According to the European Hotel Distribution Study 2024, 28% of hotels in Europe generate 30–49% of their bookings via OTAs (online travel agencies) such as Booking.com or Expedia, with one in five hotels generating more than 50%. The number of direct bookings, by contrast, continues to decline.

There are good reasons for this trend, ranging from the reach of online travel agencies and their technological infrastructure to their popularity with guests. However, as the OTA share grows, so does dependency. A significant proportion of bookings are made via platforms, communication with guests is becoming increasingly regulated, and important guest data remains outside the hotel's own systems. Distribution costs are rising due to fees, and the direct relationship with the guest suffers.

New security and messaging rules on platforms such as Booking.com further restrict hotels' communication and highlight just how little control businesses have over key parts of their guest journey.

At the same time, the industry is facing the next wave of change. AI-powered search and booking systems are already transforming the way travellers find, compare and select hotels. That makes it even more important to build up your own data, your own communication channels and direct guest relationships.

Why OTAs have become so attractive to hotels

Online travel agencies have solved many of the challenges that hotels have faced for decades:

Reach and visibility

Millions of travellers now start their hotel search on platforms such as Booking.com. The enormous reach of these portals gives hotels access to target groups that they would often only be able to reach via their own channels with considerable marketing effort.

OTAs play a key role, particularly with international guests. Translations, reviews, comparison options and high brand awareness foster trust and reduce barriers to booking.

Simple distribution

OTAs offer hotels technically sophisticated platforms. Availability, prices and bookings can be managed centrally and displayed internationally. This significantly reduces complexity, particularly for small establishments without large marketing or digital teams.

Short-term occupancy optimisation

Another advantage lies in the rapid marketing of available rooms. OTAs help hotels generate short-term demand and balance out fluctuations in occupancy.

During the off-season, in the event of last-minute cancellations or during economically challenging times, this additional demand makes a significant contribution to securing revenue.

High barriers to entry for direct sales

Building an effective direct sales channel can be a complex undertaking. A modern website is not enough. On top of this come search engine optimisation, performance marketing, booking technology, guest communication, data management and the continuous optimisation of the digital guest journey.

Seen in that light, partnering with OTAs appears to be a financially sensible decision. But their disadvantages are becoming increasingly clear.

The hidden costs of dependence on OTAs

The consequences of dependence on Booking.com and the like are evident in many areas:

High commission costs

As long as OTAs generate additional demand, commission costs seem justified. However, as dependence on them increases, the situation changes. A high proportion of OTA bookings often reduces hotels' profits by 5 to 10 per cent. This also reduces the proportion of revenue that hotels can allocate directly to service quality, staff, marketing or investment.

Particularly critical: when regular guests or guests with a high likelihood of returning book via OTAs, hotels pay commissions for guests they could have reached through their own channels.

Loss of the direct guest relationship

Although hotels receive a booking, they often have only limited access to the underlying guest data. A significant part of the interaction takes place within the platform.

This makes it difficult to

• build individual guest profiles,

• document preferences over the long term,

• target returning guests,

• and develop personal relationships.

In the end, the guest often only remembers the platform through which they booked, not the hotel.

Restricted communication with guests

Guest communication is becoming increasingly regulated by many OTAs. Messages are routed through proprietary messaging systems, links may be restricted, and certain forms of communication require additional approvals or technical verification processes.

For hotels, this means more effort and less flexibility. Additional hurdles arise in key processes such as:

• Online check-in

• Upselling of additional services

• Sending digital guest information

• Communication during the stay

• Personalised service offers

Dependence on third-party algorithms

Rankings, conversion rates, reviews, pricing and numerous other factors influence how prominently a hotel is displayed on platforms. Changes to these mechanisms quickly affect the number of bookings, without hotels having any significant influence over them.

Added to this is increasing competitive pressure. To remain visible, hotels must offer discounts, promotions or additional marketing initiatives.

The result is a paradox: hotels invest considerable resources in optimising their position on platforms whose rules they can neither control nor influence in the long term.

The more a hotel becomes dependent on these mechanisms, the greater the business risk. Reach, guest contact and visibility are then no longer in their own hands, but lie with an external provider.

Booking.com since 2024: why the new security rules are a wake-up call

Developments surrounding Booking.com since 2024 demonstrate just how much influence platforms can now exert on communication between hotels and guests.

As part of new security measures, Booking.com has significantly tightened its guidelines for guest communication. The aim: to prevent phishing attacks and fraudulent messages. From the platform's perspective, this step is understandable. For many hotels and technology providers, however, it has a noticeable impact on existing processes:

• Stricter messaging and link rules: Links and email addresses within Booking.com communications are subject to tighter controls. Numerous digital solutions must first be approved before hotels can continue to use them to communicate with guests via the platform.

• Whitelisting processes increase complexity: To continue using certain links or communication channels, additional approval and whitelisting processes are often required.

• Impact on the guest journey and upselling: Restricting communication channels leads to process disruptions. For example, a guest may not receive direct information about online check-in. Additional services go unused. Questions before arrival remain unanswered or reach the hotel with a delay. Each of these interruptions degrades the guest experience and reduces revenue potential.

Booking.com's new security guidelines highlight just how dependent many hotels have become on platforms when it comes to communication, data access and digital processes.

T

hey should be seen as a strategic wake-up call for the entire industry. Anyone wishing to retain greater freedom of action in the long term needs their own communication channels, their own data and direct relationships with their guests.

OTAs vs. direct bookings: in-house channels are gaining in importance

Direct bookings are not just a way to reduce commission costs. They create something that could become a decisive competitive advantage for many hotels in the coming years:

• Control over the guest journey: From the initial booking enquiry through to arrival and post-stay communication, there are numerous touchpoints that shape the guest experience. Direct bookings enable hotels to design this journey themselves, rather than largely outsourcing it to external platforms. They can provide targeted information, simplify processes and deploy digital services where they offer added value to guests.

• Access to guest data and personalisation: Guests want to receive relevant information, take advantage of personalised offers and not have to start from scratch with every stay. To achieve this, hotels need access to the relevant data. Through direct bookings, they can systematically build up guest data and use it effectively. Preferences, previous stays, booking behaviour and additional services used help to personalise experiences more effectively and continuously improve service. The better a hotel knows its guests, the easier it becomes to create relevant experiences rather than generic offers.

• Higher margins and lower distribution costs: Direct bookings reduce reliance on commission-based distribution channels and increase margins. This creates more scope for investment in service quality, digitalisation, staff or marketing initiatives. At the same time, hotels regain control over their pricing strategies.

• Better opportunities for upselling and loyalty: Room upgrades, spa treatments, restaurant bookings, late check-out or personalised experiences are easier to market when hotels have direct access to their guests. They also have more opportunities to engage with guests after their stay and build loyalty.

• Stronger brand loyalty: Through direct bookings, hotels can showcase their own identity, convey their values and build an emotional connection with the guest. This brand loyalty is often the deciding factor when travellers can choose from an ever-increasing number of options.

Important: Building a strong direct channel does not mean replacing OTAs. The main aim is to restore balance and regain control over the most important aspects of the guest relationship.

AI is transforming the way people search for hotels

The discussion about OTAs is taking place at a time when the way travellers search for and book hotels is undergoing fundamental change.

More and more guests are using AI-powered search systems, smart assistants or generative search engines to prepare their travel decisions.

In future, anyone asking “Which wellness hotel is suitable for a long weekend in the Alps?” may no longer receive a list of ten links, but instead a selection of suitable recommendations straight away.

The opportunity: In an AI-driven world, high-quality content, strong brands and direct guest signals are becoming increasingly important. Hotels that manage their own guest relationships and build their own data sets lay the foundations for greater visibility and better personalisation.

The risk: The more search changes, the riskier it becomes to rely solely on individual platforms. Hotels with their own communication channels, direct guest contacts and a strong digital presence are more independent and remain capable of acting in a changing market environment.

How modern hotels can strengthen their direct channel

Building a strong direct channel is not a one-off project, but a strategic process. Successful hotels look at the entire guest journey, from the initial search right through to the period following the stay.

We particularly recommend the following measures:

Optimise the digital guest journey

Confusing websites, complicated booking processes or missing information can quickly lead travellers to switch to an OTA.

Hotels should therefore regularly check how easily guests can find important information, book rooms or reserve additional services. Every hurdle along the guest journey increases the likelihood that potential guests will abandon the process.

Centralise guest communication

Today, guests communicate via email, telephone, WhatsApp, website chat, social media or booking platforms. If these contacts are managed in isolation, information gaps and additional work arise.

Centralised communication ensures that information is consolidated in one place and that teams always have the full context. This improves service, lays the foundation for a consistent guest experience and reduces the workload on staff.

Build your own database

Direct bookings provide valuable information about guests, their interests and booking behaviour. This helps hotels identify recurring patterns, tailor offers more effectively and address guests in a more personalised manner. Those who rely exclusively on external platforms miss out on a significant portion of these insights.

Use automation wisely

Do staff spend a lot of time every day on repetitive tasks? Answering standard enquiries, sending information, coordinating arrivals or managing bookings?

Intelligent automation makes such processes more efficient without compromising on personal service. On the contrary: teams gain time for situations where human interaction really makes the difference.

Make the direct booking experience more attractive

Exclusive benefits, personalised offers or seamless digital service provide incentives to book directly with the hotel.

The most successful hotels ensure a booking and guest experience that is simpler, more personalised and more relevant than booking via external platforms.

All these measures share the same goal: to take greater control of the relationship with the guest. The better hotels manage their communication, data and digital processes, the less dependent they become on external platforms and their rules.

OTAs remain relevant, but not as a sole strategy

OTAs will remain an important part of sales in the hotel industry in the future. They create reach, tap into new target groups and generate demand.

Completely doing away with platforms such as Booking.com is not a solution. The key is to consciously define their role. This is because dependence on external platforms increases the risks to margins, guest relationships and digital autonomy. Hotels should therefore continue to use platforms as an acquisition channel, while simultaneously investing in their own communication channels, guest data and direct bookings.

The future belongs to hotels with direct guest relationships

Over the years, OTAs have enabled growth and visibility for many hotels. But they have also contributed to a significant part of the guest relationship being shifted to external platforms.

New security guidelines, rising distribution costs and the growing importance of AI-powered search and booking systems highlight the drawbacks of this trend. At the same time, they highlight the benefits of greater independence: hotels that control their own data, communication channels and digital touchpoints secure their long-term competitiveness. Targeted automation throughout the guest journey reduces the workload and prepares businesses for an AI-driven future.

This is exactly where LIKE MAGIC comes in. The platform brings guest communication together in one place, turns every booking into usable guest data, and automates recurring tasks along the guest journey, from digital check-in to upselling. Hotels regain control over the guest relationship and turn the direct channel into the strongest part of their distribution.

Want to see how this works for your property? Book a Demo