How to Reduce Dependence on Expedia and Booking.com
For many boutique hotels, Expedia and Booking.com feel like a necessary part of doing business.
And to some extent, they are.
These platforms have become one of the primary ways travelers discover accommodations, compare options, and book their stays. They provide reach that most independent hotels simply can't achieve on their own.
OTAs aren't the enemy. But an overdependence on them is.
For many independent hotels, OTAs account for the majority of reservations. That's a problem for the long-term survivability of the independent hotel. When most bookings come through Expedia or Booking.com, you surrender more than commission revenue. You surrender control over the guest relationship, your ability to differentiate, and your capacity to create long-term loyalty.
The hotels that consistently grow direct bookings aren't eliminating OTAs.
They're using them differently.
Why Hotels Become Dependent on OTAs
It's no surprise why hotels become dependent on OTAs.
When occupancy is low and rooms need to be filled, Expedia and Booking.com offer an immediate solution. Create a listing, upload some photos, set your rates, and travelers can begin finding your property almost immediately.
For many hotels, this works exceptionally well in the beginning.
The problem is that what starts as a customer acquisition channel slowly becomes the entire customer acquisition strategy.
Over time, hotels stop investing in their own marketing, brand, website, and guest relationships because the OTAs continue to deliver bookings.
Until one day they realize a significant percentage of their revenue depends on platforms they don't control.
The Hidden Cost of Convenience
Convenience has a cost.
While OTA commissions vary, many hotels give up between 15% and 30% of a reservation before the guest even walks through the lobby.
On a single booking, that may feel manageable.
Across hundreds or thousands of bookings per year, it becomes a substantial expense.
But the commission isn't the biggest cost.
The larger issue is that hotels often become locked into a cycle where they need OTAs to maintain occupancy, which makes it increasingly difficult to invest in the systems that generate direct bookings.
The more dependent a hotel becomes, the harder it is to break free.
What OTAs Are Good At
It's important to recognize what Expedia and Booking.com do exceptionally well.
They've built highly effective travel marketplaces.
Travelers can compare destinations, prices, amenities, reviews, availability, and booking policies all in one place.
For consumers, that's incredibly convenient.
For hotels, it provides access to travelers who may never have discovered their property otherwise.
In many ways, OTAs function as highly specialized search engines for accommodations.
And that's exactly how hotels should think about them.
Not as loyalty platforms.
Not as long-term growth engines.
But as discovery platforms.
Their job is to introduce guests to your property.
Your job is to ensure they never need Expedia or Booking.com to find you again.
Where OTAs Create Risk
The biggest risk isn't commission.
It's the commoditization of your hotel.
When travelers browse Expedia or Booking.com, every property is presented within a nearly identical framework.
A few photos.
A price.
A star rating.
A list of amenities.
Some guest reviews.
The story behind your property, your experience, your philosophy, and the details that make your hotel unique often become secondary to price.
Your differentiation is reduced to a picture of a bed and a handful of amenity icons.
As a result, hotels are forced into an environment where standing apart becomes increasingly difficult.
Margin Compression
When guests compare dozens of properties side by side, pricing becomes one of the easiest decision-making tools.
That creates pressure to compete on price rather than experience.
And without a meaningful platform to communicate what makes your property different, sharing that differentiation becomes a real challenge.
Over time, this can erode margins and reduce the profitability of every reservation.
Lost Guest Relationships
One of the most valuable assets a hotel can own is its guest relationship.
When bookings originate through OTAs, that relationship begins on someone else's platform.
While guests ultimately stay at your property, the initial connection belongs to Expedia or Booking.com.
That makes it harder to build long-term loyalty.
Reduced Repeat Business
The most profitable guest is often a returning guest.
Yet when travelers return to Expedia or Booking.com to book their next trip, your property is once again competing against hundreds of alternatives.
Instead of returning directly to your hotel, guests return to the platform that introduced them.
That's a missed opportunity for both loyalty and profitability.
The Four Ways to Reduce OTA Dependence
Reducing dependence on OTAs doesn't happen overnight.
It's the result of gradually building assets that you own.
Increase Direct Website Traffic
The first step is creating more opportunities for travelers to discover your hotel outside of OTAs.
This may include:
Organic search
Paid advertising
Content marketing
Organic social media
Partnerships and referrals
The goal isn't to replace OTAs entirely.
It's to create alternative paths to discovery.
Improve Website Conversion Rates
Driving traffic is only half the equation.
If your website doesn't clearly communicate your experience or make booking simple, guests will often return to the OTA they came from where they're once again comparing your property against dozens of competitors.
Strong hotel websites build trust quickly, communicate differentiation clearly, and make booking effortless.
Gather Guest Information
Every stay should create an opportunity to strengthen your relationship with guests.
Email addresses, preferences, stay history, and communication preferences become valuable assets when managed responsibly.
The more information you own, the less reliant you become on third-party platforms.
Create Reasons to Book Direct
Guests need a compelling reason to bypass Expedia or Booking.com next time.
This doesn't always mean lower prices.
Often, it means providing additional value through:
Exclusive packages
Room upgrades
Flexible cancellation policies
Loyalty benefits
Personalized experiences
These are benefits that the hotel owns the margins on without sacrificing the nightly rate.
The result is better margins, stronger guest relationships, and more room to continue investing in your own booking channels.
The goal is to make direct booking the obvious choice.
When OTA Dependence Becomes Dangerous
OTA dependence becomes dangerous when losing visibility on one platform would materially impact your occupancy.
Ask yourself:
What percentage of bookings come from OTAs?
What happens if your ranking drops?
What happens if commission rates increase?
What happens if a competitor outspends you?
If those scenarios create significant risk to your business, you've likely become too dependent.
Healthy guest acquisition strategies create balance.
They allow hotels to benefit from OTA visibility while steadily increasing the percentage of guests who book directly.
The greater your control over demand generation, the more resilient your business becomes.
A Better Strategy: Use OTAs for Discovery, Not Loyalty
Framework:
Discovery → Experience → Loyalty → Direct Booking
The strongest boutique hotel brands don't fight OTAs.
They leverage them.
They use Expedia and Booking.com to introduce new guests to their property.
Then they focus on delivering an experience worth remembering and building a relationship worth continuing.
OTAs are excellent at generating discovery.
Your hotel is responsible for creating loyalty.
The goal isn't to eliminate Expedia and Booking.com.
The goal is to ensure they introduce the guest only once.
When discovery happens on an OTA and loyalty happens directly with your brand, both channels can work together.
That's when OTAs become a tool rather than a dependency.
And that's the difference between simply filling rooms and building a sustainable hospitality business.
