The Smart Motel Owner’s Guide to Online Travel Agents

(How to make OTAs work for you — not the other way around)

If you’ve recently taken over a small motel or are new to the tourism industry, chances are you’ve heard about online travel agents — or OTAs — like Booking.com, Expedia, and Agoda.

They can seem like a magic bullet: add your property details, and suddenly your rooms are visible to travellers all over the world. But before you rely on OTAs entirely, it’s important to understand how they work, their benefits, and their drawbacks — and how to use them to your advantage.

Let’s take a closer look.

What Are Online Travel Agents (OTAs)?

Online travel agents are third-party booking platforms that help travellers find and book accommodation. Popular examples include Booking.com, Expedia, Hotels.com, and Agoda.

For small accommodation providers, OTAs can be a fast way to reach new guests — but they also charge commissions and set specific conditions, which can affect your pricing and profits.

The Pros of Using Online Travel Agents for Small Motels

Massive marketing reach – OTAs spend millions on advertising and search engine placement. Listing your property gives you instant exposure to travellers searching online, especially those unfamiliar with your destination.

Instant credibility – Travellers trust OTAs for secure payments and verified reviews. Even a small motel benefits from this association, gaining credibility through the platform’s reputation.

Ease of use – OTAs simplify booking management, confirmation emails, and payment processing, saving you time on administration.

Data and insights – Most OTAs provide valuable data on guest behaviour, booking windows, and rate performance — helping you make smarter business decisions.

The Cons of Using OTAs for Accommodation Providers

Commission fees – Expect to pay between 12–20% per booking. This can significantly reduce your profit margins, especially on lower-priced rooms. But remember - you only pay if you receive a booking - look at it like a marketing fee.

Less direct communication – OTA bookings often limit your ability to interact with guests before arrival, making it harder to upsell or build relationships.

Over-reliance risk – Depending too heavily on OTAs can leave your business vulnerable to sudden policy changes or algorithm updates.

Rate parity requirements – Some OTAs require your prices to match those listed elsewhere (including your website), reducing your flexibility to offer exclusive deals or discounts.

What to Watch Out For When Using OTAs

Avoid over-reliance: Use OTAs as part of your marketing mix, not your only channel.

Check hidden fees: Look for optional paid features like visibility boosters or preferred listings that can add unexpected costs.

Monitor cancellations: OTA customers often book multiple properties and cancel last-minute. Set clear cancellation policies to protect your revenue.

Pro Tip: You Don’t Need to List All Your Rooms

Here’s a smart strategy many small motel owners overlook: you don’t have to load your entire room inventory onto an OTA.

Even listing just a few rooms gives your property excellent marketing exposure. Travellers searching your destination will see your motel on trusted booking platforms — even if they end up booking directly with you after checking your website or calling for the best rate.

That means more brand visibility with minimal commission costs.

Why Your Motel Still Needs Its Own Booking Website

Having your own motel website with a built-in booking engine is essential for long-term success. A direct booking option allows guests to book confidently, without commissions, and helps you build loyalty through repeat stays.

The best part?
Most modern booking systems now include a channel manager, which automatically updates your room availability and rates across all connected OTAs and your website.

That means:

1. No more double bookings
2. Real-time updates on every platform
3. A seamless experience for both you and your guests
4. By combining your OTA listings with a direct booking system, you’ll get the best of both worlds — global reach and full control of your business.

The Ideal Balance: OTAs + Direct Bookings

Online Travel Agents are powerful marketing tools when used strategically. They’re great for increasing visibility, filling last-minute availability, and introducing new guests to your motel.

But the real goal is to turn OTA guests into direct bookers next time they visit. Use their first stay to impress, then encourage them to book directly through your website for their return visit — saving you commission and building a loyal customer base.

Start small, stay strategic, and use OTAs as part of your broader marketing plan — not your entire strategy.

Need Help Getting Started?

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I specialise in helping small tourism businesses get noticed online — the smart way.