Bookings Rise, Profits Fall: The Glamping Business Dilemma in the Era of Dominant OTAs

blog-image

The glamping business in Indonesia is on the rise. Tourists' interest in unique, nature-focused experiences has led to a steady increase in occupancy rates at many glamping properties. However, behind the high booking numbers, there's a fact that's often overlooked: net profits are actually dwindling due to high commissions from OTA (Online Travel Agent) platforms.

Many glamping businesses experience this irony: bookings are high, but profits are muted. So, what's really happening?

Pros of Using OTAs:
Wide reach: OTAs like Booking.com, Agoda, and Airbnb have a global user base that can help expand your glamping market.
Automated systems: Reservation management becomes more efficient with integrated notification systems, calendars, and online payments.
Trust-building: A property's reputation improves thanks to credible reviews from previous guests.

Cons of OTAs:
High commissions: Commissions of 15–25% per reservation can significantly reduce profit margins.
Lack of brand control: Guests are more loyal to OTAs than your own glamping brand.
Fierce price competition: The sheer number of listings means you have to compete with low prices to stay visible.
Risky dependency: If your OTA account is restricted or deleted, your booking flow could immediately stop.

Rather than relying on a single source, glamping businesses need to develop a comprehensive marketing strategy:

An official, SEO-optimized website
A user-friendly booking engine
Digital advertising (Google Ads, Meta Ads)
Email marketing & retargeting strategies
Collaboration with travel influencers

Don't let your brand be known solely through OTAs. Build your own identity and control the flow of reservations from multiple sources. ecommerceloka is ready to help your glamping business escape the trap of high commissions. Our team is experienced in developing digital sales strategies for hospitality businesses to become more independent and sustainable.