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Optimizing OTA Commissions: Keep the Bookings, Strengthen the Partnerships

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  • 19 May 2025
  • 2 minute read
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This article was written by Hospitality Net. Click here to read the original article

OTA Sync

Online Travel Agencies (OTAs) are vital allies in hospitality. They expand reach, bring in new guests, and boost occupancy – especially in competitive markets. But to make the most of this partnership, properties must balance visibility and profitability with strategic planning.

Know What You’re Paying For

Start with a distribution audit:

  • Compare commissions and guest value across OTAs
  • Identify platforms with the strongest returns
  • Use analytics to understand where your profits grow best

Properties using quarterly audits optimize their mix and unlock up to 5% higher margins through smart OTA partnerships.

Make Your Listings Work for You

Strong listings lead to better visibility and conversions:

  • Use professional photos to stand out
  • Keep seasonal offers and content fresh
  • Respond to reviews to build trust

Properties that regularly update OTA listings see up to 18% more bookings while maximizing their OTA placement.

Encourage Direct Bookings – Without Undermining OTAs

OTAs bring guests to your door. Use that momentum:

  • Offer extra perks to direct bookers without violating rate parity
  • Highlight member-only advantages on your website

A boutique hotel grew direct bookings by 34% just by showcasing added value on its own channels—while still relying on OTAs for first-time discovery.

Strategically Work Within Parity

Rate parity doesn’t limit creativity:

  • Create custom bundles, mobile-only deals, or exclusive packages
  • Offer loyalty pricing that respects parity rules

It’s about enhancing value while maintaining compliance.

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Let Data Guide Your OTA Strategy

Use data to amplify OTA performance:

  • Track Net ADR by channel
  • Identify which OTAs bring bookings during key periods
  • Adjust inventory based on booking windows and trends

With the right tools, you’ll gain clear insights that help you work smarter with each OTA.

Turn OTA Guests Into Loyal Fans

Every OTA guest is a future direct guest:

  • Deliver standout stays that guests want to repeat
  • Follow up with tailored, direct incentives
  • Use subtle in-stay education to show the value of booking direct

One property reduced reliance on paid listings by 22% through a well-structured guest retention plan—without cutting OTA exposure.

Use Dynamic Pricing to Maximize Value

Smart pricing works across all channels:

  • Adjust rates automatically based on demand and competition
  • Protect margins during peak periods
  • Align pricing strategies across OTA and direct channels

Hotels using dynamic tools report up to 12% higher RevPAR with better balance across their OTA mix.

Leverage OTAs as Strategic Partners

The goal isn’t to cut OTAs – it’s to use them with intent:

  • Use high-visibility OTAs for exposure and first-time bookings
  • Reserve value-adds and loyalty incentives for direct channels
  • Partner with niche or regional OTAs that align with your market

Reduce Operational Costs with Smarter Distribution

Working more efficiently with OTAs doesn’t just grow bookings – it saves money too:

  • Automation tools reduce time spent on manual updates
  • Centralized content management minimizes labor across platforms
  • Smarter inventory allocation cuts reliance on high-cost channels

One multi-property group saved over 20 hours per month on administrative tasks by streamlining their OTA strategy.

Ready to Grow with the Right Balance?

When used strategically, OTAs are powerful partners – not just platforms. Smart distribution, thoughtful rate management, and proactive guest retention can help you thrive across all channels.

Visit us at otasync.me to learn more.

Please click here to access the full original article.

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