The Elephant in the Room: What Nobody Tells You About Direct Bookings

I truly believe direct booking strategies are the future. In five years, I’ll outrun the OTAs. Mark my words! Independent hotels will lead the charge, but only if we, independent hotels, stop underestimating technology, commit to smart investments in marketing, and embrace flexibility and efficiency.

It’s time to rethink how we approach direct bookings. But let’s be real—direct bookings aren’t as simple as “1+1=2.” They’re part of a much bigger game, and every player—hotels, OTAs, competitors, guests, and even Google—has a role. To win, we must play strategically and not fall for myths that make direct bookings seem like a magic bullet.

The Challenges of Direct Booking

Direct booking is not a fairy tale. While it offers incredible benefits, the reality is that it comes with a cost. Too often, we focus on the monetary cost—how much marketing, tech, and resources we invest—without considering the broader impact on our hotel’s business model.

This isn’t a scam, but it can feel like a trap if we blindly push for direct bookings without understanding the game. Imagine it: summer peaks, and you’re killing it with direct bookings. Then winter hits, demand drops significantly, and suddenly those OTA commissions don’t seem so bad anymore. Sound familiar? Of course, every hotel is different—what works for one might not work for another. Seasonality, location, and market dynamics mean that no single strategy fits all, and adapting is the name of the game.

Why August Isn’t November

Think about it: you wouldn’t wear a winter coat in summer, right? So why apply the same direct booking strategy in August and November?

In peak summer, a beachfront hotel in Europe sees crazy demand. Guests are booking like wildfire, your rates are high, and you’re living the dream. Your direct booking strategy shines because everything—operations, guest experience, and marketing—is working in your favor.

But when November rolls around, the beach is empty, and demand dries up. That’s when relying only on direct bookings can hurt. It’s not about ditching the strategy but adapting it to the season. OTAs might play a bigger role in slow months, helping you stay visible and fill rooms while you optimize costs.

The Real Costs Behind Direct Booking

Let’s talk numbers. Everyone has love & hate mood towards OTA commissions, but direct booking isn’t free. Here’s what you need to succeed:

• Marketing Costs: SEO, PPC, social media, and email campaigns to drive traffic to your website.
• Tech Investments: A user-friendly website, booking engine, and channel manager to keep operations smooth.
• Human Resources: Well-trained staff to manage bookings and deliver top-notch service.
• Opportunity Costs: Time and resources spent on direct booking could be spent on other areas.

OTA commissions are paid after the guest’s departure, while marketing ad spend for direct bookings is paid upfront. Paid marketing can work like magic if your hotel brand is already well-established, but for a new hotel, focusing on OTAs and leveraging their billboard effect is a smart strategy to build visibility while gradually strengthening your direct booking efforts.

The Upsides and Downsides of Direct Booking

Benefits:

• Increased Revenue: No OTA fees means more profit per booking.
• Better Guest Relationships: You get to connect directly with your guests.
• Brand Loyalty: Personalized experiences can turn guests into lifelong fans.

Pitfalls:

• Higher Costs: Marketing, technology, and staffing don’t come cheap.
• Seasonal Demand Changes: Direct bookings can’t always make up for slow months.
• Risk of Overreliance: Putting all your eggs in the direct booking basket is risky if market dynamics change.

How to Win the Direct Booking Game

1. Balance Is Key: Use OTAs and direct bookings together. Each has its strengths, and balance reduces risk.
2. Monitor Your Costs: Be aware of what you’re spending and adjust as needed.
3. Seasonal Flexibility: Tailor your strategy to seasonal demand, focusing on OTAs or direct bookings as needed.
4. Leverage Data: Use guest insights to create targeted, effective campaigns.

My Vision for the Future

In five years, I know this industry will look completely different. Direct bookings will take over because we’ll finally understand how to use technology and marketing to our advantage. OTAs won’t disappear, but they’ll play a different role.

Every one of you has the power to shape your own success. Let’s stop underestimating ourselves, invest in what matters, and embrace efficiency. Together, we can rewrite the rules and build a brighter, more profitable future for independent hotels. No one will fight this battle for you—it’s up to you.