Impact of Online Travel Agency Bookings on Hotel Room Revenue

Abstract

This study examines the impact of OTA bookings on hotel room revenues, focusing on five-star hotels like Oberoi, Leela, Radisson, and Lalit. Using a mixed-method approach, data was collected through structured questionnaires and literature reviews, analyzed via SPSS. Findings reveal that while OTAs boost visibility and occupancy, high commission rates (10%-30%) reduce net revenue. Hotels are investing in direct booking strategies, though OTAs remain crucial. Rate parity agreements limit pricing flexibility, influencing distribution strategies. A hybrid approach balancing OTAs and direct bookings proves optimal. Future research should explore evolving consumer behaviors, emerging technologies, and regulatory impacts on OTA-hotel relations.