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Online Travel Agencies (OTAs) are like the double-edged sword of the hospitality world. They bring you visibility and bookings for sure, but their hefty commissions can take a big bite out of your profits. The good news? You don’t have to be at their mercy. With some savvy strategies, you can minimise OTA costs and steer more revenue straight into your pocket.
Here’s how to take control of your OTA game without sacrificing bookings or profitability:
In high season your rooms could be selling like crazy. Do you really want to pay OTAs 15% (or possibly even more!) commission for every booking? Probably not. That’s where channel close-outs come in. By shutting off OTA availability during high-demand periods, you can nudge guests toward booking directly on your website, saving on fees and increasing profits.
💡 Tip: Close channels for dates with guaranteed high occupancy, for example August in Edinburgh for the Fringe Festival, and reserve those ideal bookings for direct customers.
Alternatively, offer longer stays via OTAs only during high-demand periods. This way, you ensure better value bookings on commission-based channels while encouraging guests seeking shorter stays to book directly.
2. The Secret Surcharge
Here’s a cheeky (and completely legit) trick: add small surcharges to your OTA rates or remove perks like free breakfast or flexible cancellations. This makes your direct rates the clear winner.
For example, if your OTA listing says, “Flexible cancellation for an additional £30,” while your own website shows, “Free flexible cancellations when you book direct.” Guests will naturally gravitate toward the option that feels like the better deal – and you keep all your revenue.
💡 Tip: Make sure your direct rates are visible and clearly highlight benefits, like “No hidden fees” or “Book direct for free cancellation and no secret charges.”
3. Be Google’s Favourite
For online searching, being at the top is everything. Using Google Zero (free booking links) means that your direct booking option shows up first in the free search results – before the OTAs. It’s like being the headliner rather than the opening act!
💡 Tip: Combine your top-ranking spot with a better direct rate to seal the deal. Make it clear to guests that booking directly offers the best value.
4. Freedom from Commission
Why give OTAs a cut of every booking when you can have it all? Using a commission-free, slick booking engine, like freetobook, ensures every penny of your revenue stays where it belongs: with you. It’s simple: more direct bookings = less commission = more revenue for you.
💡 Tip: Use a booking engine designed to convert. It should be quick, easy to use, and show off your property at its best with high-quality photos, clear descriptions, and exclusive offers.
5. The Proof is in the Pudding
Not all OTAs are created equally. Some bring in high-value guests who spend more and cancel less. Others? Maybe quite the opposite. Keep an eye on your conversion rates, booking values, and cancellation trends, so that you can focus your efforts on channels that actually work for you.
💡 Tip: Freetobook’s Channel Manager makes it easy to focus what is working. Easily close out underperforming channels to focus on what works best for your property.
Why Play Their Game When You Can Win Yours?
The goal isn’t to cut OTAs out completely – it’s about playing smart. They’re great for exposure and filling gaps, but they shouldn’t control your revenue. By adopting these comission-saving strategies, you’ll not only reduce reliance on OTAs but also improve the profitability of your business.
So, the next time you look at your OTA commission bill remember you have the power to take control.
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