Turning the tables on OTAs: why Mexican hotels must reclaim control of their distribution

With 63% of inbound travelers coming from the United States, Mexico remains one of the most attractive leisure destinations in the Western Hemisphere.

Yet behind this impressive performance lies a structural vulnerability that threatens long‑term profitability and asset value: the industry’s growing dependence on Online Travel Agencies (OTAs).

As an asset manager working closely with hotel ownership and management across Mexico, I see the same pattern repeatedly. OTAs have become the dominant booking channel for many properties, especially in leisure‑driven markets such as Cancún, Riviera Maya, Los Cabos, and Puerto Vallarta. In fact, many hotels in Mexico now receive more than 50% of their total room nights from OTAs – a level of dependence that is financially unsustainable and strategically risky.

OTA commissions, typically ranging from 15% to 25%, directly erode net operating income (NOI), the most important driver of hotel asset valuation. At a time when operating costs are rising across labor, utilities, insurance, and supplies, every peso lost to intermediaries reduces owner returns. Even more concerning, OTA‑sourced guests tend to have lower ancillary spend, weaker loyalty, and limited repeat behavior, diminishing lifetime value compared to direct bookers.

From an asset management perspective, OTA contribution should not exceed 20% of total room nights sold. This threshold allows hotels to benefit from OTA visibility and incremental demand without sacrificing profitability or control. When OTA share climbs above 20% – and especially when it reaches 50% or more – hotels effectively surrender their pricing power, guest data, and brand positioning to third‑party platforms.

The digital landscape further complicates the issue. OTAs continue to dominate search results for Mexico’s top destinations, often outbidding hotels for their own brand names. This forces hotels to spend more on paid search just to compete for visibility in markets where they already have strong brand recognition. As OTAs increase their marketing budgets, hotels face an uphill battle to reclaim direct traffic.

To protect long‑term asset value, Mexican hotels must shift from passive reliance on OTAs to an intentional, strategic distribution model centered on direct bookings. This requires investment in digital infrastructure, stronger brand‑level marketing, and a commitment to owning the guest relationship from discovery to post‑stay engagement. Direct bookings consistently deliver higher profitability, deeper loyalty, and greater control over pricing and brand narrative—advantages that no OTA can replicate.

Mexico’s tourism outlook remains exceptionally strong, with continued growth projected through 2028. But to fully capitalize on this momentum, hotels must rebalance their distribution mix and reduce OTA dependence to sustainable levels.

The future belongs to properties that control their demand, not those that outsource it.