A consistently sold-out operator was paying out significant commission to affiliates they no longer needed. Long-standing relationships made it hard to change. Over time, we used data to refine their channel mix, ultimately saving this operator over 920k in paid commissions.
When I picked up this account I focused on their priorities first. They had affiliate pricing complexities, reporting needs, operational questions. I dug in, got things sorted, and showed up consistently. By the time I was ready to pitch a more challenging, likely contested recommendation, they trusted me.
That trust was the only reason the conversation was possible.
This operator was sold out. Consistently. Demand wasn't the issue. The issue was where those bookings were coming from and what it was costing them to get them.
A significant portion of their volume came through third-party affiliates, OTAs and resellers that took a commission on every booking. These were long-standing relationships. Comfortable. The affiliates felt like reliable partners, and walking away from them felt like burning bridges.
But the math said otherwise. When you're selling out anyway, every affiliate booking is a commission you paid for a customer who would have found you regardless. At that volume, the cost is significant.
I shared my observations that they were consistently sold out (they knew this) and 27% of their bookings were coming from affiliates who took anywhere from 15-30% commission. I asked them to look at the data together and think about what the right balance actually was. There's a difference between affiliates earning their commission by filling seats that would otherwise go empty, and affiliates filling seats at the expense of your margin when you were going to sell out either way.
The concern on their side was real: what if direct bookings don't replace them? What if volume drops? These aren't irrational fears. Affiliates feel safe because the bookings are visible and reliable. Direct growth feels less certain.
So we started small. Pulled back a little. Watched what happened. Shared the results. That pattern, move carefully, show the data, use it to build momentum, was the same approach I used on other accounts. When the first round worked, it became easier to commit to the next.
The operator had long-standing affiliate relationships they cared about. For them it was as much of a financial decision as it was a relationship decision. Respecting that, and not pushing them to make a dramatic cut all at once, was the only way this moved forward.
I used the same mindset here as I do throughout all my work: focus on the client's stated needs first, earn trust, then introduce the harder conversation once you've earned the credibility.