Direct Bookings Are Winning – Are You Investing Fast Enough?

OTAs still dominate UK hotel distribution. In 2025, Booking.com and Expedia held a combined 37% market share. That's not going away anytime soon – their reach is undeniable, and they have a role in any sensible distribution mix.

But here's what every commercial director should be paying close attention to: direct digital channels are growing faster. 7.34% CAGR through to 2031, compared to OTA growth that is plateauing.

And direct bookings consistently generate higher-value transactions.

The maths is not complicated. OTAs cost you 15–25% in commission. Direct bookings cost a fraction of that. The growth trend is in your favour – if you invest now, while the momentum is building.

Why this matters more than ever in 2026

We're in a consolidation phase. Margin protection is the priority. Every percentage point of commission you can reclaim through direct channel growth goes straight to your bottom line. This isn't a nice-to-have. It's a commercial imperative.

The domestic short-stay market reinforces this further. Short stays of 1–2 nights account for 80.5% of all UK hotel stays, and approximately 69% of check-ins are domestic guests. These are repeat-visit, loyalty-buildable customers. They are exactly the audience you can convert to direct bookers with the right strategy.

The four levers to pull

Invest in your direct booking technology – your website, mobile experience, and booking engine need to be genuinely competitive. Friction kills conversion.

Build a loyalty programme worth joining – exclusive benefits for direct bookers: early check-in, room upgrades, F&B credits. Make the value proposition obvious.

Rate parity management – if guests can find a cheaper rate on an OTA, you've already lost the argument for booking direct.

Direct marketing spend – SEO, paid search, email, retargeting. These channels build your owned audience and reduce dependency on third parties over time.

The question isn't whether to invest. It's how fast you can move.

The operators who double down on direct channels now will be in a structurally stronger position by 2027. The ones who wait will find themselves increasingly dependent on OTA relationships they don't control, at commission rates that continue to erode margin.

For boutique independents, direct booking is also a brand story. Guests who book direct are choosing you – not a platform. That relationship is worth building.