Why OTAs struggle to scale in experiences — and what it means for hotels

The real opportunity lies not in market size, but in what can actually be distributed

The global experiences market is often framed as the next big growth frontier in travel. With hundreds of billions in bookings and strong growth forecasts, it looks like a natural extension for OTAs — and by implication, for hotels looking to tap into ancillary revenue streams. But the reality is more nuanced. The relatively low OTA share in experiences is not simply a lagging indicator of digital adoption; it reflects a structural mismatch between large parts of the experiences market and the way travel distribution actually works.

For hoteliers, this distinction matters. Because the real opportunity is not “experiences at scale,” but rather understanding which parts of the experiences ecosystem can realistically be integrated into the guest journey — and which cannot.

Key takeaways

• Low OTA penetration reflects limited distribution fit: OTAs account for a small share of experiences bookings not because demand is weak, but because much of the supply is not designed for global travel distribution.
• Experiences are fundamentally different from hotel inventory: Unlike rooms, which are standardized and centrally managed, experiences are fragmented, diverse, and often hyper-local, making them harder to aggregate and distribute at scale.
• The majority of experiences are not tourism-driven: Many activities — from local museums to community classes — primarily serve residents, not travelers, and therefore sit outside the traditional travel funnel.
• Not all experiences are relevant to hotel guests: Large portions of the market may appear attractive on paper but have limited relevance for visiting travelers, reducing their value as ancillary revenue opportunities for hotels.
• Tours represent the most “distribution-ready” segment: Structured, bookable, and tourism-focused products like guided tours are far better suited for integration into hotel distribution and guest journeys.
• The long tail remains largely offline or disconnected: A significant share of experience providers lack booking systems, connectivity, or the operational setup required for integration into digital travel platforms.
• Alternative platforms are capturing local demand: Gifting platforms, local activity passes, and regional marketplaces are often better aligned with non-touristic experiences than global OTAs.
• The opportunity is in curated integration, not scale: For hotels, the strategic focus should be on selecting and integrating relevant, bookable experiences that enhance the guest journey — not trying to mirror the full breadth of the market.

Source: PhocusWire

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