![]() Sure, the hotel makes less per booking paying higher commissions, but this keeps the occupancy high from their most valuable inbound destinations that they can only reach via the major OTA's. They also encourage hotels to activate promotions and discounts (IP based, mobile/app, seasonal campaigns etc) that they otherwise do not have the technology to implement. ![]() The hotel does not get a say in the matter but elasticity is huge so OTA's battle on getting the cheapest price and will reduce rates as far as reasonably possible within the bounds of the commission. However if the hotel had it their way, they'd be selling at >$90 (say $95). If a hotel loads in a rate at $100, and pay $15 commission, the OTA will not sell at $100 but might reduce the price to $90 and take only $5 in profit. OTA's have a incentive to reduce front end price and take only tiny commissions per booking (1-5%), because they work in volume. This is because OTA's usually sell far cheaper than the hotel wants, the hotel does not have final say on the pricing. More often than not, you will not save money booking direct with a hotel (unless it is a major chain). It saves you money, they get more money, and big companies get none. ![]() I work in the industry and in 2023 without OTA's many hotels would be fucked. I mean they are providing a service, and the fee isn't that crazy (~15%) considering they provide them most of their customers. Small places have to pay a ridiculous fee for sites like booking, agoda. ![]()
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