The day OTAs started revenue managing... Revenue Managers
In case this is our 1st time: I’m Fabian Bartnick aka Fabi – The Commercial Growth Leader. I help companies bridge data, marketing, sales, revenue management and communication to drive future-proof revenue. Each week, I share fun stories with tongue-in-cheek thoughts that make you either laugh, cry or shake your head. TL;DR: I make people better and companies more money.
I had one of those “wait, what?” moments this week. It's not new new but stuck with me.
I booked a hotel for an upcoming trip. A few days later, I get that cheerful little notification from Booking.com:
Your upcoming stay price dropped by US$22.45! We’ll refund it to your wallet 14 days after your stay. Enjoy!
Excuse me? They didn’t ask the hotel. They didn’t check with the RM. They just did it.
Ladies and gentlemen, wakey wakey:
OTAs aren’t just selling rooms anymore. They’re revenue managing the revenue managers.
When the Hunter Becomes the Hunted
Let’s be honest. For years we thought, we’ve been the ones pulling the strings: optimizing rates, forecasting demand, and complaining about those "mean" OTAs and scream from the roof top "Direct....Direct....Direct".
Meanwhile, Booking.com and friends have been quietly turning into AI-driven commercial machines. They’re not reacting to your rates. They’re anticipating your next move.
Their logic is brutal but brilliant:
- If the guest feels they got a deal, they’ll book again.
- If the hotel doesn’t like it… tough luck. What you gonna do?!? (smallest violine sound)
While we’ve been obsessing over BAR and comp sets, they’ve been mastering perceived value and lifetime guest retention.
We optimize rooms. They optimize relationships.
Here’s the Real Plot Twist
Every time you see “Price Match Guarantee,” it’s not just a promo, it’s a data grab.
They learn:
- Your price elasticity.
- When your competitors drop rates.
- How far you’ll let parity slip before you act.
- Which types of guests care about savings… and which don’t.
In other words: While we’re forecasting demand, they’re forecasting us.
It’s like playing chess against someone who’s been studying your opening moves for years and just started making yours before you do.
What It Means for Revenue Managers
We’ve always been told OTAs are distribution "partners". But that is really not true, never has been.
They’ve evolved from being sales channels to commercial ecosystems, complete with data science teams, conversion optimization engines, and consumer loyalty wallets.
And we? We’re still arguing in meetings about whether the rate strategy should be dynamic or static dn go Direct...Direct...Direct....because we really don't know how to get more than 50%.
Here’s the truth: We’re not competing on price. We’re competing on agility.
The OTA is fast, frictionless, data-rich, and ruthless about guest experience. The average hotel still moves like a meeting request through back and forth emails: like playdates.
The New Rule of the Game
If the OTA is revenue managing you, you’ve got two options:
1️⃣ Play their game better. Use their data against them. Yes there is a pattern.
2️⃣ Change the game. Focus on value creation, packaging, and loyalty loops that don’t rely on them. Because you’ll never out-discount an OTA, but you can out-experience one.
3️⃣ Stop blaming them. They didn’t steal control. We handed it over.
Oh and don't forget your golden nugget: Upselling (check out my friend Karl Schmidtner and Jorge Rocha from UpsellGuru). Once they booked, boom shakalaka...playtime baby. Guaranteed ROI, seemless and above all....your turf, your game, your rules.
So yes, OTAs are now revenue managing the revenue managers. And while you’re still setting rates for the weekend, they’re already planning your guest’s next trip.
Maybe it’s time we stop defending our old turf and start playing as we own the f**** court.
Love to hear your comments without the "oh yes but that is happening since long time" .... great - so wtf did you do about it? and more importantly: did it show results!
Love,
Fabi
If you’re ready to align your sales, marketing, and data into one unstoppable growth engine, connect with me on LinkedIn.
