OTAs have revolutionised the travel industry, but while they offer hotels benefits like increased visibility and access to a global audience, they also present challenges that can strain relationships.
During the Friend or Foe? Navigating the Role of OTAs in the Tourism Industry session at the recently-concluded ASEAN Tourism Forum 2025 in Johor Bahru, Ganesh Michiel, national president, Malaysia Budget & Business Hotel Association, addressed high commission fees charged by OTAs.
“High commission rates impact the profit of smaller players. There is also a lack of control between the hotels, guests, and OTAs. For example, if a guest needs something and approaches the OTA, the OTA has to contact the hotel, and this lack of communication will result in the hotel getting a bad name,” he elaborated.
Yang Li, head of public affairs APAC, Booking.com, acknowledged the varying importance of OTAs for hotels, emphasising the value of OTAs for smaller hotels reaching a global audience, as compared to the larger chains with numerous well-known brands.
Li shared: “Later this year, we will launch a fund to assist small and medium-sized accommodation providers with improving their hospitality practices. We recognise that many of these businesses may lack the resources for comprehensive staff training, particularly in areas like international customer service and English language proficiency, and this fund aims to bridge that gap and enhance their ability to attract travellers.”
Another speaker, AirAsia Move’s CEO Nadia Omer, shared that AirAsia Move – formerly known as AirAsia Superapp – is positioned as a budget travel OTA focused on meeting the needs of middle- and lower-income travellers.
“Value travel is all about creating a shared value for all players within the ecosystem. Do not eliminate choice for the traveller. Win by still being the best choice, even with all of these options,” she stated.
With larger OTAs moving towards offering multi-modal bookings – where one booking could also include flights, accommodation, attractions, and rental of cars – AirAsia Move was created to “protect the aviation industry”. Omer stressed that it is important to have a balanced and sustainable travel ecosystem to stem the potential undercutting of airfares and a focus on hotel-driven revenue models.
Michiel concluded by stating that success hinges on collaboration with all stakeholders. “We all have to work together, and have mutual understanding (such as optimising commission structures). We also have to work with government agencies to enforce regulations for online platforms to safeguard product owners, while protecting the users, and ensure the (long-term viability) of online platforms.”
