As a hotelier, you’ll be well aware that online travel agencies (OTAs) account for a huge proportion of hotel bookings. Why? They provide a handy service for customers, allowing them to compare hotels and find the right location, facilities and price for their stay.
This creates a dilemma for hotels. You can’t simply opt out of OTAs, as they account for such a large proportion of the market. However, bookings made through them come at a cost – both in commission and lost customer data. But is the tide shifting when it comes to the way people book hotels?
In this article, we’ll discuss how things are changing in the world of online bookings – and how you can make the most of a shift towards digital direct bookings.
How OTAs have dominated bookings
In 2019, OTAs represented the largest proportion of total gross bookings for the global hotel industry. They accounted for $270 billion, according to Skift, compared to:
- $218 billion for digital direct bookings
- $140 billion for non-digital direct bookings
- $103 billion for offline travel agents
- $93 billion for wholesale
From a customer’s perspective, it’s easy to see why OTAs are so popular. As with any purchase, the customer’s goal is finding what they want and need at the best possible price. For a hotel, that typically includes facilities, location and a certain level of quality.
Sites like Airbnb, TripAdvisor, Expedia and Booking.com make it easy to compare all of these factors for several hotels – in one place. You can search by specific locations, whether that’s regions, cities, towns or even proximity to a particular attraction. Filters allow you to exclude results without certain features or amenities. And you can easily see overall ratings from previous customers to give an insight into quality.
The pros and cons of OTAs for hotels
In some ways, OTAs provide a valuable service for hotels. They create a level playing field where customers can compare your offering at face value. You benefit from their traffic, and your hotel becomes visible to a wider audience. You’re compared fairly in terms of your features, location, price, reviews and so on, rather than just your ability to attract traffic through search engines.
On the other hand, they are essentially a middleman – and bookings through OTAs aren’t quite as profitable as those made directly (online or offline). First and foremost, that’s because of commission. OTAs can charge anywhere from 5% to 25% of a booking’s total value – or even more in some cases.
Additionally, you miss out on the opportunity to retain data about your customers. With indirect bookings, you don’t receive as much information about guests as you would through a direct connection. This makes it harder to personalise marketing and improve customer loyalty over time.
Why are things changing?
Modern OTAs are essentially comparison sites for accommodation. Research shows that 88% of customers use review and price-comparison sites before making any purchase. Why should hotels be any different?
The answer is experiential travel…
You see, it’s all well and good saying that hotels are the same as any other product. But they just aren’t. When people buy a washing machine, tennis racket or cordless drill, they’re investing in something purely functional. Hotels are a little more than that.
With hotels, you’re selling more than just a product. Break it down, and you have the basic components – a bed, shower, breakfast, car park, pool and so on. But combined, hotels are ultimately offering an experience.
This is something that customers are realising – and it’s already beginning to show in how bookings are being made. In 2024, Skift found that digital direct bookings were almost level with OTAs – accounting for $262 billion and $266 billion, respectively.
What’s more, they projected that digital direct will become the dominant channel by 2030 – accounting for $409 billion compared to $333 billion for OTAs.
How to increase direct bookings
What do Skift’s findings tell us about hotel bookings?
In short, there’s an opportunity for you to increase the percentage of your bookings acquired directly. The challenge is how to make the most of that opportunity – and maximise digital direct bookings.
The answer? By embracing experiential travel. Modern consumers don’t just want the lowest price or most convenient location. They value experiences, personalisation and loyalty. This is something your brand can focus on and highlight to attract new customers and repeat bookings.
At Hoopla Marketing, we work with countless hotels to showcase the unique experience they offer, from the indulgent comfort of the beds to the high-end quality of the service. Here are some of the methods we employ…
Social media
From Instagram and Facebook to TikTok, YouTube and Pinterest, your audience is already spending time on these platforms – so it’s the perfect place to capture their attention.
Share content that inspires and converts!
Visual storytelling is your greatest asset when it comes to driving direct bookings. Here’s how to make your content stand out:
📸 Professional photos & reels
- Showcase your rooms, amenities and one-of-a-kind experiences with high-quality photography and video
- Feature highlights through Instagram Reels and TikToks to give potential guests a taste of what’s waiting
🎥 Video that sells the experience
- Walkthroughs of your hotel and rooms
- Guest testimonials and behind-the-scenes snippets
- Spotlights on local attractions, events or foodie hotspots
📌 Maximise Instagram & Facebook Stories
- Use “Book Now” stickers for instant conversions
- Highlight FAQs, reviews and must-know tips in Story highlights
By focusing on immersive visuals and authentic storytelling, you’ll go beyond selling features – and start selling the experience. Just like in this influencer-led campaign at The Manor House below, the right content can show guests exactly why your hotel is the one for them.
View this post on Instagram
Paid social
Of course, it can be challenging to build up a following organically on social media sites. Paid social allows you to connect with guests using a targeted approach, even if they don’t follow you.
You can gain clicks, conversions and direct bookings from paid social campaigns – as well as growing your following for future organic marketing.
Paid advertising puts your content in front of the right people at the right moment – turning interest into action:
🔥 Retargeting Ads
- Reconnect with users who visited your site but didn’t book.
- Nudge them back with dynamic ads and irresistible offers (e.g. “Book within 48 hours & save 15%”).
🎯 Lookalike Audiences & Interest-Based Targeting
- Reach new people who closely resemble your past bookers.
- Target high-intent travellers interested in luxury getaways, weekend breaks or spa retreats.
🛏️ Carousel & Instant Experience Ads
- Use carousel ads to highlight multiple rooms, suites or amenities in one swipeable format.
- Create immersive Instant Experience Ads that open a fast, mobile-optimised landing page – keeping users engaged and moving towards booking.
For example, this recent paid social campaign for South Lodge Hotel & Spa delivered a 9.1X return on ad spend – which is no surprise with stunning posts like this from travel blogger Jennifer Tuffen:
View this post on Instagram
Influencer marketing
It’s not just about global celebrities – local influencers and travel bloggers can amplify the reach of your hotel and reinforce its unique appeal.
Want to showcase your new eco-friendly approach, highlight a luxury spa experience or promote your dog-friendly offering? There’s no better way than getting the right influencers to shout about their stay on social media.
For example, take a look at how this influencer campaign for Pennyhill Park, with posts like this from Mia Luckie helping the brand reach 5 million people with 134K engagements:
@mialuckie3 Save this for your next staycation out of London, I highly recomend!! There’s so much to see and do at @pennyhill_park, so make time to stay JUST ONE MORE DAY. Book for two nights or more and get 15% off your stay using code MIALUCKIE315 #pennyhillpark #pennyhillhotelandspa #luxuryhotel #ukhotel #michelinstar #5starhotel #fivestarhotel #escapelondon ♬ original sound – Mia Luckie
Striking the right balance with expert help
It’s important to note that OTAs aren’t going anywhere. They will still be an important source of customers for most hotels. However, the rise of experiential travel is certainly providing an opportunity for you to increase the share of digital direct bookings.
Hospitality is becoming more differentiated and less commoditised – so it’s up to you to show that your hotel is more than a sum of its parts. Fortunately, you’re not alone in that mission.
Hoopla Marketing has a track record of helping hotels connect with the right guests online, converting interest into bookings. From boutique hotels to budget travel brands, we’ll showcase the best of your unique offering to increase exposure, direct bookings and revenue.
To find out more, arrange a discovery call with our team.