Rising OTA Commissions Push Hotels Toward Direct Bookings

Rising OTA Commissions Push Hotels Toward Direct Bookings

By Manu Vardhan Kannan

Published on March 4, 2025

For years, online travel agencies (OTAs) have dominated the hotel booking industry, controlling pricing, customer data, and charging commissions as high as 40%. However, hotels are now reducing their reliance on OTAs and embracing direct distribution channels to regain control and build stronger guest relationships.

With the rise of new technology, evolving consumer behavior, and regulatory shifts, the hospitality industry is set to redefine its distribution model. The future of hotel bookings lies in a balanced, guest-centric approach that prioritizes direct bookings, personalization, and innovation.

Key Industry Shifts

Healthier Channel Mix

  • Rising OTA commissions have made direct bookings a priority.

  • By 2030, direct digital bookings are expected to surpass OTAs, generating over $400 billion in revenue.

Personalization & Differentiation

  • Travelers are seeking more customized experiences, shifting focus from generic stays to experiential travel.

  • AI and data analytics are enabling hyper-personalized guest journeys and targeted marketing.

  • Loyalty programs are evolving beyond traditional point systems to offer personalized rewards based on guest preferences.

Customer-First Approach

  • OTAs often prioritize hotels that pay higher commissions, which limits true consumer choice.

  • Regulatory measures like the EU’s Digital Markets Act (DMA) are pushing for fairer distribution ecosystems by promoting transparency and competition.

End of Rate Parity Clauses

  • Legal rulings, including the EU Court of Justice decision, now allow hotels to set their own rates.

  • Hotels must invest in direct booking strategies using advanced pricing models and competitive technology.

Rise of Mobile Bookings

  • Over 50% of hotel bookings now come from mobile devices, making mobile-first design a necessity.

  • Previously, only OTAs and major hotel chains leveraged mobile apps, but new disruptive platforms are emerging to bridge this gap.

AI’s Role in Hotel Distribution

  • AI-powered tools such as chatbots, price optimization software, and personalized marketing solutions are driving direct bookings.

  • AI-driven platforms like D3X.ai and Allora.ai are already transforming the industry with intelligent booking systems and automated guest engagement.

The Future of Hotel Distribution

With hotels regaining control over pricing, data, and guest relationships, the industry is moving toward a more transparent, guest-friendly ecosystem. Direct booking strategies, AI-driven personalization, and mobile-first innovations will define the future of hotel distribution, ensuring a more sustainable and competitive marketplace.


Point Break Challenge Opens in Mahabalipuram as India's Top Surfers Compete in National Surf Series

Point Break Challenge Opens in Mahabalipuram as India's Top Surfers Compete in National Surf Series

By Hariharan U

Published on August 2, 2026

The Point Break Challenge got underway in Mahabalipuram, Tamil Nadu, marking Stop 3 of the Surfing Federation of India (SFI) National Surf Series, India's premier national surfing championship circuit. The opening day witnessed nearly 80 surfers from seven to eight coastal states competing across multiple categories.

The competition features athletes in the Men's Open, Women's Open, Under-18, and Under-14 divisions, with every heat contributing valuable points towards the national championship rankings.

Mahabalipuram's renowned right-hand point break provided ideal conditions for the opening day. Known for its long, peeling waves, the surf break offered competitors the opportunity to showcase high-performance surfing and extended rides, making it one of the most anticipated venues on the national calendar.

Among the standout performances, Shrikanth D led the Men's Open category with wave scores of 9.00 and 7.67, while Kishore Kumar dominated the Under-18 Boys division with scores of 9.33 and 8.17. His 9.33 emerged as the highest single-wave score recorded on the opening day. In the Under-14 Boys category, Prahalad Sriram topped the leaderboard with scores of 6.50 and 6.33.

As the third stop of the national championship circuit, the Point Break Challenge plays an important role in shaping the overall standings before the series moves to the Covelong Classic in Kovalam, Chennai, scheduled from 6–8 August.

Following the domestic circuit, Mahabalipuram will also host the WSL Shore Temple Classic from 12–16 August, giving Indian surfers the opportunity to compete on home waves in an international event.

The Point Break Challenge will continue until 1 August 2026 and is supported by the Sports Authority of India (SAI), the Sports Development Authority of Tamil Nadu (SDAT), and TT Group. The event is organised by the Surfing Federation of India (SFI) and the Tamil Nadu Surfing Association (TNSA).


Yes Madam Partners with CarryMen to Make Shopping More Comfortable with Complimentary Massages

Yes Madam Partners with CarryMen to Make Shopping More Comfortable with Complimentary Massages

By Manu Vardhan Kannan

Published on August 1, 2026

Yes Madam, India's leading at-home beauty and wellness platform, has partnered with CarryMen, India's on-demand human assistance platform, to introduce a unique shopping experience that blends convenience with wellness.

As part of the collaboration, shoppers using CarryMen's assistance service at Lajpat Nagar are invited to the CarryMen booth after completing their shopping, where trained wellness professionals from Yes Madam provide complimentary massages. The initiative is designed to help shoppers relax and recover after walking through busy markets and carrying heavy shopping bags.

image

The partnership combines CarryMen's assistance service with Yes Madam's wellness expertise to make shopping more comfortable from start to finish. While CarryMen helps shoppers manage heavy purchases, Yes Madam addresses the physical fatigue that often follows long hours of shopping.

By bringing together convenience and personal care, the two brands aim to transform a regular shopping trip into a more enjoyable and refreshing experience.

Commenting on the collaboration, Aditya Arya, Co-Founder and CEO, Yes Madam, said, "We, at Yes Madam, always believed that wellness should seamlessly become a part of people's everyday lives. Recognizing CarryMen's innovative approach to solving everyday consumer needs, we saw an opportunity to complement that experience with our expertise. This collaboration brings together convenience and care in a way that enhances the overall shopping journey. As we continue to innovate, our focus will remain on building solutions that don't just deliver services but enrich everyday experiences. Collaborations like these redefine how consumers experience convenience and wellness in their everyday lives."

The collaboration highlights how brands can work together to create meaningful consumer experiences by combining practical services with wellness. By making shopping both easier and more relaxing, the initiative sets a new benchmark for experience-led services in India's retail ecosystem.


Royal Ranthambore Whisky Reaffirms Tiger Conservation Commitment on World Tiger Day

Royal Ranthambore Whisky Reaffirms Tiger Conservation Commitment on World Tiger Day

By Hariharan U

Published on July 31, 2026

Royal Ranthambore Whisky, the premium whisky brand from Radico Khaitan Ltd., has reaffirmed its commitment to India's tiger conservation efforts on the occasion of World Tiger Day through its ongoing partnership with The Corbett Foundation.

The collaboration supports conservation initiatives focused on habitat restoration, biodiversity monitoring, veterinary care, livestock health camps, and community-led programmes that promote coexistence between wildlife and local communities living around forest landscapes.

India is home to more than 70% of the world's wild tiger population. According to the latest All India Tiger Estimation, the country's tiger numbers increased from 2,967 in 2018 to an estimated average of 3,682 in 2022, reflecting an annual growth rate of 6.1%. Since the launch of Project Tiger in 1973, the country's network of tiger reserves has expanded from nine to 58 reserves covering nearly 84,500 square kilometres across 18 states.

The company highlighted that nearly one-third of India's tigers now live outside designated tiger reserves, underlining the importance of wildlife corridors, habitat connectivity, and community participation in long-term conservation efforts. Protecting tigers also contributes to the preservation of forests and numerous other species that share these ecosystems.

Earlier this year, Royal Ranthambore introduced its Royal Ranthambore Heritage Collection, featuring six limited-edition collectible packs inspired by iconic Indian tigers and showcased through traditional Indian art forms. The collection combined wildlife conservation, storytelling, and cultural heritage while drawing attention to the legacy of India's celebrated tigers.

Commenting on the initiative, Kunal Madan, Chief Marketing Officer, Radico Khaitan Ltd., said the tiger has always been central to the Royal Ranthambore brand identity and represents India's rich natural and cultural heritage. He added that the partnership with The Corbett Foundation reflects the brand's commitment to supporting meaningful conservation efforts and preserving this legacy for future generations.

Launched in 2022, Royal Ranthambore Heritage Collection Whisky has emerged as one of Radico Khaitan's premium brands, receiving international recognition at the Monde Selection Awards and The Fifty Best. The brand also recorded more than 50% growth during FY2026, strengthening its presence in India's premium whisky segment

Stay up-to-date with the latest Hospitality news and trends in the Hospitality industry!

Subscribe to Hospitality news e-magazine for free and never miss an issue.

By clicking subscribe for free you agree to the Terms & Conditions and acknowledge our Privacy Policy.

Advertise With Us

We have various options to advertise with us including Events, Advertorials, Banners, Mailers, etc.