By seeing the Geetika Bahri's slideshow and reading the article "OTAs Increase demand share", I could concluded that the electronic booking system plays an important role in the hospitality industry, as the majority bookings are made through the hotels’ websites and travel agencies’ websites. The demand share of OTAs contribution is, indeed, increasing. Therefore,online travel agencies and hotels are investing more and more in online technology.

According to the article, the author confirms that generally the average price of Hotel’s rooms is inelastic. The lower prices promoted by OTAs decrease the hotels’ revenue as they offer prices promotion and increase slightly the hotels’ percentage of occupancy.

Moreover, the price information is transparent on websites, it means hoteliers can easily know the rate of their competitors. Consequently, the rooms’ price may tend to go down as hoteliers want to catch more customers.

The slideshow informs us that lower is the hotel’s category; higher is the number OTAs and price competition. Therefore, the luxury hotels provide online booking only on their hotels’ website. This reflects their exclusivity, high rates and luxury image.

We can infer that OTAs have usually a negative effect in the revenue’ hotels. However, as customers use agencies websites more and more, hoteliers have to build a commercial relationship with OTAs to compete in the market and catch more customers.