	Data privacy concerns
Email & SMS	High ROI, great for loyalty campaigns	Less effective without AI optimisation
OTAs	High visibility, global reach	High commission costs

The multi-channel future of hotel booking

The future of hotel booking channels is multi-faceted and heavily shaped by AI and automation. Hotels that invest in diversified booking channels, leverage advanced technologies, and prioritise guest-centric strategies will not only stay competitive but thrive.

Adapt now, and you’ll not only future-proof your business but also build stronger connections with your guests – one booking at a time.

Want to know how HiJiffy’s omnichannel Guest Communications Hub can make you team’s jobs easier? Book a demo to chat with one of our experts and see how it works for you.