Rethinking the OTA vs. direct booking battle

By working with OTAs instead of against them, hotels can drive long-term profitability and strengthen direct booking performanc

Online travel agents (OTAs) have long been viewed as competitors to direct hotel bookings due to the high commission costs they demand. However, reframing this mindset can unlock opportunities for hotels. Rather than fighting OTAs, hotels should strategically use them as part of a broader "Find, Book, and Grow" strategy—leveraging their reach to attract guests, enhancing direct booking capabilities, and nurturing long-term guest relationships.

Key takeaways

• OTAs are here to stay: In 2023, 36% of hotel bookings were made via OTAs, while only 21% came directly through a hotel’s booking engine. OTAs will continue to dominate due to consumer trust, convenience, and substantial marketing budgets;
• OTAs drive visibility and bookings: With billions spent on marketing and technology, OTAs attract travelers that hotels may struggle to reach alone;
• Hotels should shift strategy: Rather than competing with OTAs, hotels should focus on converting OTA-acquired guests into direct bookers for future stays;
• Investing in technology is critical: Seamless mobile booking experiences, AI-driven personalization, and remarketing strategies are key to capturing direct bookings;
• Collaboration is essential: Revenue, marketing, and commercial teams need to work together, using data-driven strategies to maximize profitability;
• Hotels have the ultimate advantage: While OTAs can bring guests in, hotels can build long-term loyalty through superior on-property experiences.

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