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The recent PhocusWire article, “Hotels grapple with ‘secondary OTAs’ for pricing control,” highlights a growing concern in the hospitality industry: the rise of non-major OTAs and their impact on rate parity and revenue management.

As someone deeply involved in hotel distribution strategy, I find this issue both urgent and complex.

These secondary OTAs—often fed by wholesalers or loosely managed affiliate networks—are increasingly undercutting official hotel rates, sometimes without the hotel’s knowledge or consent.

This not only erodes brand trust but also inflates digital marketing costs, especially for independent and boutique properties that rely heavily on direct bookings.

We believe that OTAs play a critical and valuable role in the hotel distribution ecosystem. We’re proud to partner with over 640+ OTAs globally, and we recognize the reach, visibility, and demand they bring to our hotel partners.

At the same time, we also believe that direct distribution can be a powerful, cost-effective complement—when supported by the right technology and strategy.

Our role is to support hoteliers in executing the distribution strategy that works best for them—whether that means maximizing OTA reach, driving direct bookings, or finding the right balance between the two. We’re here as a partner, not just a provider.

What stood out to me in this article:

• Rate leakage is systemic. Smaller OTAs are multiplying, often sourcing rates through opaque channels.
• Independent hotels are especially vulnerable, lacking the brand power of major chains to drive direct traffic.
• Digital marketing ROI is being compromised. Hotels investing in SEO and PPC are often outbid by OTAs using their own rates against them.
• Solutions exist—but require commitment. Achieving 50–60% direct bookings is possible with sustained investment in CRM, loyalty, and member-only offers.

This is a call to action for hoteliers to:

• Audit distribution partners regularly—and ensure they work with connectivity providers who contractually limit onward distribution and demand transparency as true partners in protecting rate integrity
  
  
• Select a connectivity partner with broad, reliable reach—SynXis maintains over 640+ direct OTA connections globally, with hundreds more through our partnerships with Derbysoft and RateGain. More direct connections mean secondary channels become primary channels—fully manageable within the CRS
  
  
• Strengthen direct booking incentives—we’ve partnered with TripTease to give consumers confidence to book directly, resulting in a 15% increase in conversion. Their price match or beat feature ensures the direct channel remains the most competitive
  
  
• Choose a booking engine provider whose partnerships rival OTA features—the SynXis Booking Engine integrates with:
  • Flex Pay, driving higher average order value, extending booking windows, and filling shoulder seasons where OTAs often dominate
  • Sensible Weather, which gives guests peace of mind with weather protection and pays revenue shares back to the hotel
  • Protect Group, offering global trip guarantees directly in the booking flow, also with revenue share benefits
    
    
• Reevaluate the ROI of bespoke booking engines—while they offer branding advantages, they often lack the cost-efficiency and performance of scalable solutions

Some industry voices suggest that hoteliers are returning to OTAs at the expense of direct channels, but our experience tells a more nuanced story.

The focus remains on direct channels—but with a sharper eye on cost-effectiveness and flexibility.

That’s why we built the SynXis Booking Engine—a scalable solution that feels bespoke, without the cost. Our data shows minimal conversion difference between custom and scalable engines. SynXis offers deep customization, enabling hotels to maintain brand identity while optimizing performance and cost-efficiency.

The OTA landscape is evolving fast. If we don’t adapt, we risk losing not just revenue—but control over our pricing and guest relationships.

Organization
Hospitality Solutions
https://www.sabrehospitality.com/
3150 Sabre Drive
USA - Southlake, TX 76092
Phone: 682-606-4000
Email: info@sabrehospitality.com

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