When OTAs become marketplaces

As Airbnb and Booking.com move into high-margin services, hotels risk losing control—unless they rethink distribution, partnerships, and guest experience

The hotel industry is confronting a new competitive reality as Online Travel Agencies (OTAs) like Airbnb and Booking.com transform into lifestyle marketplaces. No longer just platforms for room bookings, these tech-driven giants are aggressively expanding into high-margin ancillary services—spa treatments, local tours, dining experiences—that traditionally helped hotels boost profits and differentiate their offerings. As alternative accommodations and bookable experiences become increasingly bundled, hotels face a pivotal question: how to retain control over their commercial future in an evolving digital marketplace?

Key takeaways

OTAs are becoming lifestyle platforms

• Airbnb is evolving into a holistic travel ecosystem with bookable services like chefs, wellness treatments, and tours.
• Booking.com is pushing its “Connected Trip” strategy—integrating accommodations, transport, and experiences into one seamless journey.
• Vrbo is staying traditional, focusing on whole-home rentals for families but lagging in experiences and service integration.

Threat to hotel ancillary revenues

• Ancillary services represent up to 30% of hotel revenue. OTAs are now targeting this revenue stream directly, risking hotel disintermediation.
• These platforms offer scale, convenience, and bundling options that appeal to modern travelers, especially in leisure segments.

Strategic hotel responses

• Platform partnerships: Hotels may consider listing their services on platforms like Airbnb to access their large user bases—but this comes at a cost (commission, data loss).
• Direct differentiation: Building unique, high-touch experiences and loyalty ecosystems through direct channels remains a key competitive edge.
• Revenue innovation: Concepts like RevPAM² and RevPAG suggest monetising space and guest engagement more dynamically, aided by AI and local partnerships.

Quality assurance is the new battleground

• Booking.com leads with machine learning-powered quality ratings across 400+ property attributes.
• Airbnb emphasizes reviews and social community features, while Vrbo lacks sophisticated quality controls.

The bigger picture

• OTAs are not just distributing rooms—they're shaping how travel is imagined and consumed.
• Hotels must shift mindset from “room sellers” to “experience orchestrators” to stay relevant in this new marketplace dynamic.

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