This article stems from a recent discussion by the HSMAI Global Distribution Advisory Board, in which the group analyzed how financial institutions have been quietly accumulating power and reshaping the dynamics of hotel distribution. The discussion addressed the commercial and operational aspects of these alliances. The main conclusion was that these platforms are disruptive agents. They have the ability to influence demand even before a guest begins a search.
This power doesn't stem from a more attractive booking experience or seemingly better fares. It comes from closed ecosystems, integrated payments, and visibility into customer behavior long before a travel intention is even declared. Participants described how these partners control the transaction, the currency, the timing of payment, and the incentives added to the booking. This combination generates an influence that surpasses that of traditional OTAs, even when booking volume still appears manageable.
Several leaders noted that many organizations still miscategorize these relationships. When treated as accounts rather than distribution, concessions are quickly granted, often without a full understanding of the cumulative cost. Benefits quietly overlap with fee expectations, credits, revenue-linked rebates, virtual card rates, and loyalty recognition that replicates internal programs. The same customer appears in multiple places, while teams negotiate as if each appearance represents incremental demand.
One phrase from the discussion summed up how many were feeling:
“I’m warning us hoteliers that we really need to make sure we understand the cost of partnering with them.”
Operational maturity remains uneven among the new partners. The group shared examples of disorganized onboarding processes, unclear content flows, limited connectivity, and contracts heavily weighted in favor of the financial institution. While progress is being made, learning curves are still evident, especially compared to traditional travel intermediaries, which have spent decades refining these processes. This gap slows launches and puts pressure on already limited distribution resources.
One recurring theme was the data advantage banks possess. These platforms observe daily consumption patterns and can present travel offers before a guest has even expressed interest elsewhere. This pre-demand visibility was described as the most disruptive element of the discussion, placing these institutions ahead of search engines, ahead of traditional intermediaries, and in a difficult position to compete with existing hotel tools.
The conversation ended where it began: on cost transparency. Without a shared and disciplined method for calculating the true cost of acquisition, decisions end up being driven by volume and brand pressure. Several participants mentioned ongoing work in the industry to build practical calculators and frameworks that reflect real business economics, not just apparent commissions.
Questions for sales teams
Are these partners being evaluated as distributors, account holders, or something else entirely?
What costs related to consumed reservations are currently excluded from standard channel reports?
How are loyalty benefits, credits, sponsorships, and rebates reflected in total cost of acquisition calculations?
At what point does customer ownership change when booking behavior becomes trapped within external ecosystems?
The HSMAI Global Distribution Advisory Board monitors the hotel distribution landscape and identifies ways in which HSMAI can better serve this discipline.
