Who’s Really Setting Your Room Rates?
The Truth About OTAs in 2026
Few topics generate as much debate among hoteliers as OTAs
They help hotels reach new audiences, drive bookings and generate demand that many properties would struggle to capture on their own. For most hotels, they're an important part of the commercial mix.
But speak to enough hoteliers and you'll quickly realise that the OTA relationship isn't quite as straightforward as it once was.
Alongside the bookings come pricing challenges, promotions, parity issues and the constant balancing act between driving demand and protecting direct business.
Recently, we sat down with two experienced hoteliers, Terry McCartney, Owner/Manager of Belmore Court & Motel, and Ian Hunt, Acting Group Sales & Marketing Manager, Cusack Hotel Group, to hear their thoughts on how the OTA landscape is evolving and what lessons they've learned along the way.
What followed was a practical and refreshingly honest conversation (which you can listen to in full using the link here)
Here are some of the insights that stood out.
Guests Don't See Channels. They See Your Hotel.
One of the most interesting points raised was that guests rarely separate the OTA experience from the hotel experience.
If there's confusion about a rate, an unexpected charge or a problem with a booking, they don't tend to blame the channel. They blame the hotel. And whether that is fair or not, that's the reality.
Which means every promotion, rate and piece of information displayed on an OTA has the potential to affect how guests perceive your brand.
Tip: Regularly review your OTA listings to ensure rates, content and promotions accurately reflect your brand.
______________________________________________________
The Real Cost of an OTA Isn't Always the Commission
Commission is easy to measure.
What's much harder to measure is the time spent dealing with booking issues, investigating discrepancies, responding to guest queries and managing promotions.
For some hotels, those hidden operational costs can become just as significant as the commission itself.
Tip: Commission tells only part of the story. To understand the true value of an OTA partnership, consider the operational effort required to manage bookings, promotions and guest issues alongside the revenue generated.
______________________________________________________
Promotions Can Take on a Life of Their Own
Several hoteliers spoke about the challenge of keeping track of promotions. Not because they don't monitor them, but because there are often so many moving parts.
Without regular reviews, promotions can remain active long after they have served their purpose or begin influencing pricing in ways that weren't originally intended.
A quick check of your OTA extranet can sometimes reveal surprises.
Tip: Review your OTA promotions regularly. Make it a habit to review your OTA extranet regularly to ensure discounts and offers are still supporting your pricing strategy rather than quietly undermining it.
______________________________________________________
Small Price Differences Create Bigger Problems Than You Think
A rate that's £5 cheaper elsewhere may not sound like much. But guests don't always look at it that way.
Instead, they ask themselves a simple question: "If this is your best price, why can I get it cheaper somewhere else?"
That's why parity matters. Not simply because of revenue, but because of trust.
Tip: Protect guest trust by monitoring rate parity. Even small price differences can undermine confidence in your direct booking message. Regularly check rates across channels to ensure guests aren't finding cheaper prices elsewhere.
______________________________________________________
Fraud Is Becoming Part of the Guest Experience
Fake payment requests and fraudulent messages have become an increasing concern across the industry.
What makes this particularly challenging is that guests often associate the experience with the hotel itself, regardless of where the issue originated.
In many cases, communication and reassurance have become just as important as prevention.
Tip: Communicate clearly when fraud risks arise. Guests often associate fraudulent messages with the hotel, regardless of where they originated. Clear communication and reassurance can help protect trust and minimise confusion.
______________________________________________________
Direct Bookings Need a Stronger Story
Many hotels are discovering that "book direct and save" is no longer enough. Guests need a reason to change their behaviour.
That reason might be a room upgrade, flexible cancellation terms, early check-in, late check-out or simply a better overall experience.
The most successful hotels aren't always competing on price. They're competing on value.
Tip: Compete on Value, Not Just Price. Guests need a compelling reason to book direct. Focus on benefits such as upgrades, flexible cancellation terms, early check-in, late check-out or exclusive perks that enhance the overall experience.
______________________________________________________
The Best Industry Intelligence Often Comes From Other Hoteliers
One theme that came up repeatedly was the value of industry networks.
Many hoteliers hear about pricing issues, promotions or emerging challenges from their peers long before they hear about them through official channels. Sometimes the best insights come from a conversation over coffee rather than a formal update.
Tip: Learn From Your Peers. Some of the most valuable OTA insights come from fellow hoteliers. Stay connected to industry networks and communities to spot emerging issues, promotions and trends before they impact your business.
______________________________________________________
OTAs Work Best as Part of a Bigger Strategy
Nobody we spoke to suggested OTAs weren't valuable. Far from it - the consensus was that OTAs are incredibly effective at generating visibility and attracting new guests.
The challenge comes when hotels become too reliant on them.
The strongest strategies use OTAs to acquire guests while simultaneously building direct relationships that encourage guests to return.
Tip: Use OTAs to Acquire Guests, Not Own Them. OTAs are excellent for generating visibility and attracting new guests. The real opportunity comes from turning those first-time guests into loyal direct bookers.
______________________________________________________
The Most Important Lesson of All
Every hotelier understands the value that OTAs bring.
But perhaps the biggest takeaway from our conversation was that success isn't about choosing between OTAs and direct bookings - it's about finding the right balance.
OTAs are a distribution channel.
Your long-term strategy should always be owning the guest relationship.
The hotels that do that well are often the ones that get the very best from both worlds.
