Grass Looks Greener Syndrome: OTA vs Hotel Strategy – Who’s Disrupting Whom?

Grass Looks Greener Syndrome: OTA vs Hotel Strategy – Who’s Disrupting Whom?

Vanshikha Dhar
Vanshikha Dhar

Table of Contents

The hotel business is changing fast. Earlier, the roles were clear: hotels welcomed guests, and OTAs (Online Travel Agencies) helped fill rooms. But now, both sides are stepping into each other’s world.

Hotels want to be more like OTAs — strong in technology and better at online sales. Meanwhile, OTAs are trying to offer more guest-focused services, just like hotels. It’s a classic case of “the grass looks greener on the other side.”

How Hotels Are Changing

Accor’s New Hotel Marketplace

Accor has created a digital platform where even independent hotels can join their system. This means small hotels can use Accor’s:

It helps Accor grow without opening new hotels, and it gives smaller hotels access to better tools, visibility, and repeat guests.

Building on this marketplace strategy, Accor announced in May 2025 the development of a comprehensive meetings and events ecosystem. This new platform will unite more than 5,600 Accor hotels worldwide, hosting an inventory of 2.5 million square meters of event space and over 800,000 guest rooms. The system will enable self-service booking for event spaces, guest rooms, and catering services—all integrated with the ALL Accor loyalty program. Version one will be available by late 2025, focusing on small group bookings, with a more robust system launching in 2026.

Marriott’s Push for Direct Bookings

Marriott is improving its website and booking tools to get more guests to book directly. It’s working on things like:

The goal is to depend less on OTAs and build a closer connection with guests.

Indian Brands Going Premium

In India, chains like OYO and FabHotels started with budget rooms but are now:

They’re trying to offer a brand experience like big international chains — and control more of their bookings.

OTAs Are Also Shifting

While hotels are focusing more on distribution and tech, OTAs are slowly getting involved in operations too.

Booking.com’s Tech Investments

Booking Holdings he company behind Booking.com) has bought several hotel tech acompanies:

  • HotelNinjas – a Property Management System
  • PriceMatch – for pricing and revenue management
  • Buuteeq – a digital marketing tool

They’re quietly building tools that help hotels run better, hoping to become more than just a booking site.

Indian OTA Experiments

OTAs like GoIbibo and Yatra have tried creating their own “soft brand” hotels (like GoStays and TGStays). These are budget hotels listed with OTA branding offering more trust and standard service. But OTAs still don’t run hotel operations — they only help bring in bookings.

Hotels vs. OTAs: What’s the Real Difference?

Focus Area

Hotels

OTAs

Guest Relationship

Personal, loyal, but scattered

Large-scale, less personal

Technology

Medium investment

Heavy investment

Loyalty Programs

Brand-specific

Generic, across brands

Revenue Strategy

Focus on RevPAR, direct bookings

Focus on commission and conversions

Distribution

Mostly brand website + OTAs

Global and optimized

Control

Full control of guest experience

Little control, but improving

Operations

High complexity (staff, SOPs)

Low (no hotel to manage)

According to the latest industry insights, 37% of US travelers plan to book their 2025 accommodation directly – either through a hotel's official website (23.5%) or by reaching out via phone or email (13%). This figure exceeds the global average of 27% and rises to a whopping 57% among those over the age of 60 who prefer the direct booking approach.

What Hoteliers Should Focus On

1. Guest Experience = Your Biggest Advantage

While OTAs give you reach, your real strength is how guests feel when they stay. Invest in:

  • Personal service
  • Loyalty programs that actually reward guests
  • Staying in touch even after they leave

This builds long-term loyalty — something OTAs can’t easily do.

2. Technology Is a Must

Even small hotels need smart tools now. Focus on:

If you don’t have the budget for in-house systems, joining white-label platforms (like Accor’s) can be a good middle path.

Product Spotlight: How AxisRooms Supports Smarter Distribution

A notable example of distribution-focused technology tailored for hotels is the AxisRooms Central Reservation System (CRS). The platform is designed to streamline room inventory, rates, and availability across multiple channels — including brand.com, OTAs, GDS, and corporate partners — from a single, unified interface.

Key benefits for hoteliers include:

- Real-time rate and inventory sync across channels

- Integrated booking engine for direct reservations

- Seamless connection with revenue management and PMS tools

- Reliable PMS integrations to unify operations and guest data

- Secure payment gateways to support frictionless transactions for direct and OTA bookings

- Analytics to track channel performance and optimize mix

As hotels aim to reduce OTA dependency and strengthen their direct channels, solutions like AxisRooms CRS provide the operational control and visibility needed to scale smartly without adding complexity. These tools also support a stronger hotel revenue strategy, helping owners make data-driven decisions for profitability and growth.

What the Future Might Look Like

Trend

What It Means for Hotels

OTA-branded hotels

OTAs may launch their own “hotel-like” experiences

Loyalty partnerships

OTAs and hotel chains may let guests move points between them

Voice and AI bookings

Hotels need to be bookable via voice (Google, Alexa)

Blockchain for identity

Secure, personalized guest experiences will need system upgrades

White-label OTA tools

Regional hotel groups may launch their own OTA platforms

Final Thoughts: Don't Just Compete — Collaborate Smartly

OTAs and hotels aren’t enemies — but their business goals are starting to overlap. Hotels shouldn’t try to “beat” OTAs but work smarter:

  • Use tech to win direct bookings
  • Offer great experiences that guests remember
  • Join platforms that match your hotel’s values
  • Build loyalty through service, not just points

Remember: OTAs may win the booking, but you can win the guest. And in the long run, that’s where the real value lies.

So yes, the OTA lawn might look greener. But if you focus on your own guest experience and tools, your hotel can grow just as beautifully — and even more profitably.