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What Is an OTA? How Online Travel Agencies Impact Hotel Bookings

October 21, 2025

Summary

An OTA, or Online Travel Agency, helps hotels sell rooms online but charges commission. Learn how to use OTAs wisely and boost direct bookings.

Quick Answer:

An OTA is an Online Travel Agency, like Booking.com, that sells hotel rooms for a commission, helping visibility but reducing direct profit.

Introduction: The Hidden Cost of OTA Dependency

What is an OTA, and why does relying on them cost you more than you think?

OTAs are Online Travel Agencies like Booking.com or Expedia.

As a hotelier, you’ll likely be aware of OTAs, as 77% of online bookings in Europe are made through them. 

The OTA Trade-Off: Visibility vs. Value

What is an OTA? Graphic showing that 77% of hotel bookings come from OTAs.
77% of hotel bookings are made through online travel agencies.

77% of bookings come through OTAs, but at up to 30% commission. Who really profits?

While OTAs offer exposure, they come with trade-offs:

  1. Revenue loss 

Commissions of 15-30% per booking can quickly erode your profit.

  1. Limited guest insights

OTAs often only share basic info like name and stay dates. Making it hard to upsell, follow up, or build loyalty.

  1. Brand dilution

Guests often remember the OTA, not your hotel. Reducing the chance of direct repeat bookings.

While the bookings are great, the convenience comes at a cost. The commission ends up eating into your margins. OTAs also control the guest data, limiting your ability to market personally or build long-term loyalty. It's like renting your guest list- convenient, but unsustainable.

OTA vs Direct Booking Revenue Impact Example

MetricOTA BookingDirect Booking
Room Rate£150£150
Commission-£30 (20%)£0
Guest Data AccessLimitedFull
Brand ExposureOTA-BrandedHotel-Branded
Rebooking ControlLowHigh

Shifting even 20% of OTA bookings to direct can return thousands to your bottom line and put guest relationships back in your hands.

What a Direct Booking Strategy Really Looks Like

A smart direct booking strategy doesn't just add more tools. It makes every touchpoint work harder for you. A good booking strategy focuses on three interconnected pillars:

  1. Mindset-first

Great bookings start with great experiences. Instead of chasing transactions, optimise your guest journey to feel personal, seamless, and worth returning to.

  1. UX-led

Your website is your digital front desk. From mobile responsiveness to intuitive navigation, every detail should guide the guest naturally toward booking.

  1. Brand-led

People remember experiences. Your hotel or spa has a story that OTAs can’t tell. Let your brand voice, photography, and values shape how you connect with guests.

Think of this as building a digital concierge that reflects your brand and removes booking friction at every stage.

Three pillars of a direct booking strategy: mindset-first, UX-led, and brand-focused approach for hotels.
The three pillars of a successful direct booking strategy: Mindset-First, UX-Led, and Brand-Focused.

Effective hotel marketing has upgraded. It’s experience-led, emotionally aware, and designed to convert. When these three elements align, you’re increasing direct bookings and building lasting relationships.

The Independent Guest Funnel

Awareness → Consideration → Conversion → Retention

This funnel turns online visibility into lasting guest relationships. 

  1. Awareness

SEO-rich blog posts grab attention and provide valuable information. When you pair them with engaging social media and targeted ads, your brand reaches more potential customers.

  1. Consideration

Make your offering stand out by showcasing guest reviews. People trust what others say. Use comparison tools to make it easy for them to see the differences. Highlight clear benefits that help make a smart choice.

  1. Conversion

Encourage customers to book by providing an easy booking process. Make sure you’re highlighting special offers. Use clear calls to action (CTAs) with the booking link simple to find. This will motivate them to book with you! 

  1. Retention

Stay connected post-stay to turn guests into repeat, satisfied customers. Use your email list, loyalty programs, and referral incentives.

Fragmented funnels = fragmented revenue. 

Align each stage with your digital marketing for hotels strategy to get more direct bookings online.

A funnel diagram labeled “Guest Booking Funnel” showing four stages: Awareness, Consideration, Conversion, and Retention, each with icons and short explanations.
The four stages of the guest booking funnel: Awareness, Consideration, Conversion, and Retention.

Ready to turn interest into bookings? Below is your guide on how to get more bookings online. 

How to Get More Online Bookings

1. Optimise Your Booking Engine

Why it matters

A one-second delay in page load can reduce conversions by 7%

Slow loads, a poor mobile experience, or a confusing flow block bookings.  If you experience any of these, you’ll lose conversions. It’s that simple.

What to do

Step 1: Speed first

Ensure your online booking system loads in under 2 seconds on mobile.

Step 2: Frictionless checkout

Offer one-click or autofill payment options.

Step 3: Build trust 

Include trust signals like secure payment icons, recent reviews, or a contact number.

Quick win: Use tools like Google PageSpeed Insights or GTmetrix to test your current setup.

2. Streamline Your Website Funnel: Guide Visitors to Book Faster

Why it matters

Your website funnel is the journey from the homepage to booking confirmation. If it’s confusing or cluttered, visitors might leave before booking.

What to do:

Step 1: Prioritise the journey

Highlight one primary call to action per page.  Such as “Book Now,” “Special Offer,” or “Get Offer”. 

Step 2: Declutter navigation 

Remove distractions like pop-ups or competing buttons. 

Step 3: Visual and verbal clarity

Use short, benefit-driven copy paired with high-quality imagery. 

Quick win: Test your homepage! Is the booking action obvious within 5 seconds?

3. Use Gift Vouchers (aka Gift Cards) as Conversion Tools: Turn Interest into Revenue

Gift cards were once a fast way to raise cash. Today, they’re a key part of hotel marketing. As the guest experience becomes increasingly important, voucher systems are evolving. They are designed to deliver more value at every interaction.

Diagram showing how gift vouchers lead from purchase to redemption, experience, and rebooking or referral. What is an OTA?
Gift vouchers create repeat and referral bookings by turning one purchase into a long-term revenue cycle.
  • Attract new guests with gifts.  
  • Generate off-peak demand to extend seasonal reach.  
  • Reconnect with past visitors through personalised offers.  
  • Boost direct revenue with pre-paid bookings.  
  • Increase sales with upsell bundles and add-ons. 
  • Use built-in analytics and promotional tools to promote new campaigns and forecast revenue. 

Leading hospitality brands treat vouchers not just as products, but as part of their experience commerce strategy. 

Gift vouchers create emotional purchase moments that lead to measurable revenue.

What to do:

Step 1: Choose a feature rich gift voucher system.

Not all gift voucher systems are built the same. Choose one that not only supports your revenue goals but also avoids the common pitfalls many platforms face. This post outlines the key features that make the difference: https://enjovia.com/the-problem-with-gift-cards/ 

Step 2: Promote creatively

Use paid ads, seasonal content, and social media platforms to spotlight your offers and draw in potential customers. Heres a helpful guide on how to use social media for gift card offerings: https://enjovia.com/social-media-gift-cards-promotions/ 

Step 3: Bridge booking gaps

Offer time-limited vouchers to email subscribers or visitors who didn’t complete their booking. It’s a compelling second-chance CTA.

Step 4: Upsell at checkout

Prompt current guests to “add a gift” when booking. Turning bookings into future revenue and referrals. Here’s nother quick guide on how to introduce add-ons in your selling funnel: https://enjovia.com/create-unique-experiences-with-gift-voucher-add-ons/

Quick win: Hotels using Enjovia’s gift card system often see seasonal uplift and better cash flow. Because Enjovia integrates easily with your existing tech stack, you can launch branded, flexible vouchers that drive real bookings, without the operational headache.

Try this: Map where a voucher could live in your own guest funnel. Is it part of your booking abandonment email? A homepage promo banner? Use it to reduce friction and build intent.

4. Capture Lost Traffic (Email & Exit-Intent)

Win Back Visitors Before They Leave

Why it matters: 

In the travel industry, over 80% of bookings are abandoned before completion. With, hotel websites experiencing abandonment rates around 70%!

Without a strategy to re-engage these visitors, potential revenue is lost.

What to do:

Step 1: Implement smart pop-ups 

Utilize tools like Sleeknote or OptinMonster to detect exit intent and present visitors with last-minute deals or incentives.

Placement of these tools is crucial to avoid disrupting the website funnel. Trigger exit-intent pop-ups on high-intent pages like room listings, special offer pages, gift voucher pages, and cart/checkout pages. 

Avoid placing them on the homepage or blog/info pages where immediate action isn’t needed. These tools pop up when the mouse moves towards the browser bar or close button, providing a last chance to re-engage without interrupting the browsing experience.

Step 2: Send follow-up emails

Deploy automated emails reminding visitors of their incomplete bookings. This is a great opportunity to include personalized offers to encourage completion.

Step 3: Personalize incentives

Tailor offers based on the visitor's behavior. Such as the pages they viewed or the duration of their visit. This increases relevance and conversion likelihood.

Quick win: Test an exit-intent pop-up offering a 10% discount for email sign-up. Studies have shown that well-crafted exit-intent pop-ups can recover 10–15% of abandoning visitors.

5. Incentivise Repeat and Referral Bookings

Increase Lifetime Value

Why it matters

Acquiring new guests is costly. Incentivising return visits and referrals maximises each stay’s value.

What to do:

Step 1: Reward repeat stays 

Offer perks like late checkout or exclusive discounts.

Step 2: Create a referral loop 

Give guests a reason to bring a friend.

Step 3: Use loyalty tiers

Gamify benefits with bronze, silver, and gold status.

Quick win: A simple “Refer a friend, get 20% off” campaign can boost bookings and guest loyalty.

How Enjovia Solves This

Enjovia is a gift voucher and experience commerce platform built specifically for hospitality businesses.

Many tools add layers of complexity to your booking process. Enjovia simplifies it, making it easier for guests to buy and for operators to manage experiences without technical hassle. Each capability is designed to solve the challenges that matter most:

Table showing Enjovia’s solutions to common hospitality challenges, including OTA revenue loss, low repeat rates, site friction, and poor guest re-engagement.
Enjovia helps hospitality businesses recover lost OTA revenue, boost repeat bookings, and simplify the guest journey through its voucher and experience commerce platform.
ChallengeEnjovia Solution
Lost revenue via OTAsVoucher Strategy Engine
Low repeat ratesLoyalty & Referral Tools
Site frictionBooking Funnel Simplifier
No guest re-engagementEmail & incentive integrations
Tech overwhelmHuman-first onboarding

You don’t need to rebuild your tech stack, just rethink your guest flow.

Reclaiming control over your revenue, brand, and guest experience shifts you from survival mode to long-term sustainability. 

Resulting in building loyalty, driving higher margins, owning your guest journey, your guest relationships and your brand.

Quick Recap: How to Get More Bookings Online

ActionGoal
Optimise your booking engineReduce friction, increase conversion
Streamline your website funnelGuide guests to book faster
Use gift card creativelyAttract new guests, extend seasonality
Capture lost trafficTurn site visitors into future bookings
Incentivise referrals & loyaltyBoost repeat stays and lifetime value

Ready to stop handing your profits to OTAs? Book a free strategy call with Enjovia.

Frequently Asked Questions

How to get more direct bookings?

Focus on creating a user-friendly booking experience. Reduce reliance on OTAs. Implement targeted marketing strategies, such as offering gift vouchers and referral incentives. Additionally, streamline the booking funnel to enhance the overall experience.

What does OTA mean in hotels?

OTA stands for Online Travel Agency, such as Booking.com or Expedia. These platforms list and sell hotel rooms online, helping properties reach more guests but often charging commissions of 15–30%, which can reduce profits compared to direct bookings.

Are hotel gift cards a good idea?

Gift cards/ vouchers create upfront revenue, attract new guests, and drive bookings during low occupancy periods, especially with platforms like Enjovia.

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