How to reduce OTA costs

Practical strategies for hoteliers

Online Travel Agencies (OTAs) such as Booking.com, Expedia and Airbnb have become an indispensable tool for modern hotel distribution. They enable hotels to gain global visibility, fill rooms and reach new customer segments. However, using them comes at a significant cost: high commission rates, often between 15% and 25%, which can significantly erode profit margins.

The good news is that reducing dependence on OTAs doesn't mean eliminating them, but using them in a smarter, more balanced way. Let's look at some concrete strategies that hoteliers can adopt to keep costs down and increase profitability.

Reinforce the direct bookings

The first step is to turn the hotel website into an effective sales tool, not just a simple showcase. Many guests use OTAs to discover the property, but then book directly if they find value and trust.

  • To encourage direct bookings, it is essential:

    • having a fast, mobile-friendly and user-friendly website

    • integrate a clear and straightforward booking engine

    • offer exclusive benefits compared to OTAs (direct discount, upgrade, late check-out, free parking)

A small financial incentive or added value is often enough to shift a booking from an OTA channel to the direct channel.

Improve the pricing strategy

One of the most common mistakes is keeping the same price across all channels. This effectively makes the direct channel uncompetitive, because the guest has no real incentive to prefer it over the OTAs.

  • An effective strategy includes:

    • smart, non-rigid tariff parity

      • keep the price the same in most cases but make small differences when a commercial strategy is needed

    • offer additional benefits to those who book through the official website compared to OTAs

    • adjust prices based on demand and occupancy periods

Essentially, even if the price shown is the same across all channels, those who book directly must receive something extra (such as services, benefits or better conditions), so as to make booking through the official website more attractive than via OTAs.

Working on customer loyalty

Reducing OTA costs doesn't just mean acquiring new direct customers, but above all getting those already acquired to return.

  • Setting up a small loyalty scheme can make all the difference:

  • discounts reserved for repeat customers

  • progressive benefits (upgrades, free services)

  • post-stay email marketing communication

A returning customer no longer goes through an OTA and generates a zero acquisition cost.

Harness digital marketing

To reduce dependence on OTAs, it is necessary to invest in one's own digital ecosystem.

  • Local SEO

  • targeted Google Ads campaigns on brand and strategic keywords

  • active presence on social media

  • useful content on the hotel blog

The objective is to intercept the customer before they reach the OTAs or to bring them back to the official website during the decision-making process.

Optimising visibility on OTAs, without depending on them

Paradoxically, to reduce OTA costs it is necessary to use them well.

  • An optimised listing allows you to get more bookings for the same commission:

    • professional and up-to-date photos

    • persuasive and localised descriptions

    • active review management

    • strategic use of promotions

The higher the conversion, the lower the need to invest in aggressive promotions or continuous discounts.

Analyse the data and acquisition costs

Many hoteliers underestimate the importance of data analysis.

  • It is essential to know:

  • how much does an OTA booking cost vs a direct booking

  • which channels generate the highest profitability

  • Which customer segments are most profitable

With this data, more informed decisions can be made, progressively reducing the least efficient channels.

Build a direct relationship with the guest

The aim is not to eliminate OTAs, but to reduce dependence on them by creating a direct relationship with the guest. When bookings and communication always go through an intermediary, the hotel has less control over the guest and struggles more to build a stable relationship over time.

Tools such as emails and personalised messages help to build a more human relationship with the guest, making them feel looked after and recognised as a person, not just a booking.

  • In particular, it is useful to structure the communication into three stages:

    • pre-stay:

      • Welcome email with useful information, practical tips and the option to personalise the experience before arrival

    • During the stay:

      • messages to check satisfaction levels, offer assistance and propose additional services

    • Post-stay:

      • thank-you communications, review requests and dedicated offers for a potential return

Solutions such as the CybHotel software make it possible to automate a large part of guest communication by scheduling personalised emails and messages at the various stages of the stay.

Furthermore, the software makes it possible to create targeted promotions and personalised offers based on the characteristics and preferences of the guests, encouraging loyalty and incentivising direct bookings.

In this way, the hotel can maintain a constant and professional relationship with its clients, reducing its dependence on OTAs and at the same time improving the guest experience.

Conclusion

Reducing OTA costs is not an immediate action, but a strategic process.

It is necessary to invest in technology and marketing, but above all to change mindset and approach:

  • transitioning from a reliance on sales channels to a more conscious and integrated management of distribution.

OTAs will continue to be important for visibility, but true profit for hotels of the future will increasingly come from the direct channel.

Whoever starts building this autonomy today will have a decisive competitive advantage tomorrow!

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