The hotel industry has undergone a major transformation in recent years, largely due to the rapid growth of online travel agencies (OTAs). These platforms have made it easier for travellers to find and book accommodation, boosting hotel visibility and filling rooms. However, while OTAs have brought undeniable benefits, they’ve also introduced significant challenges—particularly in the form of high commissions and limited pricing control, which affect hotel profitability and long-term growth.

Positive impact: Increased Visibility and More Bookings

One of the key advantages of listing on OTAs is the immediate exposure to a global audience. With millions of users browsing daily, these platforms help hotels reach potential guests who may have never found them otherwise.

OTAs provide tools such as customer reviews, ratings, and user-generated content. These features enhance a hotel’s credibility and can positively influence booking decisions, especially for first-time guests.

Negative impact: High Commissions and Loss of Pricing Control

Visibility comes at a cost. Most OTAs charge commissions ranging from 10% to 30% per booking, significantly cutting into hotel margins. For smaller or independent properties, these fees can be especially damaging, limiting their ability to reinvest in services, infrastructure, or staff.

Moreover, OTAs often impose restrictions on pricing strategies. Hotels are sometimes unable to offer better rates on their own websites, reducing pricing flexibility and further limiting their control over revenue management.

Increased Efficiency Through Direct Bookings

Reducing reliance on OTAs can lead to operational efficiency and stronger guest relationships. Direct bookings enable hotels to offer custom packages, promote exclusive experiences, and include personalised extras/benefits not possible through third-party platforms.

By using hotel technology platforms such as Profitroom, properties can integrate their website, booking engine, CRM, and marketing tools into one seamless ecosystem. This eliminates the need to update multiple systems, saving time and reducing human error. Automated marketing campaigns and upselling options can drive higher average booking values, while staff can focus on delivering better guest experiences.

Why Direct Bookings Matter for Hotel Revenue

Modern booking engines give hoteliers more control over pricing, availability, and promotions. A user-friendly, fast, and mobile-optimised website helps convert more lookers into bookers. Unlike OTAs, direct booking platforms don’t charge hefty commissions, allowing hotels to retain more revenue.

Direct channels also allow hotels to provide real-time availability and offer immediate alternatives if a selected room or date is unavailable, something OTAs rarely do. Plus, hotels can set dynamic pricing, create time-limited offers, and adapt to market conditions faster.

Platforms like Profitroom are designed specifically to maximise direct booking conversion and empower hotels to grow. Many properties using such tools report double-digit growth in direct bookings, resulting in more revenue available for reinvestment into services and guest experience. For hotels that embrace these booking engines, the results have more often seen the properties enjoy considerable growth in their direct bookings. This, in turn, has allowed them to reinvest those profits into guest experiences and continue creating memories for their guests.

Reclaiming Profitability and Guest Loyalty

By shifting focus toward direct bookings, hotels can rebuild brand loyalty and develop lasting relationships with guests. With tailored communication before and after the stay, flexible cancellation policies, and exclusive perks for direct bookers, properties can increase guest satisfaction and repeat visits.

In an increasingly competitive hospitality landscape, hotels that invest in modern booking platforms, CRM systems, and data-driven marketing will be best positioned to thrive. Reducing OTA dependency not only improves profit margins but also strengthens long-term business resilience.