A study on Determinants of Hotels’ Strategic Choices: Collaboration or Competition with OTAs in Srinagar

Abstract

The rapid growth of digital platforms has transformed the hospitality industry, compelling hotels to strategically navigate relationships with Online Travel Agencies (OTAs). This study investigates the determinants influencing hotels’ decisions to collaborate with or compete against OTAs in Srinagar, a tourism-sensitive and emerging destination. Drawing on a quantitative research approach,the study examines key economic, technological, managerial, and contextual factors that shape hotels’ strategic orientation and their consequent impact on performance outcomes such as occupancy, revenue, and customer loyalty. A structured questionnaire was  administered to a stratified sample of 120 hotels across Srinagar, encompassing 2-star to 5-star and independent properties. The study employs descriptive statistics, correlation, and multiple regression analyses to assess the relationships between determinants and strategic choices. Findings reveal that economic factors, particularly OTA commission rates and dependence on short-term revenue, significantly influence collaboration and competition decisions. Technological readiness, including the adoption of property management systems, customer relationship management tools, and direct booking platforms, enables hotels to implement hybrid strategies that balance OTA collaboration with competitive direct bookings. Managerial competence, encompassing innovation-oriented leadership and digital marketing expertise, is critical in shaping effective strategic responses. Contextual factors, such as seasonal fluctuations, geopolitical instability, and infrastructural constraints, further affect reliance on OTAs and the choice of strategic approach. The study highlights that hotels rarely adopt purely collaborative or competitive strategies; instead, hybrid strategies that integrate both approaches optimize occupancy, revenue, and customer loyalty. The findings contribute to the literature on hotel–OTA relationships and co-opetition strategies by providing empirical evidence from an emerging tourism market. Practically, the research offers action able insights for hotel managers to align internal capabilities with market conditions and for policymakers to support sustainable tourism growth. This study underscores the importance of an integrated, context-sensitive approach to strategic decision-making in the digital hospitality ecosystem.