Few topics spark more debate in hospitality than Online Travel Agencies (OTAs). Don’t believe it? Try asking a decision maker to switch them off! Hoteliers love the bookings, visibility and reach OTAs bring. On the flipside, hoteliers resent the higher costs and lack of guest information they can gather.
The solution? It’s not to abandon OTAs, but to rebalance your approach. In this guide, we’ll break down 10 advanced strategies to increase direct hotel bookings, optimize conversions and create a seamless, complete guest journey that travelers want to use again and again.
Key Highlights:
OTAs began as one of the most transformative innovations in hotel distribution. Guests no longer had to rely on travel agents, while hotels had a new way of distributing perishable inventory. In the early 2000s, platforms like Expedia and Booking.com (and later Airbnb) became the way for guests to source hotel information.
For hotels, that meant a fast track to visibility. Overnight, they were able to reach new audiences, fill rooms and compete on a global stage without massive marketing budgets. But that convenience came at a cost. High commission fees (ranging up to to 30% per booking) seem benign when a small number of reservations originate from an OTA.
However, if OTAs become a high-performing channel, these fees quickly erode your hotel’s profit margins. This became the reality of many hotels when the market share of the top two, Expedia and Booking.com, reached 42%.
There’s also an unexpected cost to consider: OTAs control all booking-related data and communication, leaving hotels disconnected from their customers. As a result, properties fill rooms, but struggle to build lasting guest relationships or brand loyalty.
But the booking dynamic is shifting. By 2030, Skift forecasts digital direct channels to be the dominant force. Why? Modern hotel technology now allows properties of all sizes to create direct booking channels that match the speed, security and convenience of OTAs.
Rather than seeing OTAs as competition to direct bookings, leading hoteliers view them as one part of a balanced distribution strategy. OTAs bring reach, while direct bookings drive profitability, loyalty and long-term growth. The key is using technology to bring guests back and giving them an experience worth returning to again and again.
When OTAs were introduced (and for a long time afterwards) price was the determining factor for how travelers booked. Price is still a consideration for modern travelers, but new travel trends show that experience has become just as important.
Even the most frugal bookers understand that the value a hotel provides goes beyond the total of their bill. That’s why providing a superior hotel guest experience is one of the best strategies to increase direct bookings.
Every interaction a traveler has with your hotel communicates the experience they can expect, and it starts the moment they visit your website. When what they see gives the impression that you’ll provide ease, personalization and care? That gives travelers the confidence that booking directly with your property will deliver more value than going through an OTA.
Travelers today expect mobile-first convenience. That means it should be easy for them to find information, understand your messaging, see your pricing, complete a booking and manage the stay digitally, anywhere they are.
Do this well and it’s easy to show guests the advantage of going direct. It’s no longer about just offering the lowest rate. It’s about offering the best experience, which OTAs simply can’t match.
The true cost of an OTA booking goes beyond the commission you’re charged. It’s also about the connection you lose when someone else owns the guest relationship.
Direct bookings return that power to you. They’re not just more profitable; they’re also boosting loyalty, revenue and guest experience across your entire business. Here are the key benefits that make direct bookings a top priority for hotels in 2026 and beyond.
Every booking that comes through your website puts more revenue in your pocket. By reducing reliance on OTAs, hotels save significantly on the high commission fees they’re known for. That’s money that can be reinvested into guest experience, staff development and technology upgrades that fuel further growth.
When guests book with you directly, you begin building a relationship from the start. You control all pre-arrival communication, offer choices, gather preferences and deliver personalized touches that OTAs simply can’t provide. This sense of connection builds psychological ownership, which, according to a recent study of hotel guests from Cornell, is correlated to an increased sense of brand loyalty.
Direct bookings provide you with valuable data, such as email addresses, preferences and behaviors, which OTAs often keep to themselves. Importantly, this is the type of priceless data you need for proper market segmentation. This data allows your hotel to offer tailored upsell and loyalty campaigns, increasing both revenue and satisfaction over time.
When guests book direct, you can integrate the entire digital journey within your own ecosystem (instead of an OTA bombarding your guests with car rental offers). Platforms like Canary’s Guest Management System make it a breeze to deliver a unified, app-free experience that feels effortless for guests and efficient for staff.
Owning your booking channel means owning your story. You can showcase your brand language, highlight sustainability efforts and communicate unique features directly to guests. No character limits needed! More returning guests also lower your reliance on third-party review platforms, putting you firmly in control of marketing to an audience you know.
Increasing direct bookings takes focus and strategy. Ultimately, the goal is to build a stronger, more profitable direct channel that guests genuinely prefer to use. Here are ten strategies that are relevant to convert more guests, lower acquisition costs and build lasting loyalty.
Your website is your most powerful direct sales channel. Most guests who end up there found your hotel elsewhere, and are now at the stage of comparing prices, checking details and deciding how to book. If your site doesn’t make that decision easy, they’ll likely bounce right back to the OTA.
Common reasons guests abandon your site include:
A high-performing website delivers results if it’s designed to convert. That means:
And don’t underestimate the power of language. Writing about “your room” instead of “the room” taps into the psychological ownership described before. It’s a subtle shift that can nudge undecided browsers into action.
“Here it doesn’t list the kitchenette. I wonder if it’s only available on the OTA?”
“Is breakfast included in all rates?”
“Over here it says ‘free cancellation,’ but the website doesn’t say the same.”
Many travelers leave hotel websites because they can’t find quick answers. And when that happens, two things can follow: they’ll book another hotel, or they’ll book your hotel… on an OTA that provides the relevant information.
This is the kind of problem that no longer needs to exist. With today’s tools, guests don’t have to dig for information, and you don’t have to lose the booking. An AI-powered webchat agent keeps guests on your site by responding to questions in real time, 24/7.
Canary AI Webchat provides instant answers while guiding guests to complete their booking, reducing site drop-offs and increasing conversions. Updating the AI’s knowledge base can be done in two seconds, and it will seamlessly transfer to a staff member should a human response be needed.
Competing on price alone is a losing game. In many cases, your OTA agreements won’t even allow it. But that doesn’t mean your hands are tied. The smartest hotels shift the conversation away from discounts and towards exclusive added value.
Instead of undercutting your rates, offer exclusive perks OTAs can’t match, such as:
These added touches make your direct offer more appealing without violating rate parity agreements. More importantly, they elevate the experience, build loyalty and give guests a tangible reason to book directly.
While you’re at it, the things you know are standard but are marketed by OTAs should also be clear on your website. That means spelling out “free cancellation” and “24/7 support” just like they do.
4. Use Closed User Groups to Reward Direct Bookers
Another powerful strategy is to create offers that aren’t publicly available. Closed user groups, such as loyalty program members, past guests or verified partners (e.g., AAA members), give you the flexibility to offer special rates or packages without breaking parity rules.
These private offers:
By combining value-added perks with closed user groups, you create a compelling direct booking proposition that is exclusively available when guests go through you.
Positive reviews are one of your most powerful conversion tools: 79% of bookers read between 6 to 12 reviews before making a reservation. Featuring them on your website and social channels gives you something crucial: intentionality.
When select reviews live on your site, you control which stories are highlighted. A guest raving about how easy your mobile check-in process was? That’s not just praise, but a strategic way to spotlight a value proposition.
Choose reviews that highlight themes such as standout amenities, staff interactions or seamless tech, and pair them with clear calls to action. Instead of industry language like ‘book direct,’ use guest-first phrasing such as ‘Reserve your stay here,’ ‘Book here now,’ or ‘The best way to book.’ The goal is to make the next step feel obvious and welcoming.
When guests book through OTAs, the platform owns their information. This means getting in touch for pre-arrival information and welcome messages isn’t always easy, and when you do, the guest information is anonymized. With Canary’s Guest Messaging, your hotel can send personalized pre-arrival messages, confirm preferences and share local recommendations, no matter the booking source.
Then, when guests arrive on-site, you can capture their details independent of the OTA. This means you’re able to pursue re-engagement campaigns that result in direct, repeat bookings down the line.
When OTAs have already cost you a commission, a dynamic upsells solution is a smart way to recoup some of that revenue and shift the conversation back to you. By presenting relevant offers like room upgrades, spa packages or late check-out at the right time, you’re the one engaging with the guest — not the intermediary.
This automation not only boosts total revenue but also elevates the guest experience with personalized, well-timed options that feel thoughtful rather than pushy. It’s ancillary revenue today, and more direct bookings tomorrow.
For high-value or group bookings, speed and trust are everything. A dedicated page on your website should inform even inexperienced bookers of the benefits of dealing with you directly. Be specific: “Booking more than 5 rooms? Contact us here” and round out the benefits with a simple inquiry form for lead generation.
Depending on your setup, the benefits may include:
Canary’s Guest Management System unites digital contracts and digital authorizations, alongside other features, under one roof. Guests can sign and pay in minutes (no printing, scanning or faxing required) and the booking stays with you, instead of going to a third party.
If you don’t have a loyalty program yet, starting one doesn’t have to be hard. Guests don’t need complicated tiers or points systems to start feeling rewarded. A simple program like “Book three nights, get one free” keeps the focus on real, attainable value.
Pair this with personalized email communication to remind past guests of their progress or upcoming perks. This is what turns casual, one-time visitors into loyal repeat bookers.
Because OTAs own the guest data they collect, it was once impossible to re-engage travelers after their stay ends. But there’s a simple, high-impact strategy that puts the power (and the data) in your hands. During a guest’s stay, use hotel arrival solutions to capture their contact information directly. This means arrival is easier for travelers, and you get to re-engage after checkout.
Once the stay ends, the real opportunity begins. A well-timed direct booking incentive (think: 15% off their next stay or a complimentary upgrade) encourages guests to bypass OTAs the next time around.
Online travel agencies play a role in driving visibility and filling rooms, but relying too heavily on them limits profitability and guest connection across a range of factors.
Here’s how direct bookings compare to OTA bookings from a hotelier’s perspective:
Every investment you make in your direct channel, from website optimization to guest experience solution, builds a foundation of trust and personalization that delivers direct bookings in the long run.
‘More direct bookings’ sounds like a reasonable goal until you review a report and begin to wonder: How much more? What does good look like?
Worthwhile comparisons can look different depending on your goals:
Meaningful comparisons and developments in direct channel performance will look different for each hotel, but measuring its performance is what ensures long-term profitability. By tracking the right metrics, hoteliers can identify what’s working, refine marketing efforts and quantify the true ROI of their direct strategy.
Here are the most relevant metrics to monitor:
Your direct booking ratio measures the percentage of total bookings that come through your hotel’s website versus OTAs or other channels.
Formula: (Direct Bookings ÷ Total Bookings) × 100
A rising ratio indicates growing independence from OTAs and better channel balance. Don’t forget that neither occupancy nor revenue should drop off as direct contribution increases.
This metric shows how effectively your website turns visitors into confirmed bookings.
Formula: (Total Direct Bookings ÷ Website Visitors) × 100
If your site gets traffic but few conversions, focus on simplifying the booking process, improving mobile speed and using tools like Canary AI Webchat to answer questions in real time.
CPA measures the average cost of acquiring each direct booking, including marketing, advertising and tech expenses.
Formula: (Total Direct Marketing Costs ÷ Number of Direct Bookings)
If you choose to momentarily spend more on marketing to generate direct bookings, this measure is especially helpful. Comparisons of a before and during campaign value can become important indicators to determine impact.
Overall, the goal is to keep CPA lower than OTA commission costs. Using automated tools for upselling can also increase guest value without increasing acquisition spend.
Direct bookers aren’t just more profitable, they’re also more loyal. LTV tracks the total revenue generated by a guest over their lifetime relationship with your property.
Formula: (Average Spend Per Stay × Average Stays Per Guest)
When combined with guest segmentation, particularly useful insights can be obtained. Improving personalization and loyalty incentives through tools like Canary’s Guest Management System helps increase the average spend per stay across all segments and overall LTV.
This metric shows how well your property retains guests over time.
Formula: (Returning Guests ÷ Total Guests) × 100
This is a metric you should expect to increase along with direct channel contribution. High repeat rates signal strong guest satisfaction and loyalty, which are a direct result of a superior guest experience.
While RevPAR focuses on rooms, RevPAG measures total guest spend across all services, including room, food, amenities and upsells.
Formula: (Total Guest Revenue ÷ Number of Guests)
Tracking RevPAG gives a fuller view of how effective your upselling and personalization strategies are at increasing per-guest revenue. This is a metric you would expect to increase along with direct channel contribution.
The most effective hotel direct booking strategy is not about price, but about the guest relationship. When your direct channel delivers a seamless digital experience, personalized communication and consistent service, guests have every reason to book (and re-book) directly with your property.
Success comes from a holistic approach: combining a high-performing website with a modern, tech-enabled guest journey that feels effortless at every touchpoint. From pre-arrival communication to post-stay thank yous, every interaction should reinforce trust and value.
That’s exactly what Canary Technologies delivers. Our all-in-one Guest Management Platform brings together every tool you need to build your hotel’s custom guest journey. Ready to take control of your bookings? See how Canary’s Guest Management Platform helps you increase direct revenue.
Clarity of information and convenience are key. A mobile-optimized design, fast load times and a simple booking flow with transparent pricing build trust and reduce friction. Highlight your direct booking perks, such as free cancellation and dining credit, prominently to encourage guests to book directly instead of leaving for OTAs.
A mobile-first booking engine streamlines the process for guests who prefer to book on their phones, so you keep the booking on your direct channel. With fewer clicks, autofill options and secure mobile payments, guests can complete a booking in seconds. Reducing friction on smaller screens directly cuts down on abandonment rates and drives more conversions through your hotel’s website.
The answer is not as straightforward as “free breakfast, followed by late check-out”; instead it depends on your hotel and market. Offers like free parking, complimentary breakfast or a late check-out add tangible value without eroding rates.
Personalization builds trust and emotional connection. Use guest data from direct bookings to tailor offers, welcome messages, emails and upsells based on preferences or stay history. Then use messaging technology to send timely, relevant recommendations that make every interaction feel personal. Hotels are learning to use these tools to control the guest relationship in the same way that OTAs did, and to guide future bookings through their direct channels.
Even without knowing your individual commission levels the answer is almost certainly ‘yes.’ In the battle of hotel direct bookings vs OTA, even when factoring in marketing costs, direct bookings are consistently more profitable than OTA bookings because there are no commission fees. Hotels keep 100% of the room revenue and own the guest data to drive repeat business through loyalty programs and personalized offers.
Independent hotels can win by focusing on authenticity and personalization. Invest in SEO, content that is legible to AI and social media, highlight your unique guest experiences and create an effortless direct booking process. With modern tools like Canary’s Guest Management System, even small properties can offer the same digital convenience as major brands and make their personal touch shine.
Streamline the booking process and remove unnecessary steps. Offer real-time availability, use clear pricing and enable mobile payment options for convenience. You can also use Canary’s AI Webchat to instantly answer guest questions and guide potential guests toward completing their reservation before they leave your site.
AI tools designed for hospitality help increase direct bookings for your hotel by personalizing guest interactions and automating communication. With Canary’s AI Webchat and AI Voice, hotels can engage visitors in real time, answer pre-booking questions and offer tailored recommendations to boost conversion rates and guest satisfaction.
Trust is everything. Guests book directly when they feel secure in your process, from browsing to payment, and when they trust you and the information you provide more than another site. Ensure your website has SSL certification, clearly displays contact information and uses secure digital payment tools to give guests confidence that their data and payments are protected.
Upselling is most effective when it feels personalized. Canary’s Dynamic Upsells can automatically offer upgrades, dining options or late check-outs at the perfect time — right after confirmation, pre-arrival or in-stay. These targeted offers not only increase total revenue per guest but also enhance the direct booking experience by adding choice and personalization.
Follow up with guests after checkout to thank them, gather feedback and share exclusive offers for their next visit. Automated guest messaging campaigns make it easy to send personalized promotions and loyalty rewards that encourage repeat direct bookings.
