OTAs challenge hoteliers, especially smaller ones, with high commissions, restrictive contracts and unlicensed property listings.
Jan 22, 2025
According to a recent panel discussion at the ASEAN Tourism Forum 2025, OTAs play a critical role in the travel ecosystem, but their impact varies depending on the type of hotel and its business model. Striking a balance between innovation, fairness, and regulation is key to fostering a healthy, competitive industry.
Key takeaways
- While OTAs bring in customers, many smaller hoteliers struggle with profitability due to high commission rates, restrictive contracts, and limited control over guest interactions;
- Larger OTAs and digital companies with deep pockets can squeeze out smaller players by aggressively lowering and later raising prices, potentially harming budget travelers and stifling competition;
- Ongoing dialogue between OTAs, hoteliers, and regulators is essential to ensure fair business practices, compliance, and sustainable growth in the tourism sector.
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