Every hotelier I know has the same complaint: “We’re paying OTAs 15–30% commissions, and yet guests are still loyal to them—not to us.”
And here’s the kicker: those commissions you’re handing over? They’re the very fuel OTAs use to build their loyalty programs.
I recently came across an interesting LinkedIn post by Benjamin Verot on Hotel Marketing Consultant who shared his personal experience that unpacked exactly how this works—and why it matters more than most hoteliers realize.
Let me give you the highlights, plus some perspective on what smart property managers should be doing about it.
Benjamin shared an eye-opening example: he searched rates on Booking.com, then days later got a push notification offering a 10% travel credit if he booked through the OTA.
Generous? Not quite. That “credit” was funded by the hotel’s margin.
Here’s the OTA game plan in a nutshell:
Secret prices → Exclusive member discounts hidden behind an account login.
Tiered perks → Booking.com’s Genius program trains even first-time guests to expect discounts.
Flash promos & geo-deals → Limited-time discounts targeted at impulsive, mobile bookers.
Co-branded credit cards → Rewards tied to OTA ecosystems, not to your hotel.
The result? Guests associate value with the OTA, not with your property.
Every time a guest “saves” through an OTA loyalty perk, you’re paying for it twice:
Through the commission.
Through the discount itself.
That means your net ADR shrinks, while the OTA gains more loyalty data and repeat business.
And here’s the worst part: Guests remember the deal, not the hotel. Your unique story, amenities, and experience get erased in favor of the platform’s perks.
Benjamin makes a powerful point: you can’t out-discount OTAs. But you can out-experience them.
The hotels that are winning back direct bookings are doing things OTAs simply can’t replicate:
Experience-based perks: late checkouts, welcome gifts, guaranteed upgrades.
Tailored loyalty programs: perks designed around your guests, not points.
Value-driven packages: spa credits, local tours, or bundled meals instead of price cuts.
Direct marketing: using CRM data to run remarketing campaigns that highlight your property’s unique value.
The takeaway is clear: OTAs are very smart at building loyalty, but they’re doing it with your money.
Your job as a hotelier isn’t to compete on discounts—it’s to compete on the guest experience. Own the booking journey, highlight the perks only you can provide, and turn your margins into meaningful loyalty.
Benjamin said it best: “Hotels aren’t just competing on price anymore. They’re competing on the entire booking and stay experience.”
👉 Read his full article here: How OTA Giants Use Your Margins to Build Loyalty (and What Smart Hoteliers Are Doing Instead)