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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.
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Published on January 18, 2026
Rebel Foods, the master franchise holder for Wendy’s in India, has announced the launch of two new Wendy’s dine-in restaurants in Gujarat, located in Ahmedabad and Anand. The move further strengthens the brand’s footprint in the state, which continues to emerge as an important growth market for organised quick service restaurant brands.
The newly opened outlets are designed to cater to both dine-in and takeaway customers, offering modern and welcoming spaces that reflect Wendy’s bold and flavour-forward brand identity. With this expansion, Wendy’s brings America’s Most Loved Burgers closer to consumers in Gujarat, aligning with the growing demand for global food experiences in the region.
Customers at the new Gujarat locations can enjoy Wendy’s globally popular Frosty dessert, along with a diverse menu that offers one of the widest flavour ranges in the Indian gourmet QSR segment. The menu features global inspirations such as Argentina’s Chimichurri, Louisiana’s Cajun, Korean fiery Buldak, American BBQ, India’s Tandoori, and Mexico’s Nachoburg, offering a truly international burger experience under one brand.
Commenting on the expansion, Ankush Grover, co-founder & global CEO of Rebel Foods, said, “Gujarat continues to be a strong growth market for us, driven by a young consumer base and increasing demand for global food experiences. The launch of dine-in restaurants in Ahmedabad and Anand reflects our commitment to expanding Wendy’s presence in Gujarat while offering formats that align with evolving consumer preferences.”
As Wendy’s continues to scale across India, the brand remains focused on Gen Z and Millennial consumers who seek bold flavours, authenticity, and globally relevant dining experiences. Through flavour-led innovation, contemporary store formats, and strong cultural relevance, Wendy’s is well positioned to grow across both urban centres and emerging markets.
Rebel Foods is steadily expanding Wendy’s presence in India through a hybrid model that combines traditional dine-in restaurants with cloud kitchens, supported by a technology-driven operating platform. In just over five years since entering the Indian market, Wendy’s has grown to over 200 locations nationwide, strengthening its presence across Tier 1 and Tier 2 cities.
Published on January 17, 2026
Eternal has stated that there has been no material change to Blinkit’s quick commerce business model, following reports that platforms would discontinue the use of “10-minute delivery” branding. The clarification came in response to a notice from stock exchanges after media reports suggested that the development could impact the company’s operations and share price.
In a regulatory filing, Eternal said that there was no change to Blinkit’s business model that could have any material impact on the company. The company specifically addressed its quick commerce arm, stating that operations continue as usual despite the removal of the 10-minute delivery promise from branding and advertising.
The filing also responded to reports of sharp stock price movements, which Eternal denied. The company said there had been no unusual movement in its share price during trading hours, contrary to media speculation.
The clarification followed comments made earlier in the day by labour and employment minister Mansukh Mandavia, who asked quick commerce platforms to stop promoting 10-minute delivery claims. According to people familiar with the matter, the government raised concerns that such promises place excessive pressure on delivery workers and could compromise their safety.
Quick commerce players including Blinkit, Zepto and Swiggy Instamart reportedly assured the government that they would remove 10-minute delivery pledges from their platforms. The intervention comes after nationwide strikes by gig worker unions on December 25 and December 31, two of the busiest days for the sector. Worker groups have demanded that aggressive delivery timelines be scrapped and earlier payout structures restored, arguing that such models increase safety risks and have, in some cases, led to accidents.
Following the backlash, Blinkit has started displaying the distance of the nearest dark store to customers on its app. The move is aimed at improving transparency around delivery timelines rather than committing to fixed delivery promises.
Earlier, Eternal founder Deepinder Goyal had shared his views on the gig economy, describing gig work as one of India’s largest organised job creation engines. He stated that the sector provides insurance coverage and predictable wages to workers, while also maintaining that the industry requires less regulation to grow further. Goyal has previously defended fast deliveries, saying that shorter timelines are made possible by the proximity of stores to customers rather than by pushing delivery partners to travel faster.
India’s hospitality sector is entering a structurally stronger phase of growth, supported by rising domestic travel, diversified demand drivers, and favourable policy momentum, according to a recent report by ICRA Limited. The agency noted that the sector is now less exposed to global disruptions compared to the pre-pandemic period, with demand increasingly driven by domestic travellers.
ICRA highlighted that the industry remains on track to post record revenues and occupancy levels in FY2026–27, even as foreign tourist arrivals remain subdued. Sustained demand, limited new supply, and the growing adoption of asset-light operating models are helping hotels maintain strong performance and profitability.
“Demand drivers now include corporate travel, weddings and social events, religious and spiritual tourism, concerts, sports, MICE activities, and leisure-led travel to Tier-2 and Tier-3 cities,” said Sruthi Thomas, Vice President & Sector Head, Corporate Ratings, ICRA Limited. “The market can now support multiple formats and price points, pushing hotel companies to diversify beyond the traditional upscale business hotel model.”
According to ICRA, demand growth continues to exceed supply expansion, strengthening pricing power for hoteliers. Revenue per available room has touched record levels, with occupancy rates in the range of 69–71 per cent and average room rates between INR 8,100–8,200 during the first nine months of FY2026, compared with Rs. 7,800–7,900 in the same period of FY2025.
The report also noted that despite short-term disruptions caused by revised flight duty norms in December 2025, the sector showed resilience. Extended stays, alternative modes of travel, and bulk wedding bookings helped cushion the impact. Occupancy levels in Q3 FY2026 stood at 76–78 per cent, underlining strong underlying demand.
Thomas pointed to the increasing preference for asset-light models such as management and franchise contracts, which “generate fee-based, high-margin income, require minimal capital, and enhance returns on investment.” These models enable hotel operators to scale faster while maintaining financial discipline and brand standards. She added, “Owned assets continue to anchor brand prestige, especially in prime locations. A mixed ownership strategy, retaining core assets while franchising or managing growth assets, is now emerging as the preferred model.”
Looking ahead, ICRA expects premium hotel occupancy to remain between 72–74 per cent in FY2026, with average room rates rising to INR 8,200–8,500. Growth will continue to be supported by business travel, weddings, MICE activities, and leisure tourism.
ICRA also anticipates that the upcoming Union Budget will further support the hospitality sector through continued focus on tourism, infrastructure development, and financing incentives. With demand remaining strong and supply additions limited, India’s hotel industry is well placed for another year of record performance.
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