A Path Forward: Reducing Digital Leakage in Tourism
Digital leakage is silently draining Australia’s tourism economy. With 85–90% of all accommodation bookings controlled by international platforms, local businesses lose millions in commission fees annually, limiting their ability to reinvest in their communities.
But what if there was a way to keep those dollars local—without sacrificing digital convenience?
The future of Australia’s tourism economy depends on solutions that prioritize direct bookings, strengthen local-first platforms, and empower business owners to reclaim control over their revenue.
How Businesses Can Reduce Dependence on Global Platforms
1. Prioritizing Direct Booking Strategies
Australian tourism operators can increase their revenue per booking by 60% simply by shifting sales from OTAs to direct channels. Instead of relying on third-party listings, businesses can: ✅ Optimize their website booking systems for mobile-first experiences ✅ Offer loyalty incentives for returning customers who book directly ✅ Leverage personalized marketing instead of mass-discount OTA models
Research shows that direct hotel bookings generate an average of $519 per transaction, compared to OTA bookings at just $320. By reducing reliance on commission-heavy platforms, businesses gain greater pricing control and higher profit margins.
2. Investing in Local Booking Ecosystems
Instead of funnelling traffic through overseas-owned marketplaces, local-first digital platforms can provide visibility without excessive fees. ✅ Regional booking portals can centralize tourism listings, reducing fragmentation. ✅ Commission-free models ensure revenue stays in local economies. ✅ Destination-focused apps can create seamless experiences while benefiting local operators.
Some regions are already moving toward local-first booking platforms, ensuring tourism dollars directly support businesses and local infrastructure—rather than disappearing into multinational corporations.
3. Advocating for Policy Change
Global OTAs dictate market conditions through pricing algorithms and commission structures, but government intervention could help level the playing field. 🔹 Transparent commission regulations can ensure fair pricing for operators. 🔹 Tax reforms can mitigate revenue leakage from foreign-owned platforms. 🔹 Support for digital transition grants can assist small operators in developing independent booking solutions.
In Europe, the Digital Markets Act (DMA) is forcing OTAs to allow businesses more pricing flexibility, reducing restrictions that previously prevented hotels from offering lower direct booking rates. South Australia could follow similar models to protect local tourism businesses from exploitative commission structures.
The Future of Australian Tourism
With international tourism spend exceeding pre-pandemic levels, Australia has an opportunity to retain more of its visitor economy—but it requires a shift in how businesses and policymakers’ approach digital strategy.
By fostering local-first solutions, reducing dependence on foreign platforms, and strengthening direct booking models, Australia can reclaim economic power and ensure tourism growth benefits the businesses that make it thrive.