Mastering hotel distribution in an era of regulatory gaps and AI disruption

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How shifting rules, powerful platforms, and emerging technologies are redefining control for hoteliers

Dec 3, 2025

Hotels are facing a distribution landscape where regulation, technology, and consumer behaviour are no longer aligned. The HSMAI Europe roundtable highlights how rate parity tensions, uneven regulatory enforcement, AI-driven commoditisation, and the rise of social commerce are reshaping competitive dynamics. Despite regulatory changes, OTAs still exert implicit power through algorithms, while AI platforms threaten to reduce hotels to price-driven listings. Hoteliers must rethink control, focusing on disciplined channel management, stronger direct booking foundations, and active management of price integrity across a fragmented ecosystem.

Key takeaways

The persistence of implicit parity: Even without formal parity clauses, OTA ranking algorithms pressure hotels to maintain aligned rates, limiting their ability to compete directly.
Uneven DMA enforcement: Booking.com faces gatekeeper obligations while Expedia does not, creating an imbalance rooted in quantitative thresholds rather than business practices.
Professionalised B2B distribution: Wholesalers like Hotelbeds now use strict rate controls, segmentation tools, and credential management to curb misuse and protect rate integrity.
AI-driven commoditisation risk: AI assistants may prioritise low price over brand value, weakening direct relationships and limiting hotels’ ability to differentiate.
Control varies by market maturity: Hotels in markets with strong direct strategies (e.g., Mallorca) report healthier OTA balance, while others remain deeply dependent on OTAs for volume and visibility.
Social platforms as booking engines: TikTok and Instagram are emerging as significant direct booking channels, reshaping how hotels reach and convert travelers.
Opaque reseller threats: Unauthorised third-party sellers undermine direct pricing, erode guest trust, and create operational friction through invalid or misleading reservations.