Handling Competition and Distribution Challenges
As we all know the landscape of tourism distribution is more complex than ever.
For many tourism operators, the tension between driving direct bookings and relying on Online Travel Agencies (OTAs) has become a daily strategic challenge.
Here’s why:
OTAs like Booking.com, Expedia and others provide incredible reach.
They put your product in front of millions of travellers worldwide and for many businesses, they remain an essential distribution channel.
But there’s a flip side.
🔻 Rising commissions, shrinking margins make an impact
Over the years, OTA commissions have increased significantly.
For small and medium tourism operators, these commissions eat directly into already tight margins. You sign up to Get Your Guide today and you are paying 30% commission. It’s a lot.
What’s more, OTAs often control how your products are displayed, which pricing is prioritised and how your brand is positioned. This limits your ability to build a direct relationship with your guests from the outset.
The distribution balancing act
Many tourism businesses are now recognising the need to balance direct and OTA bookings.
Relying solely on OTAs risks losing brand control and profitability.
Focusing only on direct bookings limits your market reach.
So, what’s the solution?
1. Strengthen your direct booking strategy
Your website is your digital storefront.
If it’s clunky, slow, or difficult to navigate, guests will abandon the booking and go elsewhere, often back to an OTA where booking is easy.
Practical examples:
Optimise for mobile.
Example: A boutique rainforest cabin operator upgraded their website to a mobile-first design with a clear “Book Now” button on every page. Within a month, direct bookings increased by 20%.Simplify the booking process.
Example: A sailing charter business reduced their booking steps from six to three, removing unnecessary questions and integrating clear pricing breakdowns. This halved their booking abandonment rate.Create irresistible direct-only packages.
Example: An eco-lodge offered a “Book Direct & Receive a Sunset Cheese Platter” deal, paired with flexible cancellation policies. Guests loved the bonus, and direct bookings grew while OTA reliance decreased.Showcase social proof prominently.
Add guest reviews, TripAdvisor ratings, and user-generated content photos to build trust and inspire immediate booking decisions.
2. Use Online Travel Agents strategically
OTAs aren’t the enemy, they’re a tool to be used to help your business. The key is to use them in a way that supports your business goals rather than undermines them.
Practical examples:
Fill last-minute availability.
Example: A guided wildlife tour keeps premium spots available on their website but releases remaining seats to OTAs 72 hours before departure to fill up tours without sacrificing direct sales margins.Target off-peak periods.
Example: A beachfront holiday apartment lists special deals on OTAs for mid-week stays to increase occupancy during low demand days, while keeping weekends prioritised for higher-paying direct bookers.Use OTAs for market reach.
Example: An adventure park uses OTAs popular in South-East Asia to attract inbound guests from those regions. They then collect guest emails post-experience to drive future direct bookings.
My Pro tip: Ensure your OTA listings are fully optimised with professional imagery, accurate descriptions and tailored keywords to attract your ideal guests in each market. Also update them every 8-10 months whether it’s images or text.
3. Build guest relationships from the start
No matter how guests find you, it’s your opportunity to build loyalty from their very first contact.
Practical examples:
Personalised pre-arrival emails.
Example: A hinterland retreat sends guests a warm pre-arrival email with check-in details, personalised recommendations for nearby cafes or walks, and an invitation to pre-book an in-room breakfast basket.Deliver a seamless, welcoming experience.
Greet OTA guests by name, thank them for choosing your business, and subtly promote the benefits of booking direct next time (e.g., “Next time you book directly, you’ll receive a complimentary late check-out”).Follow up post-stay with a direct offer.
Example: A whale watching tour emails guests with a thank you message, asking for feedback, sharing their professional photos from the tour, and offering a 10% discount code for direct bookings on their next visit.
Why it works: Guests who feel welcomed and valued are more likely to become repeat visitors and book directly next time, saving you OTA commissions and building long-term loyalty.
My Final thoughts
Balancing direct and OTA bookings isn’t about choosing one over the other. It’s about leveraging both to build profitability, brand loyalty and a resilient tourism business.
Do you want help optimising your website for direct bookings or auditing your OTA strategy? At Exceptional Experiences, that’s exactly what we do, so you can focus on delivering unforgettable guest experiences.
Need help navigating your distribution strategy?
At Exceptional Experiences, we work with tourism operators to:
Audit OTA listings to ensure they are working for your business
Develop direct booking strategies to build brand strength and profitability
Create compelling packages and pricing strategies to optimise your distribution mix
Train your team to upsell and convert OTA guests into direct repeat bookers
Need help navigating your distribution strategy?
At Exceptional Experiences, we work with tourism operators to:
Audit OTA listings to ensure they are working for your business
Develop direct booking strategies to build brand strength and profitability
Create compelling packages and pricing strategies to optimise your distribution mix
Train your team to upsell and convert OTA guests into direct repeat bookers
Get in touch today – let’s build a distribution strategy that works for your business, not against it.
Contact Exceptional Experiences today to optimise your distribution for growth.
