Why has the OTA share of bookings increased?

You already know OTAs are expensive.

You've done the math.
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You've sat in that budget meeting.
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You've watched the commission line increase.
Now, ownership wants to know what marketing and revenue management is doing about it.

Knowing what it costs, why does the number keep climbing?
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The OTA share of independent hotel bookings just hit 64.3% in North America, up 3.3 points from last year (Cloudbeds State of Independent Hotel 2026 report).
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With this data and question on my mind, I went and asked hoteliers.

I posted a poll on LinkedIn.
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The results, so far, tell the real story.

35% said it's easy. It's our go-to.
Another 35% said there's no bandwidth to change it.
20% said marketing feels risky and unclear.
Only 10% said OTAs simply do a better job.

Read that together, and the picture gets clear.
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Most hotels aren't leaning on OTAs because they've looked at other options and made the OTA choice.
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It's because OTAs are familiar, and everything else feels harder.

That pattern shows up everywhere: Uber Eats for restaurants, OTAs for hotels.
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A third party makes the short term easier and the long term more expensive.
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And here's the revelation of why the middleman's profit is increasing.

OTA - known outcome.
Direct channels - unknown outcome.

That's the real reason the OTA commission check keeps getting written.

Perception is reality.

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If it feels true for Hoteliers, it drives the decision - even when the numbers tell a different story.

Here is what those numbers actually say.

A hotel generating $6.4M a year with a 54% OTA share pays roughly $701K in commissions or more each year.
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A focused, well-planned marketing investment for the same property is about $170K. This isn't a typo: these are real numbers.
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Hoteliers are choosing the costlier option over the cheaper one because the less expensive route feels like a bigger risk.
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And the industry report tells us this is increasing.
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There's pressure to get rooms booked.
There's pressure to reduce costs.
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Marketing doesn't solve either problem overnight.
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In a business measured day to day, today matters.
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The OTA wins.
Inventory goes in, bookings come out, and costs are visible.
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Under pressure, the belief that OTAs have predictable outcomes feels like control.

It's the most expensive belief in the building.

This isn't a choice between OTAs or direct channels.

The hotels navigating this well aren't replacing OTAs overnight.
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They are using a phased plan. They are steadily building direct demand while OTAs remain part of the mix.

That changes the risk calculation entirely.

Right now, marketing may feel like a risky investment for you, and the OTA feels like the safe one.
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But look at what each actually delivers.
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The OTA is a guaranteed cost with no upside.
Every booking starts at a deficit and ends at checkout.
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A direct channel investment has a cost, too.
But it builds something.
Owned data, repeat guests, a relationship that doesn't cost you every time it converts.
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One is an expense that repeats.
The other is an investment that compounds.

When I look across the industry, I see three groups.

1. Hotels that tried marketing for a short season and returned to the OTA default.

2. Hotels that never tried and only sell on the OTAs.

3. The smaller group saw the status quo as a bigger risk. They created something that was accountable, measurable, and easy to defend for ownership.

That third group started with a plan, not an overhaul.
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They shifted their belief and their budget and started building something they could actually own.

If you're reading this and thinking, "I want to act on this, but I don't know where to start,"-that's the most common thing I hear.
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I am happy to talk about it -> Book a call with me.​

Christine Malfair - Malfair Marketing

Christine Malfair is the founder of Malfair Marketing and a former hotel GM who helps independent hotel teams build direct demand, get found more often, and stop second-guessing where their marketing budget is going. She writes about the gaps most hotels don't realize are costing them in The Bookings Boost.

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