The 18% Opportunity: Why OTA Researchers Book Direct

Here's a statistic that should be in every hotel's strategy conversation but rarely is:

According to SiteMinder's 2025 research, approximately 18% of travellers who begin their search on an OTA ultimately book directly with hotels.

That number doesn't sound dramatic until you do the maths. If an OTA is driving discovery for your property but you're not set up to capture the conversion, you're paying 15-25% commission on visibility you could own entirely.

This is what’s known as the billboard effect, and it's the opportunity most hotels are ignoring.

The Billboard Effect Nobody Talks About

This is how it typically works:

A traveller searches for hotels in your city on Booking.com or Expedia. They see your property, the description, the images, and they think that the reviews look interesting. They click through to learn more.

But then something happens, and they leave the OTA and book directly with you instead.

Why does this occur? Sometimes it's price i.e. they found a better rate elsewhere. Sometimes it's trust i.e. reading your website gave them confidence that the OTA listing couldn't provide. Sometimes it's a specific need i.ee they want to talk to someone about group requirements or special requests.

The main point is that the OTA got them to discover you, but you got the booking, and the OTA got nothing.

This is the 18%, and most hotels have no system to recognise it, measure it, or amplify it.

What 18% Actually Means

If an OTA is driving 1,000 searches to your property listing monthly, that's roughly 180 potential guests who are discovering you through OTA visibility but then opting to book with you directly.

At an average hotel rate of £150/night with a 2-night stay, that's £54,000 in direct revenue with zero commission paid.

All well and good, right? Well, not quite. Most hotels see those 180 direct bookings in their system and think "great, we got 180 bookings this month," without realising those guests came from OTA discovery in the first place.

Ok, but why does that matter you may be thinking? Hotels may miss a bigger opportunity by understanding why those guests left the OTA to book direct. Once you understand that, then you can work on amplifying that conversion path.

Why the 18% Happens

Research shows several consistent patterns:

Price transparency. Travellers discover a property on an OTA, then check the hotel website to see if there's a better rate. If you offer rate parity or better terms, they’re more likely to book direct.

Direct communication needs. Someone searching for a group stay or a specific request realises they need to speak to a person, not fill out a form. The OTA doesn't facilitate that conversation, but your website (or phone number) does.

Information gaps. The OTA listing shows basic details but your website tells the story, or — at least — it should tell the story. Travellers want to know more i.e. about the neighbourhood, your events capabilities, your sustainability practices, what makes you different. The OTA doesn't give them that information in any depth.

Trust building. An OTA is transactional but your website should be relational. Seeing reviews and stories specific to your property — not aggregated across 50,000 other hotels — builds confidence.

Loyalty intent. Some travellers are signalling: "I'm interested in this property specifically, not just any hotel in this city." Direct booking is how they show that intent.

What You Should Be Doing (But Probably Aren't)

Most hotels miss the 18% opportunity because they don't have a system to identify it.

So, what do you you need to know? Of your direct bookings this month, how many came from someone who first discovered you on an OTA first?

This requires some basic tracking:

Ask the question. In your booking form or check-in process: "How did you hear about us?" Include "I found you on [Booking/Expedia/etc] then booked direct" as an option.

Track the conversion. Note which OTAs drove the discovery. This tells you which platforms are delivering the highest quality traffic (not just visibility).

Measure the margin. Compare the margin on OTA-discovered-but-direct-booked guests vs. OTA-booked guests. You'll likely find the direct bookings deliver 15-20% higher margin (no commission).

Identify the patterns. A re these guests booking last-minute? Long-stay? Group? Specific room types? Understanding the patterns tells you where to focus your direct booking messaging.

Once you know this, you can actually do something about it.

Converting the 18% Into More

Make your website compelling enough to convert searchers.

If someone discovers you on an OTA and visits your website, what happens next? Do they book? Or do they bounce back to the OTA? Or worse, do they bounce to a competitor?

Most hotel websites are functional but they’re also forgettable. They frequently answer "can I book a room?" but not "why should I book here?"

Your website needs to tell a story the OTA listing can't i.e. who you are, what makes you different, what the experience is actually like. High-quality images, videos, and virtual tours, along with authentic descriptions and real guest stories are what convert OTA searchers into direct bookers. However, many hotels don’t invest up front in the high-quality tools that will positively change conversion and create an advantage that can save hundreds-of-thousands/millions in annual OTA commissions.

Make the direct booking experience frictionless.

If someone is considering booking direct after discovering you on an OTA, they're already engaged. Don't lose them with a complicated booking process.

Your booking engine should require minimal clicks, show clear pricing upfront, and offer the flexibility OTAs provide (easy cancellation, date changes, etc.).

Offer direct booking incentives.

You don't need to match the OTA's marketing budget to compete. You just need to make direct booking feel like a win.

This could be: direct booking rate guarantee, room upgrade, late checkout, loyalty points, free breakfast, flexible cancellation. Something that says "you made the right choice booking with us."

The cost of these incentives is typically 2-3% of the booking value. If you compare that to the 15-25% you're paying in OTA commission, then you’re still miles ahead and you own the customer.

Retarget OTA visitors.

If someone visits your website from an OTA listing but doesn't book, you've lost them, but you don't have to.

Use pixel tracking and retargeting ads to follow up with these visitors. Remind them about your property, offer an incentive, and answer objections they might have had.

You're essentially converting the OTA's paid discovery into your own direct booking channel.

The Bigger Picture

The 18% opportunity isn't just about margin because it's about what it signals.

Diving in to the data and finding our the source and patterns tells you that your property is discoverable. It tells you that your positioning resonates, and that travellers see value in booking with you directly.

Most hotels assume OTAs are unavoidable, so they pay the commission, hope the visibility is worth it, and don't think too far beyond that.

The smarter approach is to use OTAs as a discovery channel, then convert those discovered guests into direct bookings.

You retain the visibility, eliminate the high commissions, and you build a direct guest relationship.

That's not a reduction of OTA dependency through confrontation, because it's a strategic use of OTA visibility that enables you to capture the margin directly.

The 18% isn't a threat to OTAs, it’s more of an opportunity that hotels keep missing.

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Alan Newton spent 25 years working across hotels, event agencies, and hospitality technology. He advises hotel groups on distribution strategy and guest experience.