- Hotels risk losing up to 20pc of room revenue to OTA commissions and distribution gaps.
- OTA commissions are between 15pc and 25pc of the booking value.
- Changing guest behaviour showed shorter stays and last minute bookings.
- Slow mobile websites and complicated checkout processes redirected guests to OTAs.
- Net Affinity and Smarthotel encouraged hoteliers to review their channel setups
Hotels could be losing up to 20pc of room revenue through OTA commissions, pricing inconsistencies and distribution system gaps, according to analysis from Net Affinity and Smarthotel.
The analysis has warned that OTA commissions, which often sit between 15pc and 25pc, create a significant difference between the headline booking value and retained revenue. The challenge has been exacerbated by mobile only discounts, member rates and redistributed wholesale inventory that undercut direct channels.
The findings have pointed to changing guest behaviour, with shorter stays and last minute bookings reshaping demand. Experts at Net Affinity have identified that slow mobile websites, unclear offers or complicated checkout processes push guests back towards OTAs. The company has encouraged hotels to review their booking journey, channel mix and distribution setup to identify where revenue is leaking.
Fiona Cooper, Client Solutions & Integration Consultant, has advised hotels to ensure their direct channels are fast, intuitive and competitive. The analysis has concluded that direct bookings remain a strategic route to profitable growth, but require active protection through mobile first design, rate visibility and aligned restrictions across platforms.
Fiona Cooper, Client Solutions & Integration Consultant, shared, “Hotels are working incredibly hard to optimise their rates and drive demand, but too often revenue is lost in the gaps between systems, channels and booking journeys.”
Small friction points can have a major impact on revenue. A delayed rate update, an outdated restriction or an extra step in the booking journey can be the difference between a direct booking and a lost guest.”
