OTA vs. Direct: Where Are You Losing Money?

For independent hotels and small accommodation providers, the battle between Online Travel Agencies (OTAs) and direct bookings is ongoing. OTAs bring visibility and volume—but they come at a cost. Direct bookings offer better margins and customer control—but they require effort.

So where exactly are you losing money? Let’s break it down.

The Real Cost of OTAs

OTAs like Booking.com, Expedia, and Airbnb charge commissions ranging from 15% to 25% per booking. That means:

A $200 booking through an OTA could cost you $30–$50 in commission.
Multiply that across hundreds of bookings, and you’re easily losing thousands each month.

You may think of this as the “cost of marketing,” but the truth is you’re paying premium rates for repeat business and loyal guests too.

Hidden Losses from OTA Dependence

It’s not just the commissions—you also lose:

Guest data and email access (making it harder to remarket)
Pricing control due to rate parity agreements
Loyalty opportunities—guests often stay loyal to the OTA, not your hotel
Brand equity as guests don’t always remember your property’s name

Where Direct Bookings Win

When guests book directly through your website:

No commission fees
Full control of the guest relationship
Higher lifetime value—you can remarket to direct guests with offers and loyalty incentives
Increased trust—guests view your site as a sign of legitimacy

With a well-optimized site, you can increase profit per booking by 20% or more just by shifting guests from OTAs to direct.

Why Hotels Still Rely on OTAs

Despite the clear benefits, many hotels remain OTA-dependent because:

OTAs offer massive visibility and SEO dominance
Direct websites are often poorly designed or slow
There’s little to no investment in digital marketing or retargeting
Hotels assume guests prefer OTAs (not always true)

But here’s the reality: Many travelers check your hotel’s website before booking—and if your site is weak, they’ll go back to the OTA.

What You Can Do to Shift the Balance

Start reclaiming your profit and customer loyalty with these strategies:

1. Optimize Your Website for Conversions
Ensure your booking process is:

Mobile-friendly
Fast-loading
Simple (3 steps: Choose → Confirm → Pay)
Featuring real-time availability and best rate guarantees

2. Highlight Direct Booking Benefits
Make it clear what guests get by booking direct:

Free breakfast
Flexible cancellation
Room upgrades
Loyalty discounts

3. Invest in Paid Ads and SEO
Run Google Ads targeting your hotel name. Optimize your website’s content and metadata so guests find you before the OTA.

4. Use Email & Remarketing Campaigns
Capture emails on your site with incentives and send follow-ups or deals. Target OTA visitors who bounced back to your site with retargeting ads.

5. Train Your Front Desk Team
Encourage them to promote direct booking for next time. Give return guests a discount code or loyalty card at checkout.