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.


The Aarlis Hotel Panchkula, a Vignette Collection Hotel by IHG, Opens in North India

The Aarlis Hotel Panchkula, a Vignette Collection Hotel by IHG, Opens in North India

By Manu Vardhan Kannan

Published on July 29, 2026

SSIEL Group has announced the opening of The Aarlis Hotel Panchkula, the first Vignette Collection hotel by IHG Hotels & Resorts. Owned and developed by SSIEL Hotels & Infrastructure Pvt. Ltd., a subsidiary of Shiv Shakti Inter Globe Exports Pvt. Ltd., the hotel marks a key milestone in the group's expansion into the hospitality sector.

Nestled in the scenic Shivalik Hills within the Chandigarh Tricity region, The Aarlis Hotel Panchkula offers a luxury lifestyle experience that combines contemporary design with the cultural essence of the destination. As part of IHG Hotels & Resorts' growing luxury lifestyle portfolio, the property embraces the Vignette Collection philosophy of celebrating the unique identity of each destination while delivering globally recognised hospitality standards.

The hotel features 145 guestrooms, including 11 suites, along with over 2,200 square metres of flexible meeting and event space. Guests also have access to a luxury spa, fitness centre, swimming pool and premium retail experiences.

Designed to cater to both business and leisure travellers, the hotel aims to become a preferred venue for luxury stays, corporate events, destination weddings and social celebrations across North India.

The Aarlis Hotel Panchkula also offers a range of curated dining and social experiences. These include Sapio, the all-day dining restaurant; Cabinet V (Luxury PDR), an exclusive private dining venue serving contemporary Indian and European cuisine; Wakerie, an artisanal café and patisserie; Jigger, a cocktail bar; and Sky VI, a rooftop destination overlooking the Shivalik Hills, which is scheduled to open in September.

With this launch, SSIEL Group strengthens its presence in the hospitality sector while bringing IHG Hotels & Resorts' Vignette Collection brand to North India for the first time.


Faasos Opens Its First Airport Store at Mumbai T2, Expanding Retail Presence

Faasos Opens Its First Airport Store at Mumbai T2, Expanding Retail Presence

By Author

Published on July 29, 2026

Faasos, the wraps brand from Rebel Foods, has expanded its retail footprint with the launch of its first-ever airport store at Chhatrapati Shivaji Maharaj International Airport (CSMIA) Terminal 2, Gate 45, Mumbai. The opening marks the brand's entry into the airport dining segment as it looks to strengthen its presence across high-footfall travel destinations.

The new outlet offers travellers access to Faasos' signature wraps and quick-service menu, catering to passengers seeking convenient dining options before departure or during transit. The menu includes the brand's Classic Wraps, Signature Wraps, Burger Wraps, Shawarmas, sides, and beverages.

Having served customers across India for more than two decades through its delivery-led business, Faasos continues to expand its omnichannel presence by bringing its offerings to offline retail locations. The Mumbai airport store represents a strategic step in extending the brand beyond home delivery and into travel-focused environments.

Commenting on the launch, Ankush Grover, Co-founder & Global CEO, Rebel Foods, said, "Every journey comes with its own moments, and we wanted Faasos to be part of those memories. Our first store at Mumbai T2 airport brings together everything our consumers love about us: bold flavours, convenience, and food designed for life on the move. Airports are places where experiences begin, and we are excited to bring the Faasos experience into this dynamic environment. From a quick pre-flight meal to a familiar favourite during a layover, this launch is about creating more opportunities for consumers to connect with the brand wherever their journeys take them."

The store has been designed to reflect the brand's identity through vibrant interiors, bold graphics, neon elements, and contemporary design, creating an engaging retail experience for travellers.

The launch forms part of Faasos' broader retail expansion strategy, strengthening its omnichannel presence while creating additional touchpoints for consumers beyond its established delivery network.


Amrit Bhawan to Host 'A Week of Wellness by the Ganga' This Monsoon

Amrit Bhawan to Host 'A Week of Wellness by the Ganga' This Monsoon

By Manu Vardhan Kannan

Published on July 26, 2026

Haridwar's heritage riverside retreat, Amrit Bhawan, is set to host 'A Week of Wellness by the Ganga' from 25 July to 1 August 2026, inviting guests to embrace a slower and more mindful way of travelling this monsoon. Open to all guests regardless of the length of their stay, the week-long programme combines wellness, relaxation, and meaningful riverside experiences in a peaceful setting.

The programme features a thoughtfully curated schedule of daily yoga sessions, personalised nutrition consultations with wellness expert Srishti Chatlani, massage therapies, wellness-focused meals, and interactive sessions covering Ayurveda, fermentation, gut health, herbal infusions, and everyday wellness practices.

Evenings will centre around the property's private ghat, where guests can take part in Ganga Aarti, heritage walks, documentary screenings, sound healing, meditation, and Yoga Nidra. These experiences are designed to help visitors reconnect with nature, local traditions, and themselves.

Speaking about the initiative, Varun Bajaj, Founder & Managing Partner, Ekat Travel & Lodging, said, "Wellness isn't something we wanted to package as a retreat or an escape. It already exists in the rhythm of this house, in the river, the slower pace of the day, shared meals and quiet moments by the Ganga. This programme simply creates more opportunities for guests to experience that rhythm with intention."

Guests can also choose from curated wellness packages based on the duration of their stay. The packages, available per night for up to two adults, include a range of wellness benefits such as massage therapies and personalised nutrition consultations.

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.