STR estimated that the OTAs accounted for about 7.2% of the approximately $120 billion in revenue realized by U.S. hotels in 2010. While that $2.5 billion figure has been pretty consistent over the past couple of years, it dwarfs the $1 billion that OTAs “cost” hotels as recently as 2004, said Mark Lomanno, STR’s chief strategy officer. The cost is calculated as the difference between revenue a hotel would realize if it sold the room itself and the negotiated discounted rate it gets from the OTAs. The online agencies add markups of between 22% and 25%. “It’s probably a fairly costly channel,” Lomanno said. “The only thing more costly is flash sites like Groupon.” Get the full story at Travel Weekly Read also "OTAs cost US hotels US$2.5b in 2010"