Hotels are fighting back against secondary OTAs that undercut rates and damage direct bookings. Meanwhile, Agoda is rewriting the loyalty playbook—forget points, it’s all about price. In this episode, we unpack how pricing power, transparency, and simplicity are reshaping travel.
We unpack two critical challenges shaping the future of travel: how hotels are battling rate undercutting from secondary OTAs, and why Agoda believes the loyalty game needs a serious rethink.
Hotels have long tried to reclaim their pricing power from major OTAs like Booking.com and Expedia. But a newer headache has emerged—secondary OTAs. These are smaller, lesser-known booking platforms that scrape prices from wholesalers or weakly managed affiliate networks. They then advertise rooms at lower rates than the hotels themselves, often without the hotel's knowledge or consent.
Why This Is a Big Problem:
Rate parity breaks down, damaging trust with direct-booking guests.
Hotels spend more on Google ads, metasearch, and loyalty programs—only to be undercut elsewhere.
Guests show up at check-in expecting lower rates, creating service friction and loss of credibility.
For independent hotels and smaller brands, the damage is even worse. Lacking the tech muscle of big chains, they struggle to track where rates are being leaked. As a result, margins shrink while marketing costs go up.
How Hotels Are Fighting Back:
Offering exclusive member rates that can’t be matched on OTAs.
Strengthening relationships with trustworthy wholesalers.
Investing in tools like parity monitoring software and platforms like Roomangel, designed to bypass OTA commissions entirely.
Doubling down on direct booking incentives—perks, better cancellation policies, and rewards for loyal guests.
The takeaway? Rate integrity is no longer just a pricing issue—it’s a brand trust issue.
While most travel brands are obsessing over points, tiers, and perks, Agoda has chosen a radically simple path. According to CEO Omri Morgenshtern, Agoda’s loyalty strategy is straightforward: give customers the lowest price—every time. That’s it.
The Key Elements of Agoda’s Strategy:
Hyper-competitive pricing powered by AI that constantly scans and matches the lowest rates.
Focused heavily on speed, price transparency, and local relevance.
No complicated rewards, no elite tiers, no expiration dates—just price leadership.
This approach reflects a broader trend in the travel space: modern travellers increasingly value simplicity and transparency over complex points-based systems. For Agoda, loyalty isn’t about future rewards; it’s about delivering value right now.
While this model won’t work for every brand—especially luxury or experience-driven hotels—it highlights a growing segment of customers who prioritise affordability and convenience above all else.
✅ Protect Your Pricing: Monitor OTAs and wholesalers carefully. Use tools to catch rate leakage before it affects your brand.
✅ Simplify Your Value Proposition: Whether it’s lowest price, best perks, or fastest check-in—make your offer clear and easy to understand.
✅ Loyalty Doesn’t Have to Mean Points: Surprise guests with thoughtful perks. Offer discounts for repeat bookings or referrals instead of complex programs.
In a market where both price and trust are under pressure, the winners will be those who can maintain transparency, control their pricing, and communicate value clearly—whether you’re running a global hotel chain or a boutique STR property.
Ready to elevate your direct booking game? Visit the Boostly website for the tools, strategies, and support you need to succeed in 2025 and beyond. And remember: Book Direct
