Booking Holdings and Expedia Group have more than 85% of the European market of online travel agency (OTA)-facilitated bookings, according to new research by HOTREC that also found 51% of all hotel bookings in Europe are made directly with the property.
The European Hotel Distribution Study 2026, based on responses from 2,713 properties, found the OTA channel accounted for 29.9% of total hotel bookings in Europe, compared with 51% direct and the remaining 19% from offline travel agencies, tour operators and wholesale companies.
Some 69% of OTA bookings are facilitated through the channel’s two dominant players Booking Holdings and Expedia Group, with a rising trend: OTA-facilitated bookings grew from 19% in 2013 to 29.9% in 2025.
With the European hotel distribution sector now overwhelmingly concentrated in the hands of just two OTAs, HOTREC – the representative body for the European hotel sector – is urging European regulators to enforce the Digital Markets Act (DMA) and protect the transparency and redress provisions in the Platform-to-Business (P2B) regulation, which sets out fairness standards for online platforms. The European Commission’s Digital Omnibus initiative to lighten regulatory burden runs the risk of undermining those P2B provisions, according to HOTREC.
“The increasing market power of the two online travel giants needs to be addressed to avoid further predation of hotels by OTAs, particularly independent hotels and SMEs,” said HOTREC. “Hotels need digital platforms, but they also need real choice. Growing concentration must not translate into growing dependency. Europe’s hotels, most of them SMEs, need a competitive and transparent marketplace where they can choose how they want to reach their guests and retain control of their business.”
Concerns about competition issues and the threat to innovation in the sector were cited by the European Commission in its decision to block the proposed Booking Holdings’ acquisition of Etraveli Group in 2023.
The study found 51% of hotels see OTAs undercutting their rates on a frequent or occasional basis – up eight percentage points since 2023 – and 44% of respondents cited OTA-multi sourcing of rates or availability as an issue, which creates pricing inconsistencies, confusion for guests, billing challenges, incorrect information and reduced control of inventory.
Expedia Group and Booking Holdings did not comment on the findings.
Meanwhile, the use of artificial intelligence by hotels is still at an early stage, the study found: 26% of hotels use the technology – concentrated in larger properties, hotel chains, urban hotels and higher-category hotels.
