Change in Distribution Only Works if We Understand the Past

Hoteliers vs. OTAs – A Debate with Blind Spots

The discussion between hoteliers and OTAs (Online Travel Agencies) has been heating up for years – and often feels stuck. Some hotels build their entire strategy solely around their OTA rankings. They even launch campaigns offering lower prices on specific platforms or apps than on their own website. 

At the same time, many are not even willing to invest 1% of their room revenue into direct sales activities. Instead, they put money into “trendy tools” – often hoping that a CRM system alone will turn the tide. But what’s the point of a CRM if it only targets past guests? A few will respond, but a hotel cannot fill itself with repeat customers alone. 

Why Do OTAs Work So Well?

Many hoteliers complain about high OTA commissions. But instead of dismissing them as “rip-offs,” it’s worth taking a closer look: 

• OTAs have perfected their sales strategies over 25 years. 

• They invest massively in technology, AI, and sales psychology. 

• They are present on every relevant platform and channel. 

  
  

Independent hotels, on the other hand, were hardly bookable online before OTAs. Hotels willingly uploaded their inventory into OTA systems – often at lower prices than via phone, email, or GDS. In other words: hoteliers themselves laid the groundwork for OTA dominance. 

The Missed Opportunity in Direct Sales

Even today, many hotels lack a clear direct sales strategy. Some websites look like they haven’t changed in 20 years, with outdated photos and no modern booking engine. Meanwhile, OTAs showcase updated photos and optimized content. 

But why should a guest book directly if the product is identical and interchangeable? 

• “Best price guarantee” no longer convinces anyone. 

• Without differentiation, attractive storytelling, and a strong brand position, direct booking stands no chance. 

Digitalization Instead of Hospitality?

Some hotels respond to cost pressure with radical digitalization: automated check-ins, chatbots, digital guest apps, and reduced staff. Yes, this saves costs. But it also creates interchangeable, anonymous products that leave no lasting impression on guests. 

A Success Story That Gives Hope

A hotel I have worked with for years shows there’s another way: 

• Complete renovation during COVID with new inventory and a 40% price increase in the first reopening year. 

• Preference-based booking: guests could select personal wishes online – from a lighthouse view to their favorite room. 

• Reduced OTA dependency: still visible, but always more expensive than on the hotel’s own site. 

• Creative products like “Reading Room” or “Favorite Room” with dedicated landing pages and storytelling.

• Continuous teamwork across marketing, sales, and revenue management.

  
  

The results:

• Direct bookings grew every year. 

• OTA business dropped by one-third. 

• Revenue grew by over 10%. 

• Guest satisfaction stayed high – 9 out of 10 guests recommend the hotel without hesitation. 

What We Can Learn

This example proves: real change requires discipline, a clear strategy, and investment. This hotel invests more than 5% of its room revenue into ongoing, targeted marketing activities. 

The key is making your inventory unforgettable and unique. 

• If your rooms are standardized and interchangeable, you’ll drown in the price war. 

• If you differentiate, tell stories, and continuously invest in direct sales, you can stand up to OTAs. 

Final Thought

Criticism of OTAs is understandable – but often just an excuse. 

➡️ If you want change, take responsibility.

➡️ If you want direct sales success, invest.

➡️ If you want differentiation, rethink your products. 

Otherwise, you’ll end up with an anonymous, interchangeable accommodation product that no one will miss once it’s gone.