Hotels are losing OTA ground
Booking.com’s booming supply of rentals and alternative stays keeps the lights on while hotels slip
Hotels are reporting a sharp decline in bookings from online travel agencies (OTAs), especially Booking.com, as direct sales, regulatory changes, and vacation rentals reshape the distribution mix. A lawsuit against Booking.com in Europe and the EU’s Digital Markets Act are adding pressure, while hotels double down on marketing, loyalty, and alternative channels.
Key takeaways
- Direct bookings on the rise: OTA share of hotel bookings dropped to 22% from 30% in one year, with many hotels reallocating resources from distribution to marketing and loyalty funnels.
- Booking.com under legal and regulatory pressure: Over 10,000 hotels are suing the OTA for past parity clauses in Europe, while the EU’s DMA curbs its pricing leverage.
- Vacation rentals gain ground: Alternative accommodations are expanding faster than hotels on OTAs, helping platforms like Booking.com and Expedia report overall growth despite hotel declines.
- Expedia benefits from the shift: Some hotels report Expedia sales up by as much as 300% in certain markets, contrasting with Booking.com’s consistent declines.
- Diversification tactics: Hotels are leaning into metasearch, paid search, loyalty perks, and selective OTA availability to rebalance their channel mix.
- Market headwinds remain: A softer recovery in corporate, group, and international travel plus growing supply on Booking.com is intensifying competition for fewer bookings.
- OTAs pivot strategies: Booking.com pushes its “connected trip” ecosystem, while Expedia invests in activities to extend beyond lodging.
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