Direct Hotel Bookings vs. OTAs: Which is Better for Hotels?

For years, hotels have relied on online travel agencies (OTAs) like Booking.com, Expedia, and Agoda to attract guests. While OTAs offer massive reach, they come with significant drawbacks—high commission fees, limited guest data access, and pricing restrictions.

At the same time, more hotels are shifting toward direct bookings, using their own websites and booking engines to bypass OTAs and take control of their revenue.

So, which is the better strategy? Should hotels rely on OTAs, push for more direct bookings, or find a balance?

The Growth of Direct Bookings in the Hotel Industry

Hotels are beginning to rethink their reliance on OTAs. Recent industry data shows:

• Direct bookings increased by 35% in the past five years as hotels prioritize direct customer relationships.
• OTA commission fees range from 15-30% per booking, significantly reducing profit margins.
• 70% of travelers visit a hotel’s website after seeing it on an OTA, proving that direct bookings have untapped potential.

Despite these numbers, many hotels still depend on OTAs due to their marketing power and customer acquisition strategies. The challenge is finding the right balance between both channels.

The Pros and Cons of OTAs for Hotels

OTAs are a necessary distribution channel, but they come with trade-offs.

Advantages of OTAs:

• Massive customer reach – OTAs bring in millions of travelers who may not find a hotel otherwise.
• Global marketing exposure – Hotels benefit from OTA advertising without additional marketing spend.
• Instant bookings with secure payment processing – Travelers trust OTAs for their booking security.

Disadvantages of OTAs:

• High commission costs – Hotels lose a percentage of every booking, reducing profitability.
• Lack of guest data – OTAs control customer relationships, limiting direct engagement opportunities.
• Strict pricing policies – Some OTAs restrict hotels from offering lower prices on direct booking channels.

OTAs help hotels fill rooms, but relying on them exclusively can lead to revenue loss and limited control over pricing strategies.

Why Hotels Are Investing in Direct Bookings

Direct bookings allow hotels to maximize revenue and build customer loyalty. By reducing reliance on OTAs, hotels gain:

• Higher profit margins – No third-party commissions, meaning more revenue per booking.
• Stronger customer relationships – Hotels can directly market to and communicate with guests.
• Flexible pricing and promotions – Unlike OTAs, hotels have full control over discounts and loyalty programs.

Hotels that invest in user-friendly booking engines, seamless payment options, and personalized offers see higher conversion rates.

With Bakuun’s B-Direct solution, hotels can offer a commission-free booking experience while accepting traditional and cryptocurrency payments.

Key Metrics – The Financial Impact of Direct Bookings

• 20-40% more profit per booking compared to OTA commissions.
• 50% increase in repeat guests due to direct engagement and loyalty programs.
• 30% higher conversion rates when using personalized offers and streamlined booking engines.

These numbers make it clear: direct bookings are no longer optional—they’re essential for long-term profitability.

Should Hotels Focus on Direct Bookings or OTAs?

Hotels don’t have to choose one or the other. A smart distribution strategy includes both:

• Use OTAs for visibility and customer acquisition.
• Optimize direct booking channels to reduce dependency and increase profits.

By balancing both approaches, hotels can maximize revenue while maintaining full control over pricing and guest relationships.

Start Maximizing Direct Revenue Today

Bakuun’s B-Direct helps hotels reduce OTA dependency and increase direct bookings. Discover how you can offer seamless, commission-free reservations today.