Why 9 Out of 10 Hotel Owners Are Fed Up With Expedia (and Other OTAs)

The way guests book their stays has evolved faster than most hotels can keep up with. In 2015, only 37% of bookings were made online. By 2023, that number had skyrocketed to 65%—and it's expected to hit 75% by 2029. For hotel owners, especially those running independent or boutique hotels, this shift has created a new digital battlefield—and at the center of it are Online Travel Agencies (OTAs) like Expedia, Booking.com, and Airbnb.

While OTAs offer undeniable reach and convenience, many hotel owners are starting to question whether the cost of relying on them is too high.

The Rise of OTAs—and the Real Price Hotels Are Paying

For travelers, OTAs deliver everything from loyalty rewards and transparent pricing to mobile-friendly booking tools and quick customer service. For hotels, they promise increased visibility and more bookings—especially for properties without large marketing budgets.

But for all but a few hotels trying to manage profitability, retain control of their brand, and build long-term customer loyalty, the honeymoon is over.

The Hidden Costs of OTA Dependency

Many hoteliers now find themselves struggling with OTA dominance that limits their ability to grow profitably. Here are the most common complaints:

💰 1. High Commission Fees

OTAs typically take 15–25% of each booking. For small hotels with tight margins, that can mean the difference between profit and loss—especially during low-demand seasons.

⚖️ 2. Rate Parity Clauses

Many OTA contracts require rate parity, meaning you can't offer lower prices on your own website. This makes it nearly impossible to drive direct bookings without undercutting your own profitability.

📊 3. Loss of Guest Data

When bookings come through Expedia or Booking.com, you don’t own the guest relationship. You lose access to key data that could help with retargeting, personalization, and long-term customer engagement. This weakens your hotel marketing strategy and makes revenue management less precise.

🔎 4. Google Ads Bidding Wars

OTAs often bid on your hotel’s brand name, dominating search results and pushing your own website down the page. Hotels end up paying for traffic just to compete for their own customers, drastically reducing return on ad spend (ROAS).

🏷️ 5. Over-Promotion and Discounts

Some OTAs manipulate performance dashboards to pressure hoteliers into constant discounting, sometimes even encouraging rates that fall below breakeven—hurting your hotel revenue management efforts and damaging your brand's perceived value.

Why Boutique Hotel Owners Feel It the Most

Independent hotels without national brand backing or loyalty programs often rely heavily on OTAs to fill rooms. But this dependence comes at a steep cost:

• No brand visibility in Google search results

• Limited control over pricing and positioning

• Difficulty building a loyal guest base

• Inconsistent OTA support for property-level needs

It’s no wonder more hotel owners are seeking hospitality consultants to help them rebalance their channel mix and take back control.

How Smart Hoteliers Are Regaining Control

The key isn’t eliminating OTAs—but using them strategically while building a stronger direct booking ecosystem.

Here’s how savvy hotel operators are fighting back:

• 💡 Investing in direct booking strategies with exclusive website-only perks

• 💡 Improving SEO and hotel marketing to rank higher on Google

• 💡 Using a property management system for hotels that integrates with CRMs to reclaim guest data

• 💡 Implementing rate and inventory control to limit OTA access to high-demand dates

• 💡 Leveraging hotel revenue management tools to optimize pricing across channels

These actions not only boost profitability but also help hotels manage guest relationships directly, improving loyalty and brand perception.

Final Thoughts: It's Time to Rethink the OTA Relationship

Most hotel owners don’t hate OTAs—they hate feeling powerless. If you’ve been struggling with high commissions, low profit margins, or lost guest data, you’re not alone.

At Modern Hospitality Solutions, we specialize in helping hotels reduce OTA dependence, increase direct bookings, and build sustainable, profitable growth. Whether you run a luxury resort or a boutique hotel, we help you implement better systems—from hospitality mgmt tools and CRMs to website optimization and hotel revenue management strategies.

Ready to Regain Control?

If you’re tired of being pushed around by Expedia or overwhelmed by OTA commissions, let’s talk. We’ll audit your digital presence, evaluate your current systems, and build a strategy that puts your hotel’s profitability back in your hands.