The Hotelier’s Guide to Profitable Direct Booking and OTA Management

Balancing distribution channels between Online Travel Agencies (OTAs) and direct bookings is essential for maximizing revenue and maintaining control over the guest experience. While OTAs can drive significant traffic and bookings, relying too heavily on them can lead to increased distribution costs and diminished profit margins. These easily accessible OTA discounts often reduce the perceived value for guests and add additional costs for hotels in the form of commissions, which typically range from 15% to 30% of guest-paid revenue. To optimize distribution and enhance profitability while maintaining a superior guest experience, it’s crucial to adopt a balanced approach. Here are key strategies that help hoteliers diversify their points of sale, reduce costs, and attract more direct bookings. Achieving a Balanced Distribution Strategy One common mistake made by a lot of hoteliers is relying on just one or two points of sale. Such a distribution strategy can look like this: 80% Online …