Derek Martin
10 Sept 2025
In the competitive world of hospitality, hotels often rely on Online Travel Agencies (OTAs) like Booking.com, Expedia, and Airbnb to fill rooms and reach a broader audience. However, the "spend" on these channels—referring to the commissions (typically 15-30%) paid per booking or investments in OTA advertising and promotions—can seem like a necessary evil. Yet, when used strategically, this expenditure isn't just about immediate revenue; it serves as a powerful catalyst for enhancing your hotel's own direct booking platform. By providing unparalleled visibility and acting as a "billboard" for your brand, OTA spend can drive traffic, build awareness, and ultimately convert users to direct bookers, who are more profitable since you retain 100% of the revenue without commissions. This article explores how this dynamic works and offers practical tips to maximise the benefits.
The Billboard Effect: Turning OTA Visibility into Direct Wins
One of the most significant advantages of investing in OTAs is the "billboard effect." This phenomenon occurs when a hotel's listing on an OTA platform exposes it to millions of potential travellers, increasing brand recognition even if the booking doesn't happen through the OTA itself. According to industry studies, hotels listed on OTAs see a measurable uplift in direct bookings—up to a 10-20% increase in some cases—because users who discover your property on an OTA are more likely to visit your website later for a direct reservation.
OTAs invest billions in marketing—over $14 billion in 2022 alone by major players like Expedia and Booking Holdings—which amplifies your hotel's reach far beyond what most individual properties could achieve with their own budgets. For smaller or independent hotels, this exposure is invaluable, especially in off-peak seasons or emerging markets like Asia Pacific, where OTAs drive the fastest growth in online bookings. The result? Travelers become familiar with your brand, trust its presence on a reputable platform, and opt for direct bookings to access exclusive perks or avoid OTA fees, effectively turning your spend into a low-cost advertising channel that funnels traffic to your site.
Driving Qualified Traffic and SEO Benefits to Your Direct Platform
Beyond mere awareness, OTA spend directly contributes to traffic on your hotel's website and booking engine. Many OTA listings include direct links to your property's page, photos, and reviews, which not only boost click-through rates but also enhance your SEO profile. Search engines like Google recognize this backlink traffic as a signal of authority, improving your hotel's organic search rankings for terms like "best hotels in city”
Additionally, users who browse OTAs often engage in "research mode," comparing options before committing. Your OTA investment ensures your hotel appears in these searches, priming users to complete their journey on your direct platform. Data shows that OTA exposure can increase direct website visits by sending qualified leads—travellers already interested in your location and amenities—who are more likely to convert than cold traffic from generic ads. This synergy reduces your customer acquisition costs over time, as the upfront OTA spend yields long-term direct revenue without ongoing commissions.
Gaining Data Insights and Building Guest Loyalty
OTA channels also provide a wealth of data that can supercharge your direct booking strategy. Through analytics from OTA dashboards, hotels can track booking patterns, guest demographics, and preferences, which inform targeted marketing on your own platform. For instance, if OTA data reveals a surge in family travellers from Europe, you can tailor direct promotions like kid-friendly packages to attract similar segments.
Moreover, OTA guests aren't lost opportunities—they're a gateway to loyalty. By capturing contact details during their stay (with consent), hotels can nurture these leads into direct bookers for future visits. This conversion not only boosts profitability but also builds a database for email campaigns, retargeting ads, and personalized offers, all of which strengthen your direct platform's engagement. In essence, the spend on OTAs acts as an acquisition tool, where the initial commission cost is offset by lifetime value from repeat direct bookings.
Tips and Advice for Maximising OTA Benefits for Direct Bookings
To fully capitalize on your OTA spend, hotels must adopt a balanced, proactive approach. Here are some actionable tips drawn from industry best practices:
Embrace the Billboard Effect Strategically: Limit OTA inventory during peak periods to encourage direct bookings while using OTAs for broad exposure in low seasons. Diversify across multiple OTAs (e.g., global giants like Booking.com and niche ones like TripAdvisor) to maximize reach without over-reliance.
Optimize Your Direct Booking Engine: Ensure your website's booking tool is mobile-friendly, secure, and branded consistently with your OTA presence. Include prominent "Book Direct" buttons and a rate comparison widget showing why direct is cheaper (e.g., no hidden fees).
Offer Exclusive Direct Perks: Counter OTA commissions by providing incentives like free upgrades, late check-out, or loyalty points only available on your site. Promote these during OTA guest stays via in-room notes or emails to convert one-time bookers.
Capture and Nurture OTA Guest Data: Always collect emails and preferences from OTA arrivals. Send personalized post-stay thank-yous with direct booking offers, such as "10% off your next stay if you book directly." Use this to build a loyalty program that rewards direct reservations.
Leverage Reviews and Social Proof: Encourage OTA guests to leave reviews on your website and Google, not just the OTA. Positive feedback builds trust, driving more direct traffic. Monitor OTA reviews for insights to improve your property and website.
Invest in Retargeting and SEO: Use OTA-driven traffic data to run targeted ads (e.g., Google Remarketing) for users who visited your OTA listing. Align your site's content with OTA keywords to boost organic direct visits.
Form Local Partnerships: Collaborate with nearby attractions or businesses for packages promoted on your direct site. This attracts niche traffic beyond OTA algorithms, complementing the broad exposure from OTAs.
Monitor and Analyse Performance: Track metrics like OTA-to-direct conversion rates using tools like Google Analytics. Adjust spend by allocating more to high-performing OTAs that yield the best billboard returns.
Enhance Guest Experience for Repeat Business: Deliver exceptional service to OTA guests to create advocates. A memorable stay increases the likelihood of direct rebookings, turning your spend into long-term loyalty.
Avoid Rate Parity Pitfalls: Ensure your direct rates are competitive or better than OTAs to prevent undercutting. Use dynamic pricing tools to balance visibility with profitability.
A Symbiotic Relationship for Revenue Growth
Spending on OTAs isn't about surrendering control—it's about smart distribution. By harnessing the billboard effect, driving targeted traffic, and converting guests through data and incentives, hotels can transform OTA investments into a robust direct booking engine. This balanced strategy not only fills rooms efficiently but also fosters sustainable profitability and guest loyalty. As the travel industry evolves in 2025, hotels that view OTAs as allies rather than adversaries will thrive. Start by auditing your current OTA partnerships and implementing a few of these tips to see immediate uplift in direct bookings.