Distribution
Direct booking
Also written: book direct
What Direct booking means
A reservation made directly with a hotel via its website, phone, email, or front desk, bypassing third-party intermediaries like online travel agencies (OTAs) and Global Distribution Systems (GDS). Distinct from consumer retail, in hospitality it establishes an unmediated guest relationship.
Formula
Direct Booking Share (%) = (Direct Bookings / Total Bookings) × 100
How it is used
Operators actively pursue direct bookings to reduce customer acquisition costs, specifically commission fees ranging from 15% to 25% charged by OTAs. Generating direct business allows revenue managers to control guest communication, upsell ancillary services pre-arrival, and build brand loyalty through direct guest data ownership. Strategies to drive direct volume include loyalty rate parity exceptions, direct-only perks like free Wi-Fi or late check-out, and targeted metasearch advertising on platforms like Google Hotel Ads.
Worked example
A 150-room hotel generates 2,000 monthly bookings. If 800 reservations come through its brand website and 200 via phone, total direct bookings equal 1,000. Direct Booking Share = (1,000 / 2,000) × 100 = 50%. Bypassing a 18% OTA commission on a $200 ADR saves the property $36 per direct reservation.
Common mistake
Focusing solely on commission savings can be misleading if the digital marketing cost per acquisition (CPA) required to convert a direct guest equals or exceeds third-party commission rates.
Related terms
Work it out
OTA Commission Calculator — See what channel commission actually costs you, and what a direct booking is worth.
Direct booking in our reporting
Recent stories where this term does real work.
Frequently asked
+What does Direct booking mean in a hotel?
A reservation made directly with a hotel via its website, phone, email, or front desk, bypassing third-party intermediaries like online travel agencies (OTAs) and Global Distribution Systems (GDS). Distinct from consumer retail, in hospitality it establishes an unmediated guest relationship.
+How is Direct booking calculated?
Direct Booking Share (%) = (Direct Bookings / Total Bookings) × 100
+What is an example of Direct booking?
A 150-room hotel generates 2,000 monthly bookings. If 800 reservations come through its brand website and 200 via phone, total direct bookings equal 1,000. Direct Booking Share = (1,000 / 2,000) × 100 = 50%. Bypassing a 18% OTA commission on a $200 ADR saves the property $36 per direct reservation.
+What is the most common mistake with Direct booking?
Focusing solely on commission savings can be misleading if the digital marketing cost per acquisition (CPA) required to convert a direct guest equals or exceeds third-party commission rates.