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.


Imagicaa Invites Couples to Celebrate Valentine’s Weekend with Thrills and Romance

Imagicaa Invites Couples to Celebrate Valentine’s Weekend with Thrills and Romance

By Manu Vardhan Kannan

Published on February 4, 2026

This Valentine’s season, Imagicaa Theme Park offers couples a refreshing way to celebrate love, where romance blends seamlessly with thrill and entertainment. From 13th to 15th February 2026, the park transforms into a vibrant destination designed for couples seeking memorable experiences filled with excitement, fun, and togetherness.

Set against the backdrop of high-energy rides, themed attractions, and lively entertainment, couples can rediscover their playful side as they explore the park together. Beautifully designed photo spots across Imagicaa provide the perfect setting to capture special moments, making the celebration both immersive and memorable.

As the day moves into evening, the atmosphere turns more intimate with specially curated candle-lit dining experiences near the Lagoon Area. Soft music and ambient lighting create a romantic setting where couples can unwind before concluding the night with Imagicaa’s spectacular musical fountain show, adding a magical finale to the celebration.

To make planning seamless, Imagicaa has introduced exclusive Valentine’s packages for couples. The Couple Package is available for two, includes theme park access, a romantic candle-lit dinner, two glasses of wine or mocktails, a photo souvenir, and a gift voucher. The package offers a complete day of adventure and romance within a single destination.

For couples looking to extend their celebration into a short getaway, Imagicaa’s Tent Camping experience is available at special price per couple. This experience includes theme park tickets, a one-night and two-day tent stay with water bottles, a romantic candle-lit dinner with wine or mocktails, and breakfast the following morning. With check-in on 14th February and check-out on 15th February, the experience combines comfort, adventure, and romance under the stars.

With its unique mix of thrilling rides, entertainment, dining experiences, and romantic settings, Imagicaa presents couples with an opportunity to celebrate Valentine’s Day as a shared adventure, creating moments filled with laughter, excitement, and lasting memories.

Event Details

  • Offer: Valentine’s Weekend Filled with Thrills

    • The Couple Package, available with special price for two from 13th to 15th February 2026

    • Tent Camping, available with a special price per couple on 14th February 2026 | 1 Night / 2 Days

  • Where: Imagicaa Theme Park, 30/31 Sangdewadi, Khopoli-Pali Road, Near Lonavala, Khalapur, 410203, Maharashtra, India.

  • When: 13 to 15 February, 2025.


ELIVAAS Crosses 620 Villas, Targets Portfolio Expansion in 2026

ELIVAAS Crosses 620 Villas, Targets Portfolio Expansion in 2026

By Manu Vardhan Kannan

Published on February 4, 2026

Luxury villa hospitality platform ELIVAAS has scaled its operational portfolio to approximately 620 villas within two years of launch, positioning itself among the fastest-growing organised players in India’s villa hospitality segment.

Since its inception, ELIVAAS has hosted over 3 lakh guests, with guest volumes growing 2.7 times between December 2023 and December 2025. This growth has been largely driven by increasing demand for group travel, private celebrations, and corporate offsites, as travellers seek exclusive and experience-led accommodation formats.

Despite rapid expansion, ELIVAAS has maintained stable operational performance. Around 95 percent of guest stays have received five-star ratings, reflecting consistency across service delivery, property management, and overall guest experience. The company attributes this performance to a balanced approach towards scaling supply while strengthening operational processes.

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Commenting on the growth journey, Ritwik Khare, Founder and CEO, ELIVAAS, said, “Scaling supply without compromising operations is the biggest challenge in villa hospitality. For a sustainable business, the three wheels of supply, demand, and guest experience and operations have to scale at the same pace. Guest feedback at this level gives us confidence as we move into the next phase of growth.”

ELIVAAS currently has a strong presence across North and West India, which continue to account for the majority of bookings. Alongside geographical expansion, the platform has focused on enhancing experience-led offerings across its portfolio. Most villas support services such as private chefs, spa treatments, customised décor, live entertainment, and concierge-led experiences, catering to leisure travellers as well as event-led stays.

Looking ahead, ELIVAAS plans to more than double its portfolio to over 1,200 villas in 2026. The expansion will be supported by sustained demand and deeper penetration across key leisure destinations and event-driven markets, reinforcing the brand’s long-term growth strategy in India’s evolving luxury hospitality landscape.


Union Budget 2026 Sparks Mixed Reactions Across Hospitality and Allied Sectors

Union Budget 2026 Sparks Mixed Reactions Across Hospitality and Allied Sectors

By Manu Vardhan Kannan

Published on February 4, 2026

The Union Budget 2026-27 has drawn varied responses from hospitality professionals and industry leaders, reflecting a balance between short-term operational challenges and long-term structural benefits. While the Budget signals continued support for infrastructure and domestic value chains, experts note that certain cost-related measures may impact pricing and margins within the hospitality ecosystem.

Anuj Mittal, Founder of Paprika Park, described the Budget as having a mixed impact on the food and beverage sector. He noted that select duty reductions could support domestic production and processing, while other measures may increase operating costs for eateries and cafes.

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“Indian Union Budget 2026-27 had a mixed impact on the food & beverage (F&B) sector: some production inputs and processing equipment became cheaper due to duty reductions (e.g., seafood processing inputs and microwave parts), supporting domestic value chains, while costs rose for others most notably commercial LPG for kitchens and imported coffee machines now facing higher duties which could push up prices for cafes and eateries. The Budget also continues to support broader agri-food infrastructure and supply-chain improvements, benefiting long-term F&B competitiveness.”

From a manufacturing and allied industry perspective, Suraj Mehta, Chief Strategy Officer at HNGIL, highlighted the positive implications of tariff rationalisation for India’s glass manufacturing sector, especially in the export market.

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“This tariff cut from 50% to 18% is a game-changer for India's glass manufacturing sector, particularly for container glass exports to the US, where demand in food & beverage, pharmaceuticals, and cosmetics packaging is robust. It levels the playing field against subsidized imports from other countries like China, potentially increasing our export volumes by 20-30% in the coming years.”

He further added that the move could encourage capacity utilisation, sustainable investments, and job creation across manufacturing hubs, aligning with India’s broader export ambitions.

Taken together, the reactions suggest that while hospitality and allied sectors may face selective cost pressures in the near term, the Union Budget 2026-27 lays the groundwork for long-term competitiveness, stronger supply chains, and global market integration. The coming months will reveal how businesses adapt these policy signals into growth strategies.

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