Boosting direct bookings: Strategies to compete with OTAs in 2029

By 2029, it's projected that 75 percent of the total revenue in the Australian travel and tourism market will be generated through online sales. This shift reflects the growing trend of consumers organising their travel plans digitally, fuelling the rapid expansion of the online travel booking industry.

Over the past decade, online travel agencies (OTAs) have surged in popularity, offering a convenient, cost-effective alternative to traditional travel agents. Operating solely online, OTAs connect customers directly with tourism products, allowing them to book accommodation with ease. This streamlined, one-stop approach, combined with access to user-generated product reviews, has made OTAs a go-to platform for travellers seeking both inspiration and convenience.

Research has revealed travellers spend 303 minutes, or more than five hours on average, engaging with travel content in the 45 days before booking.

The research, conducted by Expedia Group and Luth Research, found that when it came to what resources travellers used to plan their trip, OTAs still reign supreme, with 80 percent of travellers using OTAs above search engines (61 perceent), airline websites (54 percent), and meta travel websites (51 percent).

many in the industry to look for alternative solutions. One approach is focusing on increasing direct bookings, which not only reduces commission fees but also enhances profitability. But how can accommodation operators best utilise their time and budget to convert guests to booking directly?

Website upgrades and design considerations

Further cementing the role of OTAs, four in five travellers surveyed visited an OTA at some point before making a travel purchase, indicating that travellers likely visited an OTA for inspiration, research, or planning purposes, even if they eventually booked through another website.

For accommodation providers, partnering with OTAs has become standard practice due to their extensive reach and marketing power. However, the commission fees, typically ranging from 10 percent to 30 percent, can significantly impact the bottom line, creating a dilemma for hoteliers. While OTAs provide visibility and access to international markets, the ongoing cost pressures have prompted

A well-designed, user-friendly website is the foundation of any successful direct booking strategy. Ensuring that your site is attractive, responsive, and mobile-friendly is crucial. Having a fast-loading site with strong SEO practices will help ensure that your website performs well in search engine rankings, making it easier for guests to find your accommodation directly. Additionally, hoteliers should take inspiration from OTAs by highlighting positive reviews or guest testimonials on their own websites.

Converting traffic to bookings

Attracting visitors to your website is just the first step – turning that traffic into bookings is the next. Offering guests financial incentives to book through your website is one way to boost direct bookings. Consider offering discounted pricing or free upgrades to guests who book directly. From here, ensure the booking process is seamless with minimal clicks and easy payment options. For guests booking via a mobile device, consider offering payment through digital wallet options such as Apple Pay.

Online advertising solutions

Advertising your accommodation through search engine marketing, display ads, and online directories can significantly increase your brand's visibility. Additionally, social media platforms like Facebook, Instagram, and TikTok offer unparalleled opportunities for engagement. Use these platforms for targeted advertising, promotions, and collaborations with influencers to boost your accommodation’s profile to new audiences.

Guest data utilisation

Data from past guests is a powerful tool for re-engaging visitors and securing repeat bookings. Re-engage with past guests by offering incentives to book again, such as discounted pricing or upgrades. Loyalty programs can also help ensure long-term customer retention.

To learn more, AccomNews spoke to Resly co-founder Sam Steel who shared insight into how to boost direct bookings.

When upgrading or designing a new website for direct bookings, what are the key factors that should be considered?

Regardless of your level of investment, content is key. A cost-effective, templated website can function well, but without high-quality content, it won't convert lookers into bookers. I strongly recommend investing in new professional photos,

videos, and other content for your website before spending heavily on a redesign. Additionally, it's essential that the website is optimised for mobile devices – there's no compromise on that.

How can website owners optimise the booking process to minimise drop-offs and enhance the overall guest experience?

Removing friction is crucial! Simplifying the booking flow and ensuring mobile responsiveness are key. Offering multiple payment methods and flexible booking options will enhance convenience and build confidence.

Additionally, utilise promotional tagging and clear calls to action to create a sense of urgency and scarcity, encouraging guests to complete their bookings quickly.

Given the various online advertising options, where do you believe operators should focus their advertising budget to achieve the best return on investment?

OTAs typically offer the best ROI since you only pay when a booking is made. However, diversifying your distribution channels is always a smart strategy. Google Hotels is a highly underrated direct channel, and it's completely free!

Google doesn't charge hotels any commission for bookings made through Google Hotels, and these reservations are processed through your direct online booking engine. This means they are treated as direct bookings, allowing you to maintain ownership of the guest relationship.

This is what Google Hotels is, so your “official website” will be displayed directly against the OTAs and you won't pay any commission.

How can businesses effectively leverage social media platforms to attract and engage potential guests?

Share authentic stories: Highlight guest experiences, behind-the-scenes content, and stories that resonate with your brand. Authentic storytelling helps build trust and connection with your audience. Also, have your direct booking link in your profile to make it easy to make a booking!

By Sarah Davison, Industry Reporter