How to leverage OTAs in hospitality: A comprehensive strategy to maximise bookings and profitability
In today's digital environment, visibility and the ability to attract new bookings are key factors for the success of any hotel, especially for independent or smaller hotels. In this context, OTAs have acquired a fundamental role in the hotel distribution strategy. Knowing how to integrate them intelligently and efficiently can make the difference between a hotel that simply survives and one that grows sustainably.
What is an OTA and why is it relevant for hotels?
OTAs, or online travel agencies, are digital platforms that act as intermediaries between travellers and hotel establishments. Their main function is to make it easier for users to search for, compare and book accommodation, making available a wide range of hotels, flats, hostels and other types of accommodation. In exchange for this visibility, OTAs receive a commission for each confirmed booking.
Today, these platforms have become an essential channel for many hotels, as they allow them to reach a wide, diversified and global audience that is difficult to reach through traditional direct sales channels.
Difference between OTA and direct sales channel
The main difference between an OTA and a direct sales channel lies in the intermediation. While direct bookings are managed by the hotel itself through its own website, telephone, email or other means, OTAs centralise the offer of multiple accommodations, facilitating the search and booking process for the client, although applying an additional cost in the form of commission.
This intermediation offers advantages to travellers, who can compare different options in one place, and to hotels, which can increase their visibility and attract potential customers without having to invest heavily in digital marketing.
Main OTA platforms on the market today
In today's market there are several OTAs with global and regional presence. Some of the best known are Booking.com, Expedia, Agoda y Airbnbeach with its own customer profile and collaboration conditions. In addition, there are platforms specialised in certain market niches, such as rural tourism, boutique accommodation or the corporate segment.
The choice of suitable OTAs will depend on the location, type of hotel and target audience, as well as the commercial conditions they offer.
Advantages of working with OTAs for independent and small hotels
For independent or smaller hotels, OTAs represent a strategic opportunity to gain visibility without assuming the high costs involved in positioning themselves digitally. These platforms make it possible to reach international markets, attract demand in low seasons and attract customers who would otherwise find it difficult to get to know the establishment.
In addition, they offer booking management tools and systems that facilitate the hotel's daily operations, especially for those hotels that do not have a specialised marketing or distribution team.
Smart strategy for integrating OTAs into the distribution mix
Integrating OTAs into a hotel's distribution strategy is not just about opening a profile and waiting to receive bookings. It requires planning, analysis and continuous management so that this channel provides profitability and does not become overly dependent.
How to select the most profitable OTAs for your segment
Not all OTAs offer the same return for all hotels. It is essential to assess which platforms are best aligned with the establishment's profile and target audience. Some key factors to consider are the OTA's market share in the destination, the type of customer it attracts, the commission applied and the ease of integration with the hotel's management systems.
A detailed analysis will allow prioritisation of those OTAs that provide the highest volume of bookings and profitability, avoiding dispersion and unnecessary operational burden.
Diversification of channels without cannibalising direct sales
One of the most common risks when working with OTAs is that bookings through these channels end up displacing direct sales, thus increasing intermediation costs. To avoid this, it is advisable to maintain a balance between both channels, using OTAs as a showcase that generates visibility and attracts new customers, but at the same time promoting direct sales through your own website, social networks or email marketing.
Channel diversification should be aimed at broadening outreach and reducing dependence on a single intermediary, while ensuring that proprietary channels maintain an attractive value proposition.
Using the channel manager to improve operational efficiency
Managing multiple distribution channels manually can lead to errors, wasted time and risks of overbooking. This is why having a Channel Manager is essential to centralise the management of fares, availability and reservations in a single system.
There are solutions such as Vertical Booking o Simple BookingThe Zucchetti Group's Zucchetti systems allow seamless bi-directional integration with systems such as LEAN. This integration ensures that availability is updated in real time from LEAN and that rates are sent from the Channel Manager to all OTAs, avoiding mismatches and improving operational efficiency.
Optimising your hotel profile on OTA platforms
Once the channel has been chosen, it is essential to optimise the hotel's profile on each OTA to ensure that it stands out from the competition and converts visits into bookings.
Photographs, descriptions and key differentiators
The visual and descriptive content of the profile plays a decisive role in the guest's decision. Photographs should be professional, up-to-date and show the rooms, facilities and details that make the hotel unique.
Descriptions should be clear, honest and highlight the main differentiators of the establishment, such as location, services included or value proposition.
Strategic management of fares, availability and conditions
The profile on OTAs must be kept up to date and aligned with the hotel's commercial strategy. This involves managing dynamic rates adapted to demand, reviewing cancellation and availability policies, and ensuring that the information published is consistent with the rest of the channels.
Proper fare management will allow to take advantage of high-demand seasons and avoid losses in times of low occupancy.
How to stand out from the competition in search rankings
OTAs use algorithms that determine the position of hotels in search results. Some of the factors that influence the ranking are the quality of photographs, customer reviews, competitive rates and availability offered.
An active and strategic management of these elements will help to improve the hotel's visibility and increase the chances of conversion.
Balancing dependence and autonomy: how to use OTAs without losing control
Although OTAs are a valuable channel for attracting customers, relying exclusively on them can limit the hotel's commercial autonomy and affect its profitability. Therefore, it is essential to find a balance that allows the hotel to take advantage of their benefits without giving up control over the sales strategy.
How to convert OTA guests into direct customers
Each booking received through an OTA represents an opportunity to build guest loyalty and convert them into direct customers for future stays. To do this, it is important to offer a personalised experience, collect their contact details and maintain subsequent communication to encourage direct bookings.
Strategies to boost direct booking without breaking agreements
The hotel can incentivise direct sales by offering exclusive benefits that do not contravene rate parity agreements with OTAs. For example, include additional services, room upgrades or more flexible conditions for those who book directly through the official website.
These strategies make it possible to reinforce the own channel without generating conflicts with intermediary platforms.
Use of exclusive promotions for own channel (website, email, etc.)
Another tool to reduce dependency on OTAs is to design promotions targeted exclusively at customers who book through the website, email marketing campaigns or loyalty programmes. In this way, the hotel will be able to build a solid base of recurring customers and minimise intermediation costs.