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Why Direct Bookings Are the Future of Independent Hospitality?

Author: Leonor Cova

2025-10-06T11:17:01.033Z

BusinessLate News

The Problem: When OTAs Keep Your Value

Platforms like Expedia, Booking, or Tripadvisor have become dominant intermediaries that, while helping hotels gain visibility, are also building loyalty to their own brands—not to the hotels.

Today, these OTAs offer attractive rewards for travelers:

  • Booking Genius Visa Card: $150 bonus + 6% cashback.
  • Tripadvisor Trip Cash: 5% credit on hotels and experiences.
  • Expedia Rewards: Points redeemable only within their platform.

The goal is clear: keep travelers captive inside their ecosystems, at the expense of hotel brands that lose control, value, and profitability.

Beneficio Hotelero OTA vs Directo
Hotel revenue after going through an OTA


The Reality of Commissions: EVERY DOLLAR COUNTS

The following comparison says it all:

Booking through an OTA: $150 with a 20% commission
Booking Direct: $120 with 0% commission

That $30 difference may seem small, but it represents thousands of dollars per year for an independent hotel—money that could be invested in improvements, staff, or direct marketing.

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Most hotels end up giving away a large portion of their profits to pay high commissions to OTAs like Booking.com, Tripadvisor, or Expedia.


The Impact on Hotel Value

OTAs control price perception and manipulate rates to “compete” within their platforms. This can:

  • Devalue the hotel’s brand.
  • Reduce guest loyalty, since travelers remember the OTA more than the hotel itself.
  • Break rate parity and create mistrust.

The result is clear: the hotel works harder but earns less.

The Solution: Direct Bookings with Real Value

At CAOBA Hotels, we believe that independent hospitality deserves real independence.
That’s why we offer a fair, transparent, and sustainable model:

  • A marketplace with more than 300 unique accommodations and growing.
  • Commissions from 0% to 15%, never the abusive 20–45% charged by OTAs.
  • Direct communication with the owner or the hotel.
  • A dedicated booking engine designed so that every reservation adds value directly to the hotel.

Because yes, those $30 really matter—not only for the hotelier but also for the traveler who values authentic experiences and human connections.

With CAOBA, each hotel can:

  • Increase direct bookings by more than 30%.
  • Reach travelers focused on real rewards, not meaningless points.
  • Offer personalized benefits while maintaining brand identity.

In addition, hotels pay only a small fee to be part of our brand, under a 100% performance-based model.

According to this chart from Innsight, over 50% of Millennials still book through OTAs like Airbnb or Booking.com—without realizing the value they and the property owners are losing in the process.

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According to this chart from Innsight, over 50% of Millennials still book through OTAs like Airbnb or Booking.com


The Future Is Direct

True luxury in modern hospitality is authenticity.
And that’s only possible when the hotel and the guest connect directly, without intermediaries who manipulate prices or take a disproportionate share of the value.

At CAOBA, we help independent hotels regain their power and profitability.
Every direct booking represents not just more revenue, but a stronger and longer-lasting relationship with the guest.

Book direct. Communicate direct. Earn direct.
www.caobahotels.com/consultancy

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