Although the internet has significantly changed the distribution in the hospitality industry, research has been paying limited attention to how this affects small accommodation providers. Generally theory sees these organizations in a disadvantaged position when dealing with third parties as for the distribution of their product, hotels are dependent on intermediaries. This study investigates in how small sized, independent family hotels in South Tyrol handle their distribution channels. By analysing their current cooperation with third parties, the thesis challenges the assumption that small hotels have to rely on intermediaries in order to be effective. Data was collected through in-depth interviews with four representatives of the hospitality industry and an online survey among three- and four-star hotels in South Tyrol, resulting in 118 responses. The findings show that the hotels in the region make very limited use of intermediaries as they get the vast majority of their bookings direct. The hotels place great value in the personal interaction with their guests and third parties cannot contribute to it. The deep trust between the hotels and the customers results in a strong basis of regular guests and an excellent Word of mouth publicity. Intermediaries are perceived as not facilitating the contact between demand and supply but as interfering in the direct relationship hotels want to have with their guests. Third parties are seen more as an additional marketing tool, especially OTAs as they enable the hotels to target a worldwide market, something they cannot do on their own. The study revealed that their current business model works very well for the hotels, therefore they are sceptical towards new methods of distribution and prefer to await the development and establishment of innovative technologies instead of being first movers.