Chapter 1: The OTA Landscape

Online Travel Agencies (OTAs) have become the backbone of how many travellers book their accommodation. Names like Booking.com, Expedia, and Airbnb are not just familiar — they’re often the first places people turn to when planning a trip. It’s easy to see why. OTAs provide a simple way to compare prices, read reviews, and make bookings, all on one seamless platform. It’s like a virtual shopping mall, but instead of clothes, you’re choosing between hotels, B&Bs, or holiday rentals.

But here’s the kicker. While OTAs make it super convenient for guests, they can be a double-edged sword for hotels. The most obvious hit? Those hefty commission fees. Typically, an OTA will take a cut of around 15–20% of each booking. Let’s put that in perspective: if your room rate is £200 a night, you’re potentially handing over £40 per booking to the OTA. That can add up fast, especially if OTAs are your main booking source.

Why OTAs Are So Dominant

Let’s be honest — it’s not hard to see why OTAs have such a strong grip on the hospitality market. For smaller properties, getting listed on a big-name OTA can feel like instant exposure to millions of potential guests. They offer sophisticated marketing tools and algorithms that push listings to the top based on guest preferences. Plus, with the advent of mobile apps, OTAs make booking as easy as a swipe. It’s fast, it’s familiar, and for many travellers, it’s a no-brainer.

But what’s convenient for guests doesn’t always mean it’s great for hotels. Relying heavily on OTAs can put properties in a tricky position, especially when it comes to brand control. Have you ever noticed how similar all OTA listings look? Hotels end up becoming just another option in a long list of accommodations, without much room to stand out. On top of that, OTAs often promote deals and discounts, forcing hotels to slash their rates even further just to stay competitive.

The Hidden Costs of Relying on OTAs

Beyond the commission fees, there’s the issue of guest loyalty — or rather, the lack of it. When someone books through an OTA, they’re essentially a customer of the OTA, not the hotel. They may not even remember the name of the hotel they booked by the time they check in. This detachment can make it difficult for hotels to foster long-term relationships with guests or encourage repeat business.

Moreover, relying too much on OTAs leaves hotels vulnerable. What if OTA policies change? Or their commission rates increase? A hotel that depends primarily on OTAs for its revenue might find itself at the mercy of these platforms, with little room to manoeuvre.

A Balanced Approach

The good news is that OTAs don’t have to be the enemy. They’re a tool — one that can be used strategically. The key is finding a balance between leveraging the reach of OTAs and encouraging more direct bookings. Direct bookings are a win-win: hotels save on those hefty commission fees, and guests often enjoy added perks, whether it’s a welcome drink, free Wi-Fi, or a room upgrade.

In the next chapter, we’ll dive into strategies for winning more direct bookings without completely ditching OTAs. After all, it’s not about choosing one over the other, but about making sure your property stays in control. Stay tuned!