There is a distribution problem in Thailand’s hospitality industry that most Western hotel technology companies do not understand: the offline agent who sells online.
How It Works
Traditional offline travel agents in Thailand receive between 30% and 60% commission from hotels. This has been standard practice for decades. The problem arises when these same agents create their own profiles on OTAs like Booking.com and Agoda, then resell the rooms online at the discounted rate they receive from the hotel.
The Double Commission Effect
When this happens, the hotel is effectively paying twice: once to the agent (30–60%) and the OTA also takes its commission (15–25%). The hotel may receive as little as 30–40% of the original booking value.
Why This Persists
Many Thai hotel owners, particularly those running family businesses, maintain these relationships out of loyalty and the belief that offline agents bring essential business. While this was true historically, the shift to online booking means that maintaining high offline commissions alongside OTA presence creates a structural profitability problem.
The Solution
Hotels need to audit their distribution mix and identify where agent bookings are actually originating. Channel management tools like Bokun (for attractions) or Cloudbeds (for hotels) can help identify when OTA bookings are coming from agent-created profiles. From there, hotels can negotiate more reasonable commission structures or bring those bookings direct.