logo
Why Hotels Should Adopt a Multi-Channel Digital Approach in 2025 and Beyond

Why Hotels Should Adopt a Multi-Channel Digital Approach in 2025 and Beyond

Hospitality Net09-06-2025
The hospitality industry and the macro environment have been more volatile in the last few years than at any time in the past 10-15 years. I anticipate this will continue due to inflation, higher capital costs, fluctuating demand, disruptions from AI, tariff woes, etc.
This is why I think hotels should adopt a digital approach of multichannel distribution for both S&M and branding control, as well as scaling and capital levers. Here's the breakdown:
1. Direct
It's 2025. Every hotel should have its own direct channel, period. It means having your own differentiated content and voice, guest data (first-party), and a higher margin on the bottom line. It also means more control and flexibility over your sales and marketing strategies.
For example, hotels may get less budgeted traffic from OTAs than expected, as OTAs have their own priorities (the 'black box' algorithms). With the direct channel, hotels can strategically promote special offers.
More importantly, a hotel can leverage the direct channel to build a brand and stand out from the competition in the long term. A brand well built sells itself and fosters deeper, longer-lasting relationships with customers.
The biggest advantage of merchants on Amazon is the brand (and trust) built off Amazon. Similarly, hotels branded thoughtfully may potentially be invited to well-established branded hotel networks to further grow on steroids. Just like how Trailborn partnered with Marriott or Small Luxury Hotels (SLH) partnered with Hilton in 2024. They were win-win situations.
Source: Travel Media Group
2. OTA
OTAs emerged from the ashes of the dot-com bubble as their business model proved valid and sustainable. Their growth accelerated further after 9/11 and 2008 as hotels turned to OTAs during uncertain times for risk and cash flow management, reaping the benefits of "free" marketing without upfront spending.
Hotels, as high-asset investments, naturally lean toward opening up more inventory to OTAs to save on overhead in order to survive first in a macro environment with uncertainty or even headwinds. In 2025 and the foreseeable future, with tighter liquidity and more expensive capital, OTAs provide a solid cushion to scale with a controlled cash flow.
OTAs can also help hotels reach a specific psychological segment of travelers that hotels can't reach from their direct channels. This segment of travelers tends to be loyal to the OTA brands and prioritize an intuitive, convenient, and smooth end-to-end 'pipe' experience over price and other factors, just like Amazon shoppers. Therefore, for this 'OTA-minded' segment, OTAs can be a great referral or acquisition channel with reasonable CAC (customer acquisition costs). Hotels should strategically convert those guests into long-term repeat customers who book direct by building a deeper relationship with top-notch in-stay and post-stay 'room delivery' services.
The old dichotomy of 'direct vs. OTA' is giving way to a more strategic and nuanced approach where both channels play a role in a comprehensive distribution strategy.
Source: Travel Media Group
3. Metasearch (mainly Google Hotels)
On the direct side, hotels had been losing some share to OTAs because an individual property's website simply couldn't meet travelers' lodging 'discovery' needs the way OTAs could. Metasearch, especially Google Hotels, has been playing a critical role as a lodging aggregator but still allows travelers to book direct, levelling the playing field between direct and OTAs.
As an SEM/SEO consultant in the hospitality industry, I vividly remember how groundbreaking it was when Google introduced the 'local 3-Pack' directly in search results nearly a decade ago. Since then, when travelers search for hotel-related queries on Google, they see a map-style feature displaying the top hotel listings instead of 10 blue links. Clicking on these listings directs them to Google Hotels, which aggregates price, inventory, location, brands, everything. It was a game changer because it perfectly dovetailed Google's search and metasearch platforms and better aligned with travelers' lodging search behaviors.
The cherry on top is that hotels can now list their brand.com sites on Google Hotels for free, leveraging the Free Booking Link (FBL) feature rolled out in 2021 to capture direct bookings.
Source: Travel Media Group
4. Marriott and Hilton are evolving into end-to-end distribution channels
In fact, I think that's a huge trend that's transforming the industry. By the end of 2024, Marriott and Hilton had worldwide property counts of more than 9,000 and 8,000, respectively, reflecting CAGRs of 4.9% and 6.3% over the past five years. They also both reached 200+ million global loyalty members—a remarkable increase of 43% and 94% from 2019.
Acquisitions and strategic partnerships, alongside natural room growth, will continue to supercharge Marriott's and Hilton's portfolio growth in an efficient, scalable, and adaptable way. I believe that by continuing to expand their branded hotel networks, they will reach a point where network effects will emerge further to enhance the intuitiveness and convenience of this 'end-to-end' booking experience, starting and completing a booking journey directly within the Marriott and Hilton apps.
Branded and even boutique hotels should make their scaling and growth decisions with these two 'emerging' distribution channels in mind.
About Travel Media Group (TMG)
Travel Media Group (TMG) is a hospitality marketing partner for brands, hotel management groups, and individual properties. Services include custom social media marketing, professional review response, online reputation management, and more. TMG is responsible for elevating our hotel partners' online presence while helping hotels manage real-time guest feedback. Travel Media Group is a business that is a part of the Dominion Enterprises Family.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Martin Riehl has been appointed Executive Chef at Park Hyatt Abu Dhabi
Martin Riehl has been appointed Executive Chef at Park Hyatt Abu Dhabi

Hospitality Net

timea day ago

  • Hospitality Net

Martin Riehl has been appointed Executive Chef at Park Hyatt Abu Dhabi

Park Hyatt Abu Dhabi Hotel and Villas has appointed Martin Peter Otto Riehl as its new executive chef. With more than four decades of global hospitality experience, Riehl joins the Saadiyat Island property following key roles across Asia's top Hyatt destinations. A certified master chef with formal training in German and French cuisine, Riehl most recently served as director of culinary operations at Grand Hyatt Macau, within the City of Dreams complex. Prior to that, he led the kitchens of Grand Hyatt Hong Kong and Grand Hyatt Guangzhou — both known for their high-volume, high-end F&B operations. During his decade-long tenure at Grand Hyatt Shenzhen, Riehl played a critical role in shaping the property's culinary identity while supporting Hyatt's growth in China as an F&B specialist for the Asia Pacific region. His résumé includes collaborations with renowned chefs and a reputation for nurturing culinary talent and rolling out refined, globally inspired menus. In his new role, Riehl will oversee all culinary operations at Park Hyatt Abu Dhabi, including Mate Abu Dhabi, Beach House, and The Café. With his deep expertise in Chinese and international cuisines, as well as his track record in opening acclaimed culinary concepts, Chef Martin is poised to guide Park Hyatt Abu Dhabi's culinary program into an exciting new era, says the hotel.

Cristian Nannucci has been appointed General Manager at Tivoli La Vie Muscat Hotel
Cristian Nannucci has been appointed General Manager at Tivoli La Vie Muscat Hotel

Hospitality Net

timea day ago

  • Hospitality Net

Cristian Nannucci has been appointed General Manager at Tivoli La Vie Muscat Hotel

Minor Hotels, a global hospitality group that owns and operates over 560 properties in 58 countries, is pleased to announce the appointment of Cristian Nannucci as General Manager of the upcoming Tivoli La Vie Muscat Hotel, set to open in Q1 2026. A seasoned hospitality executive with over 30 years of global experience, Nannucci will lead the pre-opening and operational launch of the first Tivoli property in Oman. Nannucci brings a proven track record of leadership across the Asia, Europe and the Middle East, having held senior positions with global hotel brands including Shangri-La and the opening of the five-star dual complex PARKROYAL COLLECTION and Pan Pacific Serviced Suites in Kuala Lumpur. His expertise spans luxury resort management, multi-property operations, brand development, and new hotel openings—skills that will be instrumental in establishing Tivoli's debut in Oman. Most recently, he has taken on senior assignments in Malaysia and the Philippines, combining operational excellence with a strong focus on guest experience and commercial performance. Situated in the modern mixed-use destination, LA VIE, just 15 minutes from Muscat International Airport, Tivoli La Vie Muscat Hotel is a landmark new-build development comprising a 79-key hotel and 100 branded residences. The property will overlook the newly landscaped 18-hole golf course managed by Troon Golf and will be ideally located near the Oman Convention & Exhibition Centre, Oman Automobile Association, and several government ministries. Guests can look forward to a full suite of luxury amenities including an Anantara Spa, SEEN Rooftop Bar & Restaurant, all-day dining venue, sports bar, ballroom, meeting rooms, and a state-of-the-art gym and infinity swimming pool. With this opening, Tivoli Hotels & Resorts strengthens its presence in the Middle East, complementing its existing portfolio in Qatar and upcoming expansion into Bahrain. An Italian national, Cristian Nannucci is a graduate of the Aurelio Saffi Hotel School in Florence and has completed executive leadership programmes by Cornell University. His diverse cultural background and international training have shaped a management style rooted in precision, innovation, and warm hospitality.

Scandic has entered into a framework agreement with Pandox AB and Eiendomsspar AS with the intention to acquire the hotel operations of Dalata Hotel Group Plc
Scandic has entered into a framework agreement with Pandox AB and Eiendomsspar AS with the intention to acquire the hotel operations of Dalata Hotel Group Plc

Hospitality Net

time15-07-2025

  • Hospitality Net

Scandic has entered into a framework agreement with Pandox AB and Eiendomsspar AS with the intention to acquire the hotel operations of Dalata Hotel Group Plc

Scandic Hotels Group AB (publ) ('Scandic') has entered into a framework agreement with a consortium consisting of Pandox AB and Eiendomsspar AS (the 'Consortium') with the intention to acquire the hotel operations of Dalata Hotel Group Plc ('Dalata') from the Consortium (the 'Transaction'). Proceeding with the Transaction is conditional upon completion of the Consortium's takeover of Dalata, which was announced today, a separation of Dalata's real estate and operating businesses and necessary regulatory approvals. Upon completion of the Transaction, Scandic will add 56 new hotels to its portfolio with around 12,000 additional rooms and a further pipeline of approximately 1,900, mainly across Ireland and the UK. For the financial year ended 31 December 2024, Dalata reported revenue of EUR 652.2 million; operating profit of EUR 158.5 million; and basic earnings per share of EUR 35.5 cent. The Transaction The key terms of the Transaction are as follows: In connection with the Consortium's cash takeover offer for the entire share capital of Dalata (the 'Dalata Acquisition'), Scandic has entered into a framework agreement with the Consortium with the intention to acquire the hotel operations of Dalata, subject to and conditional upon completion of the Consortium's public takeover offer, the separation of Dalata's real estate and operating business and necessary regulatory approvals. The Dalata Acquisition has been recommended unanimously by the Board of Dalata. Dalata owns and operates hotels primarily in Ireland, where it holds a leading market position, and in the UK. Under the terms of the Transaction, Scandic would take over the operations of 56 hotels (the 'Operating Business'). Of those hotels, 53 would be acquired on a leasehold basis and three would be managed. Scandic would be subject to new lease agreements with the Consortium for 31 of the hotels, with the remainder continuing to operate under existing third-party agreements. The Consortium would maintain ownership of Dalata's freehold and long leasehold property portfolio. Subject to completion of the Dalata Acquisition, the Transaction is expected to take place towards the end of 2026. Under the terms of the Transaction, Scandic would manage Dalata's hotel portfolio pursuant to the terms of a management agreement in the interim period between completion of the Dalata Acquisition and completion of the Transaction (the 'Interim Period'). The management fee would be paid to Scandic quarterly and calculated on the revenue of the Operating Business during the Interim Period. In proceeding with the Transaction, Scandic would pay an anticipated price of EUR 500 million (on a cash and debt-free basis and subject to normal completion adjustments for cash, net debt and net working capital) for the Operating Business, subject to adjustments as agreed upon in the framework agreement reflecting the outcome of the separation of the Operating Business. The consideration payable under the Transaction will be fully financed from available cash and debt facilities, committed by DNB and Nordea. Scandic's current financial targets and dividend policy remain unchanged. If the Transaction is completed, net debt to adjusted EBITDA is expected to temporarily exceed Scandic's financial target of 1.0x but not exceed 2.0x on a full-year basis. Scandic's previously announced intention to launch a new share buyback program of SEK 500 million will now not proceed. However, Scandic would like to emphasize that the Board continues to view share buybacks as a useful tool for optimizing capital allocation. Jens Mathiesen, Scandic President & CEO, comments: 'Scandic has a strong platform, making us well-positioned to deliver on our 2030 strategy. At the same time, we are always open to new business opportunities that can create more value for our stakeholders. Dalata is a high-performing operator with strong brands and leading or established positions in attractive markets. The company primarily operates in the mid-market segment and shares a similar business model with Scandic. Overall, Dalata is a good fit for us. We see this as an opportunity to add a growth platform in new and attractive markets at an attractive valuation. Scandic's strong financial position enables us to pursue this opportunity with balanced leverage. At the same time, we will continue to deliver on our existing strategy that we presented on the capital markets day.' Background and rationale for the Transaction The Transaction represents a value creating opportunity to add a growth platform in new and attractive markets. Dalata has a proven track record and is a strong fit for Scandic Dalata is the market leader in Ireland and has an established presence in the UK, operating primarily in the mid-market segment under its well-known brands, Clayton and Maldron. In combination with a large part of its portfolio comprising of lease agreements, Dalata shares similar characteristics with Scandic, making it a strong complementary is well-managed with a strong track record, having delivered average revenue growth of 9 percent between 2019 and 2024, along with good profitability. In addition, Dalata has consistently reported high average room rates (ARR), occupancy, and revenue per available room (RevPAR) levels, which are expected to enhance Scandic's performance. The hotel portfolio is well-invested, implying limited future capex needs, aligned with Scandic's maintenance capex level. Dalata is the market leader in Ireland and has an established presence in the UK, operating primarily in the mid-market segment under its well-known brands, Clayton and Maldron. In combination with a large part of its portfolio comprising of lease agreements, Dalata shares similar characteristics with Scandic, making it a strong complementary is well-managed with a strong track record, having delivered average revenue growth of 9 percent between 2019 and 2024, along with good profitability. In addition, Dalata has consistently reported high average room rates (ARR), occupancy, and revenue per available room (RevPAR) levels, which are expected to enhance Scandic's performance. The hotel portfolio is well-invested, implying limited future capex needs, aligned with Scandic's maintenance capex level. Attractive market fundamentals in Ireland and the UK Ireland and the UK, including major cities Dublin and London, offer compelling market characteristics, including high ARR, strong occupancy levels, and good RevPAR performance that exceeds levels in the Nordics. Ireland and the UK, including major cities Dublin and London, offer compelling market characteristics, including high ARR, strong occupancy levels, and good RevPAR performance that exceeds levels in the Nordics. Value creating capital allocation The Transaction is expected to be EPS accretive from completion. The cash purchase price reflects an expected EV/Adjusted EBITDA multiple at a discount to Scandic's current valuation. While net debt to adjusted EBITDA is expected to temporarily exceed the financial target following completion, it is not expected to exceed 2.0x on a full-year basis. About Scandic Hotels Group Scandic is the largest hotel company in the Nordic countries with a network of about 280 hotels and 58,000 hotel rooms in operation and under development at more than 130 destinations. The company is leading the way in integrating sustainability in all areas and its award-winning Design for All concept ensures that Scandic hotels are accessible to everyone. Well loved by guests and employees, the Scandic Friends loyalty program is the largest in the Nordic hotel industry and Scandic is one of the most attractive employers in the region. Scandic is listed on Nasdaq Stockholm.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store