As Airbnb and Booking.com move into high-margin services, hotels risk losing control—unless they rethink distribution, partnerships, and guest experience
Jun 9, 2025
The hotel industry is confronting a new competitive reality as Online Travel Agencies (OTAs) like Airbnb and Booking.com transform into lifestyle marketplaces. No longer just platforms for room bookings, these tech-driven giants are aggressively expanding into high-margin ancillary services—spa treatments, local tours, dining experiences—that traditionally helped hotels boost profits and differentiate their offerings. As alternative accommodations and bookable experiences become increasingly bundled, hotels face a pivotal question: how to retain control over their commercial future in an evolving digital marketplace?
Key takeaways
OTAs are becoming lifestyle platforms
- Airbnb is evolving into a holistic travel ecosystem with bookable services like chefs, wellness treatments, and tours.
- Booking.com is pushing its “Connected Trip” strategy—integrating accommodations, transport, and experiences into one seamless journey.
- Vrbo is staying traditional, focusing on whole-home rentals for families but lagging in experiences and service integration.
Threat to hotel ancillary revenues
- Ancillary services represent up to 30% of hotel revenue. OTAs are now targeting this revenue stream directly, risking hotel disintermediation.
- These platforms offer scale, convenience, and bundling options that appeal to modern travelers, especially in leisure segments.
Strategic hotel responses
- Platform partnerships: Hotels may consider listing their services on platforms like Airbnb to access their large user bases—but this comes at a cost (commission, data loss).
- Direct differentiation: Building unique, high-touch experiences and loyalty ecosystems through direct channels remains a key competitive edge.
- Revenue innovation: Concepts like RevPAM² and RevPAG suggest monetising space and guest engagement more dynamically, aided by AI and local partnerships.
Quality assurance is the new battleground
- Booking.com leads with machine learning-powered quality ratings across 400+ property attributes.
- Airbnb emphasizes reviews and social community features, while Vrbo lacks sophisticated quality controls.
The bigger picture
- OTAs are not just distributing rooms—they’re shaping how travel is imagined and consumed.
- Hotels must shift mindset from “room sellers” to “experience orchestrators” to stay relevant in this new marketplace dynamic.
Get the full story at White Sky Hospitality
