The OTA trap: High visibility, low loyalty—why hotels need to focus on direct bookings

Today's hospitality industry sees Online Travel Agencies (OTAs) offering hotels high visibility and ease. Yet, a hidden trap exists that weakens your hotel's image and reduces long-term guest loyalty. Hotels that depend too much on OTAs risk becoming unseen behind the OTA's name while giving up the chance to create meaningful bonds with their guests.

This piece looks at how OTAs put their own brand first, over your hotel why relying on them hurts long-term growth, and how strategies for direct booking can build loyal customers who come back again and again.

The OTA brand hiding your hotel's identity

When someone books a room through an OTA, they deal with the OTA's brand—not yours. The OTA controls the booking process, talks with the guest, and often shapes how the value is seen. This leads to:

• Travellers credit the OTA for their good stay instead of your hotel.

• Your standout features, like top-notch service or unique experiences, get watered down.

• OTA logos often steal the spotlight from yours turning your hotel into just another option on their website.

A guest looking for places to stay in your area might recall finding you on Makemytrip.com or Booking.com, but they probably won’t remember your hotel’s name when planning their next trip.

Solution:

A direct booking strategy allows you to share your hotel’s story, values, and unique features through personalized marketing, ensuring that guests connect with your brand rather than an intermediary.

The dependency problem: No long-term customer relationships

Hotels that depend on OTAs for bookings encounter a significant challenge: limited access to customer data. This restricts your ability to cultivate long-term relationships with guests, making you reliant on OTAs for repeat bookings.

Here’s how this affects your business:

• No Direct Communication: OTAs serve as intermediaries, controlling guest communication during and after the booking process.

• Missed Loyalty Opportunities: Without access to guest data, you can’t customize offers, promote loyalty programs, or deliver personalized experiences.

• Price Wars: OTAs encourage comparison shopping, leading guests to book based on price instead of loyalty or value.

Example: A returning guest who books through an OTA for the second time incurs additional commission fees instead of booking directly through your website.

Solution:

Direct booking campaigns provide you with complete control over guest data, allowing you to establish personalized connections. You can nurture relationships through email campaigns, exclusive offers, and loyalty programs that make guests feel appreciated.

How direct booking campaigns foster loyalty and repeat customers

Direct bookings are not just about saving on OTA commissions—they’re about creating a guest experience that fosters loyalty. Here’s how prioritizing direct booking campaigns can enhance your guest relationships:

1. Utilize tailored offers

Guests are looking for unique experiences. Use their preferences and past behaviours to create personalized offers such as:

• Exclusive discounts for returning guests.

• Special packages for occasions like anniversaries or family vacations.

• Customized extras like spa treatments or local tours.

Impact: Tailored offers make guests feel valued, encouraging them to book directly for future visits.

2. Develop a strong loyalty program

Reward guests for booking directly with incentives such as:

• Points that can be redeemed for free stays or upgrades.

• Early check-in, late check-out, or complimentary services.

• Exclusive deals and promotions for members.

Impact: Loyalty programs foster a sense of community, motivating guests to return and book directly.

3. Enhance your website for conversions

Make sure your website provides a smooth booking experience:

• Quick-loading pages that are mobile-friendly.

• An easy-to-use booking engine with clear pricing.

• Trust-enhancing features like reviews, awards, and guarantees.

Impact: A user-friendly website minimizes obstacles in the booking process, encouraging guests to avoid OTAs.

4. Engage directly with guests

Utilize email marketing to maintain connections with past guests:

• Send thank-you notes after their stay.

• Share information about upcoming events or special offers.

• Offer seasonal promotions tailored to their interests.

Impact: Direct communication strengthens relationships, turning one-time guests into loyal supporters.

Why your hotel needs to act now

Continuing to depend on OTAs means losing control over your brand, data, and guest relationships, all while incurring high commissions. By focusing on direct bookings, you can:

• Reclaim your identity and highlight your unique offerings.

• Build deeper, more personal connections with your guests.

• Enhance profitability by lowering commission costs and boosting repeat business.

At Groivy, we specialize in helping hotels reduce their reliance on OTAs. From optimizing websites to creating personalized marketing strategies, we provide the tools and expertise needed to increase your direct bookings and cultivate loyalty.