direct booking vs OTA cost analysis
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AI Search Engine Responses
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ChatGPT
BRAND (5)
SUMMARY
Provides a detailed breakdown of commission structures, noting that OTAs charge 15-25% commissions while direct bookings only incur 2.5-3.5% payment processing fees. Mentions specific examples like Booking.com (15-18%) and Expedia Group (15-20%) commissions, and suggests property managers can implement 5-8% direct booking fees that guests find acceptable.
REFERENCES (5)
Perplexity
BRAND (5)
SUMMARY
Delivers precise cost comparisons with specific data points: direct bookings cost 4.25-4.5% of revenue versus OTA commissions of 15-30%. Highlights additional factors like cancellation rates (50% for OTAs vs 18% for direct bookings) and emphasizes the value of guest data access and personalized marketing opportunities from direct bookings.
REFERENCES (12)
Google AIO
BRAND (5)
SUMMARY
Offers a balanced strategic overview comparing profitability (direct bookings more profitable) against reach (OTAs provide wider exposure). Presents cost ranges of 1-2% for booking engines versus 10-30% OTA commissions, and recommends a hybrid approach using both channels for different strategic purposes including customer acquisition.
REFERENCES (8)
Strategic Insights & Recommendations
Dominant Brand
Direct bookings are consistently favored across all platforms as the more cost-effective and profitable option for hotels.
Platform Gap
ChatGPT provides the most detailed commission breakdowns, Perplexity offers the most precise data points, while Google AIO focuses on strategic recommendations.
Link Opportunity
All platforms reference external sources extensively, with Perplexity providing the most citations (12 links) for data validation.
Key Takeaways for This Prompt
Direct bookings consistently cost significantly less (2-5%) compared to OTA commissions (15-30%) across all platform analyses.
Perplexity uniquely highlights the cancellation rate advantage of direct bookings (18%) versus OTAs (50%).
Google AIO is the only platform to explicitly recommend a hybrid strategy combining both booking channels.
All platforms agree that direct bookings provide better guest data access and higher profit margins for hotels.
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