Direct Bookings vs OTAs in 2025: What Actually Makes You More Money?

Direct Bookings vs OTAs: What Actually Makes You More Money?

If you're a hotel owner in 2025, you're probably caught in the same dilemma as everyone else. OTAs like Booking.com, Expedia, and Airbnb bring bookings, but they take a cut. Direct bookings mean more control, but they come with their own costs and effort. So, what actually makes you more money?

This blog walks through the numbers, the pitfalls, and the real-world strategy. No filler, no vague theory. Just what works.

What is an OTA really costing you?

The average commission for an OTA is between 15 and 25 percent. That means if a guest books a $200-a-night room for three nights, you might only see $450 to $510 out of the $600 total. That sounds simple, but the real cost is often higher when you include:

• Currency conversion fees if you’re paid in foreign currency

• Delayed payouts

• Guest acquisition costs if you offer discounts to stay competitive

• Higher cancellation rates

OTAs also control the guest relationship. The guest belongs to them, not you. You don’t get their email, you can’t upsell directly, and you’re competing with dozens of other listings on the same page.

But direct bookings aren’t free

Many hotel owners assume direct equals free. It’s not. To drive direct bookings, you need:

• A properly built website, often $1,000 to $5,000 to set up

• A booking engine, usually free to $100 or more per month depending on features

• Payment processing — Stripe, Square or PayPal often takes 2.9 percent or more

• Marketing spend — Google Ads, SEO, social media, email tools

• Time and staff to respond to guest inquiries

That all costs money. And if you’re in a remote or seasonal destination, guests may never find you without the OTA’s reach.

Run the numbers properly

Let’s say your room rate is $200 per night.

Scenario A: OTA Booking

• Commission: 18 percent = $36

• FX and payout fees: ~2 percent = $4

• You receive: $160 per night

Scenario B: Direct Booking

• Stripe or PayPal fee: 2.9 percent = $5.80

• Marketing cost per booking (estimated): $10

• Booking engine and web amortisation per booking: $3

• You receive: $181.20 per night

So, on a direct booking, you keep $21.20 more per night. Over 100 nights, that’s over $2,000 in your pocket. But this only works if your direct funnel is well-built and consistent.

What makes direct bookings succeed?

You need three things:

1. Trust and clarity: Your site must load fast, look professional, and clearly show pricing, photos, and policies.

2. A reason to book direct: Something like flexible cancellation, complimentary breakfast, or a small room upgrade.

3. Smooth and secure checkout: Accepting cards easily, on mobile, with confidence and verified reviews.

If your OTA guests are leaving great reviews, use those reviews in your direct funnel. If they’re returning, push them toward direct next time. Add post-stay emails and QR codes in-room to sign them up to your list.

What’s the right OTA balance?

In many cases, OTAs are essential for visibility. Especially if you’re just starting out or going into a new market. But don’t rely on them forever. Start small, then retarget those guests for direct rebookings.

Some hotels have succeeded in flipping the ratio from 80 percent OTA to 60 percent direct by tracking cost per acquisition and gradually investing in their own funnel.

The Antravia view

This isn’t about picking sides. It’s about knowing your numbers.

If you don’t know your real profit per booking — OTA versus direct — you’re flying blind. At Antravia, we’ve helped hotels break it down line by line. We model OTA dependence, FX loss, card fees, and conversion rates. From that, we build a simple financial plan that shows you what direct bookings are really worth.

If you want help doing the same, we’re here.