Small hotels and guest houses lose significant revenue through OTA commissions and miss opportunities to build customer relationships. Direct bookings offer better profit margins and invaluable customer data.
The Current Reality:
39% of UK travellers are open to booking directly if presented with clear benefits, yet many smaller properties only achieve 25-30% direct bookings due to outdated systems, limited marketing budgets, and weak digital strategies.
Primary Benefits of Direct Bookings
Eliminate Commission Fees
Retain more revenue by avoiding 15-25% OTA commission fees on every booking
Direct Guest Communication
Enable loyalty programs and build lasting relationships with your guests
Pricing Flexibility
Create custom promotions and adjust rates without OTA restrictions
Guest Data Ownership
Collect preference data for targeted marketing and personalization
Additional Advantages
- •Pricing flexibility for custom promotions and packages
- •Guest preference data for targeted marketing campaigns
- •Stronger customer relationships leading to repeat business
- •Brand control over the entire guest experience
Recommended Action Steps
Modernize Your Website
- →Ensure mobile-friendly, fast-loading design
- →Implement user-friendly booking engine
- →Showcase high-quality photos and reviews
- →Optimize for search engines
Invest in Digital Marketing
- →Focus on paid search to compete with OTAs
- →Build SEO for long-term organic visibility
- →Leverage social media advertising
- →Implement email marketing campaigns
Strategic OTA Presence
- →Maintain OTA listings for discovery
- →Promote direct booking advantages on-site
- →Convert OTA guests to direct bookers
- →Use remarketing to reach past visitors
Capture Guest Information
- →Collect email addresses at check-in
- →Implement follow-up communications
- →Offer incentives for future direct bookings
- →Build a guest database for marketing
The Bottom Line
Small hotels and guest houses can significantly improve profitability by shifting focus to direct bookings. While OTAs serve a purpose for discovery, building a strong direct booking channel is essential for long-term sustainability.