luxury cars outside the front of a london hotel and the need to recognise how email marketing can reduce ota dependence for the luxury hotel market

As the economics of luxury hospitality continue to shift, many resorts are re-evaluating their reliance on online travel agencies (OTAs). With commission rates rising and occupancy volatility increasing, resorts are exploring alternative ways to secure new guests without surrendering 20-30% of each booking to third-party platforms.

NB: This is an article from Americas Great Resorts

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This report analyzes 2025 performance data from a range of luxury properties across North America, Mexico and the Caribbean to understand how external email marketing outreach to new, previously unengaged travelers has become an effective acquisition channel – particularly for reducing OTA dependence and improving direct-booking profitability.

This analysis does not focus on traditional “loyalty database” marketing. Instead, it examines the impact of email campaigns that reach entirely new, non-customer audiences with strong travel intent.

Background: Rising OTA Costs, Rising Pressure on Profitability

OTAs remain a dominant source of bookings for many resorts, but their financial impact is increasingly difficult to ignore.

2025 OTA Commission Snapshot

  • Typical commission range: 20–30%
  • Higher for premium placements or “accelerator” visibility
  • Larger properties often pay six-figure annual totals
  • OTA guests typically have lower long-term value and limited brand loyalty

In a competitive environment with rising labor, insurance, and operating expenses, resorts are beginning to scrutinize every cost center – and OTA commissions are emerging as a top concern.

This has led luxury properties to investigate new direct-acquisition channels that do not rely on past-guest databases.

The Emergence of External Targeted Email as a Viable Acquisition Channel

The most significant development observed in the past 18 months is the use of external email marketing lists – composed of high-income, high-intent travelers – to generate new direct bookings at a lower cost than OTAs.

Why this approach is gaining traction:

  • Resorts can reach travelers who have never engaged with the property before
  • Email allows controlled, measurable, direct-to-consumer communication
  • The cost of acquisition is significantly lower than OTA commissions
  • Campaigns drive users directly into the resort’s booking engine
  • Resorts own the guest relationship from the first interaction

External email outreach essentially creates a new top-of-funnel acquisition layer that resorts previously lacked access to.

Read the full article at Americas Great Resorts