The OTA Commission Trap: How Small Hotels Can Break Free

Author

Roxana from Infrared
October 14, 2024

Are you a boutique hotel owner feeling squeezed by online travel agencies (OTAs)? You're not alone. Many small hotel owners struggle with high commissions eating into their profits. But there's hope. Let's dive into this challenge and explore solutions.

The OTA Commission Problem

Online Travel Agencies like Airbnb, Booking, and Expedia are popular with travelers. They offer a wide range of options and easy booking. But for hotel owners, they come at a big cost. OTAs often charge commissions of 15-30% per booking. That's a big chunk of your revenue!

Why This Hurts Small Hotels

  1. Lower profits: High commissions mean less money in your pocket.

  2. Price competition: To stay competitive, you might lower your rates. This cuts into your profits even more.

  3. Less control: OTAs control the booking process and customer data.

Breaking Free from OTA Dependence

So, how can you reduce your reliance on OTAs? Here are some strategies:

  1. Boost direct bookings: Encourage guests to book directly through your website.

  2. Offer unique deals: Give perks for direct bookings that OTAs can't match.

  3. Build relationships: Use direct communication marketing (e.g.: newsletters) to stay in touch with past guests.

  4. Improve your online presence: Make your website user-friendly and mobile-responsive (don’t overlook small details here that are breaking the user experience!).

Introducing the 10K Hotelier Marketing Club

At the 10K Hotelier Marketing Club, we understand these challenges. We help small hotel owners like you increase direct bookings and reduce OTA dependence. Our club offers strategies, tools, and support to boost your marketing efforts.

Next Steps

Ready to take control of your bookings? Stay tuned for our next article. We'll explore how small hotels can compete with big chains, despite smaller marketing budgets.

Remember, you don't have to let OTA commissions control your business. With the right strategies, you can increase direct bookings and keep more of your hard-earned money.