Success Factor: Direct Sales in the Hotel Industry

How a Mid-Sized Hotel Pushed Back Its OTA Business and Increased Direct Sales Through Strategic Repositioning

Executive Summary

This whitepaper illustrates how a mid-sized hotel, following an extensive renovation, focused consistently on direct sales—leading to a significant increase in revenue and greater independence from OTAs.

At the core of its success was an integrated strategy combining product differentiation, targeted revenue management, coordinated marketing, and a strong internal team culture.

Key results:

• OTA revenue share reduced by one-third

• Direct sales and total revenue increased by over 10%

• Net Promoter Score remained at 9/10 despite price increases of over 40%

• Inventory grew by 30% through additional rooms, apartments, and new product areas

  
  

Challenge

Many hotels face the challenge of maintaining visibility through OTAs while reducing dependency on third-party providers.

Before renovation, the hotel struggled with:

• An aging, offline-oriented guest base (avg. age: 65)

• A high share of phone bookings

• An offering that could not be properly showcased online

  
  

The central question: How can a hotel make its rooms and unique features digitally visible, strengthen direct sales, and maintain guest satisfaction?

Solution: Strategic Reorientation

The hotel undertook a comprehensive relaunch based on these pillars:

Product and Offer Differentiation

• Introduced online-bookable preferences (e.g., view, balcony, bed configuration) 

• Developed special room types such as Reading Rooms or Favorite Rooms with storytelling elements 

• Partnered with local businesses (e.g., a bookstore for Reading Rooms)

  
  

Revenue and Distribution Strategy 

• Reduced OTA presence and set prices 50–100% higher than direct booking rates 

• Adjusted payment and cancellation policies based on guest feedback 

• Continuously analyzed demand and booking data

  
  

Integrated Marketing

• Invested more than 5% of room revenue in ongoing marketing 

• Leveraged social media, online ads, and audience-specific landing pages 

• Engaged loyal guests early with exclusive offers

  
  

Team and Process Culture

• Weekly alignment between Sales, Marketing, and Revenue Management 

• Developed new product ideas based on guest feedback and data insights 

• Maintained a clear focus: “What can we do for our guests?” instead of merely watching competitors 

  
  

Results

Within three years, the repositioning produced measurable success:

• OTA share: Down by one-third while visibility increased

• Direct sales: Continuous growth with double-digit revenue increases

• Guest satisfaction: Net Promoter Score steady at 9/10 despite 40% higher prices (rooms and breakfast)

• Inventory: +30% growth with new rooms, apartments, and product lines (e.g., dog-friendly rooms, brasserie, multi-purpose event and yoga space)

• Employee engagement: Greater sense of ownership through involvement in product creation (e.g., Favorite Room project)

  
  

Learnings & Best Practices

The project highlights several success factors:

• Consistent differentiation in direct sales rather than price competition with OTAs

• Guest-centered product development (individual preferences, emotional storytelling, partnerships)

• Data-driven revenue management with continuous adjustments

• Cross-functional teamwork among Marketing, Sales, and Revenue Management

• Ongoing investment in marketing — budget exceeding 5% of room revenue

  
  

Conclusion

This case demonstrates that with a clear strategy, smart product design, and a steadfast focus on direct sales, hotels can sustainably reduce their dependency on OTAs.

What once required a complete strategic repositioning and complex operational changes can now be achieved far more efficiently. GauVendi enables hotels to digitally reposition their room products without any physical renovation or investment-heavy upgrades.

Through its feature-based and dynamic inventory system, GauVendi allows hotels to differentiate existing rooms, make their unique features and preferences visible online, and create personalized guest experiences that convert better through direct channels. 

The key lies not in short-term actions but in a lasting integration of product, pricing, distribution, marketing, and team culture.