Direct bookings vs OTA commissions: the real maths

Short answer: OTAs and aggregators are useful discovery channels and terrible long-term landlords. A small homestay doing ₹12 lakh/year through OTAs at 20% hands over ₹2.4 lakh every year — more than ten times the cost of running a good direct-booking website. The goal isn't quitting OTAs; it's stopping them from taxing your repeat guests and referrals.

Do your own maths (two minutes)

1. Annual bookings revenue via OTAs/aggregators: ₹ ______
2. Multiply by your commission rate (15–30%, check your statements — including 'visibility boosts' you pay extra for): ₹ ______ gone per year
3. Estimate the share of those guests who are repeat guests, referrals, or people who searched your name directly — for established properties this is commonly a third to a half. That share needed no OTA. That's your recoverable money.

Why guests book through OTAs even when they found YOU first

• Searching your business name shows the OTA's page above your (missing or weak) website — so they book there, and you pay commission on your own reputation.
• No visible direct-booking option, or no reason to use it: same price, more friction, less payment trust.
• WhatsApp-only presence: fine for closing, invisible for discovering — and uncitable by Google or AI trip-planners.

The 6-month direct-booking plan

1. Month 1 — own your name. Launch a real website on your own domain with rooms/packages, photos, reviews and WhatsApp booking. Claim and complete your Google Business Profile. Goal: your site is the #1 result for your business name.
2. Month 2 — give a reason to book direct. Direct perk that beats the OTA price after commission: 5–10% off, free breakfast, late checkout, flexible cancellation. Say it on the site: "Book direct and save — no commission means we share the difference."
3. Months 2–3 — convert your history. Message past guests (you have their numbers from check-in) with the direct link. Put the link/QR — cthe.link works nicely here — on bills, visiting cards, room cards, vehicle branding and Instagram bio.
4. Months 3–6 — capture searchers. Publish the pages travellers search: location guides ("how to reach", "best season"), package/room detail, honest FAQs. Ensure AI crawlers aren't blocked so trip-planning assistants can cite you too.
5. Ongoing — measure honestly. Ask every guest how they found you; track WhatsApp enquiries from the site vs OTA bookings. Expect meaningful shift in 1–2 seasons, not overnight — anyone promising overnight is selling you something.

Keep OTAs — in their place

OTAs excel at reaching first-time guests from cities and countries you can't. The mature setup: OTAs bring strangers once; your website converts everyone who already knows you — repeats, referrals, name-searchers, and now AI-assistant users. Discovery rented, relationships owned.