How do hotels make money from bookings via third party websites? As we all know that Online Travel Industry is totally depends on OTAs, so there may be lots of advantages that's why they are still in the field and I think they are doing good.
Initially, Online Hotel Booking Industry adopted the third party websites (OTAs), as a means to clear unsold inventories. However, the entry and rapid expansion of OTA's totally reshaped the travel industry. Initially, they had charged a commission of ~5 % to the hotels but day by day they made hotels reliant on them. Nowadays Online Travel Agencies are charging almost 30 % to hotels.
Hotels now rely heavily on OTAs for online sales. The increasing influence of OTAs over hotels has 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.