Description
Hotels are in dire straits. They have become beholdent to the power of Online Travel Agencies (OTAs), and seeing their margins eroded by up to 30%.
According to US firm Siteminder many independent hotels will see a 90/10 split in favour of OTAs within the next three years. Why? The OTAs spend a lot of money on capturing the consumer to make their bookings through them.
While the luxury end of the hospitality market can potentially cope with this erosion, the mid-and-lower-end markets are going to find this unsustainable, especially in the age of the Airbnb