In developed hospitality markets, Digital Experience Platforms are often found at the basis of technologies and solutions on which hotel chains build their direct sales and marketing. Consequently, these platforms play a major role in profitability strategies focused around hotel brand websites, mobile apps and other direct sales channels.
Gartner defines digital experience platforms as “cohesive sets of integrated technologies” which are used for the “composition, management, delivery, and optimization of personalized digital experiences across multiple channels in the customer journey” (January 2025).
DXPs empower hotels to drive more direct bookings through enhanced websites, seamless booking experiences, and personalized offers. While some DXPs evolved from the early web content management solutions (CMS), today they are found in various sorts of implementations. They can be the work of several integrators and technology partners. Sometimes, hospitality companies using such a tech array will not call it a DXP, although it fits the criteria from the above definition.
DXP core capabilities include headless content management, cloud capabilities, a modular and API-first approach and the ability to integrate and orchestrate different touchpoints, services and data sources. Some DXPs also come with personalization options and context awareness, advanced security features, customer journey mapping, AI capabilities and many others. (Gartner, January 2025).
Digital Experience Platforms have become an important component in hotel tech stacks. Over the last decade or so, they have been driving profitability by enabling direct sales and OTA commission cuts. Also, they can be seen at the basis of a wide array of top-performing loyalty programs.
Enabling gains in direct bookings
Digital Experience Platforms allow large and mid-sized hotel chains to run advanced marketing and sales programs on their websites and adjacent assets. In the longer run, this usually yields increases in direct bookings. When a loyal customer books a room at a discount on the hotel website, having been served content in their language (and carefully tailored to their preferences!), it is likely that the journey was enabled by a set of technologies that we call Digital Experience Platform.
DXPs allow large-scale content publishing across digital touchpoints such as websites, guest portals, apps and in-room tech, eliminating worries about data consistency and security. Think launching ad hoc campaigns and special offers quickly, to make the most of sales opportunities. Think managing content on multilingual websites that market hundreds or thousands of accommodation units, grouped by destinations, resorts, languages etc.
In our experience, hospitality companies that outperform their peers in direct sales are more likely to have a DXP implementation. Also, they are more likely to have invested in a DXP setup and integrations strategically, over a longer time (regardless of what they call their tech array).
Enabling OTA commission savings
Some hotel companies have been very successful in using DXPs to gain an upper hand in the age dominated by online travel agencies (OTA). Although OTAs are valuable distribution partners, their 15-30 percent commissions make up a massive sum in the profitability calculations of many hotel chains. Even a small decrease in OTA placements (and the corresponding increase in bookings via proprietary websites) can result in serious bottom-line improvements.
In mature hospitality markets, sales leaders will carefully analyse their margins and performance across sales channels. So, the relationship with OTAs remains a matter of constant monitoring – in some destinations more than in others. This is especially true in large companies, and in those listed in stock exchanges. The math can be striking, so any systematic way of saving on OTA commissions is a matter of considerable interest.
Staying in control of customer data and preferences
Digital Experience Platforms have an important role in enabling hotel chains to stay in control of their customer data and preferences, and use it strategically to improve their customer satisfaction and repeat bookings. Again, this will have an impact on sales and profitability numbers. If you think about the outstanding personalization that the hospitality industry is known for, it is probably rooted in systems that fall under the Digital Experience Platform umbrella.
Composability as a key feature
Increasingly, composability is seen as one of the key DXP features. Gartner has estimated that “by 2026, at least 70% of organizations will be mandated to get composable DXP technology, as opposed to monolithic DXP suites, compared to 50% in 2023.” (January 2025.)
The ongoing question for hospitality leaders is finding and maintaining that perfect balance between sales channels that will ensure top profits. The tech stack that we’ve come to know as Digital Experience Platforms has become a major asset in the effort. Some of the leading European hospitality companies have been investing in it strategically, and seeing tangible gains in their direct sales and their profitability.
Gartner has estimated that by 2027, “40% of organizations will fail to deliver impactful digital CX due to a lack of AI-driven intelligent content coordination and content operations strategy.” There can be little doubt: for those concerned with the future of digital experiences in travel and hospitality, the time to dive deeper into DXP is now.
Let’s meet in Arabian Travel Market conference or get in touch on LinkedIn if you want to talk about this important topic, and how DXPs are implemented in companies that outperform their competitors.
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