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The stalemate between hotels and OTAs will be an ongoing scenario The stalemate between hotels and OTAs will be an ongoing scenario

Phocuswright Unveils Latest Report on Hotels and OTAs

Phocuswright, a travel, tourism and hospitality market research provider, has shed some light on the battle between hotels and online travel agencies (OTAs).

According to the company’s latest report, hotels have long lamented their dependence on OTAs and their ascribed high distribution costs. Over the years, a variety of international hotel brands that have tried to cut the cord, rejoined OTAs with fresh, new agreements.

OTAs now make up more than one fifth of overall revenue for US hotels, while chains are making some inroads.

According to Phocuswright, OTA hotel sales keep growing because US hotel sales are rising modestly, while the shift from offline to online is accelerating at nearly three times the pace.

US hotel sales gained four percent in 2017 to reach USD158 billion, but the online hotel segment jumped 13 percent to USD69.3 billion.

However, 56 percent of hotel sales are offline, including corporate, groups and traditional channels.