Any new OTA player is a blessing and a curse for hotel: Each new channel can greatly increase exposure, but at the same time can be very expensive;
Amazon has recently taken their first steps into the travel industry by approaching several hotels in select US markets about listing their inventories and rates on Amazon.
This service is expected to launch in January 2015 and is likely to expand into other markets quickly. Like any other OTA, Amazon is reported to be taking a 15% commision from each reservation they process.
So with Amazon’s success in the online retail space, what impact might this have on the hotel industry as a whole?
With an estimated 80,000 daily transactions, Amazon has a huge advantage over their OTA competition. They already have established trust with their customers and have built a reputation for offering massive savings over traditional sales channels.