Direct bookings: The most undervalued asset in hospitality

Distribution in hospitality has always been a balancing act. OTAs, GDS, wholesalers, tour operators, metasearch - they all serve a purpose and bring reach that most hotels can’t achieve on their own. But one channel consistently gets sidelined in the conversation: direct bookings.

For years, hotels have been conditioned to believe that the cost of acquisition through OTAs is “just the price of doing business.” Sure, OTAs bring volume, but let’s be honest: every hotelier feels that sting when they see the commission bill at the end of the month.

Meanwhile, direct bookings quietly sit there as the most profitable reservations you’ll ever capture. Lower commissions (if any), better margins, richer guest data, and the opportunity to build loyalty that goes beyond a one-off stay. Yet for many, direct still isn’t prioritized the way it should be.

Why direct deserves more attention

Profitability isn’t optional anymore

With rising costs across labor, utilities, and distribution, protecting margin has become a survival strategy, not just a nice-to-have. Every percentage point saved on acquisition is reflected directly in the bottom line.

Guest data is the new gold

When a guest books direct, you own the relationship. You know who they are, how often they book, and what they prefer. That’s not just marketing fuel - it’s the foundation for loyalty.

Trust matters

Travelers are smarter than ever. Many know that brand.com often comes with better perks, clearer policies, or a refund option they won’t get on an OTA. Hotels that lean into that transparency win more repeat stays.

What’s changed in 2025?

The distribution landscape isn’t standing still. A few big shifts are putting direct in the spotlight:

• Tech has caught up. Booking engines are smarter, faster, and more connected than ever. Whether it’s SynXis (Hospitality Solutions), SiteMinder, Profitroom, or D-EDGE, the guest experience on brand.com is finally on par (or better) than what OTAs can offer.
  
  
• Ancillaries are growing. Guests expect more than just a bed. From early check-in to flexible bookings, the ability to upsell and package extras is becoming a competitive edge, and these are far easier to control direct.
  
  
• Marketing and distribution are blending. Paid media, loyalty programs, SEO, and brand campaigns now sit at the same table as CRS and channel managers. Hotels that align these functions are seeing real results.
  

The OTA debate (it’s not either/or)

This isn’t about killing OTAs. They serve a purpose: they drive visibility and fill needs. However, the danger arises when a hotel becomes overly dependent on them.

Think of it like investing. Would you ever put 90% of your portfolio in one stock? Of course not. Yet, many hotels rely heavily on OTAs for their business. Direct isn’t about replacing OTAs - it’s about creating balance, protecting profitability, and owning more of the guest journey.

How hotels can win more direct business

Here are a few practical levers I see working:

• Invest in the booking engine experience. If yourbrand.com takes 15 clicks to make a reservation, you’ve already lost. Speed and simplicity matter.
  
  
• Add value, don’t just match price. Small perks (late checkout, a welcome drink, flexible refund options) can tip the scales in your favor.
  
  
• Tell your story. Guests connect with brands that feel authentic. An OTA listing won’t capture your brand voice the way your own site can.
  
  
• Leverage tech partnerships. Whether it’s Protect Group’s Refund Protect for refundable bookings, mobile check-in, or loyalty integrations, direct can be a platform for innovation.
  

Looking ahead

The winners in 2026 and beyond will be the hotels that treat direct not as an afterthought, but as the cornerstone of their commercial strategy. Distribution costs aren’t going down. Guest expectations aren’t shrinking. And competition isn’t easing up.

Direct isn’t just “another channel.” It’s the one channel where hotels can truly own the guest relationship, protect their margin, and build loyalty that lasts.

So, the question isn’t: Should hotels focus on direct bookings?
It’s: How much revenue are you leaving on the table if you don’t?