The Hidden Cost of OTAs: Chargebacks Hotels Didn’t Sign Up For

When hotels partner with Online Travel Agencies (OTAs), they expect bookings, visibility, and a bump in revenue. 

But what they often don’t expect is the silent sucker punch of chargebacks… until it’s too late. 

Steve Blidner, CEO of TTI Technologies, sat down to shed some light on this underreported hazard and how hotels can stop bleeding money from fraudulent bookings they never truly confirmed.

What to Know About OTAs and Chargebacks

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OTAs: The Convenience That Comes at a Cost

Hotels love OTAs for the pipeline of customers, but most don’t realize they’re playing blindfolded when it comes to chargebacks. OTAs typically collect the guest’s credit card info and pass the bare minimum data to the hotel. 

So when fraud shows up? The hotel can’t prove the guest was ever there.

“They send the hotel the minimum of whatever is necessary to process the reservation,” Blidner explains. “They’re going to retain that information for themselves.”

No email. No verified ID. No photos. 

And when things go south? 

The OTA steps aside and lets the hotel take the financial hit. It’s like being handed the check for a dinner you didn’t eat because someone else signed your name.

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Direct Bookings = More Control, Fewer Nightmares

Chargeback disputes through OTAs are nearly unwinnable because you’re operating without evidence. 

Direct bookings? That’s a different story.

Steve says, “With direct bookings, you have all the information and the picture of the person who was staying there to prove and fight the chargeback.”

Hotels that gather ID, match it to the booking, and keep proper records have a fighting chance. 

But with OTAs, you’re boxed out of that process, and the payment processors don’t care. No documentation? No defense.

Scan2PMS: The Chargeback Slayer Hotels Didn’t Know They Needed

So how do you fight back? Steve Blidner has a blunt answer: get a better system.

His tool of choice is TTI’s Scan2PMS, a software solution that captures verified guest documents and pushes them into the hotel’s Property Management System (PMS).

He says, “It’s a very inexpensive, extremely reliable software that detects thousands of documents from all over the world.”

Even a barcode-only version is available for local licenses. 

And it’s not just about chargebacks because Scan2PMS helps hotels actually own the guest relationship. Other benefits include the ability to enter the guest’s email into your system.

That means you can market directly to guests, which is something OTAs try very hard to prevent. 

It also helps with everyday operations: Lost key? No need to send staff rummaging through luggage to confirm identity. Pull up the guest photo. Problem solved.

Zero to Hero: A 400-Room Case Study

Blidner shared a story that hits close to home: a 400-room hotel in Manhattan struggling with endless OTA chargebacks.

“They instituted our program about six, seven years ago… since then, their chargeback issue has basically become nil.”

Zero-to-hero stories like this one are a reminder: hotels don’t have to settle for the status quo. OTA bookings without guest verification are a gamble—and more often than not, the house doesn’t win.

Stop Taking the Hit for OTA Ghost Guests

The OTA model is built for volume, not your bottom line. When fraud enters the picture, hotels are left holding the bag. Without ID verification and guest data capture, you’re defenseless in a chargeback dispute. And that’s a pricey place to be.

Blidner’s message to hoteliers is clear:

If you’re going to work with OTAs, protect yourself.

And if you want to take back control of your bookings, it might be time to stop handing over your keys—and your revenue—to platforms that don’t play fair.

Want Fewer Chargebacks and Safer Check-Ins?

Grab your free copy of The Ultimate Guide to Keeping Your Hotel Fraud-Free and see how ID scanners like Scan2PMS can help you stop fraud at the front desk, cut down chargebacks, speed up check-in and more. 

This guide is built for hotel owners, managers, and anyone tired of rolling the dice with OTA bookings.

Download the guide now and take control back—one scan at a time.

👉 Get the Guide

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