OTA Commissions vs AI Direct Bookings: The Math Every Hotelier Should Know
Hotels currently retain 95.82% of guest-paid revenue from direct bookings compared to only 82.06% from OTA channels, with commission rates ranging from 15% to 30% creating a $40 loss on every $200 room night booked through traditional online travel agencies. This financial reality becomes increasingly important as AI travel planning platforms offer new pathways for travelers to discover and book accommodations directly, potentially disrupting the OTA-dominated distribution model that has defined hospitality marketing for the past two decades. ...