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directly if presented with clear benefits, yet many smaller properties only achieve 25-30% direct bookings due to outdated systems, limited marketing budgets, and weak digital strategies.

Key takeaways

→OTA commissions of 15-25% take a meaningful share of revenue from every booking.
→Direct bookings give you the guest relationship, the data and pricing flexibility.
→A modern, fast website with a simple booking engine is the foundation.
→Keep OTAs for discovery, then convert guests to booking direct next time.

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

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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

See our Paid Search services →Explore Social Media marketing →

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.

Written by

Teo Yordanov

Performance Marketing Specialist

Performance marketing specialist and co-founder of BYLT Media, with over a decade in paid media across retail, e-commerce, travel and hospitality. Through Booked Up Media he applies that measurement-led approach to independent hotels, connecting marketing to real bookings.

More about Teo Yordanov

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Why Small Hotels and Guest Houses Should Focus on Direct Bookings