The hotel booking journey has changed. Has your revenue strategy?

Guests rarely move in a straight line from searching to booking.

They may start on Google, compare prices on an OTA, look at your reviews, visit your own website, check social media and then book whichever option feels easiest, clearest and most trustworthy.

For hotels, that means the old question of “direct bookings versus OTAs” is too simplistic. Both play a role. The real job is to understand how your guests are finding you, what is influencing their decision, and where revenue is being lost along the way.

The booking window is only part of the picture

A booking made seven days before arrival does not necessarily mean that guest only started thinking about their trip seven days before arrival.

They may have been researching locations for weeks. They may have checked availability several times, watched prices move, looked at competitor hotels and returned when they were ready to commit.

That matters because booking pace alone does not tell the full demand story. A quiet pick-up period may not mean there is no interest. Equally, a late surge in bookings may not mean the best answer is to drop price.

Revenue decisions need to consider more than rooms on the books:

  • What demand is doing in your local market
  • How visible your hotel is at the point guests are searching
  • Which channels are generating bookings
  • How far in advance different guest types tend to book
  • Whether cancellations are masking genuine demand
  • What your competitors are offering, and how clearly they are presenting it

The goal is not to predict every individual booking. It is to build enough commercial understanding to make better decisions before you feel under pressure.

OTAs are not the enemy

Online travel agencies remain an important discovery and distribution channel, particularly for independent hotels without the marketing budget or brand recognition of a large chain.

They can help you reach new audiences, fill need periods and appear in markets you may not reach alone. The problem is not using OTAs. The problem is using them without a clear strategy.

If an OTA is consistently your only source of demand, or if a guest can find a better, easier or more compelling booking experience there than on your own website, it is time to look at the wider journey.

A sensible distribution strategy asks:

  • Which OTAs are worth the cost of sale for our hotel?
  • Are we using each channel for a clear purpose?
  • Are we visible when the right guests are searching?
  • Are our rate, availability and room descriptions consistent?
  • What reason do guests have to book direct with us?
  • Are we measuring the value of a booking, not just the volume?

The answer will look different for every hotel. A city-centre business hotel, a rural wedding venue and a coastal independent will not have the same mix of guests, demand patterns or channel priorities.

Direct bookings need to be earned

“Book direct” is not, on its own, a reason for a guest to change their behaviour.

Your direct website needs to give them confidence that they have found the right hotel, at the right price, with the information they need to make a decision. That means a booking journey that is simple, mobile-friendly and clear about what makes the stay worthwhile.

Look at your own website as a guest would. Can they quickly understand:

  • Why they should choose your hotel over another nearby?
  • What is included in the price?
  • Which room is right for them?
  • Whether breakfast, parking, flexible cancellation or other extras are available?
  • How to book without being sent through unnecessary steps?

Small points of friction matter. So do unclear room descriptions, dated photography, slow loading pages and booking engines that feel harder to use than an OTA.

Direct bookings are built through a better overall experience, not just a promotional code.

Revenue, marketing and operations need the same view of value

A strong revenue strategy cannot sit in isolation.

Marketing needs to understand which guests the hotel wants more of and when. Operations needs visibility of the guest expectations being created by packages and promotions. Sales, reservations and revenue need to be working from the same commercial priorities.

When those teams are disconnected, hotels tend to react late: discounting rooms because pick-up feels slow, launching offers without a clear target guest, or relying on a single channel simply because it is producing bookings.

When they are aligned, the conversation becomes more useful. Instead of asking, “How do we fill rooms this week?”, you can ask, “Which guests do we want to attract, what do they value, and how do we make the right booking choice easy for them?”

A practical starting point

You do not need a complicated new system to begin.

Take one upcoming need period and review the whole booking journey:

  1. Look at demand, pace and competitor activity.
  2. Check how your hotel appears on Google, OTAs and your own website.
  3. Review the availability, rates and messaging a guest sees across those channels.
  4. Identify the guest you most want to attract.
  5. Agree one focused action that improves visibility, value or conversion — rather than immediately reducing price.

Booking behaviour will continue to change. The hotels best placed to respond will not be those chasing every new channel or trend. They will be the ones that understand their guests, use distribution deliberately and make commercial decisions with a clear view of the full journey.

 

If your hotel’s bookings feel increasingly hard to predict, Revenue by Design can help you understand where demand is coming from, where value is being lost and what to prioritise next. 

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