The battle lines are drawn. You can’t miss the headlines about hotel companies launching legal action against giants like Booking.com, citing everything from unfair rate parity clauses to crippling commission fees. As a hotelier, you’re likely watching this unfold, hoping it will finally level the playing field. But amidst this high-stakes corporate drama, a fundamental question gets lost in the noise: If these platforms are the enemy, why do your guests still love them?
To truly understand the OTA’s unshakable dominance, you need to stop seeing guests as misinformed customers and start seeing them as strategic consumers making a rational choice.
I wanted to go beyond speculation, so I recently had a coffee with a friend who is on the road for work and pleasure more than he is at home. He’s precisely the kind of guest we all want—a frequent, tech-savvy traveler. I asked him point-blank, “With everything we offer for booking direct, why do you still use OTAs?”
His answer was so direct and insightful that I’m sharing the essence of our conversation. He leaned forward and essentially said:
Dear Hoteliers: I’m Not Stupid, I’m Smart. Here’s Why I Still Book Through an OTA.
I see the signs at your front desk. ‘Book Direct for the Best Rate!’ I read the articles you share on LinkedIn about the exorbitant commissions you pay. I hear your frustration. You’re wondering, ‘Why are these guests so blind? Why would they give a cut to a middleman instead of booking with us and saving money?’
Let me be clear. I’m an experienced traveler. And nine times out of ten, I book my stay through an OTA.
It’s not because I’m stupid. It’s because, from my perspective as the consumer, the OTA experience is often fundamentally superior. You think the fight is about a 5% discount, but you’re missing the forest for the trees. Here’s why you’re losing my direct booking.”
1. The Marketplace is a Research Powerhouse
When I’m planning a trip to a new city, I don’t start with a specific hotel. I start with a need: “a hotel in central Stockholm for under 2,500 SEK a night, with a gym, free Wi-Fi, and a guest rating of at least 8.5/10.”
- Your Website: Can only tell me about your hotel.
- An OTA: Allows me to input all my criteria and see every single hotel that matches, laid out on a map, with prices and ratings clearly displayed. I can compare your property against three of your direct competitors in under 30 seconds.
You are selling a single product. The OTA is selling a solution to my travel problem. I don’t want to open twenty browser tabs to compare hotels; I want one dashboard.
2. My Loyalty Isn’t to Your Brand; It’s to My Flexibility
Hilton Honors, Marriott Bonvoy… they’re fantastic programs if you’re a brand loyalist. But I’m not. This year, I might need a boutique hotel in Berlin, a major brand for a conference in Chicago, and an independent seaside inn along the Californian coast.
3. The User Experience is Seamless and Standardized
I have one account with one saved credit card. In three taps on my phone, I can have a confirmation email for a hotel on the other side of the world. The process is identical whether I’m booking a 5-star resort or a 2-star motel. It’s fast, reliable, and utterly frictionless. Can you honestly say the same for your hotel’s direct booking engine? Most independent hotel websites have clunky, slow, and confusing booking systems that aren’t properly optimized for mobile.
4. I Trust the Crowd More Than I Trust Your Marketing
Your website has beautiful, professionally shot photos. The OTA has hundreds of raw, unedited photos taken by actual guests on their smartphones. It has brutally honest reviews that mention the slow drain in Room 304 or the surprisingly good coffee at breakfast. This “social proof” is infinitely more valuable and trustworthy to me than your curated marketing copy. The OTA is a source of truth.
5. It’s My Safety Net
What happens if I show up at 11 PM and the hotel has overbooked? If I booked direct, it’s my word against the night manager’s. If I booked through a major OTA, I have a multi-billion-dollar company on my side. I call a 24/7 support line, and they have the leverage to find me an alternative room, often at their expense. It’s a powerful insurance policy against things going wrong.
So, How Do You Win Us Back?
My friend’s perspective is an updated eye-opener. I do not like to hear that guests do not trust hotels and that “It’s my word against the night manager’s”. The lesson for us hoteliers is clear: stop assuming your guests do not understand how hotels work and are making an unintelligent choice. They are making a rational one based on the available tools.
My friend gave me a few ideas from the top of his mind:
If you genuinely want direct bookings, you have to beat the OTAs on their turf. Don’t just offer a “best rate guarantee.” Offer overwhelming value.
- Offer a Tangible, Guaranteed Perk: Guarantee a complimentary breakfast, a 4 PM late check-out, a welcome drink, or free parking. Make the value proposition so clear that it outweighs the OTA’s benefits.
- Invest in Your Tech: Your booking engine must be as fast and intuitive as Expedia’s. If it’s not, you’ve already lost.
- Rethink Loyalty: Create a simple, instant reward for booking direct that doesn’t require a long-term commitment. A simple “book direct and your first coffee from our café is free” can work wonders.
The battle for bookings isn’t won at the checkout. It’s won during the research, comparison, and user experience phases. Right now, the OTAs are winning — not because our guests are stupid, but because they’ve built a superior solution for the consumer that is hard to beat.
