Marriott, Hilton & Wyndham Battle OTAs for $25B in Fees — Can Airlines Like Delta and American Join the Fight?

Published on December 27, 2025

Marriott, Hilton & Wyndham battle OTAs for $25B in fees – can airlines like Delta and American join the fight? The travel industry is undergoing a dramatic shift as major hotel chains like Marriott, Hilton, and Wyndham intensify their efforts to reclaim billions of dollars spent on commissions to online travel agents (OTAs) like Expedia and Booking.com. These OTAs have long been a crucial intermediary for booking hotel rooms and flights, but the high fees—often between 15% and 25%—have prompted hotel giants to push for direct bookings. By focusing on loyalty programs and enhancing customer engagement through AI-driven tools, these hotel chains are determined to cut out the middleman and offer travelers more benefits, including exclusive discounts and personalized experiences. But the story doesn’t end with hotels. Airlines like Delta and American are also starting to rethink their reliance on OTAs, aiming to leverage direct booking channels to not only reduce costs but to strengthen their relationships with customers. This shift is reshaping how we plan and book travel, offering new opportunities for both industry players and travelers alike.

Marriott, Hilton & Wyndham Battle OTAs for $25B in Fees – Can Airlines Like Delta and American Join the Fight?

The travel industry has entered a new era where traditional booking methods are facing a seismic shift. Major hotel groups like Marriott, Hilton, and Wyndham are pushing back against the rising fees of Online Travel Agents (OTAs) like Expedia and Booking.com. The battle for a chunk of the $25 billion that hotels pay annually in commissions is heating up. But what does this mean for travelers? Will the ripple effects of this battle change the way we book flights and hotels? With the rise of AI agents and a shifting industry landscape, airlines like Delta and American are also eyeing a future where they too can break free from OTAs and regain control over direct bookings. Here’s what every traveler should know about these changes and how it could reshape their next vacation.

The Fight Against OTAs: Marriott, Hilton & Wyndham at the Helm

For years, global hotel chains like Marriott, Hilton, and Wyndham have relied on OTAs to drive bookings. OTAs are convenient platforms where travelers can compare prices across multiple hotel brands, but at a steep cost to hotel owners. OTAs take hefty commissions—usually ranging from 15% to 25%—leaving hotel groups to fight for profitability. The total OTA fee burden in 2025 is estimated to be around $25 billion, a staggering amount that Marriott, Hilton, and Wyndham are eager to reclaim.

Marriott, with its Bonvoy loyalty program, has taken significant strides to reduce its reliance on OTAs. With nearly 260 million members, Marriott is doubling down on direct bookings, offering guests perks like exclusive discounts, free room upgrades, and loyalty points that can be redeemed at its hotels worldwide. Other hospitality giants, including Hilton and Wyndham, are following suit, introducing new incentives like faster loyalty tier upgrades, more flexible booking policies, and improved partnerships with airlines to drive more direct business.

For travelers, this shift could mean better deals. Hotels and resorts will focus on offering more personalized experiences, and in return, they’ll ask guests to bypass OTAs and book directly through their websites or apps. This direct booking model helps eliminate the middleman, cutting out those high commission fees and giving customers access to more value-added benefits. With AI-driven chatbots and personalization tools, booking directly with hotels will offer more tailored options for travelers looking to secure the best rooms at the best prices.

Can Airlines Like Delta and American Beat OTAs Too?

The rise of OTAs in the travel industry isn’t just confined to hotels. Airlines, traditionally dependent on global distribution systems (GDS) and travel agents to fill their planes, are starting to reconsider their role in this ecosystem. Airlines like Delta and American have long relied on OTAs to distribute their flight options to millions of travelers. However, with OTAs also taking their cut of the profits, airlines are beginning to question whether the current model is sustainable.

In recent years, Delta Airlines has focused on driving more traffic to its own website and mobile app, pushing customers to book directly with the airline rather than third-party platforms. This approach allows Delta to offer exclusive perks, such as priority boarding, access to premium seats, and even discounted fares that aren’t available on OTAs. American Airlines has also followed suit, promoting its AAdvantage loyalty program to entice customers to bypass the likes of Expedia and Booking.com. By using direct booking channels, both airlines are cutting costs and providing customers with more personalized service, ultimately making it more likely that travelers will book with them in the future.

These moves align with broader industry trends. Major airlines, including Southwest, United, and JetBlue, are increasingly adopting AI-based booking systems that provide customers with more customized flight options and travel experiences. This trend is expected to accelerate as the aviation industry continues to explore the potential of AI and automation to enhance customer service and drive direct bookings.

For travelers, this shift means that booking flights directly with airlines could result in more flexible cancellation policies, better customer service, and access to exclusive offers. It could also lead to a more streamlined travel experience, as AI-powered tools help passengers plan their trips from start to finish, whether they’re booking a flight or reserving a hotel room.

How the Hospitality Industry is Changing with AI and Direct Booking

AI technology is playing a significant role in the ongoing shift away from OTAs. In the hospitality industry, AI-driven systems are helping hotels and resorts better understand the needs and preferences of their guests. By analyzing booking data and customer behavior, hotels can offer more personalized experiences, such as room recommendations, customized loyalty rewards, and even concierge services powered by AI assistants.

For example, Marriott’s Bonvoy program uses AI to offer personalized discounts and rewards based on guest behavior, such as past stays or loyalty points earned. Hilton’s Hilton Honors program has also embraced AI to offer members tailored offers, including upgrades and discounts on future bookings. With AI taking a central role in these programs, hotel chains are not only increasing guest satisfaction but also gaining valuable insights into customer behavior that help them fine-tune their offerings.

The impact on travelers is significant. As hotels leverage AI to offer more personalized and streamlined services, guests will find that booking directly through the hotel’s platform can unlock better deals and enhanced customer service. AI can also make the booking process faster and more efficient, allowing travelers to book their next stay with just a few clicks, bypassing the time-consuming process of comparing prices across multiple OTAs.

The Growing Importance of Direct Bookings for Travelers

As the battle between hotels, OTAs, and airlines intensifies, travelers will need to rethink how they book their trips. While OTAs like Expedia and Booking.com will always be popular platforms, booking directly with hotels and airlines can provide significant advantages.

For one, booking directly often gives travelers access to exclusive deals and perks that aren’t available through third-party sites. Hotels may offer room upgrades, free breakfast, or spa credits to those who book directly, while airlines may give passengers priority boarding, extra baggage allowance, or special discounts on future flights. These added benefits can make a huge difference, especially for frequent travelers who are looking for the best value.

Moreover, direct booking allows for better customer service and more flexibility. If something goes wrong with a booking, it’s often easier to resolve the issue directly with the hotel or airline, rather than going through an intermediary. Direct bookings also tend to have more flexible cancellation policies, which is a major advantage for travelers who need to make last-minute changes to their plans.

Travel Tips for Booking Directly with Hotels and Airlines

1. Sign Up for Loyalty Programs: Many hotel chains and airlines offer loyalty programs that reward you for booking directly. Marriott Bonvoy, Hilton Honors, and Wyndham Rewards all offer free membership that unlocks exclusive deals, room upgrades, and bonus points. Similarly, airlines like Delta’s SkyMiles and American Airlines’ AAdvantage offer miles and benefits for frequent flyers who book directly through their websites.
2. Use Hotel Apps and Airline Mobile Platforms: Most major hotels and airlines have mobile apps that offer special discounts and personalized services to users who book directly. These apps often provide real-time updates on booking status, flight delays, and hotel check-ins, making your travel experience more seamless.
3. Take Advantage of AI Tools: Both airlines and hotels are integrating AI-powered tools to offer more personalized travel experiences. These tools can suggest rooms or flights based on your preferences, provide real-time customer support, and even help with travel planning. Take advantage of these innovations to ensure a smoother and more customized experience.
4. Check for Package Deals: Some airlines and hotels offer package deals that combine flights and accommodation at discounted rates. By booking directly with both the hotel and the airline, you can save money and ensure that your entire trip is coordinated seamlessly.
5. Book Early for the Best Rates: Whether you’re booking a flight or a hotel room, booking in advance is often the best way to secure the best rates. While last-minute deals may be available, booking ahead gives you more options and flexibility.

The Future of Travel: How These Changes Will Affect You

The shift toward direct bookings and the reduction of OTA reliance is just the beginning of a larger transformation in the travel industry. As AI technology becomes more integrated into the booking process, hotels, airlines, and other travel service providers will be able to offer even more personalized experiences and better value for their customers. Travelers who embrace these changes will have access to exclusive deals, improved customer service, and a more streamlined travel experience.

As airlines like Delta and American join the fight to regain control over direct bookings, we can expect to see more competitive pricing and a stronger emphasis on customer loyalty. For hotels, the battle against OTAs will lead to more innovative loyalty programs and enhanced guest experiences, all aimed at winning back their customers’ trust and loyalty.

For travelers, the takeaway is clear: booking directly with airlines and hotels is the way forward. By doing so, you can unlock a wealth of benefits that OTAs simply can’t match. Whether you’re planning a weekend getaway, a business trip, or a luxurious vacation, booking directly ensures that you get the best value, the most personalized service, and the peace of mind that comes with knowing your travel plans are in good hands.

Embrace the Change, Book Direct

The rise of direct bookings is reshaping the travel industry, and the benefits for travelers are clear. Marriott, Hilton, Wyndham, and major airlines like Delta and American are all making moves to reduce their reliance on OTAs and regain control of their customer relationships. For travelers, this means better deals, more flexibility, and personalized experiences that will enhance every aspect of their journey. As AI technology continues to play a larger role in travel, the future of booking looks brighter than ever—directly with the companies that provide the best value and service. So, the next time you plan a trip, remember: booking directly is the way to go.