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

Oct 16, 2023

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

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