September 24, 2025
A smart hotel distribution strategy goes beyond OTAs. From direct bookings to metasearch and GDS, here’s how to pick the right channels, lower acquisition costs, and boost revenue.
You can’t just connect to a few OTAs and hope for the best. A hotel distribution strategy is about carefully selecting and managing the right mix of booking channels to maximize occupancy, profitability, and guest reach.
A hotel distribution strategy defines the channels through which a property sells its rooms—both online and offline. The goal is not just visibility, but profitability. Choosing the right channels ensures acquisition costs remain lower than the revenue they generate.
The strongest distribution strategies balance direct bookings with third-party channels. Here are the main options:
These include your hotel website, booking engine, emails, phone reservations, and social media. Direct bookings should always be a priority—no commissions, more control, and stronger guest relationships.
✔ Ensure your website is mobile-friendly
✔ Make the booking process seamless
✔ Use social media campaigns and loyalty discounts to drive direct sales
Booking.com, Expedia, and niche platforms like Hostelworld or BringFido (for pet-friendly stays) expand reach instantly. OTAs are essential, but don’t let them dominate your mix—balance them with direct channels to reduce commission costs.
Sabre, Amadeus, and Galileo connect hotels to travel agencies worldwide. Ideal for capturing corporate and business travel markets.
Google Hotel Ads, Trivago, and TripAdvisor display rates across OTAs and direct channels, influencing guest booking decisions. Optimizing here can increase both OTA and direct reservations.
Often package deals including flights, transfers, and activities. Useful for reaching group or leisure travelers, though typically offered at discounted rates.
Decide what you want to achieve:
Use data from your PMS to analyze:
This helps you invest in the right channels for each audience segment.
It’s not enough to be listed—you need to know which channels are profitable. That’s where NetRevPAR comes in:
NetRevPAR = (Room Revenue – Distribution Costs) ÷ Available Rooms
Distribution costs include OTA commissions, CPC campaigns, or marketing spend. By calculating NetRevPAR, you can see which channels generate true profit and which drag margins down.
Managing multiple channels manually is overwhelming. A revenue management system (RMS) like Pricepoint can help you:
A profitable hotel distribution strategy is about more than being everywhere—it’s about being where it counts. Focus on the mix of channels that lower acquisition costs, boost occupancy, and maximize revenue.
