Something's shifting in hotel distribution across Asia-Pacific, and it's not what the industry headlines might have you believe.
Yes, OTAs still dominate. Yes, commissions are still painful. But beneath the surface, a growing number of hotels, from boutique beach properties in Sri Lanka to multi-property groups across Southeast Asia, are quietly rewriting their distribution strategy. And they're seeing real results.
We've been working with hotels across the region for years, and the conversations we're having now are fundamentally different from even 18 months ago. The question isn't "should we invest in direct bookings?" anymore. It's "how do we actually make this work in our market?"
Here's what we're seeing on the ground.
The Mobile Reality No One Talks About
Walk into most hotel lobbies in APAC and you'll see it immediately: guests booking their next stay on their phones. Checking out restaurant options on Instagram. Comparing prices across five tabs whilst waiting for a taxi.
Yet somehow, many hotel booking engines still feel like they were designed for a desktop world that barely exists anymore in this region. The friction is real, slow load times, clunky interfaces, forms that don't work properly on mobile. And when the direct booking experience is frustrating, guests take the path of least resistance: they book on an OTA.
Zander Combe, who runs Halcyon Mawella, a 10-room boutique property on Sri Lanka's south coast, put it bluntly:
"We got Profitroom for our direct bookings to increase so we would stop paying so much commission."
Their old booking engine wasn't terrible, it was just... dated. Not mobile-optimised. Within a year of switching to a properly mobile-first system, they hit 50% direct booking share. Not through massive marketing spend or aggressive discounting, just by removing the friction.
That's the thing about APAC: mobile isn't a channel, it's the channel. Hotels that treat it as an afterthought are essentially handing bookings to OTAs on a silver platter.
The Loyalty Paradox
Here's a puzzle: hoteliers constantly tell us loyalty is harder than ever to build in APAC, yet industry data shows properties can achieve 40-50% of their bookings from repeat guests, across the region. So what's working?
The traditional approach, stay 10 nights, get one free, doesn't resonate the way it used to. The hotels getting it right are rewarding from the first booking, not the tenth. They're personalising offers based on actual behaviour, not generic segments. And critically, they're making sure their member rates show up in Google searches, so direct booking benefits are visible before guests even reach the website.
It's less about points and more about making guests feel recognised.
Selling Experiences, Not Just Rooms
Average booking values in APAC have been stubbornly flat for years, despite rising operational costs. The culprit? Most hotels are still just selling rooms when guests actually want complete experiences.
Halcyon Mawella figured this out quickly. They created nine different packages, wellness retreats, surf lessons, cultural excursions, and integrated them directly into the booking flow. Their average booking value hit $864, with an ADR of $271. The upsells didn't cannibalise room revenue; they enhanced it.
Read the full Halcyon Mawella success story → https://www.profitroom.com/halcyon-mawella
The broader lesson: guests are spending money on experiences either way. The question is whether they're booking that cooking class or spa treatment through you or finding it elsewhere. When you make it easy to book everything together, conversion improves and guest satisfaction goes up.
The Multi-Property Challenge
For groups managing multiple properties, the technology fragmentation in APAC is particularly acute. Different systems for different hotels, often because properties were acquired at different times or operate in different markets. Data doesn't flow between systems. Teams waste hours on administrative work that should be automated.
The breakthrough we're seeing is when operators can actually view and manage their entire portfolio from one place. Not just for operational efficiency, but for strategic decisions. Which properties are driving the most repeat business? Where are loyalty members actually staying? Which packages work across markets and which need localisation?
Language and Localisation: Still Overlooked
APAC is staggeringly diverse linguistically. A hotel in Singapore might receive enquiries in English, Mandarin, Bahasa, Tamil, and Japanese in a single day. Yet many booking engines and websites operate in two languages maximum.
This isn't just about translation, it's about trust. When a guest lands on your site and it automatically adjusts to their language based on their location, you've already created a better experience than OTAs that just offer a clunky Google Translate option.
The hotels capturing intra-regional travel aren't just the ones with the best locations or lowest prices. They're the ones that feel accessible to travellers across the region.
Why Your Tech Stack Is Working Against You
Every hotelier we speak to mentions "too many systems." Booking engine from one vendor, CRM from another, channel manager from a third, loyalty programme from a fourth. Each requires separate login, separate support, separate billing. Nothing talks to each other properly.
The trend we're seeing is toward integrated platforms where the value isn't just "everything in one place" but "everything works together." When your booking engine, CRM, loyalty programme, and marketing automation share data seamlessly, you can create more personalised guest experiences without manual work. Offers based on past stays. Automated follow-ups that feel relevant. Communications that actually convert.
Profitroom's integrated platform: All tools connected and working together
Zander at Halcyon Mawella mentioned this:
"The upselling tools, offers, emails, marketing tools, and website help us connect with guests more effectively and make the booking process seamless."
It's the integration that matters, not just the features.
The Details That Convert Bookings
Two underrated issues we see constantly:
Cart abandonment: Guests start booking, then disappear. Maybe their internet dropped. Maybe they got distracted. The hotels capturing these lost bookings have automated recovery emails that bring guests back when they're ready.
Slow enquiry responses: In markets where WhatsApp and WeChat are primary communication channels, response time expectations are measured in minutes, not hours. The properties winning these bookings have tools that let front desk staff create and send personalised offers in under two minutes.
Small operational improvements, significant revenue impact.
The Time Zone Problem Nobody Mentions
Here's something that doesn't get discussed enough: most hotel tech companies have limited presence in APAC. Their support teams are in Europe or North America, working different time zones, unfamiliar with regional booking patterns or market dynamics.
When you're dealing with a technical issue at 9am Bangkok time and support doesn't start until 5pm, that's lost revenue. When your Customer Success Manager (CSM) doesn't understand that Golden Week in China changes everything, or that monsoon season in Southeast Asia requires different inventory strategies, you're getting generic advice that doesn't fit your reality.
The properties we work with have dedicated Customer Success Managers who understand the APAC market, visit in person, and are available when needed, not when it's convenient for a faraway headquarters. It's not just about troubleshooting; it's about having a partner who gets your specific challenges.
What Success Actually Looks Like
Let's be honest: there's no silver bullet. Halcyon Mawella didn't go from OTA-dependent to 50% direct overnight through one clever hack. It was a combination of better technology, clearer strategy, and consistent execution.
But the pattern across successful properties is clear: they've invested in mobile-first booking experiences that actually work, they're building loyalty through recognition and personalisation, they're selling complete experiences through packages, they've consolidated their tech stack to reduce complexity, they're responding to the multi-language reality of APAC, and they've got support partners who understand their specific challenges.
None of this is rocket science. But it does require seeing direct distribution as a genuine channel strategy, not just a nice-to-have or cost-saving exercise.
The Longer Game
OTAs aren't going anywhere. They've built powerful platforms and spend billions on marketing. But the idea that hotels are destined to become commoditised inventory on someone else's platform isn't inevitable.
The hotels thriving aren't the ones fighting OTAs on their terms. They're the ones building direct relationships with guests, offering experiences OTAs can't replicate, and using technology to make those direct relationships easier and more valuable for everyone involved.
As Zander said:
"As long as Profitroom keeps performing, we'll keep working with them."
That's the mentality shift, from seeing technology as a cost centre to seeing it as a strategic partnership. When your systems work together seamlessly, you're not just reducing commission costs. You're building something more valuable: direct relationships with guests who come back.
And in a region as dynamic and competitive as APAC, those relationships are what separate hotels that survive from hotels that thrive.
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