The Direct Booking Advantage: Why OTA-Only Is Risky
Online Travel Agencies (OTAs) like Viator, GetYourGuide, and TripAdvisor Experiences bring customers you'd never find otherwise. That's their value. But relying on them exclusively creates real risks for your charter business.
This isn't an anti-OTA argument. It's a case for balance.
What OTAs Actually Cost
Let's be clear about the fees:
| OTA Platform | Commission Rate | On a $600 Trip |
|---|---|---|
| Viator | 20-30% | $120-180 to Viator |
| GetYourGuide | 25-30% | $150-180 to GYG |
| TripAdvisor Experiences | 20-25% | $120-150 to TA |
| Airbnb Experiences | 20% | $120 to Airbnb |
| Direct Booking | ~3% (card processing) | $18 processing only |
On a single $600 trip, the difference between OTA and direct is $100-160 in your pocket. Over a season of 100 trips, that's $10,000-16,000 — enough for boat maintenance, gear upgrades, or simply more income.
The Five Risks of OTA-Only
1. You Don't Own the Customer Relationship
When a customer books through Viator, Viator owns that customer data. You might get a name and phone number, but:
- You can't email them about next season
- You can't offer them a repeat-customer discount
- You can't ask them to book direct next time (some OTAs prohibit this)
- If Viator changes terms or delists you, those customers disappear
2. You're Subject to Algorithm Changes
OTAs regularly change how they rank and display listings. One algorithm tweak can:
- Drop your visibility overnight
- Require you to lower prices to stay competitive
- Push sponsored results above your organic listing
- Change review weighting and affect your ranking
Platform Risk Is Real
3. Commission Creep
OTA commissions have been trending upward across the industry. What started at 15-20% is now commonly 25-30%. There's no guarantee it won't go higher.
When your margins depend on someone else's pricing decisions, you don't have a business — you have a job working for the OTA.
4. No Brand Building
Every booking through an OTA builds the OTA's brand, not yours. The customer remembers "I booked through Viator" — not "I booked with Captain Mike's Charters."
Direct bookings build:
- Name recognition
- Repeat business
- Word-of-mouth referrals
- Google reviews (on YOUR listing, not the OTA's)
5. Price Competition
On OTAs, you're listed next to every other charter in your area, sorted by price. This creates a race to the bottom where operators undercut each other to win the booking — at 25-30% commission, on top of it.
Direct booking lets you compete on experience, not just price.
When OTAs Make Sense
OTAs aren't evil. They serve specific purposes:
Good Uses for OTAs
The key is using OTAs strategically — as a discovery channel, not your entire business.
The Balanced Strategy
The most successful operators we've observed use a mix:
Year 1-2: OTA-Heavy Start
- List on 2-3 major OTAs for visibility
- Focus on getting great reviews
- Build your website and Google presence in parallel
Year 2-3: Shift to Direct
- Start collecting customer emails (within OTA terms)
- Build a booking-enabled website
- Invest in Google Business Profile and reviews
- Run modest social media showing real trips
Year 3+: OTA as Supplement
- 70-80% direct bookings (higher margin)
- 20-30% OTA bookings (filling gaps, new customer discovery)
- Strong repeat customer base
- Email list for seasonal announcements
How to Get More Direct Bookings
You don't need a marketing degree. These basics work:
1. Make Your Website Bookable
If customers find your website but can't book online, you've lost them. They'll go back to the OTA where booking is one click away.
2. Google Business Profile
Claim it, fill it out completely, post photos regularly, respond to reviews. This is free and drives local discovery.
3. Ask for Reviews
After every trip, ask satisfied customers to leave a Google review. This improves your search ranking and builds trust with new customers.
4. Social Media (Keep It Simple)
Post trip photos and catch reports. You don't need to be a content creator — just show real trips happening on your boat.
5. Repeat Customer Outreach
Your past customers are your easiest bookings. A simple email at the start of season saying "we're booking up" drives reservations from people who already trust you.
The Math That Matters
Let's say you run 200 trips per year at $500 average:
- 100% OTA (25% commission): $25,000 in commissions
- 50/50 split: $12,500 in commissions + $1,200 for direct booking software = $13,700
- 80% direct / 20% OTA: $5,000 in commissions + $1,200 for software = $6,200
The difference between OTA-only and a balanced approach: $18,800/year back in your pocket.
Direct booking doesn't mean abandoning OTAs. It means owning your business instead of renting it from someone else.