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.


IHCL Signs Vivanta Hotel at Bhogapuram International Airport

IHCL Signs Vivanta Hotel at Bhogapuram International Airport

By Manu Vardhan Kannan

Published on April 16, 2026

The Indian Hotels Company Limited (IHCL) has announced the signing of a new Vivanta hotel at Bhogapuram International Airport in Andhra Pradesh. This greenfield project marks another step in expanding the company’s presence in key growth locations across the country.

Located next to the terminal building, the upcoming 165-key Vivanta Bhogapuram International Airport is designed to offer easy access for travellers. The hotel will feature an all-day dining restaurant, Mynt, along with Wink, a bar, and Swirl, a deli. Guests will also have access to a swimming pool, a fully equipped gym, and a banqueting space spread across more than 4,000 sq. ft., suitable for both business and social events.

Sharing insights on the development, Ms. Suma Venkatesh, Executive Vice President – Real Estate & Development, IHCL said, “Bhogapuram International Airport in Vizianagaram is set to become a key aviation hub, fueling growth along the Visakhapatnam–Bheemili–Bhogapuram corridor. Backed by strong infrastructure and government-led tourism initiatives, the region offers significant potential, and the hotel’s strategic location will cater to corporate, MICE and transit demand.”

The upcoming Bhogapuram International Airport in Vizianagaram is expected to play an important role in boosting tourism and business activity across North Andhra and along the East Coast.

With this signing, IHCL continues to strengthen its footprint in Andhra Pradesh, where it will now have a total of 9 hotels, including 4 currently under development.


Grand Continent Hotels Expands with New Property in Rameshwaram

Grand Continent Hotels Expands with New Property in Rameshwaram

By Manu Vardhan Kannan

Published on April 15, 2026

Grand Continent Hotels Limited has announced the launch of its new property in Rameshwaram, marking its 31st hotel in India. Located on Pamban Island, this four-star vegetarian hotel highlights the brand’s continued focus on expanding in pilgrimage and leisure travel destinations.

Rameshwaram, one of India’s key spiritual destinations, sees steady footfall throughout the year from families, pilgrims, and travellers. With this launch, the company aims to cater to this growing demand by offering a comfortable, clean, and well-connected stay experience close to major landmarks.

Speaking on the occasion, Mr. Ramesh Shiva, Founder & Managing Director, Grand Continent Hotels Limited, said,

"The launch of our Rameshwaram property marks an important milestone as our 31st hotel and reinforces our focus on high-potential pilgrimage destinations. South India continues to be a strong growth market for us and we see sustained demand in destinations like Rameshwaram where travellers seek reliable, comfortable, and well-located accommodation.

Going forward, we are coming up at Somnath, Varanasi and Ayodhya as we aim to expand across key high-demand micro-markets as we work towards building a 3,000-key portfolio over the next few years, while continuing to focus on operational consistency and guest experience."

The company now has 31 properties across more than 17 cities with over 1,850 keys, showing steady growth supported by its asset-light model. It continues to see strong demand in both spiritual circuits and emerging leisure destinations, which are driving organised hospitality growth in India.

The new Rameshwaram property offers 48 well-designed rooms, including Grand Suite Rooms, Premium Rooms with Balcony, Grand Family Rooms, and Deluxe Rooms. Each room is equipped with modern amenities such as high-speed Wi-Fi, smart TV, tea and coffee maker, electronic safe, and 24-hour hot water. The hotel also provides wheelchair access for added convenience.

The property features Flavours, a multi-cuisine pure vegetarian restaurant with 48 covers, offering Jain and Satvik meal options that suit the preferences of pilgrimage travellers. It also includes a dedicated play zone for families.

Strategically located, the hotel offers easy access to key landmarks including Ramanathaswamy Temple (1.9 km), Rameshwaram Railway Station (within walking distance), Agnitheertham (2.9 km), and Dr. A.P.J. Abdul Kalam National Memorial (5 km), making it a convenient choice for both religious and leisure travellers.

Founded in 2011 by Mr. Ramesh Shiva, Grand Continent Hotels Limited has grown from a single 54-room property in Bengaluru to a portfolio of 31 hotels with over 1,850 keys. The company follows an asset-light, lease-led model and reported a consolidated topline of ₹73 crore. It was listed on the NSE SME platform in March 2025 and is now working towards expanding its portfolio to 3,000 keys across key domestic and select international markets.


Sivaraj Babu and Kamali Moorthy Win Big at Little Andaman Pro 2026

Sivaraj Babu and Kamali Moorthy Win Big at Little Andaman Pro 2026

By Manu Vardhan Kannan

Published on April 15, 2026

The Little Andaman Pro 2026 came to an exciting close with a grand finale that showcased top-level talent in surfing and stand-up paddleboarding. Hosted by the Andaman & Nicobar Tourism in association with the Surfing Federation of India, the three-day championship brought together some of the best athletes in the country, set against the scenic backdrop of the Andaman & Nicobar Islands.

In the Surfing Men’s Open Final, Sivaraj Babu delivered a strong performance to claim the National Champion title with a score of 13.63. The competition was tight, with Srikanth D finishing just behind at 13.33, missing the top spot by a narrow margin of 0.30 points. Kishore Kumar secured 12.87, while Sanjay Selvamani finished with 9.30 in a closely fought final.

The Surfing Women’s Open Final saw Kamali Moorthy continue her impressive form, winning the National Championship title and successfully defending her crown. With a score of 15.83, she secured victory by a margin of 4.19 points over Sugar Shanti Banarse, who scored 11.64. Devi Ramanathan (7.84) and Riva Aurora (5.23) completed the final standings.

In the SUP Sprint Men’s Final, Sekar Pachai added another win to his performance in the championship, finishing first with a time of 1:22.32. He was followed by Akash Pujar (1:24.65) and Selvarasan Nagamuthu (1:29.98), making it a competitive race.

The SUP Sprint Women’s Final featured a strong performance from Vijayalakshmi Irulappan, who secured the top position with a time of 1:40.35. Arthi finished second at 1:48.02, while Nishi took third place with a time of 2:47.94.

Speaking on the occasion, Arun Vasu, President of the Surfing Federation of India, said,

“We congratulate all the winners and participants for their incredible performances throughout the championship. The level of talent on display has been truly inspiring. Hosting the Little Andaman Pro here has been a remarkable experience, and we are grateful for the support extended by the Andaman & Nicobar Tourism Department in in making this event a grand success.”

A senior official from Andaman & Nicobar Tourism added,

“We are proud to have successfully hosted the Little Andaman Pro 2026 and to showcase the islands as an emerging hub for surfing and adventure tourism. The overwhelming response from athletes and audiences alike encourages us to continue promoting such events, and we look forward to hosting many more championships in the future.”

The Department of Tourism, Andaman & Nicobar Administration, in association with the Surfing Federation of India, hosted the national-level surfing championship ‘Little Andaman Pro 2026’ for the first time in the islands. The event marks an important step in India’s surfing journey and highlights the region’s growing potential as a destination for water sports.

Blending sport, culture, and community, the Little Andaman Pro 2026 concluded on a high note, leaving a strong impact and building momentum for the future of competitive surfing in India.

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