As the OTA industry consolidates, hotels will be more and more dependent on a fewer number of online travel agencies. This dependence likely means that hotels will have to be okay with the merchant model for some time, meaning that OTAs should enjoy high profit-margins. However, hotels have a few opportunities to strike back. The first is to stick with the status quo and hope that Expedia don't come and ask for lower rates. The second is that hotels could try to pull customers away from using OTAs, pushing their loyalty programs, especially if you only get the rewards for signing up through their own website instead of a third-party OTA. Another option is perks or upgrades for booking through the hotel itself, whether it be a free breakfast, free wi-fi, or a free room upgrade, hotels need to find ways to draw in customers without using the middle-man. Get the full story at Seeking Alpha (free registration) Read also "Is Expedia too big?"