Why OTAs like Airbnb and Booking.com are winning in 2025

Online Travel Agencies (OTAs) like Airbnb, Booking.com, and Vrbo are thriving in 2025. Statistics from Key Data show that direct bookings have slipped this year as OTAs continue to dominate the short-term rental landscape.

On Wednesday 9 July, Hostfully will run a webinar tackling this subject featuring Host Planet Founder, James Varley, and Key Data’s Vice President of Business Development, Sally Henry. From Tariffs to Travel: Why OTAs are Winning 2025 will start at 4pm UK time. Click here to register.

Ahead of the webinar, Host Planet Columnists Cristiana Carpini and Zak Ali offered their opinion of the trend.

Airbnb & Booking.com: not just discovery platforms anymore

“OTAs are dominating in 2025 because they have made the booking journey seamless, predictable, and trusted, especially for guests with no prior brand loyalty,” said Zak.

“Airbnb and Booking.com aren’t just discovery platforms anymore, they are decision engines. Their ability to match intent with inventory at speed has widened the gap, particularly in markets where smaller agencies or independents haven’t yet matched that level of visibility, responsiveness, or user experience. It’s not that direct bookings are dead, it’s that in the eyes of many travellers, they are harder work.”

Cristiana, Founder and CEO of Tara Home Consulting, said many property management companies had cut their marketing budgets this year and pointed to payment flexibility being a game changer for the major OTAs.

“Travellers in 2025 expect options. Many OTAs have integrated ‘book now, pay later’ systems (see the latest update from Airbnb), instalment plans, and seamless multi-currency checkout – features that many direct booking websites can’t match without significant investment. In a year where household spending is under scrutiny, this flexibility is often the deal-breaker.”

Regulation is helping Airbnb and other OTAs

Cristiana also suggested that regulation is actually favouring the OTAs in some markets.

“Ironically, tightening regulations on short-term rentals in cities like Amsterdam, Florence, and Barcelona may be benefiting OTAs. Their compliance systems and legal departments allow them to adapt listings faster than smaller players. In some cases, cities even partner with OTAs for enforcement – reinforcing their status as gatekeepers.”

Strong utilisation of AI tactics is also boosting the OTAs, according to Cristiana.

“OTAs are using AI not only to enhance search and suggestion algorithms but also to detect listing quality, optimise SEO, and rank properties more strategically. Combined with tens of thousands of guest reviews and rich content, this creates a discovery engine that is hard to beat. Many boutique property management companies are still years away from implementing similar systems.”

Zak added: “What’s changed this year is that the OTAs aren’t just winning new guests, they are winning repeat behaviour. Their platforms feel fast, mobile-optimised, and familiar, which reduces friction and removes doubt. For smaller brands without the same reach or marketing infrastructure, it means they are often stepping into the booking journey late, reacting, not leading. That’s the real shift in 2025: not just OTA growth, but OTA default status.”

Cristiana advised property managers to learn from what’s working – rather than row against the tide.

“Payment plans, seamless UX, transparent policies, and loyalty incentives are all replicable at the local level – but require strategic focus. OTAs might be winning 2025, but there’s still room for property managers to win within the platforms – and build direct relationships beyond them.

“Because in the end, it’s not OTA vs. PMC. It’s who evolves faster.”