OTA vs Direct Bookings: What’s the Right Distribution Mix for Hotels in India?

OTA vs Direct Bookings: What’s the Right Distribution Mix for Hotels in India?

For most hotels in India, the OTA vs direct bookings debate is misunderstood. Owners are told to “go all direct” or aggressively cut OTAs—but in reality, that approach is impractical and often damaging. The real question is not OTAs or direct bookings.
The real question is: what distribution mix maximizes net revenue for your hotel in the Indian market?

1. Why OTAs Dominate Hotel Bookings in India

India is a price-sensitive, discovery-driven market. OTAs play a critical role, especially for:

OTAs invest heavily in:

Ignoring OTAs in India is not a strategy - it’s a visibility risk.

2. The Real Cost of OTA Dependency

While OTAs drive volume, excessive dependence erodes profitability.
Typical OTA commission in India:

Hidden costs include:

3. Why “100% Direct Bookings” Is Unrealistic for Most Indian Hotels

Direct bookings are valuable - but pushing them blindly creates problems.
Challenges include:

4. What an Ideal Hotel Distribution Strategy Looks Like in India

A smart hotel distribution strategy in India balances visibility and profitability.
A healthy benchmark:

The focus is not channel percentage - it’s net realization per booking.

5. How to Reduce OTA Dependency Without Killing Demand

Reducing OTA dependency does not mean removing OTAs. It means controlling how and when they are used.
Key levers:

This approach improves margins without sacrificing occupancy.

6. Pricing Discipline Is the Backbone of Distribution Control

Most distribution problems are actually pricing problems.
Hotels lose control when:

Strong pricing discipline ensures OTAs remain demand fillers, not revenue drivers.

7. How RevX Designs Distribution Mixes for Indian Hotels

RevX Hospitality builds distribution strategies specifically for the Indian market.
Our approach includes:

The result is predictable: higher net revenue with controlled OTA exposure.

Final Takeaway

In India, OTAs are not the enemy. Mismanagement is. Hotels that obsess over booking source instead of profitability make poor decisions. The right distribution mix balances visibility, margin, and long-term control. A smart OTA vs direct bookings strategy is one that serves the business - not the platform.

Not sure if your current channel mix is hurting profitability?

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