Assessing the Impact of Online Travel Agencies on Hotel Operations and Financial Outcomes: A Mix Methodology

This research aims to enhance the understanding of the Impact of OTAs on the hospitality industry, as a disruptor in the post-pandemic era. Online Travel Agencies have challenged existing and traditional strategies in the hospitality industry, particularly in areas such as room distribution, pricing, and performance oversight. Moreover, there is limited evidence that shows the strategic impact of OTAs on the operational and financial performance of hotels. The authors used a mixed-methods approach, incorporating a survey study with semi-structured interviews. Survey data were collected from 278 hotel managers, and semi-structured interviews were conducted with 12 executives. The results revealed that OTAs improve visibility, drive occupancy rates, and lower customer acquisition costs. However, they concurrently create challenges related to pricing parity, commission reliance, and brand value. Operationally, dependence on OTAs correlates with decreased direct booking and increased investment in digital integration. Financially, top revenues may improve due to a broader reach; however, net profitability usually declines due to commission arrangements. The research emphasized the need for a balance between online travel agent (OTA) platforms and the growth of direct-to-consumer (DTC) channels. Moreover, this research offers practical value in understanding the OTA dynamics. It offers actionable steps for hotel managers to lead in the digital and post-pandemic era of hospitality industry recovery.