Where the airline market is consolidated and controlled by a select few, the hotel industry is incredibly fragmented. It’s harder for the hotels to gain leverage over the online travel sites when there are literally hundreds of choices in markets like New York or destinations like Mexico. More competition among hotels leads to less leverage with the OTAs. That’s one of the reasons why the vast majority of OTA profit is derived from hotel bookings. Despite the competitive market, hotels were actually the first ones to make this kind of brazen move toward dropping the OTAs. In 2004, InterContinental Hotel Group (IHG) pulled its inventory from Expedia in a dispute over how Expedia was failing to meet their standards for reselling hotel rooms: In part, IHG accused Expedia of adding hidden fees, inaccurately listing sold-out properties and using "bait and switch" tactics to lure customers. But what was really at the core of the issue was IHG felt that their pricing was being undermined and wanted to drive parity across all channels. Ultimately the two sides found a way to split the incredibly profitable pie without the other feeling taken advantage of. Get the full story at TravelPulse