Ryanair continues its transformation from the company you love to hate, with its charm offensive, targeting business travellers and now expanding into new product areas.

This is an interesting move that must be good news for the hotels sector.

On one hand you might think that hotels have spent the last 5-10 years fighting the OTAs for control of the guest and market share, why would they want another OTA to enter the market?

But OTAs are not themselves bad for hotels, it has been their oligopolistic power that has been bad for hotel companies with high commissions, a stranglehold on online (and traditional media) advertising and technical superiority, that has left hotel companies struggling to compete for online sales of their products.

Therefore a new entrant charging lower commissions (apparently around 10% for Ryanair Rooms) will be good for hotels in increasing competition amongst OTAs and driving down commission rates.

It is interesting as well that Ryanair Rooms is looking to bridge the gap between AirBnB, with its lower commissions, but focus on homestays and BnBs and the traditional OTAs with higher commissions more focused on hotels.

However, Ryanair Rooms will be exploiting its existing cost-conscious client base, so I see this as being more an infringement into AirBnB's territory than someone like Expedia and I don't think onefinestay, with its luxury client base, will be too concerned about losing clients to Ryanair.