One of these trends is that net room revenue - i.e., revenue that remains with the hotel after accounting for distribution costs (OTA commissions, traditional agency commissions, and other distribution expenses) - has been declining steadily over the past several years. For example, U.S. hotels earned roughly $155.2 billion in guest-paid revenue in 2017 but paid an estimated $25.2 billion to acquire guests in the form of OTA commissions and other distribution costs, retaining significantly lower net room revenue of $130 billion (Kalibri Labs). Revenue capture - i.e., net room revenue that remained with the hotels - declined from 84.9% in 2015 to an estimated 83.5% in 2018 (Kalibri Labs). The overall growth in occupancy and RevPAR that many hoteliers have been enjoying for the past few years cannot possibly compensate for “the loss of wealth” in the form of steadily increasing distribution costs via the OTA. Hoteliers need to increase direct bookings, which come at a much lower cost, and improve overall direct vs OTA distribution ratio. Get the full story at HEBS Digital