Granted, hoteliers, especially the larger ones, have been able to absorb these costs as both occupancy and room rates approach prerecession highs. Once demand growth flattens, though, OTA distribution costs, which can total between 15% and 25% of the room revenue collected (in the form of the wholesale prices hotels charge OTAs to secure the rooms), can substantially reduce earnings, said Kalibri Labs partner Mark Lomanno. “We are now in a strong environment, so hotels are not paying enough attention, but when times are not as good, these costs will be more noticeable,” Lomanno said at the trade show. He added that independent hotels and smaller brands pay as much as five times more in distribution expenses as a percentage of sales than larger hoteliers do. Get the full story at Travel Weekly