More Direct Bookings, Less Commission: A Smarter Hotel Strategy

If you’re a hotelier, chances are you’ve asked this question:
“How do I get more guests to book direct instead of through an OTA?”

But maybe there’s a better question to ask:
“How much am I willing to invest to make that shift happen?”

The Real Cost of Commission

You probably know your digital marketing spend down to the last dollar. But if you don’t know how much you’re handing over to OTAs every month in commission, you’re not alone.

And that’s the problem.

We often cap our digital marketing budgets but leave OTA commissions wide open. This makes no sense when you consider that digital marketing is trackable, controllable, and in many cases, far more cost-effective.

Direct Bookings Deliver Serious ROI

When you bid on your brand name and run targeted search ads, the return on investment is impressive—often as high as 15:1. That’s like paying 7% for a direct booking versus the 18–23% OTAs typically take.

So why not reallocate just a portion of your commission spend into growing direct bookings?

A Smarter Way Forward

Even a modest reduction in OTA reliance can make a significant impact over time. Here’s how to start taking control:

1. Improve Your Website

Make your site easy to navigate, mobile-friendly, and visually appealing. People don’t want to read walls of text—they want to feel what staying with you will be like.

2. Choose the Right Booking Engine

Don’t settle for what’s bundled with your PMS. Use a booking engine designed to convert. Even if there’s a small commission, it’s still a better deal than OTA rates.

3. Bid on Your Brand Name

If you’re not running paid search ads for your own hotel name, OTAs will happily do it for you and steal your direct traffic.

4. Offer Exclusive Incentives

Provide value guests can’t get on an OTA like free breakfast, upgrades, or late checkout.

5. Train Your Team to Compete

If someone finds a better OTA rate and calls, let your staff match or beat it on the spot. Better to keep the booking than lose it entirely.

6. Ditch Overly Generous OTA Perks

Programs like Booking.com’s Genius sound helpful—but they benefit the OTA more than your property. Opt out and focus on rewarding direct bookers instead.

7. Use OTAs When You Need Them

Think of OTAs as overflow channels. Don’t list every room, every day. Open and close availability based on your own booking pace.

8. Leverage Guest Data

Once someone stays with you, their information is gold. Use email marketing to keep them coming back direct.

9. Surprise and Delight

Little touches matter. A personalized note and a small gift—like a branded mug with a free coffee—go a long way.

10. Support a Cause

Consider donating a small amount to a local charity for every direct booking. Guests appreciate ethical business practices, and it builds emotional loyalty.

11. Create a Direct Booking CRM Email Sequence

✅ Example: Direct Booking Nurture Sequence

1. Email 1 – “Thank You & Welcome”
   Sent right after someone signs up or books direct. Includes a warm welcome and maybe a discount code or incentive.
2. Email 2 – “Why Book Direct?”
   Explains the benefits of booking directly—better rates, exclusive perks, and more flexible terms.
3. Email 3 – “Meet the Hotel”
   Highlights your unique offerings—amenities, location, staff stories, or guest testimonials.
4. Email 4 – “Plan Your Stay”
   Suggests local attractions, restaurant recommendations, and upsell options (like spa or room upgrades).
5. Email 5 – “We’re Here for You”
   Sent a few days before arrival with contact info, check-in instructions, or anything else to make their stay smooth.
6. Email 6 – “Thank You + Review Request”
   Sent after check-out, thanking them for their stay and asking for a review or feedback.
7. Email 7 – “Come Back Soon”
   A few weeks or months later, send a small offer to rebook direct.

Final Thoughts

Growing your direct bookings won’t happen overnight. But it’s a long-term investment that pays off with better margins, stronger guest relationships, and greater independence.

So stop treating digital marketing as a cost. Start seeing it for what it really is: your best tool to own the guest journey from start to finish.