Jesse Morris
13 May 2026
For most hotels, the direct-versus-OTA debate is no longer about choosing one over the other. It is about understanding what each channel is meant to do and how to stop visibility from quietly eroding profit.
OTAs still matter. They remain one of the fastest ways to put a property in front of high-intent travellers, especially in crowded markets or softer periods. The wider travel market also continues to shift online: Phocuswright projects global online gross travel bookings to reach $1.2 trillion by the end of 2026, with online accounting for nearly 65% of total global travel gross bookings by then. That tells us one thing very clearly: digital distribution is not optional. It is where demand lives.
But reach comes at a cost. OTA commissions commonly sit in the 15% to 25% range, and can rise even higher depending on programme participation, market conditions, and promotional commitments. For hotels, that means a booking can look healthy at topline level while contributing far less to the bottom line than expected.
That is why the real conversation should not be “direct or OTA?” but rather “what is the right job for each channel?”
OTAs are strong at discovery. They are useful when a hotel needs wider exposure, wants to enter new markets, or needs support during weaker demand periods. They also play an important role in the early research phase. Lighthouse notes that many guests now compare hotels across OTAs and metasearch before making a final booking decision, which means OTAs often influence bookings even when the final conversion happens elsewhere.
Direct bookings, however, are where hotels regain control. They protect margin, strengthen ownership of the guest relationship, and make it easier to drive loyalty, upsell opportunities, and repeat business. Lighthouse recently reported that direct bookings can deliver around 9% to 10% more profit per booking than OTA reservations at the same room rate once commissions and related costs are considered. That is not a small difference. Over time, it materially changes profitability.
The challenge is that direct bookings do not grow simply because a hotel wants them to. They require a proper strategy: fast website performance, clear messaging, competitive offers, visible trust signals, and a booking path that feels easy. If the direct journey is clunky or unclear, guests will default to the channel that feels simpler and that is often the OTA. Lighthouse’s guidance on balancing OTA reliance with direct growth is clear: the strongest hotels do not disappear from OTAs; they use them intelligently while giving guests better reasons to book direct.
That is where profit balance really sits.
A healthy distribution strategy does not try to eliminate OTAs. It uses them for reach, while building a direct channel strong enough to convert, retain and protect margin. In other words, OTAs can fill the funnel, but direct should strengthen the return.
At TrevPAR World, this is exactly how we look at channel performance. Not as a popularity contest, but as a commercial balancing act. Because in hospitality, the smartest strategy is rarely “all OTA” or “all direct”. It is knowing when each channel adds value and when it starts costing you more than it should.