How to reduce OTA commission and increase direct bookings in 2026
OTAs can fill rooms quickly — but they also take a significant cut and keep the guest relationship at arm’s length. For independent hotels, that usually means lower margins, weaker loyalty, and less control over repeat business.
The good news is that you don’t need to “beat” OTAs to win. You need a direct booking experience that’s fast, trustworthy, and clearly better for the guest. That starts with the right booking engine for hotels and a smart strategy to migrate repeat guests to book direct.
The real cost of OTAs (commission + loss of guest relationship)
Most hotels think about OTA cost as a percentage, but the real impact is bigger than commission alone.
Commission and extra costs
Alongside the headline commission, many properties end up paying more through discounts, visibility boosters, and participation in special programmes. Over time, that reduces profit even when occupancy looks strong.
You lose the guest relationship
When the booking happens on an OTA, the OTA owns most of the journey. That can limit:
- how you capture usable first-party data
- how you market to guests after checkout
- how you personalise future offers
- how you build loyalty without paying again
You compete on price, not experience
On an OTA listing, your USP becomes less visible. Guests compare you mainly on price and rating — not the details that make your property worth booking direct.
What a booking engine must have in 2026 (mobile-first, offers, currency, payments)
To increase direct bookings, your site must feel as easy as an OTA on mobile — and more convincing.
Mobile-first and fast
Your booking journey should load quickly and keep the number of steps low. A slow engine or a clunky checkout kills conversion.
Offers built into the flow
A modern booking engine should support value-driven incentives directly in the booking path — not as a separate “contact us” workaround.
Multi-currency and multi-language (when relevant)
International guests don’t want friction. Showing the right currency and language reduces drop-offs and increases trust.
Secure payments and compliance
Payments should be SCA-ready, support deposits or balance payments where needed, and clearly communicate policies before checkout.
“No discount” strategy: vouchers, packages, add-ons, loyalty
Many hotels try to win with a cheaper direct rate. That can work short-term, but it trains guests to wait for discounts and can damage ADR.
A better approach is a no discount strategy: add value, increase basket value, and protect margin.
Gift vouchers
Gift vouchers drive revenue in slower periods and encourage future stays. They also generate upfront cashflow without cutting rates.
Packages
Create offers that compete on experience, not price:
- breakfast + late checkout
- romantic weekend extras
- spa credit
- dinner pairings
Packages increase perceived value and keep pricing healthy.
Add-ons (upsells)
Offer extras at the right moment in the booking journey:
- parking
- breakfast
- transfers
- early check-in / late checkout
These are some of the easiest ways to increase average booking value without discounting.
Loyalty pricing
Reward return guests with direct-only perks or personalised rates — without broadcasting discounts to everyone.
How to migrate repeat guests from OTAs to direct
Most OTA guests will book direct next time if you make it easy and give them a reason.
1) Capture consent properly
Build your first-party audience through GDPR-friendly opt-ins at the right moments (post-stay emails, check-in, Wi-Fi, digital journeys).
2) Offer a direct-only reason that isn’t “cheaper”
Examples:
- flexible cancellation (if applicable)
- priority room allocation
- welcome drink / breakfast upgrade
- late checkout (subject to availability)
3) Follow up with a simple post-stay flow
A short sequence works well:
- thank you + review request
- return guest perk (voucher/add-on)
- seasonal offer based on their stay type
4) Use automation to keep it consistent
Consistency wins — and automation helps your team do it without extra admin.
Mini-case: what “OTA to direct” can look like in practice
Hotels often see the biggest shifts when they combine:
- a fast, brandable booking engine
- value-led offers (packages, vouchers, add-ons)
- post-stay communication that pulls guests back direct
- clear tracking of booking clicks and conversion
Conclusion
OTAs can support occupancy — but direct bookings build long-term profitability. With the right booking engine, a no-discount value strategy, and a plan to migrate repeat guests, independent hotels can reduce OTA commission and steadily increase direct bookings in 2026.