The hotel group
paying commission
on its own guests.
A boutique hotel group handing 18–22% of every booking to OTAs. We built a direct-booking SEM program, launched retargeting for abandoners, and optimized the booking engine so guests stopped detouring through Expedia.
The challenge
The hotel group operated four boutique properties. Nearly two-thirds of bookings came through Booking.com and Expedia, costing 18–22% in commissions per reservation. The properties had strong brand loyalty, but guests defaulted to OTAs out of convenience.
Previous attempts at direct-booking campaigns had failed. The landing pages were slow, the booking engine was clunky on mobile, and nobody was bidding on their own brand terms — so OTAs were buying that traffic instead.
What we did
- Built a direct-booking SEM program targeting brand, near-brand, and location-intent queries across all four properties.
- Launched retargeting campaigns for booking engine abandoners with rate-match messaging and best-price guarantees.
- Redesigned booking engine landing pages: faster load, mobile-first, urgency elements, and transparent pricing with no hidden fees.
- Implemented a loyalty-driven email program for past guests that bypassed OTAs entirely on repeat stays.
The outcome
OTA mix dropped from 64% to 40% within eight months. Direct booking revenue increased by $1.2M annualized, and the cost to acquire each direct booking was $18 — versus $45 average OTA commission per reservation.
The revenue director stopped treating OTAs as a necessary evil and started treating them as a discovery channel. The margin improvement funded a property renovation the group had been deferring for two years.
№005 —
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