There is little doubt that OTAs are a costly distribution channel for hotels. “You have to wonder why a hotel would ever deal with an OTA,” said Bonnie Buckhiester, president of Buckhiester Management. “They are paying OTAs as much as 25% commission, and when they do packages or promotions it can be even more than that. “The issue is one of visibility,” said John Burns, president of Hospitality Technology Consulting. “Travel management companies and travel agencies are steady and important producers of hotel reservations. But they are comparatively low-visibility. “Hoteliers are grateful for their reservations volume, but they are distracted, focusing instead on an immediate pain point: OTAs and other intermediaries. The travel agency side is not broken. It’s working fine. Agents may feel under-recognized and maybe under-appreciated, but I don’t believe that’s the case,” Burns added. Get the full story at Travel Market Report