Introduction
Imagine paying a middleman ₹20-30 for every ₹100 you earn. Sounds unfair? That’s exactly what happens when hotels rely too much on Online Travel Agencies (OTAs) like Booking.com or MakeMyTrip. While OTAs bring guests, their hefty commissions (15-30%) eat into your profits. The good news? Shifting focus to direct bookings can save you up to ₹52 lakh/year. Let’s explore how!
What’s the Difference Between OTA and Direct Bookings?
OTA Bookings
Guests book via platforms like Goibibo, Yatra, etc.
Pros: Wider reach, marketing support, and tech tools.
Cons: High commissions (up to 30%) and less control over guest relationships.
Direct Bookings
Guests book directly via your website, phone, or social media.
Pros: Zero commissions, better guest data, and stronger loyalty.
Cons: Requires effort to attract guests without OTA’s reach.
Why Prioritize Direct Bookings?
Let’s break down the ₹52 lakh/year savings:
Suppose your hotel earns ₹2 crore/year from OTAs at 26% average commission.
Commission paid: ₹52 lakh/year (26% of ₹2 Cr).
By shifting even 50% of OTA bookings to direct, you save ₹26 lakh/year. Add perks for direct bookings, and savings grow further!
5 Simple Strategies to Boost Direct Bookings
1. Offer “Direct Booking Discounts”
Example: “Book directly and get 10% off + free breakfast!”
Why it works: Guests love discounts, and you still save 10-20% compared to OTA commissions.
2. Build a Loyalty Program
Reward repeat guests with points, upgrades, or exclusive perks.
Example: “Earn points for every direct booking and redeem them for free stays.”
3. Simplify Your Website Booking Process
Use a user-friendly booking engine (e.g., eZee Absolute) with instant confirmations.
Add clear calls-to-action: “Book Now, Pay Later” or “Lowest Price Guaranteed.”
4. Use Social Media Smartly
Promote “Direct Booking Deals” on Instagram/WhatsApp.
Share guest stories or videos to build trust.
How to Calculate Your Potential Savings
Step 1: Check your annual OTA revenue (e.g., ₹2 Cr).
Step 2: Multiply by average commission (e.g., 26% of ₹2 Cr = ₹52 lakh).
Step 3: Aim to shift 50-70% bookings to direct channels.
Savings = 50% of ₹52 lakh = ₹26 lakh/year.
Final Tip: Balance Both Channels
Don’t quit OTAs overnight! Use them for visibility but redirect guests to your website:
Offer better rates/packages on your site.
Use phrases like “Best Price Guaranteed” to build trust.
Conclusion
Every rupee saved from OTA commissions boosts your profit. With simple tweaks like discounts, loyalty programs, and a smooth website, you can save ₹52 lakh/year and build lasting guest relationships. Start small, track results, and watch your savings grow!
P.S. Tools like eZee Absolute simplify direct bookings with seamless website builders and booking engines. Try it free today and keep more money in your pocket!
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