Lifestyle

“Exclusive Benefits Only Here”… Hotels Are Also Stepping Up Their Own Apps

Major Hotel Chains, Including HotelShilla and Lotte, Revamp Their Official Websites Member-Exclusive Pricing and Package Benefits… Plus Guides to Popular Attractions Aiming to Secure Customer Data Beyond Reducing OTA Fees Aiming to Strengthen Global Direct Sales Competitiveness…Providing a Consistent Brand Experience

Kim Ji-woo
2026-07-20 17:06:55
[Edaily Reporter Kim Ji-woo ] Major hotels are strengthening their competitiveness in “direct bookings” by successively revamping their official websites and mobile apps. Their strategy is to acquire new customers through online travel agencies (OTAs) while using benefits exclusive to official channels to convert repeat customers into members of their own loyalty programs. This move is seen as an effort to reduce the burden of OTA commissions while securing control over customer data and product sales.

Example of a hotel website booking screen. (Photo: Image generated by ChatGPT)

According to the hotel industry on the 20th, HotelShilla(008770)revamped its official website and mobile app on the 7th. It is reported that bookings made through the official website have increased compared to the same period last year following the revamp.

HotelShilla operates an “Offers” menu that provides exclusive rates and benefits to members of its free loyalty program, “Shilla Rewards.” It has also introduced a “Rate Calendar” that allows users to compare room rates for their desired dates at a glance, as well as a pre-payment feature that reduces wait times on the day of check-in.

A new “Experience” menu has also been added, introducing activity programs specific to each hotel, nearby tourist attractions, and regional attractions. This move expands the official website beyond a simple room reservation portal into a platform where customers can plan their entire travel itinerary—both before and after their stay.

Lotte Hotel & Resort recently consolidated the official websites for its hotels and resorts, which had previously been operated separately. This allows customers to browse hotel and resort offerings all at once on a single website, based on their location and purpose of stay.

Lotte Hotel & Resort is also expanding the benefits of its free membership program, “Lotte Hotel Rewards.” It offers points to new members and periodically holds time-limited sales exclusively for members. In addition, private-label (PB) products—such as Lotte Hotel kimchi and in-room bathroom amenities—are available to members at special prices. Thanks to these efforts, the company became the first domestic hotel brand to surpass 3 million members last October and is now on the verge of reaching 4 million.

Screenshot of the Lotte Hotel & Resort app. (Photo courtesy of Lotte Hotel & Resort)

The direct reason hotels are strengthening their official channels is the commission fees paid to online travel agencies (OTAs). The industry estimates that OTA commission fees typically amount to 15% or more of room sales revenue. Costs borne by hotels can increase further if they participate in advertising or top-placement programs. Consequently, even when selling the same rooms, reservations made through OTAs generate less profit for the hotel than those made via the official website, as the hotel must pay the commission fee.

However, OTAs serve as a key sales channel for attracting new customers and foreign tourists, as they allow users to compare prices, locations, and guest reviews across multiple hotels at once. This is why hotels find it difficult to sever ties with OTAs even as they strengthen their official websites. It is reported that for some hotels in downtown Seoul, bookings made through OTAs account for about half of all room reservations.

As a countermeasure, hotels are utilizing OTAs as a distribution channel to acquire new customers while operating their official websites to retain loyal customers. They aim to retain customers as long-term members by offering member-exclusive rates, point rewards, room upgrades, and discounts on breakfast and food and beverage.

Another objective is to gain control over customer data and product offerings. While rooms on OTAs are primarily compared based on price, ratings, and location, official websites allow hotels to freely create exclusive packages that combine room views, food and beverage perks, and experiential programs. It also makes it easier to suggest personalized offers based on a customer’s booking history and preferred products.

Strengthening official websites is also seen as a foundation for becoming a global hotel brand. If international guests can view and book rooms, amenities, and membership benefits without going through a specific OTA, it becomes easier to expand direct engagement with global customers. By enhancing multilingual services, integrated reservation systems, and region-specific travel content, hotels can improve accessibility for international guests and provide a consistent brand experience regardless of location.

An industry insider stated, “As OTA commissions weigh on profitability, hotels are strengthening benefits exclusive to their official channels,” adding, “Rather than completely breaking away from OTAs, this is a strategy to increase the proportion of direct bookings, reinvest the savings into customer benefits, and secure loyal customers and direct-booking competitiveness.”

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