Abstract:

In the post-pandemic recovery era in the hospitality industry, Online Travel Agencies (OTAs) continue to challenge existing strategies related to distribution, pricing, and performance oversight. This research explores the strategic impact of OTAs on the operational and financial performance of hotels. The authors used a mixed methodology. Data was obtained from a survey of 278 hotel managers and semi-structured interviews with 12 executives. The results demonstrated that while OTAs improve visibility, drive occupancy rates, and reduce customer acquisition costs, 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 highlights the need for a balance between online travel agent (OTA) platforms and the growth of direct-to-consumer (DTC) channels. This research offers practical value in understanding the OTA dynamic and suggests actionable steps for hotel managers to lead in the digital and post-pandemic era of hospitality industry recovery.