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Direct Booking vs. OTA Pricing

In this article, we cover our approach to setting rates on OTAs versus your direct booking channel.

If you have a direct booking channel connected through a property management software, we typically apply the same core discount structure across both direct and OTA channels to maintain rate parity.


What rate parity means and why it matters

Rate parity means your listing isn't priced materially lower or higher on one channel than another. This is important to support healthy distribution across channels and to slightly incentivize direct bookings.


What we apply to direct booking channels

For connected direct booking engines, we typically mirror the foundational discount structure across channels: weekly and monthly length-of-stay discounts, early bird, last-minute, and stay-length discounts where the booking engine supports them.

The exact configuration depends on what the direct booking engine is technically capable of. Not all platforms support the same discount types that OTAs offer natively. Where there are limitations, we work within what the system allows while keeping pricing as consistent as possible.


If you want to offer an exclusive direct booking rate

Some operators choose to offer a modest discount on their direct channel as an incentive for guests to bypass OTA fees - passing some of the commission saving back to the guest. This is a legitimate strategy in some cases, but it needs to be structured carefully to ensure minimums are set correctly.

If this is something you want to explore, bring it to us before making any changes.

We'll look at your specific setup and give you our recommendation.

Reach out at [email protected].

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