In the scramble to fill rooms, it’s tempting to throw everything at OTAs: Genius deals, mobile rates, secret offers, and flash sales. And yes, it might get you on the first page. But at what cost?
We see it all the time: hotels pour effort into their hotel direct booking strategies, only to undercut themselves with OTA promotions that kill profitability and confuse the guest experience.
Let’s talk about why the short-term win isn’t worth the long-term damage, and what to do instead.
1. Stacked Discounts: A Race to the Bottom
Stacking discounts seems like a smart move when you’re under pressure. But when you start offering 20% off to Genius users, 10% for mobile, and another 5% for “secret deals”, it adds up fast, but not in your favour. Go ahead and add a 15% OTA commission on top and you’re left with a painfully slim margin, if any at all.
Bottom line: Every booking is costing you more than it should, and you’re training guests to never book at full price.
2. You’re Devaluing Your Brand Without Realising
Heavy discounting doesn’t just hurt your bottom line; it hurts your brand.
When your hotel is always on sale on OTAs, you send a clear message: “This product isn’t worth the listed price” and that’s the perception you’re reinforcing, no matter how beautiful your interiors are or how glowing your reviews. When guests see constant cheaper rates on third-party sites, your direct channel starts to look like a rip-off.
3. You’re Sabotaging Your Direct Booking Strategy
You’ve probably invested time and money into your website and you are likely even running Google Ads, pushing metasearch, or offering perks like late checkout or welcome drinks for booking direct.
But here’s the kicker: if your OTA rates are cheaper, none of that matters.
Why would anyone book direct when the OTA looks like the better deal?
4. You’re Strengthening the OTA’s Brand, Not Yours
Every time a guest books through OTA sites instead of your own, they’re building loyalty with them, not you. You lose guest data, the chance to upsell, and the opportunity to nurture future direct bookings.
You’re not building a guest database. You’re building theirs.
So, What’s the Alternative?
We’re not anti-OTA; they do have their place. But you need a smarter, more profitable balance.
Here’s what we recommend:
- Ditch the discount stacking. Use a single, well-planned offer if necessary, and monitor ROI closely.
- Always match or beat OTA rates on your website. Rate parity isn’t enough anymore. Guests want a clear reason to book direct.
- Add value, don’t slash prices. Throw in breakfast, an upgrade, or a flexible cancellation window instead of shaving off 10%.
- Double down on guest experience. Use your own booking journey to wow them. Fast, mobile-optimised, and personalised.
- Nurture post-stay loyalty. Use your data. Send direct email offers. Encourage repeat bookings, not just reviews.
Final Thought: It’s Time to Take Back Control
If you feel like you’re running on a bookings treadmill with little to show for it, this could be why. The solution isn’t more discounting. It’s a better strategy.
Stop stacking. Start steering.
And if you’re not sure where to start, that’s what we’re here for.
Get in touch and let’s talk about how to boost direct bookings for your hotel without racing to the bottom.
