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.


IHG Signs InterContinental Eros New Delhi Nehru Place

IHG Signs InterContinental Eros New Delhi Nehru Place

By Manu Vardhan Kannan

Published on April 1, 2026

IHG Hotels & Resorts has announced the signing of a management agreement with Eros Group (Nehru Place Hotels Pvt Ltd) to introduce InterContinental Eros New Delhi Nehru Place. The 216-key hotel is set to reopen under the InterContinental brand after a planned renovation, which is expected to be completed in 2029. This move aligns with IHG’s focus on expanding its luxury and lifestyle portfolio across key destinations in India.

Located in Nehru Place, one of Delhi’s busiest business districts, the hotel is positioned to cater to both corporate and leisure travellers. The area’s mix of offices, embassies, and well-known attractions makes it a strong location for a luxury hospitality offering.

InterContinental Hotels & Resorts, known as one of the world’s leading luxury hotel brands, continues to grow its presence globally and in India. With a strong pipeline and recent signings in destinations like Kasauli and Kodaikanal, the brand is steadily building its footprint across both city and resort locations. This latest signing in the national capital marks another important step in its growth journey in India.

Commenting on the announcement, Sudeep Jain, Managing Director, South West Asia, IHG Hotels & Resorts said, “We are delighted to once again partner with Eros Group (Nehru Place Hotels Private Limited) to bring our global luxury brand, InterContinental to the national capital. South Delhi’s blend of corporate offices, embassies, and landmark attractions makes it an ideal location for a hotel of this caliber. Further strengthening our existing association with Eros Group, we look forward to creating a destination that supports both business and leisure demand while offering a luxury hospitality experience to our discerning guests.”

He further added, “Delhi is one of the most stable hospitality markets in the country and is characterized by a robust occupancy and ADR. With InterContinental Eros New Delhi Nehru Place, we will be positioned to strengthen our presence in one of India’s most vital economic hubs and deliver world-class hospitality.”

The hotel will feature 216 guest rooms and suites, along with multiple dining options including restaurants, a bar, and a lobby lounge. It will also offer extensive meeting and event spaces, including a grand ballroom, smaller meeting rooms, and landscaped outdoor areas suited for weddings and corporate events. Guests can also expect premium recreational facilities such as a spa, health club, and swimming pool designed for relaxation.

Mr Satish Sood, Managing Director, Eros Group (Nehru Place Hotels Pvt Ltd) added, “We are proud to further strengthen our existing relationship and again partnering with IHG Hotels & Resorts to bring the InterContinental brand back to this iconic site. We are confident the hotel will be a great success - InterContinental Hotels & Resorts is a true industry leader in luxury hospitality that resonates with discerning travelers all over the world. Additionally, we are certain leveraging IHG's enterprise systems and loyalty program will maximize returns and strengthen our competitive advantage. This partnership aligns with our long-term vision of developing landmark hospitality assets in India’s most dynamic cities, and we look forward to welcoming our guests as we open doors as the “InterContinental Eros” hotel.”

Originally launched in 1996 and previously managed under the InterContinental brand, the property later operated as Eros Hotel New Delhi before this new agreement. Its location offers easy access to Nehru Place Metro Station and is within a 30–35 minute drive from Indira Gandhi International Airport. It is also close to popular landmarks such as the Lotus Temple and Kalkaji Mandir, making it a convenient stay option for travellers.

With this signing, IHG continues to strengthen its presence in India, where it currently operates 51 hotels across six brands and has a strong pipeline of upcoming properties. The company aims to significantly expand its portfolio in the coming years, targeting over 400 hotels across the country.


Essentia Group Opens Essentia Resort & Spa in Sirsi

Essentia Group Opens Essentia Resort & Spa in Sirsi

By Manu Vardhan Kannan

Published on April 1, 2026

Essentia Group of Hotels & Resorts has officially announced the grand opening of Essentia Resort & Spa, Sirsi, marking a new addition to the region’s hospitality landscape. Set along the Hubli - Sirsi main road, the property offers easy connectivity between Bangalore and Goa, making it a convenient getaway for travellers looking to unwind in nature.

Surrounded by the lush greenery of northern Karnataka, the resort is designed as a peaceful retreat where natural surroundings blend seamlessly with modern design. The property features 40 keys, including exclusive suites, each thoughtfully planned to offer comfort along with a clean and contemporary look. Every space reflects a balance of style and functionality, staying true to Essentia’s approach to creating meaningful guest experiences.

Dining at the resort brings together a variety of flavours. Guests can enjoy a mix of global and regional dishes at Citron, the all-day dining restaurant, or explore vegetarian specialties at The Indian Leaf, known for its signature thali. For a more relaxed setting, Nirvana Lounge Bar offers an indoor space ideal for drinks and quiet conversations.

The resort is also well-equipped to host celebrations and gatherings. From the spacious Omkar Lawn, noted as the largest in Sirsi, to an elegant ballroom and flexible convention hall, the venues cater to weddings, social events, and corporate functions. At the same time, the location allows guests to explore nearby attractions such as waterfalls, temples, and wildlife sanctuaries, adding to the overall experience.

The grand opening saw the presence of industry leaders, guests, and local dignitaries, marking an important milestone for the brand in the region.

Speaking on the occasion, Mr. Mohammed Parvez, CEO, Essentia Group of Hotels & Resorts, shared, "The opening of Essentia Resort & Spa, Sirsi is a significant milestone in our journey to create immersive and meaningful hospitality experiences. Inspired by Sirsi’s natural beauty and cultural richness, we envisioned a destination that feels both contemporary and deeply connected to its surroundings. This resort reflects our commitment to intuitive service, thoughtful design, and experiences that resonate with today’s discerning traveler.”

With this launch, Essentia Resort & Spa, Sirsi aims to offer a well-rounded stay experience, combining comfort, location, and thoughtful hospitality, while setting a new direction for experiential stays in Karnataka.


IHCL Opens Tree of Life Shambala in Yercaud

IHCL Opens Tree of Life Shambala in Yercaud

By Manu Vardhan Kannan

Published on March 31, 2026

Indian Hotels Company (IHCL) has announced the opening of Tree of Life Shambala, Yercaud in Tamil Nadu, adding a new destination to its growing portfolio of experiential stays.

Sharing her thoughts on the launch, Ms. Deepika Rao, Executive Vice President – Hotel Openings & New Businesses, IHCL said:

“Tree of Life offers guests immersive experiences rooted in nature, wellness and a sense of place. As the brand continues to expand its footprint, Tree of Life Shambala reflects our philosophy of mindfully curated experiences that encourage a deeper connection with the destination.”

Set amidst calm surroundings, the 25-key Tree of Life Shambala, Yercaud is designed as a peaceful retreat for rest and relaxation. Inspired by the mythical Buddhist land of Shambala, often described as a hidden space of peace and joy, the resort focuses on creating a setting that encourages guests to slow down and reconnect.

Dining at the resort is led by The Fig Tree Place, which offers a menu based on fresh, seasonal, and locally sourced ingredients. Overlooking the gardens, the restaurant provides a relaxed space for guests to enjoy their meals in a natural setting.

The property also features a swimming pool, spa, yoga centre, conference hall, outdoor recreational activities, and walking paths through the plantation, allowing guests to experience the surroundings at their own pace.

Located in the scenic Shevarayan hills, Yercaud is known for its natural beauty and calm environment. Guests staying at the resort can explore nearby attractions such as Yercaud Lake, Kiliyur Falls, and the Botanical Garden.

For more information visit Tree of Life Shambala, Yercaud

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