Master additional revenue with SiteMinder expert Pablo Torres
Why events are revolutionizing the world of travel and their impact on hotel revenue management

Should hoteliers forget about direct online distribution and use the OTAs as their exclusive distribution channel?

Diversifying distribution channels is vital for profitability and brand power. Otas boost visibility but high commissions erode margins and guest data. Direct bookings offer upsell, cross-sell, loyalty and lower acquisition costs. Nurture direct channels with marketing, loyalty programs and personalization. Strike the right balance: use otas for reach, direct for long-term success.

Short answer: Absolutely not. While OTAs offer reach and bookings (billboard effect), relying exclusively on them is risky. OTAs' high commissions eat into profitability, while direct bookings are crucial for higher margins, guest data ownership, and stronger brand loyalty. It's about finding a healthy balance.

With direct channels, hotels control the guest journey, allowing upselling, cross-selling, and loyalty-building initiatives that increase ancillary revenue and customer lifetime value. Direct bookings also lower customer acquisition costs over time, improving overall financial health.

Hoteliers must maximize every guest touchpoint​. Giving all control to OTAs means losing upsell opportunities, ancillary sales, and the chance to truly differentiate your brand.

OTAs should remain a key part of the distribution mix, but direct online sales must be actively nurtured with smart marketing, loyalty programs, and personalized experiences.

The key? Finding the balance that serves you best. Use OTAs for reach, but invest in your direct channels for profitability and long-term success.

Should hoteliers forget about direct online distribution and use the OTAs as their exclusive distribution channel?
This website uses cookies to improve your experience. By using this website you agree to our Data Protection Policy.
Read more