Travel Agencies Outpace OTAs with Double-Digit Booking Growth

Traditional travel agencies have demonstrated significantly stronger booking momentum than major online travel agencies during the first half of 2025, according to data from commission processing firm Onyx CenterSource. Commissionable room nights through agency channels increased 11.8% year-over-year across a like-for-like property base, while both Booking Holdings and Expedia Group reported 6% growth over the same period.

The divergence represents a notable shift in distribution channel performance for hotels. Onyx CenterSource, which processes commission payments between properties and travel agencies, provided the unpublished figures based on consistent property comparisons across both periods. Average daily rates on commissionable bookings rose just 1.4%, while the average commission paid per room night increased 0.8%, resulting in a net commission line increase of roughly 13% for participating hotels.

The relatively stable commission structure stands in contrast to other digital distribution channels, where increased volume typically comes at higher unit costs. On platforms like Expedia and Booking.com, hotels must offer elevated commission rates or pay for visibility-enhancement programs to drive additional bookings. Google has recently begun selling placement directly within AI-generated travel answers, adding another variable-cost layer to digital distribution.

The agency channel's performance becomes more pronounced when set against recent OTA guidance. Booking Holdings projected even softer growth for the second quarter, which both companies are scheduled to report this week. The data suggests hotels received nearly double the booking growth through commissioned agencies compared to the two platforms many properties view as market bellwethers, without renegotiating commission terms upward.

Industry analysts note the volume-driven expansion in agency bookings occurred within existing contractual frameworks, meaning hotels absorbed higher total commission costs only because more travelers chose to book through agencies rather than because commission percentages increased. This fixed-percentage model contrasts with performance marketing channels where expanded reach requires proportionally higher spending on visibility enhancements, bid adjustments, or placement fees.

The first-half performance raises questions about distribution strategy as hotels evaluate channel mix and customer acquisition costs across an increasingly fragmented booking landscape. With agency channels delivering strong volume growth at predictable commission rates, properties may reassess their reliance on variable-cost digital platforms where increased bookings often require escalating per-transaction expenses.