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The Main Character
Distribution
Channel Proliferation & Fragmentation
Hotels face an increasingly complex distribution landscape (OTAs, GDS, wholesalers, bedbanks, direct, metasearch, B2B marketplaces). Managing consistency across all these channels is costly and time-consuming.
Rate Parity & Leakage
Wholesalers and resellers often distribute rates in unintended channels (especially B2C OTAs or opaque markets), causing rate leakage. This undermines direct sales, confuses consumers, and damages brand trust.
High Commission Costs
Reliance on OTAs and intermediaries means hotels pay 15–25% commissions, cutting into margins. Balancing visibility with profitability is a constant struggle.
Direct Booking Struggles
Hotels want to grow direct channels for transparency and cost control, but competing with OTAs’ marketing power (SEO, SEM, loyalty programs) is expensive and difficult.
Technology Integration & Connectivity
Fragmented systems (CRS, PMS, channel managers, revenue management tools, payment gateways) often lack seamless integration. API issues and outdated tech lead to errors, lost bookings, and operational inefficiencies.
Payment & Settlement Complexities
Cross-border transactions, virtual credit cards, delayed settlements, and risks of fraud complicate payment flows. Many hotels face liquidity challenges due to delayed OTA/wholesaler payouts.
Dynamic Pricing & Revenue Management Pressure
Hotels must constantly adjust prices across multiple channels, markets, and currencies while avoiding discrepancies. AI-driven competitors and metasearch visibility raise the stakes.
Dependence on a Few Key Players
A small number of OTAs (Booking Holdings, Expedia, etc.) dominate online distribution. This dependency creates negotiation imbalances and vulnerability to sudden policy or algorithm changes.
Emerging Competition & Alternative Models
Vacation rentals (Airbnb, Vrbo), direct booking platforms, and new B2B marketplaces (e.g., HyperGuest, Zinantis, IoL World, etc.) are changing the distribution landscape. Hotels must navigate how much to engage with new entrants while controlling brand and pricing integrity.
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