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๐ŸŽง Episode 44: The Hidden Cost of OTA Dependence

Virtual GM ยท 2026-06-04 ยท 26 min

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Episode notes

In this episode, Cody is joined once again by longtime Virtual GM Malissa Baum to tackle one of the most important - and often misunderstood - topics in hospitality today: OTA dependence . OTAs like Expedia, Booking.com, and Airbnb absolutely provide value. They help hotels gain visibility, drive occupancy, and compete in crowded markets. But when properties become too dependent on third-party bookings, the hidden costs can quietly erode profitability, guest loyalty, and long-term brand value. Segment 1: The Obvious Cost - Commissions The first thing most operators think about: 15 - 25% commission costs Reduced margins Higher acquisition expenses Segment 2: The Hidden Costs Most Hotels Ignore Loss of Guest Ownership When a guest books through an OTA: The relationship often starts with the platform - not your property Loyalty becomes harder to build Communication opportunities become limited You may host the stay - but the OTA owns the customer relationship.

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