Stop Paying 25% OTA Commissions: A Guide to Driving Direct Hotel Bookings

For many hotel owners, Online Travel Agencies (OTAs) like Expedia and Booking.com are a double-edged sword. While they provide essential global visibility (the "Billboard Effect"), they also demand hefty commissions—often ranging from 15% to 25% per booking.

If you’re tired of seeing a quarter of your revenue disappear before it even hits your bank account, it’s time to take control of your distribution strategy. Driving direct bookings isn’t just about having a "Book Now" button on your website ; it’s about creating a relationship with your guests from the moment they arrive.

The Strategy: Building the Direct-First Ecosystem

To reduce OTA dependence, you need to provide value that third-party platforms cannot match.

1. Capture Guest Data During the Stay

One of the biggest failures of OTAs is that they own the guest's email address. To break this cycle, you must capture that data while the guest is on your property.

• How Tagnovate Helps: By using a digital hub from Tagnovate, you can offer guests exclusive during-stay perks (like a free drink or late check-out) in exchange for joining your "Inner Circle" via their email address. This allows you to market directly to them for their next stay.

2. Implement a "Best Price Guarantee"

Travelers use OTAs because they believe they are getting the best deal. You must disprove this. Offer:

• An immediate 5-10% discount for direct bookings.
• Perks that OTAs can't offer, such as free breakfast, room upgrades, or early check-in.

3. Leverage Dynamic Retargeting

Once a guest has visited your property, you have a unique opportunity. They’ve already experienced your hospitality. Use automated follow-up emails (triggered through your Tagnovate CRM integration) to offer them a "Loyal Guest" discount for their next visit.

Technology's Role in Direct Revenue

A seamless booking experience is non-negotiable. If your direct booking engine is clunky or requires too many steps, guests will flee back to the polished interfaces of the OTAs.

The Power of NFC and QR Links

Place Tagnovate NFC tags in guest rooms with a clear call-to-action:

"Loved your stay? Tap here to book your next visit directly and save 15%."

This captures the guest's intent at the peak of their positive experience.

Promoting On-Site Spending

Driving direct bookings is part of a larger revenue picture. You also want guests to spend more while they are with you.

• Dining Revenue: Use MenuGo to provide a world-class digital menu experience. When guests see beautiful photos of your signatures dishes on their phones, they are more likely to stay on-site for dinner rather than searching for local alternatives.
• Ancillary Services: Promote spa treatments, tours, and upgrades through your Tagnovate digital concierge.

Conclusion: Reclaiming Your Revenue

Every direct booking is a victory for your property's profitability. By offering unique value, capturing data, and using tools like Tagnovate and MenuGo, you can build a sustainable, direct-first business model.

Ready to boost your direct bookings? Create your Tagnovate profile now and start building a more profitable guest journey.

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Looking for more operational tips? Check out our post on reducing front desk calls or learn why printed menus are costing you more than you think.