As you check into The Lobby, we’re tackling the often contentious relationship between hotels and online travel agencies. OTAs fill rooms but can eat into revenue and stifle direct booking strategies. Rate parity clauses further complicate matters by limiting how you can discount publicly. So how can hoteliers make OTAs work in their favour without giving away the farm?
Strategies for working with OTAs and boosting direct bookings
Offer deals to a limited audience. Rate parity clauses apply to public rates, but you can still reward loyal followers. Send discount codes to your email list, your social media fans or membership clubs. These closed groups let you provide special offers without breaching parity.
Create value‑add packages and add‑ons. Parity restrictions cover only the exact room type listed on an OTA. By bundling the same room with parking, dining credits, spa treatments or shuttle services, you can create packages that deliver more value than the bare room rates displayed on third‑party sites.
Build a thriving loyalty programme. Past guests are your best asset. Encourage them to sign up for a loyalty programme where they receive personalised offers, bundled services and exclusive rates as a thank‑you for their patronage. Email campaigns and SMS messages can invite them back without running afoul of OTA clauses.
Empower the front desk. Guests who book through an OTA often check in at the front desk. Use this moment to incentivise direct booking next time by offering a percentage off their next stay when they book through your website. Clearly display a “Best Rate Guarantee” sign so they know they’ll always find the lowest price direct.
Optimise your website experience. A seamless booking journey is critical. Ensure your website is mobile friendly, easy to navigate and includes prominent calls to action such as “Book Now” and a visible phone number. Provide a secure, user‑friendly reservation system and avoid linking to competitors’ sites.
Leverage online reviews to draw visitors back to your site. Travellers often check reviews on sites like TripAdvisor or Yelp after browsing OTAs. Respond to every review with gratitude and mention special packages available only through your website. This shows you care and gives prospective guests a reason to return and book direct.
Questions to spark discussion
- Do OTAs account for a large share of your bookings, or have you found creative ways to balance distribution?
- Which value‑add packages have proven most effective at enticing direct bookings in your market?
- What tools or strategies are you using to build loyalty and engage guests after they check out?
Why it matters for your business
Smart distribution management is essential to maintaining healthy profit margins. OTAs can deliver exposure and fill rooms, but high commissions and strict parity clauses can erode revenue if not managed carefully. By packaging extras, building loyalty and optimising your website, you can capture more direct bookings and reduce dependency on third‑party channels.
Take the next step
Want to craft a distribution strategy that protects your rates while leveraging the reach of OTAs? Contact HMS for a personalised review of your parity agreements and marketing channels, and share your experiences in the comments below.
