How to win more direct bookings and ditch the OTA fees

Rate parity rules have now changed, with hotels now able to offer better prices on their sites than on OTAs. This behaviour is already shifting, as direct bookings now account for around 50% of hotel reservations globally, as reported by industry data from SiteMinder, and OTAs are having to compete with discounts that they can’t offer. So, what are the main ways you can win more direct bookings, and how can you finally get rid of the OTA pressure?  

In this article, we will cover the practical hotel direct booking strategies that hoteliers are using now, as well as looking at ways you can optimise your hotel booking engine and use guest data to bring them back time and time again. Every direct booking delivers more revenue to your business and gives you the foundation to build stronger guest relationship, which leads you to relying less on OTAs.  

We can all agree that OTA commission fees hit hard, but seeing the numbers for yourself might open your eyes to how much it really costs. Most OTA channels charge between 15% and 25% commission per booking, meaning on a £150 room rate, that’s up to £37.50 disappearing per reservation. This is money that could be spent elsewhere on your business and not disappearing into the OTA abyss.  

There’s also the guest relationship element to it, as when a guest books through an OTA they often only have contact with that external platform and not directly with you. When they do book directly, you can tailor offers to their needs and build that initial trust before they even arrive. This not only strengthens your connection with the guest but provides better odds of them returning in the future.  

But there is good news to help you increase direct bookings and reduce the reliance on OTAs. As of July 2024, the EU Digital Markets Act now allows rate parity clauses to be removed, meaning hoteliers can offer lower prices on their own websites than any OTA. Now, you can entice guests directly to your website with better rates and personalised offers that OTAs can’t do, essentially boosting your direct bookings and reaping the rewards that OTAs usually stole.  

Your website is the most powerful tool in increasing direct bookings which you can control, unlike OTAs who can only publish limited information. Converting a looker into a booker comes down to whether you make the booking journey easy and effortless. Here are 3 quick wins to make sure your website is ready to capture those direct bookings.  

1. Make it effortless to book on any device 

  According to Google, around 53% of people abandon their website visit if the page takes more than 3 seconds to load. A mobile optimised hotel booking engine that has fast loading times and simple, straightforward steps with clear pricings will change the game for your direct bookings, as it will influence visitors from thinking about booking, to always pressing ‘confirm’.  

Aim for a page loading time of no more than 3 seconds and condense the checkout process from start to finish to be around 3 or 4 steps long. Don’t overcomplicate the booking journey with harsh upsells or annoying pop-ups, but keep everything clear and simple to build trust that essentially converts.  

2. Offer a genuine best rate guarantee 

The reason guests start looking at OTAs is because they want the best deal on the market. But if they land on your website first and are reassured with a best rate guarantee, they will be more inclined to ignore the OTA offers and stick with your price.  

Display your pricing guarantee across the website homepage where visitors will land first, or on your bookings page so they are aware that the prices on your direct site are the best they will find. The main thing to think about is keeping it simple and not too overwhelming, so try linking to another page that explains the process if guests do find a better price elsewhere. This shows potential bookers that you want to give them a great deal and book directly with you instead of a third-party channel.  

3. Remove every unnecessary obstacle in the path to booking 

When you force a guest to create an account before they book, it’s one of the biggest killers of direct booking conversions. Give guests the opportunity to book as a visitor and offer multiple payment options like digital wallets for a quick and easy checkout process.  

People also want to be reassured with cancelling, so make your cancellation policies clear before the payment section and not too hard to find once they have completed their booking. You can even take it one step further with visitors who have abandoned their booking and follow up with them with email triggers to keep the conversation open. This allows you to stay in contact with potential bookers and not let them disappear altogether.  

Once you start getting direct bookings, it’s good for the short-term, but what about the long-term? Having repeat direct bookings from guests who already know and trust you is what will keep your revenue ticking over and build even deeper guest relationships. Here are 3 ways you can start making every guest feel special and keep them coming back.  

1. Capture guest data at every touchpoint 

When a guest books with you using an OTA, they own that guest relationship, not you. They keep the email addresses, booking history and the power to reach out to those guests in the future. So, how can you take that relationship back and stop them from looking at third-party sites?  

Using smart data capture at every guest touchpoint is what will give you the best start at nurturing these relationships. A guest engagement tool that connects to your hotel PMS will collect guest preferences and contact details automatically, from the booking confirmation to when they leave without your teams having to get involved. This is why invisible hotel technology is making direct bookings and guest experiences seamless, as it can work hard in the background to get the data you need to make the next move.  

2. Build a simple post-stay email strategy 

Trying to get repeat direct bookings on a budget? One of the most cost-effective ways is by setting up a post-stay email campaign which is triggered 24 to 48 hours after they checkout. Keep the email warm and brief that includes an exclusive discount code for their next visit, so they are deterred to go through an OTA.  

Give the emails a personal touch with the stored guest data so you can tailor it to the needs and preferences. Not only does this entice them to book directly again, but they get the benefits from a free spa treatment or a complimentary breakfast that will mean more to them than just a thank you. This makes guests feel recognised and appreciated so they are likely to return and spread the word about your amazing offerings. 

3. Consider implementing a loyalty programme, even a simple one 

A guest loyalty system doesn’t need to be over complicated with multiple tiers and points that don’t really make sense. Research from our own report shows 62% of consumers say loyalty programmes have a great or some influence on which hospitality venues they choose to visit, with a further 75% agreeing that generous rewards would encourage them to join a loyalty scheme. Having a simple loyalty scheme that is easy for guests to track and use during their repeat visits will significantly shift booking behaviours without having to scramble for extra resources. The key for this being successful is connecting the loyalty plan to your hotel CRM so the recognition and rewards are triggered automatically, resulting in no additional admin for your teams.  

When thinking about ways to increase your direct booking conversions, you need to make sure guests are finding you in their search journey first. Many hoteliers spend their budgets on the booking experience, but sometimes overlook the need to be visible in the first place. We’ve carved out 2 main strategies you can use to get your hotel in front of guests first, before any OTA has the chance to swipe in.  

1. Invest in local SEO for your property to stand out  

Hotel searches often start with location as this is what guests first decide before even looking at hotel choices. The search usually starts with ‘hotels near’ or ‘hotel in’ which is then followed by the destination. Being one of the top hits in these search terms is what will make you beat the OTA channels and get you more direct website clicks. Understanding what drives sudden spikes in local demand will also help you time specific campaigns and discount offers so you’re at the top with current search terms when intent is high.  

Start by looking at your Google Business Profile listing and keep it updated with fresh pictures and content that is engaging and attractive. Reply to reviews quickly, even if they’re negative to show potential bookers that you are active and responsive online. With a well-designed hotel website in your back pocket that loads quickly and is optimised with SEO insights, direct bookings will be flooding in.  

2. Appear on Google Hotel Ads and metasearch to get more engagement  

Google Hotel Ads will show your direct pricings alongside OTA competitors when guests search your area for hotel stays. So, when you have a competitively lower price at your advantage, visitors will click though to your website rather than an OTA listing. Getting your pricing strategy right is the first thing, and inputting that into a connected revenue management system will keep rates optimised and updated across all your channels without any manual interference. Once this is in place, your channel manager should feed these rates directly into metasearch, so you can have peace of mind that you’re giving guests the best deal on the market.  

Yes, pricing does matter, but it isn’t the only factor when a guest is making a booking decision. They want to book direct when they are getting something more from you that an OTA site simply can’t offer. Let’s explore 2 easy ways you can create this feeling for guests to keep them coming back to your direct website.  

1. Offer perks that OTAs simply cannot match 

Complimentary upgrades, flexible check-in and check-out times, free breakfast or even a welcome drink will get you those guaranteed bookings. They don’t cost that much and go a long way when you want to make sure guests feel special and appreciated. Guests hold value in these little incentives more than just a price match and a good deal. 73% of respondents in our loyalty report said they would be prepared to share personal information in order to receive bespoke offers and suggestions tailored to them, so going the extra mile is a big win.  

Advertise these offers on your main homepage or during the booking journey so guests are aware and reminded at each touchpoint. This exclusivity will make them reassured that booking directly was the right choice and helps you nurture that new guest relationship.  

2. Promote exclusive direct offers through your social channels 

Social media is one of the best ways to push your hotel direct booking offers to a wider audience that is already invested and interested in your hotel. Create organic posts and combine them with targeted hotel digital marketing strategies that help you reach visitors who might have browsed your website but didn’t end up booking. When you time an exclusive offer at the right moment, it can be the little nudge they need to confirm their stay. 

When thinking about increasing your direct bookings, it’s not about completely cutting OTAs off and leaving yourself stranded. It’s about making a slow and steady shift away from them so that the revenue you make stays in the business and more guest relationships are built from you directly. With the right technology tools, you will have a powerful plan to start the shift from OTA reliance to complete independence.  

At Access Hospitality, we provide hoteliers with the right tools to help them start building their direct booking strategy and to steer away from costly OTA commissions and increase their booking performance. With integrated guest data and automated communications, our software solutions give hoteliers the foundations to grow their direct channels without overloading their teams with more admin. Take a look at our revenue booster checklist to get more direct booking wins.