Who’s really in control? Take back your hotel’s revenue with direct booking strategies

In today’s hyper-competitive hospitality industry, Online Travel Agencies (OTAs) dominate the booking landscape, offering visibility and convenience at a hefty cost. But have you considered how this reliance on OTAs impacts your brand, revenue, and long-term growth?

Yogesh

12/12/20243 min read

How to Take control of your hotel’s revenue with direct booking strategies
How to Take control of your hotel’s revenue with direct booking strategies

In today’s hyper-competitive hospitality industry, Online Travel Agencies (OTAs) dominate the booking landscape, offering visibility and convenience at a hefty cost. But have you considered how this reliance on OTAs impacts your brand, revenue, and long-term growth?

The truth is, OTAs are designed to prioritize their profits—not your hotel’s. From dynamic pricing strategies that erode your brand’s value to high commission fees that eat into your margins, OTA reliance can be a necessary evil. However, by investing in direct booking strategies, you can reclaim control over your revenue, guest relationships, and profitability.

Let’s explore why OTAs hurt your bottom line, the benefits of taking control, and actionable tools to drive more direct bookings.

Why OTAs’ dynamic pricing strategies hurt your brand’s value

Dynamic pricing, a hallmark of OTAs, might appear beneficial at first glance—adjusting room rates to optimize demand. However, the real impact on your brand can be devastating:

  • Price Volatility: Guests are exposed to inconsistent pricing, which can harm your reputation and make your property appear unreliable.

  • Devaluation of Your Brand: OTAs prioritize price over value, encouraging guests to book based on cost rather than your unique offerings.

  • Lack of Differentiation: Your hotel becomes one of many in a price-based competition, overshadowing your distinct identity.

Example: A guest who books your hotel at a steep discount on an OTA is less likely to view it as a premium choice, reducing the perceived value of your brand over time.

The benefits of owning your booking process

When you shift to direct bookings, you gain control over your hotel’s story, relationships with guests, and overall revenue. Here’s how:

1. Full control over pricing and policies

With direct bookings, you set the room rates, promotions, and policies without the influence of OTA algorithms. This ensures that your pricing remains consistent and aligns with your brand.

2. Access to guest data

Direct bookings enable you to gather valuable guest information, including email addresses, preferences, and booking habits. This data allows you to:

  • Create personalized marketing campaigns.

  • Promote loyalty programs designed for returning guests.

  • Craft exceptional guest experiences based on their preferences.

3. Higher profit margins

You directly boost your revenue by eliminating OTA commissions—typically 18–30% of each booking. Reducing your reliance on OTAs means you can keep more profit for reinvesting in your hotel.

Tools and strategies to increase direct bookings

To regain control over your revenue, a multi-channel strategy is essential. Here are some effective tools and strategies to enhance direct bookings:

1. Google hotel ads

Google Hotel Ads enables you to showcase your property in top search results. By linking your booking engine, you can:

  • Attract travellers who are actively looking for places to stay.

  • Highlight competitive rates with incentives for direct bookings.

  • Direct traffic to your website, bypassing OTAs.

2. Social media advertising

Platforms such as Facebook and Instagram offer robust tools to reach potential guests with customized ads. Emphasize your unique selling points, including:

  • Exclusive deals for direct bookings.

  • Beautiful images of your property and amenities.

  • Positive reviews and testimonials from happy guests.

Pro Tip: Utilize retargeting ads to reconnect with website visitors who didn’t finalize their booking.

3. Search engine optimization (SEO)

A well-optimized website ensures that travellers can easily discover your hotel online. Concentrate on:

  • High-ranking keywords like “luxury hotel in [location]” or “boutique stays near [landmark].”

  • Creating engaging blog posts, such as travel guides or highlights of local events.

  • A mobile-friendly design for smooth browsing and booking on any device.

4. Loyalty programs and personalized offers
  • Encourage repeat bookings by rewarding guests who book directly:

  • Provide discounts, free upgrades, or complimentary services for returning customers.

  • Send personalized emails with tailored offers based on their previous stays.

5. Live chat and instant booking features

Improve your website with tools like live chat to address guest inquiries instantly. Streamline the booking process with an easy-to-use booking engine that minimizes friction and increases conversions.

Take control of your revenue today

Dependency on OTAs doesn’t have to define your hotel’s future. By prioritizing direct bookings, you can:

  • Build stronger relationships with your guests.

  • Increase your profit margins.

  • Strengthen your brand and reclaim control over your revenue.

At Groivy, we specialize in helping hotels and resorts implement cutting-edge direct booking strategies. From SEO optimization to personalized marketing campaigns, we empower hotels to reduce OTA reliance and unlock long-term growth.

Don’t let OTAs control your revenue. Contact Groivy today and start taking back what’s rightfully yours.