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.


Air India and Lufthansa Group Sign Landmark MoU to Advance Joint Business Partnership

Air India and Lufthansa Group Sign Landmark MoU to Advance Joint Business Partnership

By Manu Vardhan Kannan

Published on February 18, 2026

Air India and Lufthansa Group have signed a landmark Memorandum of Understanding (MoU), creating a formal framework to explore a joint business partnership between the two airline groups. The agreement covers Air India’s and Lufthansa Group’s carriers and subsidiaries, including Air India Express, Austrian Airlines, Brussels Airlines, ITA Airways, Lufthansa, Swiss International Air Lines (SWISS), and other affiliated airlines.

Building on existing codeshare agreements and their shared membership in Star Alliance, the MoU allows both groups to jointly explore ways to strengthen connectivity between India and major European markets. The aim is to offer travellers more connected and consistent travel experiences across some of the world’s busiest routes, with seamless journeys on a single ticket.

The MoU was signed by Campbell Wilson, Chief Executive Officer and Managing Director of Air India, and Carsten Spohr, Chairman and Chief Executive Officer of Lufthansa Group. The agreement also seeks to leverage opportunities created by the recent conclusion of the landmark India–European Union Free Trade Agreement.

Subject to regulatory and anti-trust approvals, the partnership will explore collaboration across several strategic areas. These include coordinated route planning and aligned flight schedules in select markets to improve customer convenience and connectivity. The airlines also plan to work together on joint sales, marketing, and distribution initiatives.

Further cooperation would extend to enhancing customer experience through closer coordination in areas such as frequent flyer programmes, IT infrastructure, customer journey design, quality assurance, and other mutually beneficial initiatives aimed at making travel easier and more consistent for passengers.

Initially, the MoU focuses on increasing passenger traffic between Air India’s home market of India and Lufthansa Group’s core home market region, which includes Germany, Austria, Belgium, Italy, and Switzerland. The framework also proposes future expansion to cover the rest of Europe and the Indian subcontinent. The exact scope, including specific routes and markets, will be finalised once a comprehensive joint business agreement is established, subject to regulatory approvals.

Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG and Chief Executive Officer of the Lufthansa Group, said:

"Today's agreement with our long-standing Star Alliance partner Air India is a strong signal of our mutual determination to open a new chapter in aviation between the EU and India following the landmark trade agreement between both economic regions. Together with Air India, we will strengthen our access to the aviation market with the highest growth rates worldwide. The Lufthansa Group is already the most successful and most popular European airline group among customers in India. In the future, we will contribute to deepening economic and cultural relations between India and Europe with even more connections. With our new long-haul aircraft and Lufthansa Allegris and SWISS Senses on board, we are offering a significantly improved premium travel experience in all classes on more and more routes, including to India.”

Campbell Wilson, Chief Executive Officer and Managing Director, Air India, said:

“This milestone in our deepening relationship with the Lufthansa Group is great news for travellers and enterprises alike between India and Europe. As Air India continues to expand its global footprint with a fast-modernising fleet and transformed product and service offerings, this framework enables us to explore closer cooperation on multiple fronts to meet the growing trade, commerce, and people-to-people ties between our respective regions. This would unlock greater value for our common customers and respective shareholders, and we look forward to progressing these initiatives together with the Lufthansa Group.”

Air India and Lufthansa Group carriers currently codeshare on 145 routes across 15 Indian and 29 European cities in 20 countries. In February 2025, both groups announced an expansion of their codeshare agreements involving Air India, Lufthansa, SWISS, and Austrian Airlines.

India and the European Union are among the world’s strongest economies, together accounting for nearly 25% of global GDP. According to the European Commission, the EU is India’s largest trading partner for goods, with bilateral trade exceeding €120 billion in 2024. India is also the EU’s ninth-largest trading partner, representing 2.4% of total EU goods trade in the same year.

Since its privatisation in 2022, Air India has significantly expanded its global alliance network. The airline now maintains 24 codeshare partnerships and nearly 100 interline agreements, providing access to over 800 destinations worldwide.

The Lufthansa Group is the fourth-largest airline group globally by revenue and fleet size. It operates five national airlines across key European markets, along with other travel-focused airlines, Lufthansa Cargo, Lufthansa Technik, and more than 300 subsidiaries and affiliated companies. In 2024, the group carried over 131 million passengers, offering access to the largest airline network in Europe.


Smarter Hotel Communication with Samsung Signage by Palaniappa electronics

By Manu Vardhan Kannan

Published on February 17, 2026

Clear and timely communication plays a key role in shaping a guest’s experience at any hotel. Samsung Signage Displays: QB, QM, and QH series, that are designed to make this communication smarter, faster, and visually refined. Presented by Palaniappa electronics, these displays help hotels showcase information, promotions, and event updates in a seamless and professional manner, while also easing the workload for marketing and IT teams.

Built for flexibility, Samsung Signage supports both horizontal and vertical orientations, allowing hotels to design content based on the space available. With Samsung’s Content Management Software, teams can schedule content in advance, update displays instantly, and control everything remotely with just a system and internet access. This eliminates the need for manual updates and reduces operational effort.

Marketing and IT teams no longer have to redesign layouts repeatedly, carry pen drives to each screen, or depend on unstable third-party media players with complex wiring. With ready-made templates, centralized control, and reliable built-in media players, the system ensures consistent branding across the property while saving time and reducing errors.

Across hotels, Samsung Signage Displays serve multiple touchpoints. In lobby areas, they can display banquet schedules, welcome messages, and promotional offers. At banquet hall entrances, they guide guests with event names and agendas. Fine-dine restaurant entrances can highlight menus, offers, and timings. Lift lobbies can share hotel information and in-house promotions, while spa and pool areas can present service details, safety information, and operating hours. Each display can run location-specific content, scheduled according to time or event, ensuring that guests always receive relevant updates.

For spaces where wall mounting may not be feasible, Palaniappa electronics provides elegant integration solutions. These include floor-standing kiosks, A-type kiosks, and K-type kiosks that enhance visibility while adding a modern and fashionable touch to hotel interiors. Ideal for lobbies and high-traffic areas, these solutions combine stability with strong brand presence.

With long years of expertise in hospitality based electronics and bringing quality products that define long lasting function for years, Palaniappa electronics continues to be trusted by many customers for reliable and durable solutions.

For hotel owners, GMs, and marketing teams, Samsung Signage Displays offer a clean, scalable, and professional communication platform without unnecessary complexity. Hotels still relying on pen drives or third-party media players can now consider upgrading to a more streamlined system.

For more details, contact Palaniappa Electronics | Mr. Muthu at 9003045685 or muthu@palaniappagroup.com.


Boost to India’s Hospitality Sector: JK Lakshmipat University Students Honoured for ITDC Systems Design Project

Boost to India’s Hospitality Sector: JK Lakshmipat University Students Honoured for ITDC Systems Design Project

By Author

Published on February 17, 2026

In a moment of pride for design-led education in India, five students from the Institute of Design at JK Lakshmipat University (JKLU) were felicitated for their Systems Design project developed for the Taj Restaurant under the India Tourism Development Corporation (ITDC). The honour was conferred by Union Minister for Tourism Gajendra Singh Shekhawat on 13 February at The Ashok Hotel, New Delhi.

The recognition highlights the growing importance of industry-linked academic projects and the role of design thinking in addressing complex, real-world systems within India’s hospitality and tourism sector. The project reflects how academic institutions are increasingly contributing practical solutions to public-sector organisations.

The interdisciplinary student team included Harsh Warrier, Susnitha Sivaraju, Yashika Bhatt, Rashi Bhagre, and Ritika Malik. The project was carried out under the mentorship of Binil Mohan, Assistant Professor at the Institute of Design, JKLU. The team conducted extensive initial research for both the Taj Mahal and ITDC, which formed the foundation for the systems design interventions proposed.

The final presentation was divided into three well-defined segments. The first segment focused on research related to the Taj Mahal, followed by the development of a solution framework led by Harsh Warrier, Rashi Bhagre, and Susnitha Sivaraju. The second segment presented research and detailed solutions for India Tourism Development Corporation, developed by the same team members. The final segment showcased the specific solution work and contributions undertaken by Ritika Malik.

“The felicitation is a proud moment for the university and underscores the impact of industry-linked, research-driven design education in addressing complex systems,” said A Balasubramaniam, Director, Institute of Design, JKLU.

The recognition reinforces JKLU’s commitment to interdisciplinary collaboration, academic excellence, and meaningful engagement with industry partners. It also stands as a testament to the quality of work being produced by students at the Institute of Design.

The students were felicitated during a double commemoration event celebrating 60 years of ITDC and 70 years of the Ashok Hotel. Union Minister for Tribal Affairs Jual Oram also graced the ceremony with his presence.

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