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.


Tree of Life to Open Heritage Resort in Pondicherry’s White Town

Tree of Life to Open Heritage Resort in Pondicherry’s White Town

By Manu Vardhan Kannan

Published on September 19, 2025

Indian Hotels Company (IHCL), India’s largest hospitality company, has announced the signing of a Tree of Life resort in Pondicherry. The brownfield project will restore and transform a heritage-listed property in the heart of White Town, reinforcing IHCL’s commitment to boutique hospitality.

Ms. Deepika Rao, Executive Vice President – New Businesses & Hotel Openings, IHCL, said, “Pondicherry’s unique blend of heritage and leisure makes it an ideal destination for the Tree of Life brand. As IHCL continues to scale brands that reflect evolving traveller preferences, Tree of Life is poised to meet the growing demand for slow travel and experiential stays. This signing reinforces our commitment to curating boutique experiences that offer authenticity and exclusivity. We are delighted to partner with Mr. Karthik Annamalai for this project.”

The 18-key heritage property sits at the junction of Rue Suffren and Bazaar Saint Laurent Street, close to New Sand Beach. Recognised earlier by Vieilles Maisons Françaises (VMF) as “Patrimoine Historique”, the resort will celebrate Pondicherry’s French colonial legacy. It will feature an all-day dining restaurant, a tranquil swimming pool, and a spa, designed as a retreat for relaxation and cultural immersion.

Mr. Karthik Annamalai, the project’s partner, added, “We are happy to partner with IHCL and pay tribute to the city’s timeless heritage through the Tree of Life experience.”

Mr. Karthik Annamalai is a reputed real estate developer in Pondicherry with a strong interest in boutique hotels. Here, guests will be able to explore Pondicherry’s vibrant offerings, including sun-kissed promenades, French-heritage cycling tours, colonial architecture, and thriving café culture.

With this addition, IHCL will have four hotels in Pondicherry, including three under development, further strengthening its presence in the city. 


Tata Play Launches Cartoon Network Forever to Bring Back Beloved Classics

Tata Play Launches Cartoon Network Forever to Bring Back Beloved Classics

By Hariharan U

Published on September 19, 2025

Tata Play is turning back the clock for cartoon lovers with the launch of Cartoon Network Forever, in partnership with Warner Bros. Discovery. This ad-free service brings back iconic Cartoon Network shows, making them available 24x7 for audiences of all ages on Tata Play and the Tata Play Mobile App.

Fans can enjoy timeless classics like Tom & Jerry, Scooby Doo, Baby Looney Tunes, Dexter’s Laboratory, The Powerpuff Girls Classic, Ed, Edd n Eddy, and Codename: Kids Next Door. For DC fans, the service also features animated favourites such as Batman, Superman, Justice League, and Green Lantern. Available in both English and Hindi, the service ensures uninterrupted entertainment.

Speaking on the launch, Pallavi Puri, Chief Commercial and Content Officer, Tata Play, said, “Tata Play is thrilled to bring back the timeless classics that have been an integral part of so many children. Cartoon Network Forever offers something special for every household, whether reliving nostalgia or introducing these beloved shows to a new generation.”

Arjun Nohwar, Managing Director, South Asia, Warner Bros. Discovery, added, “Cartoon Network Forever is a new destination for fans to rediscover iconic characters. From Tom & Jerry to Samurai Jack and The Powerpuff Girls, we aim to make the magic of Cartoon Network timeless, accessible, and enjoyable for all.”

Cartoon Network Forever is part of Tata Play’s wider commitment to high-quality, curated content across 50+ value-added services, covering entertainment, kids, learning, regional programming, and devotion. The platform ensures viewers of all ages have access to engaging, emotionally resonant content anytime, anywhere.

For More Information:
Visit Tata Play (formerly Tata Sky) to explore Cartoon Network Forever and other value-added services.


Eight Continents Expands Ocho Homes with New Properties in Belfast and Navi Mumbai

Eight Continents Expands Ocho Homes with New Properties in Belfast and Navi Mumbai

By Manu Vardhan Kannan

Published on September 18, 2025

Eight Continents Hotels and Resorts, a luxury hospitality and hotel management group redefining bucket-list travel, has strengthened its Ocho Homes brand with the addition of two new extended-stay properties, one in Belfast, United Kingdom, and another in Parsic Hill, Navi Mumbai, India. The development underscores the group’s mission to provide luxurious, convenient, and home-like stays for modern travellers.

The new Ocho Homes property in Belfast features seven elegantly designed rooms, enhancing the brand’s presence in a city renowned for its rich cultural heritage and thriving business community. This addition brings the total number of Ocho Homes properties in Belfast to two, complementing the existing Wellesley Avenue property.

In India, Ocho Homes Living Belapur makes its debut with ten well-appointed rooms in the Parsic Hill area of Navi Mumbai. Located just 22 km from Navi Mumbai Airport and near key landmarks like DY Patil Stadium, the property offers travellers excellent connectivity. Guests can choose from two stay categories: Living and Lux, tailored to suit varied preferences within the extended stay segment.

Ocho Homes stands apart by offering more than just accommodation. With flexible stay options, thoughtfully designed interiors, and a focus on community-driven experiences, it appeals to corporate travellers, expatriates, and leisure guests alike. The emphasis on well-being, connectivity, and local character ensures every stay is both comfortable and memorable.

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Haninder Sachdeva, CEO of Eight Continents Hotels and Resorts, said:

“The addition of two new properties under the Ocho Homes portfolio reflects our focus on building a brand that travellers can consistently trust for extended stays. Our approach is centred on creating thoughtfully designed spaces that balance convenience with comfort, while also carrying the character of the destinations they are part of. By strengthening the Ocho Homes identity across both established and emerging markets, we are ensuring the brand remains a preferred choice for guests looking for reliability, style, and a sense of belonging during their travels.”

With these latest openings, Eight Continents continues to expand the Ocho Homes portfolio across strategic markets in Asia and Europe, aiming to serve the growing demand for extended stay hospitality. By combining innovation, comfort, and personalised service, the brand seeks to set new benchmarks in the evolving landscape of luxury travel.

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