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Transformation is not a choice ... its about survival

The Future of Hospitality: Breaking Free from Centralized OTAs with AI & Blockchain

Writer: Howard PhungHoward Phung

🚀 With Trump's Executive Order on AI & Crypto clearing regulatory hurdles and BlackRock pouring trillions into tokenized assets, the time for mainstream adoption is now! Hotels must seize this moment to decentralize and regain control over distribution, pricing, and guest relationships. 🚀

The hospitality industry is at a crossroads. As technology reshapes industries, hotels must decide whether to remain at the mercy of centralized online travel agencies (OTAs) or embrace innovation to regain control of their distribution, pricing, and guest relationships. With AI, blockchain, and decentralized platforms, there’s now a clear path forward—one that reduces dependency on OTAs, unlocks new revenue streams, and builds a fairer, more sustainable ecosystem for hoteliers and guests alike.

The OTA Problem: Centralized Control, Increasing Fees, and Diminished Hotel Power

For years, OTAs like Booking.com, Expedia, and Airbnb have increased their grip on the industry. Their dominance comes at a cost:

  • Soaring Commission Fees – Many hotels now pay 15-30% per booking to OTAs, a rate that continues to rise annually.

  • Loss of Direct Guest Relationships – OTAs control customer data, meaning hotels can’t build direct relationships with their guests.

  • Algorithmic Ranking Manipulation – OTAs dictate visibility based on commission agreements, meaning hotels pay more just to be seen.

  • Overreliance on Centralized Platforms – As OTAs grow, they squeeze hotels into a cycle of dependency, higher costs, and reduced control over their pricing and branding.

It’s time for a fundamental shift—one that leverages emerging technologies to put control back in the hands of hotels.

Decentralized OTAs: A Blockchain-Powered Alternative

Imagine a world where hotels pay significantly lower fees, control their guest data, and operate on a decentralized OTA network. This is where blockchain technology and Web3 principles come into play.

How a Decentralized OTA Works

  • Hotels List Directly on the Blockchain – Instead of a centralized entity like Booking.com, a blockchain-based OTA distributes control across the network.

  • Smart Contracts Handle Bookings – Eliminating the need for intermediaries, instant, trustless bookings reduce fraud and overhead costs.

  • Tokenized Commissions for Network Stakeholders – Instead of a single company profiting, crypto holders of the network receive commissions, incentivizing a fairer system.

  • Lower Fees, Higher Profit Margins – Cutting out middlemen means hotels retain more revenue, allowing for better pricing strategies and guest incentives.

This model aligns with what’s happening in Decentralized Finance (DeFi), where blockchain-based financial platforms remove traditional banking intermediaries. If DeFi has proven that finance can be decentralized, why not decentralize travel booking?

Live Blockchain Hotel Projects

Several projects are already demonstrating the potential of blockchain in hospitality:

  • Travala – A blockchain-based OTA that allows guests to book hotels and flights using cryptocurrency, offering loyalty rewards through its AVA token.

  • LockTrip – A decentralized travel marketplace that eliminates middlemen, enabling hotels to list at lower prices while providing travelers with competitive rates.

  • Dtravel – A decentralized home-sharing platform built on Web3, offering property owners governance rights through its native TRVL token.

  • Winding Tree – A blockchain-powered B2B travel marketplace connecting airlines, hotels, and travel agencies directly without intermediaries.

  • RoomRaccoon Blockchain Booking – A hotel management system integrating blockchain for secure, tamper-proof reservations and payments.

These initiatives show that blockchain-driven travel solutions are not just theoretical—they are live and evolving.

Tokenization: The Future of Hotel Loyalty & Ownership

The concept of tokenizing real-world assets (RWA) is no longer theoretical—BlackRock is investing trillions into it. The hospitality industry can do the same by tokenizing:

  • Loyalty Programs – Instead of fragmented loyalty points, blockchain-based hotel tokens can be used across multiple properties, exchanged, or even traded.

  • Hotel Ownership & Revenue Sharing – Guests and investors could own fractional shares of hotel properties via blockchain, unlocking new financing models for expansion.

  • Room Night Pre-Sales – Hotels can tokenize future stays, offering discounted rates to early adopters while securing upfront revenue.

This shift would provide hotels with new ways to generate capital, increase guest engagement, and build long-term brand loyalty.

AI & Blockchain for Data Monetization & Personalization

With AI-driven analytics, hotels can enhance guest experiences without relying on third-party data brokers. Blockchain ensures privacy and security while allowing hotels to:

  • Own & Monetize Their Data – Hotels can sell anonymized guest insights directly to brands, bypassing OTAs and big tech.

  • Enable Seamless Guest Identity – Decentralized Identity (DID) systems allow guests to check in without repetitive KYC (Know Your Customer) verification, creating a frictionless experience.

  • Enhance Personalization – AI-driven tools analyze guest preferences, while blockchain ensures data security and trust.

This approach will be essential in regaining autonomy over customer insights and strengthening direct relationships with guests.

Why Now? The AI & Blockchain Revolution Is Here

The recent Executive Order on AI & Crypto paves the way for mainstream adoption. Combine this with BlackRock’s massive tokenization strategy, and it’s clear that these technologies are no longer experimental—they are the future.

Hotels that innovate now will gain a competitive edge. Those that don’t will remain trapped in the cycle of OTA dependence, rising fees, and diminishing profitability.

This is a once-in-a-generation opportunity for hotels to redefine their digital strategy, unlock new revenue streams, and take control of their industry’s future.

Next Steps for Hoteliers

  1. Pilot a decentralized OTA project – Engage with blockchain networks (Avalanche, Polygon, Solana) to explore a fairer distribution model.

  2. Develop a tokenized loyalty & rewards system – Partner with Web3 projects to create a transferable, interoperable guest rewards program.

  3. Leverage AI & blockchain for data ownership – Invest in decentralized identity solutions and data monetization strategies.

Hotels must embrace AI, blockchain, and Web3 solutions now—before legacy players catch up. The industry needs bravery and bold action to break free from the stranglehold of centralized platforms.

The future of hospitality is decentralized. The time to act is now.

1 Comment


Very informative.Thank you for sharing.

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