The Influence of Online Travel Agencies (OTAs) on Hotel Revenue and Distribution Strategies

Abstract

Purpose: The main objective of this study was to explore the influence of Online Travel Agencies (OTAs) on hotel revenue and distribution strategies.

Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library.

Findings: The findings revealed that there exists a contextual and methodological gap relating to the influence of Online Travel Agencies (OTAs) on hotel revenue and distribution strategies. Preliminary empirical review revealed that as the digital landscape continues to evolve, hotels must adapt their strategies to harness the benefits of OTAs while effectively managing the challenges. The findings of this research will benefit hoteliers, industry regulators, policymakers, and researchers by providing valuable insights into navigating the evolving landscape of hotel distribution and revenue management in the digital age.

Unique Contribution to Theory, Practice and Policy: The Agency theory, Transaction Cost theory and the Resource Based View (RBV) theory may be used to anchor future studies relating to Online Travel Agencies (OTA). The study recommended diversification of distribution channels, negotiation of favorable contracts with OTAs, leveraging guest data for personalization, investing in direct booking campaigns and monitoring and adaption to market trends.