Hotels pay OTAs $50 billion in 2023
Year over year, OTAs are taking over bigger percentages of the hospitality industry's traditional feeder markets and customer segments
Prompted by a thought-provoking post by Max Starkov in LinkedIn, Skift created their own eye-opening estimate on the billions hotels pay to OTAs and other distributors every year.
Key takeaways
- Skift Research estimates that hotels - both branded and not affiliated with major hotel brands - will spend $47 billion this year on online travel agency commissions;
- Hotel companies will spend an additional $11 billion on bed banks, essentially wholesalers such as Hotelbeds and WebBeds;
- Max Starkov believes that independent hotel companies must be more ambitious about direct bookings aiming for a more balanced online distribution.
Get the full story at Skift (subscription only) and Max Starkov