The battle between direct bookings and OTAs is one of the hottest topics in the hotel industry. To make the right decisions, it's important to understand the advantages and disadvantages of each channel.
OTA platforms like Booking.com and Airbnb bring enormous exposure. Millions of people search for hotels through these sites every day. For new or small hotels, it's an excellent way to reach a wide audience. But this exposure comes at a price: 15% to 25% commission on every booking.
A direct booking engine, like ROI-PMS's, charges no commission. The price the guest pays goes directly to the hotel. Over a year, the difference can reach hundreds of thousands of NIS for a medium-sized hotel.
In terms of control, a direct engine gives the hotel complete freedom. You decide prices, cancellation policies, promotions, and how the booking page looks. On OTAs, you're subject to platform rules, including identical pricing requirements, mandatory cancellation policies, and commission payments even on cancellations.
Data-wise, the difference is significant. When a guest books through a direct engine, you get all their details: email, phone, preferences. You can contact them directly, send offers, and build relationships. When booking through OTAs, their details stay with the platform.
Regarding booking experience, both channels can be excellent. ROI-PMS booking engine offers a fast, clean experience with dynamic pricing, package selection, and secure payment. On OTAs, guests enjoy reviews, price comparison, and payment through existing accounts.
The winning strategy isn't choosing sides, but combining both. Use OTAs as a marketing channel for new guests, and direct returning guests to the direct engine with exclusive benefits. This way you enjoy the exposure of large platforms while building a loyal customer base that books directly.
The result: fewer commissions, more control, more profit.