The Truth About Hotel Distribution Channels: OTAs vs Direct Bookings vs Everything Else

distribution channels are simply the platforms or methods through which your hotel inventory is sold to guests these include direct bookings through your website online travel agents like booking.com and Expedia wholesalers tour operators GDs systems used by travel agents meta search engines and even offline channels like walk-ins or phone reservations why does this matter because your distribution strategy directly impacts your profit margins Market reach and overall Commercial Success each Channel comes with different costs customer segments and booking patterns OTAs might bring volume but charge commissions of 15 to 25% while direct bookings typically cost 4 to 8% but require investment in your own technology and marketing let's look at a quick example if you sell a room for $200 through your website at a 5% cost which is $10 versus through an OTA at1 18% which is $36 that's a $26 difference in profit per booking most multiply that by thousands of room nights annually and you can see the financial impact visit hotel.com for more distribution Channel insights and strategies that can boost your hotel's performance