The opportunity isn't about slashing prices. It's about becoming more strategic,
says Shane van Moerkerken, Business Development Manager supporting Profitroom’s Africa region
----------------------------------------------------------------------------------------------------------------
It's the question I've been asked more than any other since South Africa's Competition Commission successfully phased out rate parity clauses between hotels and online travel agencies (OTAs).
For years, rate parity shaped the way local hotels approached distribution. Now that those rules have changed, hoteliers finally have the flexibility to differentiate pricing and product offering across multiple platforms. But with that flexibility comes uncertainty because many still lack a clear revenue distribution framework.
What's needed right now is a strategic action plan that reassesses each booking channel and determines how to price it intentionally. Why? Because every platform serves a distinct purpose. The key is using them strategically, guided by occupancy, price positioning, seasonality and yield.
The changes to price parity restrictions have ushered in a competitive and innovative era that reaches well beyond slashing room rates. Hotels that can zoom out, see the bigger picture and take control of their commercial strategy will be in a stronger position to grow direct bookings, personalise, and improve profitability.
Future-focused hoteliers of all sizes now have a real opportunity to build something guests will come back to – a booking experience they feel comfortable with. New rules create new opportunities. The most successful hotels will prioritise adding genuine, exclusive value rather than simply reducing rates. Think late checkouts, room upgrades, airport transfers, pre-ordered champagne or a specific pillow preference.
The opportunity here is significant. Profitroom data shows that African hotels currently attach extras to just 6.4% of bookings, compared with 21.4% globally. While uptake has improved from 4.4% in 2023, the gap highlights substantial untapped revenue potential for hotels that package experiences and personalised add-ons into their direct-booking strategy.
That said, it’s not about adding extras for the sake of it. It’s about the experience you build around them. Personalised touches, tailored offers, and a seamless booking journey that showcases the uniqueness of your property are often worth far more to today’s traveller. Remember, today's guests want to feel like the experience is crafted specifically for them. And that's exactly what hoteliers can deliver by encouraging direct bookings, not through discounts and copious add-ons, but through high-level personalisation and a guest journey that OTAs can't replicate.
Now, back to the question of price. To capitalise on pricing flexibility, it helps to consider a three-tiered approach:
Remember, pricing is only one part of the equation. The booking experience itself plays an equally important role and deserves attention in conjunction with a rates strategy.
A direct booking strategy only works if guests can find you first, which is why digital marketing is no longer optional. Poor online visibility can cost hotels 20% to 30% of potential guests and the revenue that comes with them, with losses climbing even higher when OTAs dominate the digital space that should be showcasing your property. Investing in search, digital advertising, content and website optimisation helps capture demand before it's lost to competing channels.
Technology is equally important. Not every hotel has a large budget or a dedicated revenue team, but modern tools now enable properties of any size to make smarter commercial decisions. Targeted investment goes a long way. Beyond a strong booking engine, hoteliers should explore systems that use live demand signals, including occupancy, booking pace, local events, competitor activity and seasonality, to guide pricing dynamically rather than relying on gut instinct.
The results of this approach are evident across the continent. Profitroom data shows that direct bookings through our booking engine at African hotels increased by 107% between 2023 and 2025, growing from 78,927 bookings to 163,739. Over the same period, direct booking value more than doubled, rising by 102% from €31 million to €62.6 million. These figures demonstrate that when hotels invest in direct booking technology, digital visibility and guest-centric experiences, travellers respond well.
This growth further demonstrates that hotels across Africa are already embracing more sophisticated direct-booking strategies and seeing measurable results.
Going forward, the pricing conversation should no longer be about choosing between direct bookings and OTAs. It should focus on building a clear distribution strategy that works for your business – a framework that, once in place, becomes more valuable each time it is used.
In saying that, OTAs do remain valuable partners for expanding market reach and attracting guests who may not otherwise discover your property. The difference now is that hotels have greater autonomy in determining how those partnerships fit within their wider commercial strategy, rather than allowing distribution agreements to dictate pricing and distribution decisions.
OTA dependency is shifting, and for African hotels willing to act on that shift, the timing has never been better. In fact, the momentum is already building. Profitroom welcomed 147 new African hotel activations in 2025 alone, the highest annual total on record, reflecting growing demand for direct-booking strategies across the continent.
A William Gibson quote captures this sentiment well: "The future is already here; it's just not evenly distributed." Success in this shifting pricing landscape won't land in your lap, but with the right strategy and support, and a willingness to adapt, it is well within reach.
Profitroom's booking engine supports strategic and targeted pricing while helping hotels add genuine value for guests. It’s a good place to start: profitroom.com