Online Travel Agencies (OTAs) generate valuable bookings to hotels and property owners; however, they charge substantial commissions, often ranging from 15% to 30% per reservation, according to Hostaway. That’s money that could be going straight into your hotel revenue.
The truth is, OTAs are not the enemy. They play a role in getting your property in front of guests, especially in competitive markets. But over-reliance on them is costly, and it puts your business in a position where you’re not fully in control of your own bookings.
Here are some practical and actionable ways to reduce your OTA dependence and save on commissions without compromising occupancy levels.
Why You Shouldn’t Rely Solely on OTAs
The reality is, OTAs aren’t going anywhere. They’re powerful, well-funded, and a convenient starting point for many travelers. With a wide range of properties across the globe, OTAs offer an inventory that is hard to find on any other platform for their customers. For that reason, they appeal to many travelers. The problem is not to use them; they are entirely dependent on them for most of your bookings.
Here’s what over-reliance costs you:
- Lower profit margins - When a 20% commission on a $200 booking is charged, you lose $40 instantly. If you multiply that across tens of bookings you get monthly, you’ll see how much revenue you’re giving away.
- Weaker guest relationships - OTAs own the first point of contact, meaning you don’t have the opportunity to build rapport with the customer before check-in. That is why when the same customers want to book another stay, they are highly likely to book with the OTA again rather than with you.
- Pricing pressure - OTAs often push for discounts or exclusive deals that eat into your margins; moreover, other hotels may lower their rates on the platform to stay competitive. You may also respond to this by lowering your cost to stay competitive, and whoever wins in lower rates loses in revenues.
Reducing dependency means you keep more of your hard-earned revenue and take control of your guest experience.
7 Ways to Escape OTA Commissions and Drive More Direct Bookings
1. Audit Your Current Booking Mix
Start by tracking the number of bookings that come from OTAs versus direct channels. If 70% or more of your bookings are from OTAs, you’re overexposed.
Analyze:
· Which OTAs bring the most bookings
· Which channels bring the highest profit margin
· Where repeat guests are booking from
Once you have these numbers, you can set realistic goals to increase direct bookings on a month-by-month basis.
2. Optimize Your Website for Direct Conversions
Your website should be as easy (or more straightforward) to book on as a travel booking website. That means it not only needs to have an exemplary user interface but also a mobile-friendly design that will allow phone users to book at their convenience. Secondly, you need high-quality images of rooms, amenities, and experiences. These images can be the same as the ones you posted in the OTAs. If not, you can get a professional to take some lovely photos of your property. Additionally, you need to provide real-time availability, pricing, and payment options to book instantly, like an OTA. You will need to integrate a channel manager and booking engine, such as Reserveport, to deliver this. Your guests should not have to hunt for your booking link, call you, or wait for email replies; they will likely click back to an OTA.
3. Add a Commission-Free Booking Engine
If your website doesn’t have an integrated booking engine, you’re missing opportunities every day. With Reserveport’s booking engine, guests can check availability, select rooms, and pay instantly- no phone calls or extra steps required. Moreover, you can integrate the booking engine with Google’s free hotel booking links so that your direct rates appear in Google search alongside those of OTAs.
4. Offer Better Value for Direct Bookings
You don’t have to slash prices. Instead, you can add perks OTAs can’t match, such as Free breakfast or late check-out, complimentary airport transfers, or even a welcome drink or room upgrade. The ideas here are endless, be mindful of the cost-to-benefit ratio so that you don’t make a loss. What I see some OTAs do in pricing is that they may add a small markup on their website to cover their commission for you. Since your direct sales will come directly to you, you don’t have to mark up the price. This will make your website remain competitive. Ensure that these incentives are only available when guests book directly through your website or by phone.
5. Use Social Media as a Direct Booking Channel
Your Facebook and Instagram pages shouldn’t just showcase pretty pictures; they should drive bookings. Add “Book Now” buttons linked to your booking engine. Share exclusive offers that can only be claimed via direct channels. You can also add book now links to your email signature and marketing brochures, among others.
6. Retain Past Guests
A guest who has stayed once is easier and cheaper to convert again, especially if you encourage them to skip OTAs next time. Send post-stay thank-you emails with special offers for booking direct. Use your guest database to personalize offers such as complimentary wine for wine enthusiasts or discounted spa treatments for wellness travelers.
7. Strengthen Your Brand
When your property stands out for its unique experience, service, and online presence, guests will seek you out directly. Keep your brand voice consistent, showcase authentic guest reviews, and ensure your hotel’s story is present everywhere from your website to social media.
You don’t have to quit OTAs, you just need to balance them with stronger direct booking channels. Every time you shift a booking from an OTA to your own website, you gain more revenue, better guest relationships, and increased control over your business.
At Reserveport, we help hotels achieve this with our channel manager, booking engines, and payment integration tools that make direct bookings easy for both you and your guests.