As we all know that total hotel booking Industry is depended on OTAs. Why are hotels reliant on third-party booking sites? What is an alternative for it?
This a serious concern for the future of Hotel Industry. Actually this is true that Hotels are reliant on OTAs , just because they have not any other option they have to full fill all irrelevant demands. OTAs are providing business to Hotels and charge a huge amount of commission. The online travel agents business model was initially adopted by hotels as a means to clear unsold inventories.
As we all know that the entry and rapid expansion of OTA's are reshaping the travel industry. Hotels now rely heavily on OTA's for online sales. The increasing influence of OTAs over hotels had severe effects on hotel margins, especially for smaller hotel brands. While larger hotel chains are able to negotiate lower commissions given their global exposure and market strength. Independent brands face OTAs commissions as high as 30% of the room fee. At that time Hotels had not any other option to get the business.