While OTAs have been valuable distribution partners of hotel companies for several decades now, it is also true that relying on them too much can raise profitability concerns. With commissions ranging between 15% and 25%, hospitality leaders know all too well how much revenue goes to OTAs for every unit sold on their platforms.
For a hotel chain with USD 100 million in annual sales via OTAs, that’s up to USD 25 million in commission fees every year, which are eating into the hospitality companies’ profits.
But what if even a small shift towards direct bookings could make a huge difference?
A mere 1% increase in direct online sales can have a major impact on revenue. In fact, some European hotel companies have already achieved double-digit percentage gains in their direct online sales.
How are they doing it? They are making strategic investments in their brand websites, software solutions and smart data integrations.
By powering your own direct online sales, you can reduce dependency on OTAs, strengthen your brand, build loyalty, and achieve substantial margin improvements over the long run. Optimizing your direct sales platforms gives you more control over your revenue streams while still capitalizing on the advantages of OTA placements.
The numbers don’t lie - even a small shift toward direct bookings can drive significant long-term gains.
Check how a strategic approach to your direct online sales channels could impact your revenue in the longer run. We will need basic information on your sales attribution, annual revenue and the commission fees you are currently paying.
Our consultants will develop an assessment of potential savings and revenue growth for your organisation. Let’s dive into the numbers and explore how a well-planned investment can lead to higher profits margins and greater control over your revenue.
We use cookies to improve your experience on our site. To find out more, read our privacy policy and terms of use.
I’m OK with that