Boutique hotels and resorts have a margin problem disguised as a distribution problem. Every booking through an OTA costs 15–25% in commission. Every direct booking you fail to capture is revenue you're handing to a platform. The irony: most boutique properties have a website. It just doesn't convert.
The Numbers
What Caused It
Website booking flow that's harder to use than the OTA experience.
No rate parity incentive — same price on the website as on Booking.com.
Lack of retargeting or email capture for visitors who browse but don't book.
Google Business Profile that links to an OTA instead of the direct booking page.
Who This Hits Hardest
Independent boutique hotels with 20–80 rooms and ADR above $150.
Resort properties in destination markets competing against chain loyalty programs.
Properties spending on brand marketing but losing the conversion to OTAs.
Prevention Note
The path to margin recovery starts with making direct booking easier and more rewarding than the OTA alternative. Properties that implement direct booking incentives, streamlined checkout, and post-visit email sequences typically shift 15–25% of OTA volume to direct within 6 months.
What To Do Next
If your property is paying six figures in OTA commissions and your website isn't pulling its weight, a diagnostic call will map the exact conversion gaps.