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Direct booking 27 July 2026, 7 min read

Reduce OTA dependence without discounting the room

Commission is not the whole cost of an OTA booking. Once you can see the rest of it, the way to win share back stops being a price argument and starts being a clarity one.

A guest completing a booking on a phone at a hotel desk

Every independent operator we meet knows their commission rate. Very few can say what an OTA booking actually costs them, because the commission is only the part that appears on an invoice. The rest shows up as things you cannot do, and those are harder to notice because nothing ever arrives to remind you.

What the booking really costs

Start with the visible number. Fifteen to eighteen per cent is normal for an independent, more once you are paying for placement, and the larger platforms have a way of making the higher tier feel compulsory. On a 300 pound two-night stay that is somewhere around 50 pounds gone before anyone has made a bed.

Then the parts that do not appear anywhere. You often do not get the guest's real email address, so you cannot write to them afterwards without asking again at check-in. You cannot see what they looked at before they booked. You cannot offer them the room that is actually right for them, because the platform sold a room type rather than a room. If they want to change something, they frequently ring you and you have to explain that you cannot change it, which is a conversation that costs goodwill you did not budget for.

And the compounding one: the guest's relationship is with the platform, not with you. They had a lovely stay, and next spring they will open the same app to find somewhere else lovely. You paid to acquire a customer and then handed the customer back.

None of this is an argument for leaving the OTAs. They are genuinely good at reaching people who have never heard of you, and for most independents that reach is worth paying for. The argument is about mix. Paying commission on a guest who found you through the platform is a marketing cost. Paying commission on a guest who already knew your name, searched for you specifically, and still booked through Booking .com is a failure of your own website.

Why discounting is the wrong lever

The obvious move is to undercut the platform on your own site. It is also the move most likely to make things worse.

Parity clauses are one reason, and they vary by contract and by territory, so it is worth actually reading yours rather than repeating what someone said at a trade show. But the better reason is commercial. A guest who learns that your direct rate is ten pounds cheaper has learned that your rates are negotiable. They will check both next time, and the time after that they will wait for the offer. You have trained your best customers to be your most price-sensitive ones.

There is also the simple arithmetic. Discounting to beat a fifteen per cent commission means giving away most of the saving you were trying to keep. You have taken on the payment risk, the cancellation admin and the guest service, and kept a few per cent for the trouble.

Change what the rate includes, not what it is

Parity agreements cover the price of the room. They do not generally cover what the room comes with, and that is where the room to move is.

Breakfast included on the direct rate. A late checkout confirmed at the time of booking rather than begged for at reception. A table held in the restaurant, which for a hotel with a serious kitchen is worth considerably more to the guest than twenty pounds off. Room choice rather than room type: the one at the end with the view, not whichever one the system allocates. A bottle of something on arrival for stays over two nights.

Each of these costs you less than the commission and is worth more to the guest than the equivalent discount, because it changes the stay rather than the invoice. It also cannot be replicated by the platform, which is the entire point.

Say it plainly on the page. Not a badge saying "best rate guaranteed", which every hotel says and no guest believes. A short, specific list of what booking direct gets them, in your own words, next to the button.

Most of the loss happens before the booking engine

When direct conversion is poor, the booking engine gets blamed. It is usually not the booking engine, or at least not only.

Watch someone try to book your hotel on a phone. Watch where they stop. It is almost always at a question the page did not answer. Is the restaurant open on a Monday. Can we bring the dog. Is there parking, and is it really free or free-ish. How far is the walk from the car park with a case. Can we get a cot in that room. Every unanswered question is a moment where the guest opens another tab, and the other tab is frequently an OTA, because the OTA has spent a decade removing exactly those moments of doubt.

The second common loss is the handover. The guest presses "book" and arrives somewhere that looks like a different company: different typeface, different colours, a form that asks them to start again. That moment reads as a hand-off to a stranger, and a proportion of people simply stop. The booking engine is usually fixed by your property management system, so the work is not replacing it. The work is making the journey into it feel like it is still your hotel.

The trust gap is real, and it is fixable

Guests book through platforms even when direct is cheaper, and they do it for reasons that make sense. They know what the cancellation policy will look like. They know there is somewhere to complain. They have seen four hundred reviews rather than the eight testimonials on your website. They have used the app before and it worked.

You close that gap with specifics rather than adjectives. State the cancellation policy in one sentence, in plain language, where the guest can see it before they commit. Put a phone number on the page that a person answers, and say when that person is there. Show recent reviews with dates on them. Say who you are: an independent hotel with named owners reads as safer than an anonymous brand, and that is an advantage the platform cannot copy for you.

The list you already own

The cheapest direct booking you will ever take is from someone who has already stayed. They know the place, they need no persuading about the beds, and they are the one group where the platform's reach is worth nothing to you.

Most independents collect email addresses diligently and then do almost nothing with them, usually because the only thing anyone can think of to send is an offer. Two or three well-judged emails a year that are about the place rather than the price will out-perform a monthly discount, and will not train anyone to wait for a sale.

What realistic progress looks like

Most independent properties we see start somewhere between twenty and thirty-five per cent direct. Moving that to forty-five or fifty over a year is achievable without touching the rate, and almost all of the movement comes from the unglamorous work: answering the questions, removing the handover, saying what direct includes, and writing to people who already like you.

Measure it properly while you do it. Direct share by month, not by week, because hospitality is seasonal enough to make a fortnight look like a trend. Watch the booking journey drop-off rather than the overall conversion rate, so you can see which step is losing people. And keep an eye on the split between guests who searched for your name and guests who found you by category, because those two groups need entirely different things from the site.

The goal is not zero commission. The goal is that you stop paying commission on the guests who were already yours.

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