How secondary OTAs are disrupting hotel rate strategy

As non-major booking platforms multiply, independent hotels face growing challenges to rate parity, direct sales, and digital control

A quiet but growing threat is reshaping hotel distribution: the rise of secondary OTAs. These lesser-known platforms—often fed by wholesalers or affiliate networks—are increasingly undercutting hotels’ direct rates, eroding price parity and digital marketing effectiveness. For independent and boutique hotels without big-brand muscle, the problem is particularly acute. As new distribution channels emerge almost daily, hotels face a pressing need to rethink their pricing and channel strategies.

Key takeaways

Secondary OTAs undercut rates: Small, non-major OTAs often list hotel rooms below official direct or OTA rates, leading to widespread rate disparities.

Independent hotels are most vulnerable: Without brand power or chain-level marketing, independent hotels face more pressure when their rates exceed market averages.

Wholesalers and affiliates drive the problem: Many secondary OTAs access inventory via loosely controlled wholesalers or affiliate marketing, often without hotel approval.

Marketing costs rise as control drops: Hotels that invest in SEO, PPC, and loyalty programs often see their cost-per-click soar—while OTAs still win the booking with a cheaper rate.

OTA member rates undermine parity: Programs like Expedia’s “One Key” offer member-exclusive rates that may undercut a hotel’s best available rate.

Solutions require direct booking focus: To regain pricing control, hotels must aim for 50–60% direct bookings, investing 5–7% of revenue into digital marketing, CRM tools, and exclusive member rates.

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