Introduction:
The modern traveler has access to more booking tools than ever, but behind the scenes, a troubling shift has taken place. The in-destination experience market has become a competitive space for online sales between small local businesses and massive online travel agencies (OTAs).
In-destination experiences are what PonoRez was explicitly
created to support and serve. The PonoRez system went live
in 2003, likely the first real-time web-based reservation system
for this global industry.
As consolidation and commissions rise, it’s time for suppliers to take back control of their products, customers, and profit margins.
OTAs: From Partners to Power Players
Online Travel Agencies, the two largest being Expedia Group and Booking Group, play a crucial role in connecting travelers with experiences. They aggregate options, offer user-friendly checkout systems, and help customers book everything in one place. Add to that Loyalty programs, these one-stop shops serve as one big easy button. Since COVID, other travel entities are joining in to promote the in-destination experience. Airbnb has Experiences, Germany’s GetYourGuide shifted from supplier co-op to OTA, and then there’s Peek, with notable investors like Goldman Sachs Asset Management, Jack Dorsey, cofounder of Twitter & Square, and Eric Schmidt, Former CEO of Google. The latest Expedia Group acquisition is Tiqets, a paperless mobile ticket delivery for thousands of venues in over 60 countries.
The strategy is to acquire competitors and purchase key software solutions to control much of the customer journey. Many travelers are unaware that a small number of corporations control the booking tools, review platforms, and recommendation search engines they use. Even more concerning: the algorithms promoting specific tours or experiences are often based not on quality but on which supplier pays the highest commission.
What This Means for Local Businesses
Small, owner-operated tour companies and attractions—especially those in destinations like Hawai‘i—are being squeezed. Here’s how:
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Branding gets erased. Tours are listed generically (e.g., “sunset hike”), stripping the operator of name recognition.
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Contact info is removed. OTAs often block direct customer communication.
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Customer data is withheld. Some platforms claim exclusive rights to the customer relationship.
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Commissions keep rising. Once 10%, many OTAs now demand up to 35%.
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Listings get suppressed. If suppliers don’t play by OTA rules, their products are downgraded—or marked “unavailable.”
The end result? Higher prices for consumers, lower profits for local businesses, and less money staying in the community.
The Dependency Myth
Here’s a reality check: if resellers disappeared tomorrow, suppliers would still have products to sell. But if all suppliers went out of business, OTAs would have nothing to offer.
The supply drives the industry. So why are so many suppliers bending to the demands of resellers?
It’s Time to Re-balance the Relationship
Suppliers are not powerless. Here’s how to take back control:
✅ Read contracts thoroughly. Refuse terms that alienate you from your customer.
✅ Set reasonable commission caps. Don’t go beyond what your margins can sustain.
✅ Retain pricing integrity. Use discounts to drive early bookings or direct sales, not to race to the bottom.
✅ Choose independent reservation systems. Avoid those owned by OTAs.
✅ Pay flat fees for software tools. Preserve your profits.
✅ Control where your top products are sold. Be selective and protect your brand.
Moving Forward Together
This is a pivotal moment for in-destination suppliers. As OTAs push further into control, the only sustainable solution is unity, clarity, and strength from the supply side.
We don’t need to eliminate resellers—we need fair partnerships. The kind that keeps local experiences authentic, memorable, and profitable for everyone involved.
The message is simple: grab the wheel, set your terms, and drive your company’s future.