6 min read
What an OTA booking actually costs you
OTAs are not the enemy. They are expensive shelf space that works. The mistake is not using them, it is not knowing what share of your revenue they take and never building an alternative.
Do the arithmetic on one booking
A three night stay at 150 a night is 450 in room revenue. At 18 percent commission the OTA keeps 81. The same booking made directly keeps that 81 in the building. Run that across a year at even a modest share of your bookings and the number is usually larger than any software you are being sold.
Rate parity does not stop you competing
Most parity clauses cover the rate, not the offer. You can generally match the price and beat it on value: a late checkout, breakfast included, a room upgrade at the same rate. Check your own contract, then compete on the parts it leaves open.
Make the direct path shorter, not louder
Guests who look you up after finding you on an OTA are already convinced. They abandon because the direct path is worse: a booking form that asks for too much, no photos, no visible availability, a price that appears only after five clicks. Fixing the path usually beats discounting.
- Show availability and price without a form
- Keep the booking to as few steps as you can
- Price in the guest's currency
- Make the confirmation and the pre-arrival contact feel like your hotel
Measure the mix, not just the volume
Track what proportion of room revenue arrives direct, and watch it monthly. Volume alone will not tell you whether your distribution is getting more expensive, because a good month can hide a worsening mix.