Direct vs OTA Hotel Booking: What Hotels Should Know
When it comes to hotel booking, guests usually choose between two main options:
- Direct hotel booking – Booking a hotel room directly through the hotel.
- OTA (Online Travel Agency) hotel booking – Booking a hotel room through third-party platforms.
Each method has its own pros and cons for both hotels and guests.
Let’s break it down simply.
What is Direct Hotel Booking?
Direct bookings mean guests reserve their stay directly with the hotel.
This can be done in several ways:
- The hotel’s official website – Guests visit the hotel’s site and book rooms online.
- Calling the hotel – Guests call the hotel and make a reservation by phone.
- Visiting the hotel in person – Guests walk in and book at the front desk.
There is no middleman involved. Guests deal with the hotel team directly.
Benefits of Direct Hotel Booking
Booking a hotel directly through the hotel’s own website or reservation system, rather than using third-party platforms like Expedia, Booking.com, or Airbnb, can come with several benefits.
Here’s a breakdown of the most common advantages:
1. Keep More Money
Hotels save money by skipping OTA commissions, which can be 15% to 30%. This extra income can be used to:
- Improve services – Extra money can help hotels upgrade guest facilities.
- Offer better prices – Hotels can lower rates without losing profit.
- Upgrade the guest experience – More funds mean better hospitality.
2. Build a Real Connection
With direct hotel booking, hotels can:
- Collect guest preferences – Learn what each guest likes and expects.
- Handle special requests – Fulfil specific guest needs easily.
- Communicate without any delays – No third party between hotel and guest.
This leads to better service, loyalty, and repeat stays.
3. Offer Better Deals
Hotels can share exclusive offers like:
- Custom room setups – Let guests pick their room type or bed preferences.
- Loyalty discounts – Give returning guests special prices.
- Special packages – Combine room stays with tours or meals.
These benefits are not always available through OTAs.
What is OTA Hotel Booking?
OTA stands for Online Travel Agency.
It means guest book their stay using a third-party application.
OTA hotel booking is when guests use platforms like:
- Booking.com – A popular online platform for comparing and booking hotels.
- Expedia – Another major site where travelers can book hotels and flights.
- Airbnb – A platform for booking both homes and hotel rooms.
These platforms act as a bridge between the hotel and the guest.
Advantages of OTA Hotel Booking
For hotels that want to enter the larger Online Travel Agency (OTA) market, OTAs can be valuable resources for marketing
1. Reach More People
OTAs cater to millions of visitors. By listing a hotel on OTAs, visibility will likely improve significantly, especially with:
- International travelers – These are travelers that may be vacationing from outside the country.
- First-time guests – The OTA reaches individuals who have not yet heard of the hotel or its offerings.
2. Get Free Marketing
OTAs spend money on ads and SEO. This means more eyes on:
- Hotel listings – More guests will find and view hotel profiles.
- Special deals – OTAs highlight promotions to attract bookings.
- Last-minute offers – Promote available rooms close to the check-in date.
3. Help Guests Choose
OTAs make it easy for guests to:
- Compare hotel prices – Guests can view rates from multiple hotels.
- Read real reviews – Guests learn from the experiences of other travelers.
This transparency builds trust and helps guests choose the best stay.
Impact on Hotel Revenue and Guest Experience
Both direct and OTA bookings affect hotels in different ways.
Revenue
- Direct hotel booking are useful for hotels to make more money because they can avoid commissions.
- OTA hotel bookings may drive more bookings, but they have fees associated with those bookings.
Guest Experience
- Direct hotel bookings may be more personal.
- OTA hotel booking may be more price comparative and have more options.
Hotels should probably want to leverage a hybrid approach to maximize both revenue and guest experience.
Conclusion
Hotel booking can happen in two main ways, and each option brings its own value.
- Direct booking helps hotels earn more by cutting out commissions. It also allows hotels to build better relationships with guests and offer personalized services.
- OTA booking gives hotels access to a much larger audience. OTAs invest heavily in marketing, provide easy booking platforms, and help guests compare prices and read reviews.
For hotels, the best approach is to balance both methods.
While direct bookings increase profit and guest loyalty, OTA hotel bookings help fill more rooms and attract new travelers.
By using both smartly, hotels can grow, serve their guests better, and stay competitive in today’s travel world.
Get in Touch
Want to take your hotel booking strategy to the next level?
Let’s work together with QloApps to make it happen!
QloApps helps to manage direct and OTA Booking easily
To manage both booking types with ease:
- Use QloApps for handling your direct bookings
- Add the QloApps Channel Manager to manage OTA bookings smoothly
💡The best part? You can download and install QloApps for free on your system or server.
Got questions or need assistance:- Reach out to our QloApps Support Team
Upgrade your hotel bookings with QloApps today!