RateGain Report: AI Search Risks Pushing Hotels Out of Direct Bookings
RateGain's "Direct Booking Friction Report 2026" reveals hotels are losing direct bookings due to digital friction. Key issues include poor visibility (42% not on Page 1), higher OTA rates (63% of properties), slow websites (72% fail 3-sec load), and hidden fees (44% withhold until final screen). AI search exacerbates these problems.
This report provides valuable insights for the travel and hospitality industry, particularly for hotels. It highlights significant areas of concern that could lead to strategic shifts in how hotels manage their online presence and booking processes, potentially impacting RateGain's service offerings and client strategies.
The announcement is a report release detailing industry challenges and findings. While it highlights areas for improvement for hotels, it does not directly impact RateGain's financial performance or operations in a positive or negative way.
RateGain Travel Technologies Limited has released "The APMEA Direct Booking Friction Report 2026," highlighting that hotels in the APMEA region are losing direct booking revenue due to friction within their digital experiences, rather than poor demand or pricing. The report, released on May 29, 2026, reveals significant issues across visibility, pricing, booking experience, and guest trust.
Key findings indicate that 42% of hotels do not appear on the first page for unbranded search queries, making them invisible to potential travelers. Furthermore, 63% of properties list higher rates on their own websites than on Online Travel Agencies (OTAs), actively redirecting guests. The booking experience is also hampered, with 72% of hotel websites failing the 3-second load benchmark and an average mobile load time of 4.1 seconds. Guests also face an average of 4 clicks to confirm a reservation, against a global benchmark of 3.
At the commitment stage, 44% of hotels withhold taxes and fees until the final payment screen, a major trigger for checkout abandonment. Additionally, one in three properties show a URL or domain disconnect between their website and booking engine, causing security concerns.
Ashish Sikka, Business Head - UNO Platforms at RateGain, commented that the direct booking journey is too fragmented, while travelers expect seamless experiences. He warned that AI search is rapidly changing visibility rules, and brands adopting unified platforms are seeing up to 5X growth in direct revenue within 90 days, while others risk becoming invisible.
The report also noted regional variations, with Singapore and Thailand performing well in load times and price parity, while The Maldives showed the highest friction scores. The report was based on an audit of booking journeys across 65 hotel properties in India, the Middle East, Southeast Asia, and the Maldives. The full report is available for download.
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Rategain Travel Technologies Limited filed this with the NSE as a statutory disclosure, categorised under press release. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Rategain Travel Technologies Limited. Read the original for the full detail.