How to Compete with OTAs Without Slashing Your Rates

Low-Season Marketing Strategies for Phuket, Krabi & Samui Hotels

Online Travel Agencies (OTAs) like Booking.com, Agoda, and Expedia have become a double-edged sword for hotels. On the one hand, they bring visibility and bookings you might not have got otherwise. On the other hand, they charge massive commissions, monopolise the market, control customer data, and make it harder for you to build long-term guest relationships.

For hotels in Phuket, Krabi, and Koh Samui, this challenge becomes even more pressing during the low season (April to October), when occupancy drops, competition intensifies, and many operators feel forced to slash their rates just to stay afloat.

But here’s the truth: you don’t have to race to the bottom on price to remain competitive. By leveraging the right direct booking strategies, personalisation, and smarter digital marketing, you can compete with OTAs, protect your margins, and keep occupancy healthy year-round.

In this guide, we’ll explore:

Why hotels get trapped in OTA dependency
The risks of competing on price alone
Proven strategies to win back direct bookings
Low-season marketing tactics tailored for South Thailand (Phuket, Krabi, Phang Nga and Koh Samui)
How The Percentage App helps hotels outsmart OTAs with automation, personalisation, and integrated marketing tools

Why OTAs dominate, and why that’s a problem

Whether we like it or not, OTAs have become the default starting point for many travelers. According to recent data:

Over 70% of travelers start their accommodation search on OTAs.
Commissions often range from 15% to 25% per booking.
Hotels surrender valuable guest data and brand visibility to OTAs.

This creates a dependency trap: we need OTAs for visibility, but the more bookings they bring, the more we lose control over our brand, margins, and guest relationships.

For destinations like Phuket, Krabi, Phang Nga and Samui, which rely heavily on seasonal tourism, OTA dependence is even riskier. During the low season, OTAs tend to push discounts aggressively to stimulate demand and the hotels that play along, erode their profitability and train customers to book purely on price.

The race to the bottom & why discounting hurts us

As a company that manages thousands of rooms online, I can tell you that when occupancy drops, it’s tempting to slash rates. After all, something is better than nothing, right? The truth is, not always. Here’s why relying solely on discounts can backfire:

1. Brand Devaluation – Frequent discounts condition guests to expect low prices, making it harder to raise rates later as guests don’t see the value in staying at your hotel.
2. Margin Erosion – Combining OTA commissions with deep discounts often leaves you losing money on every booking or at least pushing your margins to the limit.
3. Price War Spiral – Competing hotels undercut each other, dragging average daily rates (ADR) across the destination down re-enforcing the downward spiral.
4. Lost Brand Loyalty – Guests who book solely based on price are less likely to become repeat customers, the data is clear on this.

But what’s the alternative I hear you ask? Compete on value, not price. That means focusing on personalisation, guest experience, and direct engagement, areas where OTAs can’t match you.

Winning back direct bookings

Here are some proven strategies hotels can implement to reduce OTA dependency and drive more direct bookings:

1. Optimise Your Website for Conversion

Your website is your most powerful sales channel, but only if it’s designed to convert well.

Use a modern, mobile-friendly booking engine that’s fast, intuitive and converts well.
Showcase high-quality photos and compelling descriptions.
Implement real-time pricing and availability calendars.
Add clear CTAs like “Book Direct & Save” or “Exclusive Website-Only Offers.”

The Percentage App includes a fully integrated booking engine that syncs with your PMS and OTAs in real time. It’s designed for speed, personalisation, and upselling, turning website visitors into confirmed bookings.

2. Leverage Personalisation & Upselling

OTAs simply can’t personalise guest experiences the way you can. Use that to your advantage:

Offer exclusive perks for direct bookers: free airport transfers, welcome drinks, late checkouts etc.
Use guest data to send personalized pre-arrival emails with upgrade offers.
Segment your database by traveler type (couples, families, digital nomads etc.) and tailor your packages accordingly.

With The Percentage App, you can automate these personalized campaigns and track which offers generate the highest conversions.

3. Invest in Smart Digital Marketing

OTAs spend billions on Google Ads and SEO, but you don’t need their budget to compete. Focus on high-return channels:

Google Hotel Ads: Position your direct rates alongside OTAs in search results.
Meta Ads: Target past guests and lookalike audiences with compelling offers.
SEO for Hotels: Rank for long-tail searches like “family-friendly resorts in Krabi” or “Phuket pool villas with sea view.”
Retargeting Campaigns: Bring back website visitors who didn’t book.

The Percentage App integrates seamlessly with Google, Meta, and OTAs, letting you manage ads, track ROI, and adjust campaigns to sell more via your website.

4. Build Guest Loyalty & Repeat Business

OTAs rarely drive sustained loyalty, but as a hotel operator, you can.

Launch a direct booking loyalty program with rewards for returning guests.
Offer member-only discounts or perks unavailable on OTAs.
Automate post-stay follow-ups to encourage repeat visits.

Hotels in Phuket, Krabi, and Samui and beyond can also bundle local experiences such as spa treatments, boat trips, cooking classes and more to make direct bookings more attractive relative to the OTA.

Low-Season Marketing Strategies for Phuket, Krabi & Samui

For hotels in southern Thailand, the low season is both a challenge and an opportunity. While demand drops, strategic marketing can keep occupancy strong without resorting to deep discounting. Here’s how:

1. Target Domestic Travelers

During the monsoon season, international demand slows, but Thai travelers remain a valuable market.

Run Thai-language ad campaigns on Google, Facebook, Instagram, and LINE.
Partner with local influencers to showcase your property.
Offer weekend getaway packages tailored to Bangkok residents.

2. Focus on Niche Segments

Not all travelers are deterred by the low season. Target groups who actually prefer fewer crowds and lower prices:

Digital Nomads: Offer long-stay deals with co-working perks.
Wellness Travelers: Promote spa retreats, yoga programs, and detox packages.
Adventure Seekers: Market surfing, hiking, and diving (activities less impacted by rain).

3. Bundle Experiences Instead of Cutting Rates

Instead of reducing your nightly rate, add low cost but high perceived value items:

Free cooking classes, sunset cruises, or private transfers.
Partner with local operators to create exclusive experience packages.
Highlight these offers on your website and in marketing campaigns.

4. Leverage Seasonal Storytelling

Don’t shy away from the low season, embrace it:

Showcase lush green landscapes, waterfalls, and fewer crowds.
Use video marketing to highlight authentic, serene, off-peak experiences.
Create blog content targeting searches like “Why Visit Phuket in the Low Season.”

How The Percentage App Gives Hotels an Edge

Competing with OTAs and staying profitable in the low season requires integration, automation, and personalisation. That’s where The Percentage App comes in:

Integrated Booking Engine – Convert more website visitors into direct bookings.
Dynamic Pricing – Adjust rates intelligently based on demand, seasonality, and competitor pricing.
CRM & Guest Profiles – Build long-term relationships and market directly to past guests.
Marketing Automation – Launch targeted email and retargeting campaigns effortlessly.
Analytics Dashboard – See which channels, campaigns, and offers deliver the highest ROI.

Unlike out-of-the-box booking systems, The Percentage App is fully customisable and tailored to your brand, because personalisation is the future of hotel marketing.

Final Thoughts

OTA’s aren’t going anywhere and we as hoteliers need to work with them as part of the marketing mix, but you don’t have to choose between OTA dependence and profitability. By focusing on direct booking strategies, smart marketing, and guest personalisation, your hotel can:

Reduce reliance on high-commission OTAs
Protect margins without slashing rates
Attract the right guests, even in low season
Build lasting guest relationships that OTAs can’t replicate

In competitive markets like Phuket, Krabi, and Samui, the hotels that thrive are the ones that own their demand. And with The Percentage App, you get the tools, insights, and integrations to do exactly that. Ready to compete with OTAs on your terms? Let’s talk about how The Percentage App can transform your hotel’s direct booking strategy.