Revenue per available room, or RevPAR, is one of the most critical metrics in the hotel industry. It’s more than just a number—it’s a clear indicator of how efficiently your property is generating income from your inventory. In an industry where margins can be tight and competition fierce, every opportunity to improve RevPAR should be treated as gold.

Yet many hoteliers overlook one of the most powerful levers available to them: direct bookings.

While OTA channels and corporate contracts certainly play a role in filling rooms, direct bookings directly impact RevPAR in a way no other channel does. Why? Because with direct bookings, you not only retain control over guest data and relationships—you also save big on third-party commissions. That cost saving goes straight into your bottom line, increasing your net revenue per room.

Let’s break it down with a simple, data-backed example from Simplotel.

A Small Change, A Big Result
Imagine your hotel has 99 rooms in inventory. Currently, only 5% of your bookings come directly through your website. If you double that to 10%, the impact on RevPAR is far more dramatic than most would expect.

Even without touching any other variable—like your OTA share, average daily rate, or corporate bookings—your RevPAR can increase by as much as 27%. That’s right. A modest 5% shift in booking source yields a nearly 30% uplift in revenue per available room.

Now imagine what happens if you gradually move the needle to 20% or even 30% direct bookings. The RevPAR uplift becomes exponential.

Why Direct Bookings Matter More Than You Think
Here’s what makes direct bookings such a game-changer for RevPAR:

No Commission Cuts: Unlike other streams that take 15–25% of your revenue, direct bookings come to you with zero commission, maximising your revenue per room.
Better Control of Pricing & Inventory: You set the rules, highlight premium rooms, and promote upsells with zero limitations.
Stronger Guest Relationships: Direct bookings allow you to own the guest experience from the start, increasing chances of repeat stays and loyalty.

Start Small, Win Big
You don’t need a major overhaul to start seeing results. Even small, consistent efforts—like improving your website UX, offering exclusive perks, or enabling features like Book Now, Pay Later—can slowly push more guests to book directly.

Over time, these small steps build momentum. And quarter after quarter, your direct booking share can inch upwards. With it, so will your RevPAR.

Final Thought:
If you're serious about long-term profitability and revenue growth, focus on increasing direct bookings. It’s one of the few things you can control—and it pays off in ways that go beyond just occupancy.

Ready to start optimising for more direct bookings? Simplotel is here to help.

How Direct Bookings Can Skyrocket Your Hotel’s RevPAR