Barriers In The Acceptance And Use Of Aggregator Platforms By The Unclassified Hotel In India

17 Sep

Authors: Prateek Nailwal

Abstract: The proliferation of aggregator platforms (such as online travel agencies, booking portals, and app‐based marketplaces) presents significant opportunities for unclassified hotels in India to enhance visibility, increase bookings, and strengthen revenue streams. However, many such hotels face distinct barriers that inhibit their acceptance and effective use of these platforms. This study investigates the impediments encountered by unclassified hotels—hotels without formal star ratings or belonging to informal or small-scale lodging sectors—in adopting aggregator platforms in India. Drawing on qualitative interviews with 40 proprietors/managers of unclassified hotels across three states, and supplemented by a survey of 150 such stakeholders, we identify and analyze key barriers. Findings indicate that the main obstacles are: (a) high commission costs and unclear fee structures; (b) technology and digital literacy gaps—lack of knowledge about using online platforms, managing listings, understanding analytics; (c) poor internet and infrastructure connectivity in smaller towns and rural areas; (d) trust issues—concerns about payment delays, fraudulent bookings, unfair reviews; (e) branding and credibility problems—difficulty in standing out among established, classified hotels; (f) lack of support and training from aggregators, and; (g) regulatory, tax, and compliance burdens. The study further maps the interrelationships among these barriers and suggests a framework for interventions. Implications for policy include subsidies or incentives for digital adoption, tailored training programs, and regulation ensuring transparent practices. For aggregators, the findings highlight the need for supportive onboarding, flexible commission models, and trust-enhancing mechanisms.