Hotels & OTAs: Time to Rethink the Love-Hate Relationship

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Why Hotels Need to Shift Their Perspective on OTAs

For years, online travel agencies (OTAs) have been portrayed as the enemy of direct hotel bookings, taking a significant share of reservations while charging high commission fees. Despite hotels investing heavily in direct booking strategies, through loyalty programs, digital marketing, and direct booking technology—many travelers still choose OTAs.

The truth is, OTAs aren’t going anywhere. Instead of resisting them, hotels need a more strategic approach, one that uses OTAs as a guest acquisition tool while maximizing opportunities to convert OTA bookers into future direct guests.

The Power of OTAs in Hotel Bookings

Recent studies highlight OTAs’ dominance in hotel distribution:

36% of hotel bookings in 2023 were made via OTAs, while only 21% came from direct hotel websites.
70% of travelers would book through an OTA rather than a hotel website if the price was the same.
Expedia research shows that 80% of travelers visit an OTA at some point during their booking journey, even if they book elsewhere.

Despite hotels’ efforts to shift bookings direct, OTA competition remains the biggest barrier to direct sales. Instead of fighting against them, hotels must leverage OTAs strategically.

Why OTAs Will Always Have an Advantage

Unlike individual hotels, OTAs have massive marketing budgets:

Insert ContentExpedia Group spent $6.9 billion on marketing in 2023.
Booking Holdings spent $6.8 billion in the same year.
Hotels, in comparison, spend only 5% to 15% of total revenue on marketing, a fraction of OTA budgets.

OTAs also continuously optimize the guest booking experience, investing in:

AI-driven personalization to improve search results.
Seamless mobile booking experiences, capitalizing on the fact that 70% of hotel traffic now comes from mobile devices.
Trust-building elements, such as verified reviews and loyalty discounts.

Hotels cannot match OTA spending, but they don’t have to. Instead, the key is to use OTAs for guest acquisition while strengthening their direct booking capabilities.

How Hotels Can Turn OTA Guests Into Direct Customers

1. Use OTAs as a Guest Acquisition Channel

Instead of resisting OTAs, accept them as an essential part of your booking funnel.
Optimize your OTA presence with high-quality images, engaging descriptions, and positive guest reviews.
Ensure guests have a fantastic on-property experience, this is your chance to win them over for future direct bookings.

2. Build a Strong Direct Booking Strategy

Offer exclusive incentives for direct bookings (e.g., better rates, upgrades, or dining credits).
Simplify your booking engine—invest in mobile-friendly design and AI-powered personalization.
Run targeted remarketing campaigns to bring OTA guests back directly to your website for future stays.

3. Improve Post-Stay Engagement

Collect guest emails at check-in and follow up with personalized offers.
Offer loyalty program benefits exclusive to direct bookers.
Send post-stay emails with discounts for their next stay—only available when booking direct.

Hotels Can Outperform OTAs in Guest Loyalty

Unlike OTAs, hotels have the advantage of human connection. OTAs might control the first booking, but hotels can control the guest experience, which ultimately influences future booking decisions.

By rethinking the Find, Book, and Grow strategy:

Find new guests through OTAs.
Book future stays through direct channels.
Grow guest loyalty and profitability.

OTAs shouldn’t be seen as competitors, but as valuable marketing partners. Hotels that embrace this shift will not only increase direct bookings but also enhance guest relationships and long-term profitability.

Stay ahead with more exclusive hotel insights at FALLZ HOTELS™.

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At FALLZ HOTELS™, we redefine what it means to connect buyers, sellers, and industry leaders. As the premier platform for private hotel sales, revenue growth strategies, and actionable insights, we provide the tools you need to maximize your property’s potential. Whether you’re optimizing for profitability or looking to secure the best value for your hotel, FALLZ HOTELS™ is your trusted partner in navigating today’s competitive hospitality landscape.

The FALLZ HOTELS™ Advantage

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FALLZ HOTELS™ is more than just a platform for connecting buyers and sellers. We are also a strategic partner in your success. By providing tools like Revenue Growth Assessments, we empower you to achieve measurable results. And here’s why it matters:

Valuation Boost: A well-optimized hotel commands higher offers during private sales.
Market Edge: Understanding and improving your revenue streams sets you apart from competitors.
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Exclusive Benefits for Hoteliers

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Connected Community: Join a growing network of other hoteliers, industry leaders, and buyers who are shaping the future of hospitality.

Imagine the power of being part of the most trusted platform for hotel sales, assessments, and innovation. With FALLZ HOTELS™, you’re not just selling rooms, you’re building long-term profitability and value.

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Take the first step today:

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At FALLZ HOTELS™, we believe in empowering you to lead the way in hospitality innovation. Let FALLZ HOTELS™ help you gain the insights and strategies you need to thrive in the ever-evolving hospitality landscape.

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Your Key to Smarter Hospitality Decisions

At FALLZ HOTELS™, we’re dedicated to keeping you informed about the latest developments in the dynamic global hospitality industry. As 2025 unfolds, we’ll continue to bring you expert insights, in-depth analyses, and updates on how hotels are evolving to meet the needs of hoteliers, investors, and stakeholders.

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Hotels & OTAs: Time to Rethink the Love-Hate Relationship