OTAs or direct bookings: finding the right balance

It is one of the most poorly framed debates in independent hospitality. On one side, those who want to "leave Booking". On the other, those who rely on it entirely. The truth sits in the middle: the right goal is not to pick a side, but to find the mix that maximises your profitability.

What OTAs do well

OTAs have a strength few independents can match: global visibility and massive marketing budgets. They bring you guests who would never have found you otherwise — international travellers, first-time bookings, last-minute fill. Cutting them off cold would mean losing that acquisition channel.

What they cost

In return, they take a commission of 15 to 25%, sometimes up to 35% with visibility programmes. They keep the guest data, enforce rate parity, and make you dependent on a channel you do not control. A hotel that depends 100% on OTAs is a fragile hotel.

The right framing: acquisition vs loyalty

The healthiest way to frame the problem:

• OTAs serve acquisition. Let them bring you the guest the first time.
• Direct serves loyalty and margin. Once the guest is known, bring them back direct, with no commission.

Booking remains the storefront; it is up to you to run the shop. Every booking recovered direct is commission that stays with you and an average rate 37% higher on average.

How to build the mix

1. Keep the OTAs, but master them with a channel manager that syncs everything in real time.
2. Build the direct channel with a booking engine and advance payment.
3. Measure each channel's share and gradually shift the dial toward direct, without ever cutting acquisition.

What is your balance point?

It depends on your figures: size, average rate, current OTA share, commission. Rather than guess, measure. The Kinko ROI calculator shows what you would gain by shifting even part of your bookings to direct.

Find your ideal mix. Run the numbers.