Do you have hotels in small towns and villages or only in the big cities?

Yes for most places, but how much choice you get in a small town honestly depends on which hotel suppliers are connected to you. A hotel booking API does not own any hotel stock of its own. It sends your search out to the suppliers and wholesalers it is linked to and shows you whatever they have loaded. Big cities, beach resorts and popular tourist spots are contracted heavily, so you will usually see a long list. In a quiet town or a remote area you may see only a few properties, or sometimes nothing, simply because no supplier has a contract with the hotels there.

It also helps to know that many small town guest houses, homestays and family run lodges never sign up with any international supplier at all. They take bookings on the phone or by email and that is it. No matter how many connections you add, those properties will not appear in search results. If hotels like that matter to your business, you can normally load them yourself as your own direct contracts, with your own rates and rooms, so your customer sees them in the same list as the API results and does not know the difference.

The practical fix for a weak region is to add a supplier who is strong in that region, because every supplier brings a different set of contracted hotels and a local specialist often fills the gaps a global one leaves. Whether you can add more suppliers, and how many, depends on your plan, so please check that before you count on it.

Make a list of ten or fifteen towns your customers actually ask for, then run live searches on those exact places and see what comes back before you decide.