Beyond the OTA

Beyond the OTA

Online Travel Agencies (OTAs) have become a mainstay of modern hospitality. For boutique hotels and vacation rental operators, platforms like Booking.com and Expedia offer instant exposure, streamlined booking flows, and a firehose of potential guests. But as anyone managing inventory through these channels knows, that visibility comes with a cost.

This post takes a clear-eyed look at the benefits and risks of OTAs—and explores how operators can use AI-powered guest engagement to tip the scales toward loyalty, repeat business, and brand control.

The Upside of OTAs

OTAs excel at doing one thing: bringing in bookings.

For properties that don’t have massive marketing budgets or dedicated distribution teams, OTAs can level the playing field by listing inventory alongside big brands. They provide access to:

• Global reach
• Last-minute demand fill
• SEO and digital marketing muscle
• Integrated reviews and reputation validation

‍

In the right context, OTAs are a useful tool for:

• Filling shoulder seasons or unbooked nights
• Testing new rate strategies
• Attracting first-time or international guests

‍

The volume they deliver can’t be denied. But at what cost?

The Real Cost of OTA Dependency

While OTAs provide top-of-funnel demand, they introduce challenges that compound over time:

• Commission fees: Typically 15–25%, cutting deeply into profit margins.
• Limited guest data: You get the booking, not the relationship. Most OTAs obscure email addresses and limit what you can learn about a guest.
• No direct upsell paths: Want to offer a room upgrade or late checkout? You’re often boxed in.
• Brand dilution: When a guest thinks they booked “via Expedia,” your property’s name is secondary.

Perhaps most frustratingly, OTA guests often remain OTA guests. Without strategic follow-up, the next time they travel, they’ll likely book through the same third-party platform—and the cycle continues.

(Read more on AI in hospitality)

Where AI Changes the Equation

This is where AI-powered guest engagement comes in.

Using agentic AI—systems that act, not just respond—properties can start reclaiming the guest journey even when the booking starts with an OTA.

Some examples:

• Pre-arrival personalization: A guest books through Booking.com. Akia automatically sends a pre-stay message customized with check-in instructions, local recommendations, or a curated upsell (spa appointment, late checkout, parking).
• In-stay optimization: AI-powered systems field guest requests, answer FAQs, and escalate issues without overwhelming the front desk.
• Post-stay conversion: After the guest departs, AI sends a thank-you message and a tailored offer for their next stay—this time, booking direct.

The result? OTA bookings become more than just one-time transactions. They become openings for long-term loyalty.

Why Loyalty and Repeat Booking Matter

Direct bookings are about more than just better margins. They reflect a stronger relationship with the guest and open the door to better experiences and higher LTV (lifetime value).

AI plays a critical role here:

• Identifying OTA guests early
• Tagging them for personalized campaigns
• Triggering loyalty journeys that feel natural and timely

An OTA-origin guest who returns to your property and books directly is a win. But it doesn’t happen by accident—it requires thoughtful guest journey design.

(Explore how AI drives loyalty)

Real-World Example

A boutique rental group in Coachella Valley implemented an AI tool to send OTA guests a welcome message with tips on navigating the festival and offers for add-ons like stocked fridges and early check-ins. After the stay, guests received a personalized return package for the next year’s event—booked directly through the property’s own site.

The result? A 22% increase in repeat bookings year-over-year, with a significant drop in commission fees.

(Case study: Marriott’s AI-driven loyalty campaign)

Finding the Right Balance

The goal isn’t to abandon OTAs. For many operators, they’re a necessary part of a healthy channel mix. But relying on them exclusively—or failing to plan beyond the initial booking—leaves too much on the table.

Smarter operators are using tools like agentic AI to:

• Reclaim the guest journey
• Collect actionable guest data
• Incentivize direct repeat bookings
• Deliver brand-consistent experiences from first touch to check-out

(How AI helps independent hotels compete)

FAQs About OTAs, AI, and Guest Loyalty

What is an OTA in hospitality?
An OTA (Online Travel Agency) is a third-party platform like Booking.com or Expedia that sells hotel or rental inventory to consumers, often in exchange for a commission.

Why is it risky to rely too heavily on OTAs?
OTA commissions reduce margins, and guest relationships are harder to retain. Properties lose out on valuable data, upsell opportunities, and brand recognition.

How can AI help reduce OTA dependency?
AI-powered platforms like Akia engage guests automatically through personalized messaging, upsells, and post-stay loyalty offers—creating more direct booking opportunities and repeat stays.

What are ways to turn OTA guests into direct bookers?
Use AI to collect guest preferences, share local recommendations, and send follow-up offers. Highlight the benefits of booking direct, like exclusive packages or loyalty perks.

The OTA is the Starting Line

For properties willing to invest in AI-powered engagement and loyalty infrastructure, OTAs become less of a necessary evil and more of an opportunity. Every OTA booking is a door opener. It’s what happens next that defines whether that guest becomes part of your brand’s story—or someone else’s.

The future of hospitality isn’t OTA vs. direct. It’s about knowing how to work within the system while building something smarter, more human, and more lasting beyond it.

And with the right guest journey tools, the path beyond the OTA has never been clearer.

‍