ota online travel agency definition

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What are online travel agencies? The ultimate guide to OTAs

Love them or not, online travel agencies (OTAs) play a critical role in every property’s distribution strategy. According to Expedia Group’s 2023 Path to Purchase report, OTAs captured 51% of online hotel & lodging bookings and possess the visibility and marketing power that most individual properties cannot achieve on their own. 

Working with OTAs isn’t just a matter of signing up and hoping for the best. To take advantage of the opportunities and avoid the pitfalls, you need to actively manage your listings, pricing, and inventory and take a strategic approach to online distribution. 

If done correctly, adopting the right OTAs as part of your distribution strategy can actually help drive direct bookings through the “billboard effect.” Building a comprehensive channel mix incorporating different types of OTAs will ensure you reach your target audience and secure a steady stream of reservations. 

See which OTAs dominate globally, regionally, and across property types based on Cloudbeds customer data and how properties like yours use OTAs as part of their distribution strategy. 

At Cloudbeds, we know the world of OTAs and distribution channels can be complex. We’ve created the Big Book of OTAs to help demystify this process and explain how to create a recipe for success when working with third-party distribution channels.  

What is an online travel agency (OTA)?

An online travel agency (OTA) is a website that acts as a search engine for travel. They connect providers across the travel industry to help travelers easily plan their trips. On OTA sites, travelers can often access package deals with accommodations, airfare, cruises, rental cars, and more .

On average, travelers view 141 pages of travel content in the 45 days before booking a trip, with OTAs making up 67 of those pages. Therefore, properties must be active on as many channels as possible to increase brand awareness and drive bookings — both OTA bookings and direct bookings (more on this later). With the increased popularity of OTAs around the world, hoteliers now have access to markets once unattainable.

How do OTAs work?

Online travel agencies emerged in the 1990s, using the internet’s extensive reach to aggregate global travel supply into a single place so consumers could book their own travel online. These self-service tools reshaped the hotel industry and the way travel was researched and booked, as the general public could now easily plan their trips and reserve their airfare, accommodations, and tours on their own rather than rely on a physical travel agent.

Sites such as Expedia.com, Booking.com, Airbnb, Orbitz, Hotels.com, and TripAdvisor are often consumers’ first stop when researching and booking their next trip. These sites offer a seamless user experience at all stages of the buying process: problem/need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Properties of all types and sizes can connect to multiple OTAs through an integrated channel manager . A distribution system, like a channel manager, shares room inventory and rates from your property management system (PMS) to your booking engine and OTAs. Properties that use a channel manager can streamline hotel operations, increase hotel revenue via revenue management best practices , and increase occupancy across channels (all without the fear of overbookings). 

OTA business models

Hotels form partnerships with OTAs by basically outsourcing marketing to OTAs, who then make money through two business models: the merchant model (guest pays the OTA  in advance) and the commission model (guest pays the hotel at check-in or check-out). Most OTAs offer a blended model so that hotels can let guests choose which option they’d prefer. 

The merchant model

In this model, the online travel agency acts as the merchant of record and collects payments from guests at the time of booking. Once the guest has checked out, the OTA pays the hotel. Contracts exist between hotels and OTAs to provide a set number of rooms to the OTA at a favorable rate. The OTA then makes a profit off each room sold but must meet its contractual thresholds.

The agency (commission) model

In this model, the consumer books via the OTA but pays the hotel directly at the time of checkout. The hotel then pays the OTA a commission on the total value of the booking after checkout. There are no contracts, and rates are set by hotel management. 

The advertising model

This model has increased in popularity and exists on metasearch sites such as Google Hotel Ads, Tripadvisor, Trivago, and KAYAK. Metasearch engines work primarily on a cost-per-click basis where hotels can promote their rooms with links to their direct booking engine, and pay a fee based on the number of clicks they receive. Some of these sites, such as Google, also offer a cost-per-acquisition model (also known as “pay per stay”) where the property pays a percentage of the total reservation cost upon completion of the stay.

For hotels, it can be frustrating to watch distribution costs rise without getting more in return, but there are costs associated with direct bookings too. Demand doesn’t appear without at least some sort of distribution or marketing strategy in place, and those marketing campaigns, loyalty offers, special deals, and direct booking tools have a cost to the hotel. That’s why it’s important to use OTAs wisely and in conjunction with your own direct marketing strategy. 

Online travel agencies vs. online travel agents

Before the rise of OTAs, it was the role of a travel agent to book leisure and business travel. This is because travelers back then did not have access to hotel availability and rates the way we do today. While the internet has made it easier for travelers to book their own trips online, some segments like luxury, corporate, and group travelers still prefer to utilize a person, or online travel agent, to help plan and book a trip.

Travel agents are beneficial when planning complex trips such as a destination wedding, honeymoon, or corporate trip. They have the expertise and connections to find unique accommodations at better rates than most people can find themselves.

Travel agents such as Kuoni have a team of destination experts who work behind the scenes to curate tailor-made accommodations, experiences, and itineraries. Their in-person stores allow travelers to enjoy a glass of champagne while meeting with a travel expert to plan their dream vacation.

Travel agents usually have a portfolio of properties they recommend to travelers and take a commission fee, similar to OTAs. Strong relationships with travel agents can help properties drive more bookings in alternative segments than the OTA market.

Difference between OTAs and metasearch

With so many online booking channels available today, it can be challenging to understand the difference between certain channels.

Metasearch websites like Skyscanner act as aggregators and display hotel information and room rates from a variety of online channels, including OTAs like Agoda, Trip.com, Travelocity, or Priceline.com and a hotel’s website. It enables travelers to compare all of their hotel booking options in real time across the web so that they can book the best deal.

OTAs provide room rates and booking capabilities for only one channel — their own. Meanwhile, metasearch sites can display up to twenty or more results.

Properties can invest in hotel marketing efforts through metasearch engines. Metasearch sites rank listings and it pays off to be near the top. Paying to have your listing higher in the ranks to drive more direct bookings can drive serious results. 

Is Google an OTA?

Google is often a traveler’s first stop when looking for a hotel room. In recent years, Google has changed the hospitality industry with its products. Google offers Google Hotel Search, which acts as a hotel metasearch platform. When a traveler enters a property’s name into Google, it will show all of the rates and listing information from across the web.

Google also has free booking links , a game-changer for independent hotels as they can list their direct rates and links to their own website within the Google Hotel Search box. This option encourages potential guests to book direct.

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What Are OTAs (Online Travel Agencies) and Should You Book With One?

Scott Keyes

August 7, 2023

There are two ways to buy flights online: directly with the airline, or via an online travel agency.

Though buying directly with the airline is self-explanatory, online travel agencies (also known as OTAs) are a bit more complicated. When Going sends our members cheap flights , we typically recommend you book directly with the airline, as there are some clear benefits of doing so, but sometimes we'll point you to an OTA if the fare is significantly cheaper there.

And since one of the top questions travelers have is whether a given OTA is reliable, it’s helpful to understand more about what OTAs are before deciding for yourself if the potential savings are worth it.

What are online travel agencies?

Online travel agencies are companies that sell you flights, online. They act as a middleman between airlines and consumers, though their prices can often be cheaper than booking direct.

Most people are familiar with top OTAs like Expedia , Orbitz , Travelocity , Hopper, and Priceline . There are hundreds, if not thousands, of smaller OTAs as well, and more pop up all the time. Some smaller ones include OneTravel, Kiwi, GotoGate, JustFly, Vayama, Tripsta, TravelMerry, ExploreTrip, Kiss&Fly, Webjet, Travelgenio, Bookairfare, Fareboom, Skybooker, Travel2be, OneTwoTrip!, and eBookers.

How do online travel agencies work?

Online travel agencies work by plugging into a “ global distribution system ,” which is a fancy name for the market where airlines tell distributors what they’re charging for their flights.

When you book directly on an airline’s website, your ticket typically gets issued almost immediately. That’s because the airline is both the seller and provider of the ticket, so it’s rare that their system allows them to sell something they don’t actually have in stock.

With OTAs, especially smaller ones, there’s a delay between when you purchase the ticket and when you’re issued the ticket. That’s because, unlike the airlines, OTAs don’t actually have the tickets they sell. Instead, the OTA is the middleman, connecting customers with airlines and taking a small commission from the airline in the process.

When you click to buy a roundtrip Delta flight from New York to London for $400, what happens is the OTA charges your credit card $400, then turns around and checks with Delta to make sure that ticket is available at that price. This process can take anywhere from a few minutes to 48 hours; each OTA is different and there are a ton of variables impacting transaction time.

But unlike most middlemen, OTAs don’t typically jack up the price. In fact, they usually offer the same price—and often times a lower price—than you’ll find directly with an airline.

Why are fares sometimes cheaper on online travel agencies?

There are a few reasons why OTAs can sometimes offer cheaper fares than booking directly with an airline. They might:

• Sell flights less than cost . OTAs may sell fares for less than they cost, either as a loss leader (in the hopes you’ll book additional add-ons like a hotel or rental car) or in order to accrue market share (hoping you’ll book your next trip with them as well)
• Pass on the commission . Airlines dole out a commission every time a traveler books their flight through an OTA. The OTA, in turn, may pass some or all of that commission on to consumers
• Specific discounts . Airlines regularly negotiate with OTAs to allow them to sell certain flights at a discount. The airline may not want the lower fare broadcast too widely, so only one or two OTAs are given the discounted rate.
• Less customer support . Many smaller OTAs save money and offer lower fares by skimping on customer support.
• Big change/cancellation fees . Many smaller OTAs charge inflated change or cancellation fees in order to offer lower prices initially.

What benefit can online travel agencies have?

It can be cheaper.  The main benefit of OTAs is they are often cheaper than booking directly with an airline. The same flight selling on United.com for $600 may cost $500 on an OTA, for example.

You can combine airlines for the perfect itinerary. Some OTAs like Kiwi let you purchase multi-airline itineraries. Airlines will only sell you their own flights (or partner airlines’ flights). Some OTAs, on the other hand, will let you buy a single itinerary that crosses the ocean on Delta, say, but then take your final leg on Ryanair.

What drawbacks can online travel agencies have?

The 24-hour rule may not apply. One of the best tools to have in your back pocket when buying flights is the 24-hour rule , which lets you cancel a ticket you booked without any penalty as long as you do so within 24 hours of purchase. This protection is guaranteed by the federal government, but only when you book directly with an airline . Some OTAs like Priceline offer their own 24-hour guarantee, but it’s not required by law and most OTAs make all sales final.

Customer service can be lacking. OTAs, especially smaller ones, often skimp on customer support. This can range from outsourced and minimally-staffed call centers to exorbitant fees if you need to change or cancel your ticket. Of course, this lack of support is part of how OTAs offer lower fares to begin with.

If things go wrong, it gets complicated. In addition, having a middleman can complicate any mishaps because airlines will tell you to coordinate any issues through the OTA rather than directly with the airline. And the OTA may turn around and push things back on the airline, leaving you stuck in the middle.

Mistake Fares are less likely to be honored. Finally, when there’s a Mistake Fare , booking through an OTA carries some risks. Think back to how OTAs operate. Unlike booking directly with an airline, booking through an OTA means going through a middleman, which can delay how quickly you receive your ticket after clicking purchase. For normal fares this rarely makes a difference because the fare is far less likely to imminently change. But for Mistake Fares, which can disappear any minute, that delay in receiving your ticket can be the difference between your purchase being honored and it being politely refunded with the quoted fare no longer being available.

This delay between purchasing and ticketing is one of the reasons why we recommend people wait a week or two before making any non-refundable travel plans. But once you’ve got an e-ticket number with the airline and can see your itinerary on the airline’s website, you should be all set.

How do OTAs make money? 

Online travel agencies make money by taking a commission from the airline, hotel, car rental agency, or cruise line when you book.

(At Going, we don't take any commissions from the airlines when we send our members deals. We make money when members pay for our services, which means our number one priority is making members happy, not getting them to book specific flights that line our pockets.)

Am I going to get scammed by online travel agencies?

If you’re worried that a smaller OTA will take your money and not give you a ticket, don’t be.

The worst you can expect is that, on occasion, you purchased a fare that no longer existed when you bought it. If that happens, they will reach out to you (almost always within 48 hours or less) to tell you your ticket can’t be sold at that price. At that point, you’re given the option to either purchase at a higher price or have the entire transaction voided and your money refunded.

Why do some online travel agencies have terrible reviews?

It's true that some online travel agencies have bad reviews. Does that mean you shouldn't use them? There are two schools of thought here.

The first is that these reviews are worthwhile because other people’s experiences can be instructive.

The second is that the nature of internet reviews tends to skew towards negative experiences. How many people whose flight was uneventful are then motivated to go back and write a review for the OTA they purchased it from?

Another other reason it can be worthwhile to take a nuanced approach to negative reviews is that they tend to come from folks who didn’t understand how smaller OTAs operate. They may have been unaware of the higher change/cancellation fees, outsourced customer service representatives, or the delay between purchasing and ticketing. Obviously those aspects of smaller OTAs aren’t ideal, but its those factors that also allow for often-substantial price savings.

Are all airlines listed on OTAs? 

No, unfortunately not all airlines are listed on all search sites. Notably in the US, Southwest fares aren't listed on Google Flights. Often, smaller regional carriers don't work with the large OTAs so you'll need to search those directly.

Should I book through an OTA or directly with an airline?

This is the million-dollar question. On the one hand, an OTA fare may be hundreds of dollars cheaper than booking directly. On the other hand, it’s completely understandable to be hesitant about booking a flight through an OTA you’ve never heard of before.

There are a few cut-and-dry situations. If the price is the same booking directly with the airline versus booking through an OTA, there’s almost never a reason to book through the OTA.

Conversely, if the OTA price is over $500 off the direct price, of course an OTA is the way to go.

But for more gray-area situations, it mostly comes down to a personal comfort level.

Questions to consider:

• How certain are you to take that specific flight? If there’s more than a 10% chance you’ll want to change or cancel your flights, the initial cost savings may not be worth the potential fees for altering your plans.
• Are the potential savings worth it? If the OTA savings is $5, most people would be wise just to book direct. If the savings start to become substantial, it starts to become a matter of individual comfort. Is paying an extra $50 worth the extra peace of mind of booking directly? $100? $200?
• Is it a Mistake Fare? Because booking through an OTA can lessen the chance a mistake fare is honored, the potential savings should be higher to make it worth it. Someone may prefer to book through an OTA if the savings exceed $50, but might increase that savings threshold to $100 if it’s a mistake fare, for instance.

Join Going and save up to 90% on your next flight. We're not an OTA—we just let you know when fares drop to amazing prices that can save you hundreds.

Founder & Chief Flight Expert

Published August 7, 2023

Last updated January 9, 2024

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Category: Travel

Date: October 20, 2023

Online Travel Agencies – A Brief Introduction

The role of an online travel agency (OTA) is becoming increasingly important in the accommodation industry as they provide a convenient way for travelers to arrange their stay. From the comfort of their home, travelers can compare hotel prices and book them over the internet. 

In this blog, we are going to discuss what an OTA is, the best OTA platforms, travel website development and how to do it right, and more.

Ready? Let’s go.

What Are Online Travel Agencies?

An online travel agency (OTA) arranges and sells accommodations, tours, transportation and trips on an online platform for travelers. They are third parties who sell services on behalf of other companies.

Usually, these OTAs offer many benefits with added convenience with more of a self-service approach. They also include a built-in booking system which allows instant bookings.

How Do Online Travel Agencies Work?

OTAs generally work on two models. They are,

1. Merchant Model

In this model, hotels sell rooms to OTAs at a discounted or wholesale price. Then, the OTA sells them to the customer at a markup price

2. Agency Model

This is a commission-based model where OTAs acts as a distribution partner. OTAs receive full commission after the stay has taken place. The hotel directly receives the payment from the end customer and does not wait for the payment transfer from third-party distributors.

What Are the Benefits of Partnering with Online Travel Agencies?

In one word – exposure! Online travel agents get thousands of website visitors from all over the world. Plus, they have positioned themselves as an authority on everything related to travel. So, people trust the recommendation they receive from OTAs.

By listing in OTAs, accommodation businesses like hotels not only reach a vast set of audience but will also find their service among many other reputable sources of information.

In addition, hotels that are listed on OTAs can also benefit from what is referred to as the ‘billboard effect’. This means that OTAs provide a form of advertising for service providers such as hotels on their platforms. Once the user gains this awareness, they may even go to the website of that particular hotel to make a direct booking.

What Are the Advantages and Disadvantages of Selling Through Online Travel Agents?

Accommodation businesses like hotels and B&Bs have pros and cons of getting listed in OTAs. Let’s take a look at them.

Advantages Of Online Travel Agents

• Low-cost method of selling accommodation services
• Reduced online marketing spend as OTAs invest in advertising to attract potential customers
• Impartial reviews give customers the confidence to book
• Users can easily compare various accommodation costs at one place

Disadvantages Of Online Travel Agents

• Commission rates are charged on every sale. It can range between 10-15% of the gross cost
• Restrictive cancellation terms
• Even if accommodation businesses use OTAs, the need for their own website and booking engine does not go away
• Investment in a balanced multi-channel strategy may be needed to boost sales

Even though OTAs can help to fill your rooms, accommodation businesses must try to maximize revenue through their own website. Consistent work on search engine optimization tactics and other digital marketing techniques is a must. Accommodation businesses must focus on customer retention techniques and directly target their existing customers through emails and direct marketing.

How To Start An Online Travel Agency?

Travel agencies no longer inform customers about the availability of flights and rooms. They issue rooms and get a commission from the respective accommodation businesses. That is why most of the new travel businesses follow the OTA model.

If you plan to enter the OTA arena, you can specialize in pilgrimages, leisure travel, business travel or any niche. But, focusing on how effectively you offer things is the key to success.

Here Are Some Points You Have To Consider When Starting An Online Travel Agency.

• Register the name of your agency and if applicable, take a license as per your local laws
• Try to get a membership in IATA or any other reputed travel organization
• Gain more knowledge about the travel industry and particularly the nice you want to concentrate
• Get your travel website designed by a professional company like ColorWhistle
• Offer deals that focus on a specific geography. Focusing on a particular niche will also bring more success
• Publicize your business in the online space
• Utilize the power of blogging
• Create a good social media presence

Why Do People Use Online Travel Agencies?

 here are some of the main reasons they prefer ota’s..

• Few OTAs offer reward programs which can be used for future travel needs
• Special rates which cannot be found elsewhere
• Some OTAs may have generous cancellation policies. For example, Priceline does not offer any penalty if the user cancels the ticket until the end of the next business day
• Most users may not have an idea on where to book other than an OTA
• OTAs make it easy to compare different rates

Who Are the Top Online Travel Agents?

1. booking.com.

Booking.com is one of the largest accommodations websites which has now expanded to smaller markets such as family-operated bed and breakfast, vacation rentals and self-catering apartments.

Interesting statistics

• Every day, 1,550,000 nights are booked
• 68% of nights booked came from families and couples
• 42% of nights booked came from unique places such as homes and apartments
• 38% of reviews are given by guests which are useful for other travelers
• 75% of nights booked come from guests who booked more than 5 times

2. Expedia’s Hotels.com

Expedia’s Hotels.com is a popular brand which has a global audience and attracts diverse travelers. The company gained more power in the industry by acquiring Travelocity.

• Gets over 675 million monthly site visits
• Operates in 70+ countries and 40+ languages
• Attracts 75 million monthly flight shoppers

Airbnb revolutionized the travel accommodation industry by introducing home-sharing. The website has diverse listings and travelers get a sense of safety as they can know their guest’s identity.

• 2.9 million hosts are present on Airbnb
• Average of 800k stays each night
• 14k new hosts join every month

Apart from these major OTAs, there are many small ones such as OneTravel, Vayama, Tripsta, TravelMerry, ExploreTrip, Kiss&Fly, Webjet, GoToGate, Travelgenio, Bookairfare, Fareboom, Skybooker, Travel2be, OneTwoTrip!, and eBookers.

Drive Conversions and Boost your Business with Expert Travel Website Development.

What the future holds for online travel agencies.

It is clear that, in the near future, accommodation businesses are not about to back down from OTAs. They are enjoying the billboard effect and trying their best to retain website visitors and convert them into direct booking. 

Sure, there is a cost involved. The upside of this is that accommodation businesses are working hard to create a loyal customer base that will continue to seek direct bookings.

The chances of OTAs suffering in the long run are pretty slim. Smaller accommodation businesses have a lot to gain from the exposure they receive through OTAs. Plus, a large portion of the younger generation prefers OTAs. So their market will continue to grow.

If you need any help to design, develop or market an OTA website, contact our travel web design and development experts at ColorWhistle . 

We can create an amazing website with beautiful designs combined with dynamic content such as live rates and special offers. Contact us today for your free business analysis and consultation.

In quest of the Perfect Travel Tech Solutions Buddy?

Be unrestricted to click the other trendy writes under this title that suits your needs the best!

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About the Author - Anjana

Anjana is a full-time Copywriter at ColorWhistle managing content-related projects. She writes about website technologies, digital marketing, and industries such as travel. Plus, she has an unhealthy addiction towards online marketing, watching crime shows, and chocolates.

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What is an OTA? Online Travel Agency Defined

In the ever-expanding realm of hospitality, the term ‘OTA’ is frequently tossed around. But what exactly does it mean, and why is it crucial for your vacation rental business?

Today, we’re demystifying the enigma of OTAs.

What is an OTA (Online Travel Agency)?

OTA stands for Online Travel Agency. These digital platforms, like Airbnb , Vrbo and Booking.com , act as intermediaries between hosts like you and travelers seeking accommodation.

Think of them as online marketplaces or booking platforms that connect your beautiful vacation rental property with a global , local or niche audience of potential guests.

Why OTAs Matter for Vacation Rental Hosts

OTAs play a pivotal role in the success of vacation rental businesses. They offer unparalleled visibility, putting your property in front of millions of travelers actively searching for unique and comfortable stays.

By listing your property on these platforms, you tap into a vast reservoir of potential guests, boosting your occupancy and revenue .

Benefits of Using OTAs

1. global exposure.

OTAs provide a worldwide platform, enabling your property to be discovered by a variety of traveler segments from every corner of the globe. This exposure can significantly boost your bookings .

2. Streamlined bookings for guests

OTAs offer user-friendly interfaces that simplify the booking process for guests. Travelers can easily view your property, check availability, assess your level of service, and secure their stay, enhancing their overall booking experience .

3. Credibility and trust

Being listed on reputable OTAs lends credibility to your vacation rental. Travelers often trust these platforms due to their – real or assumed — verification processes , leading to increased confidence in booking your property.

4. Payment security

Most OTAs handle payment transactions , ensuring a secure payment process for guests. This eliminates guest concerns about payment fraud and provides confidence to book.

How OTAs Make Money

OTAs operate on various business models, generally catering to both hosts and travelers.

Commission model

The most common approach, the commission-based model is where hosts list for free but pay a percentage of their booking amount to the OTA as a commission for every successful reservation. This incentivizes OTAs to promote your property as their earnings are directly linked to your bookings.

Many of the OTAs that use this approach also charge a commission from guests.

This is the model used by Airbnb, Vrbo, Booking.com, Expedia , etc.

Subscription model

In this model, the OTA charges hosts a fixed amount to list their properties on the platform, regardless of the number of bookings. This model is used by platforms such as Furnished Finder .

The platforms may or may not charge guests a booking fee.

Hybrid model

Some OTAs offer a hybrid model, combining aspects of both commission and subscription fees.

A few OTAs have their own distinctive model. For example, Hopper doesn’t charge hosts or guests a commission. Instead, it adds a dynamic markup to the rate provided by each property. Got2Go doesn't charge hosts either while guests pay a service fee per booking or an annual subscription.

Maximizing Your OTA Experience

To make the most of OTAs, optimize your property listings .

High-quality photos , detailed descriptions and competitive pricing can significantly enhance your visibility and attract more bookings . Moreover, prompt responses to guest inquiries and positive guest reviews can bolster your property's reputation and search rankings , leading to higher conversion .

Make sure you’re taking into account each platform’s unique requirements and preferences and optimize each listing accordingly.

OTAs vs Metasearch Engines

OTAs and metasearch engines serve distinct purposes in the online travel industry.

OTAs, as mentioned earlier, are platforms where hosts list their properties, and travelers can directly book accommodations. These platforms facilitate the entire booking process, including payment transactions and communication between hosts and guests .

Metasearch engines, like Google Travel and TripAdvisor , aggregate information from various OTAs and other sources, allowing travelers to compare prices and availability across different platforms. Metasearch engines redirect users to the respective OTA listings or direct booking websites to complete their reservations.

While both OTAs and metasearch engines contribute to a property's online visibility, OTAs offer a platform for booking directly while metasearch engines redirect to an OTA or direct booking listing.

Key Takeaway

Embracing OTAs is not a choice for most vacation rental property managers and hosts — it’s a necessity. By leveraging these platforms wisely and effectively, you open the door to a world of opportunities for your vacation rental business.

Ready to find out how Hostaway can transform your business?

Launched in 2015, Hostaway has helped thousands of vacation rental property managers regain their focus on growing their business. Hostaway takes pride in aligning itself with the needs of the fast evolving landscape and always provide reliable technology and great support. Sign up today!

Don't get stuck in a broken routine with poor software, manage your properties with Hostaway and experience a better business and life right away!

The Complete Guide to Booking Travel Online

What is an online travel agency, and what are the best sites and apps to use to search for hotels and flights we break it all down for you..

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There’s a lot to navigate when researching and booking travel online.

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My first travel adventure was to Venezuela. I booked the ticket with a travel agent over a pay phone. The agent searched a dozen flight itineraries over a few days, all so I could save $15.

Times have changed. Today, flight searches start online , often on your mobile device. Passengers book either directly with the airline or hotel or with online travel agencies. Rarely do we get on the phone. In fact, American Airlines and United Airlines charge $25 to make a domestic flight booking by phone. And pay phones hardly exist anymore.

So, what is the best way to book online? Here is our complete guide to online travel agencies, search tools, and the variety of booking options available on both mobile devices and desktops.

What is an OTA?

An online travel agency, or OTA, is a website or mobile app that allows users to search for and book travel services such as flights, hotels, car rentals, cruises, and activities. The booking is made directly with the online travel agency but confirmed by the service provider, such as an airline or a hotel. As a customer, your relationship is with the OTA.

What are the main OTAs?

Many online travel agencies nowadays are owned by two main companies: Expedia and Priceline. The Expedia Group is the largest online travel agency in the United States with 70 percent market share, according to travel data firm Phocuswright. Expedia Group operates Expedia.com , Orbitz, Hotels.com , Trivago, CheapTickets , Hotwire , Vrbo , and Travelocity .

Priceline is a major competitor to Expedia, with global revenues larger than the Expedia Group. The company owns Priceline.com, Booking.com, Cheapflights, Momondo, and Kayak—the latter two being metasearch engines (more on that below).

There are also independent newcomers such as Hopper (a mobile-only booking tool) and Kiwi.com (which allows you to book flights on air carriers that don’t normally have a commercial relationship).

Are OTA fares lower than booking directly?

Generally, no. The fares that are displayed by an OTA will be similar if not slightly more expensive when compared to an airline’s website. They’re usually only a few dollars higher or lower. The OTAs charge a booking fee to the airlines, and often that fee is passed directly to consumers. For example, Lufthansa tacks on an additional $18 to any booking made through an OTA for Lufthansa flights. The same flights are exactly $18 cheaper on the airline’s website.

Where you can score a good travel deal through an OTA is when booking a last-minute hotel and flight package. Many OTAs have cut agreements with airlines allowing last-minute travelers to access lower rates than are typically available when passengers book a flight alone.

Are all airlines available to be booked through OTAs?

No. Many OTAs do not display flights from some of the low-fare leaders. For example, Southwest and Allegiant flights are not available through OTAs; the same goes for Ryanair in Europe. And, earlier this year United Airlines threatened to pull out of Expedia altogether, only recently signing a multi-year agreement to stay in. The airlines would rather not lose any margin to online travel agencies in an already low-margin industry and would rather maintain a direct relationship with the customer.

Are smaller OTAs safe to use?

Expedia and Priceline are the two largest players in the online booking space, but there are dozens of independent OTAs, such as CheapOAir, OneTravel, JustFly, and SmartFares. Confusingly, you might actually stumble on ads for these OTAs while using Expedia or Priceline sites. That’s because the larger OTAs earn revenue through advertising, sending passengers to smaller OTAs and charging those OTAs for the favor.

Buyer beware: some of these lesser-known OTAs are masters at hidden fees. For example, a flight search on JetBlue allows for free seat selection in many instances. If you perform the same search on FlightNetwork, an independent OTA, and select a seat, you will be charged an additional $25—despite the fact that JetBlue doesn’t charge a seat selection fee if you book directly.

What if you need to change your itinerary?

Itinerary changes are often a pain. If your plans change, it won’t matter whether you’ve booked directly with an airline or with an OTA—you’re going to pay fees for the privilege, if you can even change your ticket at all.

For example, CheapTickets.com, which is part of the Expedia Group, charges $25 to change or cancel a ticket if that change is requested after 24 hours of making the booking—it is free if you do so within 24 hours of booking. However, the fees go up from there. JustFly, an independent OTA, charges a $75 fee for changes to domestic flights in addition to airline change fees, plus the difference in fare, for tickets that can be changed. For an international trip, the fee rises to $200. That means to change an international flight with Delta (which charges a $100 change fee) booked through JustFly, you’ll be assessed $300 in fees, plus the difference in fare. At that rate, you may as well book a new flight. FlightNetwork indicates in its terms of service that changes may incur a change fee but doesn’t specify what those fees are. That hardly makes the few dollars you saved by booking with the OTA in the first place worth it.

What is an OTA price match policy?

To assure travelers that they are getting the lowest fare possible, many OTAs have a price match policy. The rules vary and so do the benefits.

For example, if you book with Orbitz and find a less expensive flight, car rental, or activity on any U.S.-based website within 24 hours of your booking, Orbitz will refund you the difference you paid. And it works: I have personally found a flight in the same class, on the same airline, for the same origin and destination cities, and requested Orbitz to refund the difference of around $35. Within a few weeks, I received a check in the mail. A similar program applies for CheapOAir, but there’s a catch—the price difference must be found on a major OTA such as Expedia or Travelocity.

Expedia has a particularly good price match policy, but you have to pay extra for it at the time of booking. Expedia offers the price match option as an add-on that costs between $5 and $30 when you book. With the price match applied, if the airfare on Expedia drops between 120 days of the flight and up to six hours before the flight, Expedia will automatically refund you the difference in fare. Unfortunately, fares generally do not drop substantially as the travel date approaches, so while this might give you peace of mind, it’s probably not worth the expense.

How do Google Flights and other travel metasearch engines work?

Frequent fliers are likely familiar with websites such as Google Flights, Kayak, Momondo, or Skyscanner. On these websites, passengers search on the site but are redirected to the service provider to complete the booking, such as an airline, rental car company, or hotel.

Metasearch started with a product called ITA Matrix, which is a tool for searching airfares online but not for actually booking online. ITA Matrix allows for multi-city searching, such as setting two different departure or arrival airports, and for offering a calendar view of fares for easier comparison. That company was acquired by Google in 2011, and savvy travelers swear by it to help find the least expensive fares online. Most consumers are more familiar with Google Flights, which has gained traction more recently not least because it has the benefit of being displayed first in search results on Google.

Metasearch engines receive distribution fees from the airlines for sending traffic to the supplier websites. There are no additional hidden fees for using a metasearch engine because you’re booking directly with the airline or hotel.

A major benefit of the metasearch engines is their price tracking tool, which lets users know whether the displayed fares are low, average, or high for the flight, allowing travelers to make a more informed decision on whether to book a flight or not . Google Flights and Kayak, for instance, both have price tracking tools.

Why not just book directly?

The airlines would definitely much rather you book directly with them. Over the past five years, they have gotten much better at marketing and selling their product directly to consumers online and through mobile sites and apps. But in the past, they weren’t so good at it. In fact, Delta, Northwest, United, American, and Continental got together to invest $145 million to launch Orbitz in 1999 to counter the threat from Expedia. Now Orbitz is owned by Expedia.

The airlines also try to encourage customers to book directly so that they can maintain a closer relationship with them. It allows carriers to connect bookings with loyalty programs and create special offers and discounts catered to individual passengers.

There is another benefit to booking directly. The U.S. Department of Transportation requires carriers to hold a reservation at the quoted fare for 24 hours without payment or allow a reservation to be cancelled within 24 hours without penalty, so long as the booking is made at least seven days before travel. The law applies, however, only to U.S. and foreign air carriers that have websites marketed to U.S. consumers. This means that, in theory, an online travel agency does not have to offer such a policy, although most OTAs do.

What are the options for booking on your mobile device?

Airlines and the major OTAs all have apps to help you book and manage your trip on your mobile device, but their functionality is lacking compared to these websites’ desktop editions. For example, Expedia’s app doesn’t allow you to view flights on a month-view calendar. Kayak has an app with more bells and whistles and a better user interface, including a month-view calendar with color-coded pricing. It also has a handy “augmented reality” function to help you see if your carry-on bag will fit in the overhead bin (a feature originally developed by KLM). Point your phone’s camera at the luggage, and it’ll give you the dimensions.

While apps are improving and gaining in popularity, you still might find it easier to locate the best deals on flights and hotels by using your desktop, where you can have multiple tabs open and have all the available search tools at your disposal. Apps are fine for booking directly with an airline once you know which flights you want to book.

If you’re determined to use your mobile device, you may want to look into Hopper. Hopper is a mobile-first flight booking tool that has a solid price prediction tool. You can research travel options and book directly on the app. Another benefit of Hopper: Of its team of 300 employees, nearly half are dedicated to customer support and are based in Canada versus some OTAs and airlines that outsource much of their customer service further afield.

The bottom line?

Like many travelers, I enjoy a flight deal as much as the next person, but I also don’t like any added hassle. I typically start my travel searches using the ITA Matrix or Google Flights to get a general sense of the fares. It helps to know what is a good deal and what is expensive for a particular route. I do my research, typically on a desktop computer. When I’m ready to book, I’ll book directly with the airline. I’ve found that customer service is better when booking directly with the service provider. But I’ve also saved money by using OTAs and have booked with them, too. Whichever way you choose to book, you can be safe in the knowledge that finding and purchasing travel online is a lot easier today than searching for a deal with a travel agent on a pay phone.

>> Next: How to Get the Best Last-Minute Travel Deals

What are Online Travel Agents (OTAs)? A Guide for Tour Operators

By Kevin Tjoe — 26 May 2014

agents   distribution   OTAs   tourism business strategy

Updated April 2023 – Online Travel Agents (OTAs) can provide your tours and activities with massive exposure. To distribute tours and activities globally, you’ll need to partner with them, so here’s everything you need to know about working with OTAs, how they differ from partnering with travel agents , and the meaning of OTA in travel.

What is an OTA in travel?

Online travel agents are basically traditional travel agents, except customers self-serve, as they operate online. They are websites where consumers can conduct multiple searches, and plan and place an order for a booking.

Popular OTAs for tour operators

With a global presence in over 70 countries, Expedia receives over 58 million unique visitors each month, and its mobile apps are downloaded nearly 80 million times at a rate of over 200 downloads per minute. Apply to be listed on Expedia here!

Unlike Expedia, Viator is wholly focused on tours and activities. It sells its products to a global consumer base at Viator.com, 60 additional consumer-facing websites, mobile websites and apps, and through its global network of affiliates. Viator’s listings are supported by more than 500,000 reviews, photos, and videos posted by travelers. It boasts 7 million visitors per month. Apply to be listed on Viator here!  

Get Your Guide

GetYourGuide focuses on listing activities based on where they are, rather than specifically what they are. This captures the market of people who decide what they want to do once they are already in a location and can put your product in front of whole new audiences who might not have even known that you exist. GetYourGuide receives an average of 2.5 million website visitors per month. Apply to be listed on GetYourGuide here!

Why work with an OTA?

In a word: exposure. This leads to more bookings and revenue. Online Travel Agents receive millions of website visitors every month from all over the world. They have cultivated a reputation for themselves as an authority on all things travel-related. People trust the recommendations they receive from OTAs, so by being listed on an OTA travel/ tour platform not only do you reach an audience of millions that you wouldn’t have otherwise reached, but they find you on a reputable source of information, which makes you look good as well.

Reach a wider audience

OTAs have revolutionized the tourism industry by providing a platform that enables tour and activity businesses to reach a wider audience. These platforms offer a one-stop shop for travelers to book everything they need for their trip, from flights and hotels to tours and activities. The OTA booking system provides a convenient and accessible way for travelers to book their desired activities and experiences.

By partnering with OTAs, tour and activity businesses can expand their reach to a global audience without the need for extensive marketing efforts. The OTA booking system provides access to a vast customer base, which may be difficult for individual businesses to reach on their own. Additionally, OTAs have a strong online presence, which means that their website is highly visible on search engines like Google, making it easier for travelers to find and book activities.

Streamline bookings

OTAs offer a user-friendly booking process, which is easy to navigate and understand. This is especially important for travelers who may not be familiar with the tour and activity business they want to book with or the destination they are visiting. OTAs provide detailed information about the tours and activities, including pricing, availability, and reviews from other travelers, making it easy for customers to compare and choose what they want.

On a similar note, OTAs allow businesses to use a central platform for booking and managing reservations. This means that businesses do not have to worry about managing bookings through multiple channels, such as phone or email. Instead, all reservations can be managed through a single platform, making it easy to keep track of bookings, manage availability, and update information.

Market your tours through an OTA

OTAs have a large customer base, which means that your tours will be visible to a much broader range of potential customers than if you were to rely solely on your own marketing efforts.

By listing your tours on an OTA travel platform, you can take advantage of the OTA’s marketing and advertising campaigns to promote your tours. This can include targeted emails, social media campaigns, and online advertising, all of which are designed to reach customers who are interested in the types of tours and activities you offer.

In addition, OTAs often have strong search engine optimization (SEO) capabilities, which means that your tours are more likely to appear at the top of search results when customers are searching for tours in your destination. This can help to increase your visibility and attract more customers to your business.

Reduce costs

As well as minimizing your marketing costs, listing your tours on an OTA platform can also help you reduce your distribution costs. OTAs typically charge a commission on each booking, but this cost is often lower than the cost of distributing your tours through other channels, such as travel agents or direct sales. This is because OTAs have already invested in the infrastructure required to market and sell tours, which means that you do not have to bear these costs.

What are the costs of working with an OTA?

Partnering with resellers, including OTAs, can be a cost-effective way for tour and activity businesses to expand their reach and generate more bookings. However, there are certain costs of partnering with resellers , including OTAs . These costs include:

• Commission: OTAs typically charge a commission on each booking, which can range from 10% to 25% of the tour price, depending on the platform and the type of tour. This commission is a cost that businesses need to factor into their pricing strategy and profit margins.
• Listing: While it is usually free to list tours on an OTA platform, some platforms may charge a listing fee or require businesses to pay for premium placement in search results. These costs can add up, particularly for smaller businesses that are trying to manage their marketing budgets.
• Payment processing: Some OTAs offer payment processing services, which means that businesses do not have to manage payments themselves. However, these services often come at a cost, such as a per-transaction fee or a percentage of the transaction value.
• Contractual obligations: When partnering with OTAs, businesses may be subject to certain contractual obligations, such as minimum availability requirements, cancellation policies, and commission rates. Failing to comply with these obligations can result in penalties and additional costs.

Tips for tour operators partnering with an OTA

Before partnering with OTAs, there are a few things you need to be aware of in terms of the information that they will most likely expect you to provide. There is no guarantee that every tour operator will be listed, but if you can provide these things it will go a long way towards improving your chances.

Offer real-time availability to travelers

Online Travel Agents want to offer their customers real-time booking confirmation, this means you need to be able to provide bookable spots for your tours or activity in real-time as well as update your availability in real-time as it changes.

Allow last-minute bookings

Allow last-minute bookings and specify how many hours before the tour starts your customers can book. Of course, you need enough time to prepare your tour before people come, but keep your minimum notice as close to the starting time of your experience as you can. Bearing in mind that a lot of travelers book activities on quite short notice, OTAs want to be able to provide this option for all of their listed activities. As such, it is advisable that you keep your cut-off time as close to the start of the activity as you can.

Leverage tour booking software

Not only technical, but also in the customer experience. For starters, your customer booking software should have a solid API integration with the OTA. You’d want to avoid manual work as much as possible. When sharing your availability with the OTA, you want the booking information pushed into your booking software, so it automatically populates your CRM , sales reports , and manifest . This will avoid lost customers and makes it easy to keep control over your bookings, even when it’s a large volume.

Accept bookings as much as 2 years in advance

Schedule your availability for 2 years and make sure people can book 2 years in advance. It’s good practice to make sure all your availability is published across as many channels as possible, but make sure it’s also available for a long time – the earlier you fill up your tours the better. Online Travel Agents attract a lot of people who are exploring your destination. Travelers want to know what they’ll get to see and do in your destination before they book their hotels and tours. Some travelers take up to 2 years to prepare for their trips, so make sure you always have the availability to attract them to your destination. Of course, as we said, short-term availability is important as well, but it’s best to cater to as wide a range of booking behaviors as possible.

Stand out with beautiful pictures of your destination

A picture speaks a thousand words and makes your product stand out from the rest. Be aware that your product is listed next to your competitors’ and the best picture is likely to receive the booking. Having nice, high-resolution pictures and videos will help you stand out and will always make your listing look professional, no matter where it’s being promoted.

Write unique product descriptions for each OTA

It’s perfectly acceptable to have your product listed on multiple Online Travel Agents. However, you need to have different descriptions for your product on each of them. Spend some time writing a special description for your tour specifically for each OTA’s listing. This is because of curation – OTAs want unique descriptions because they are easier to get to the top of the list of search engine responses. Look at the listings already on each OTA and use this format. Don’t have any weird formatting, inconsistent symbols, special offers, or your email address in the product description when you submit it.

Make the most out of your OTA partnership

Working with OTAs is a good strategy, but can be difficult to manage on an ongoing basis without the right technology to back you. How can you ensure that you don’t overbook tours when selling on multiple channels? How can availability be constantly up to date across your various distribution channels (without doing hours of admin work)?

Rezdy’s Channel Manager softwar e exists to do exactly that. Our Channel Manager lets you update your availability across all your distribution channels from one place. This in combination with the OTAs we integrate with offers you some formidable distribution strategy options.

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The benefits of becoming a GetYourGuide supplier

How much does it actually cost to partner with an OTA?

Why Should Tour Operators List Their Products with OTAs?

Whats Is An Online Travel Agency?

An Online Travel Agency (OTA) is a web-based marketplace designed to help travelers research and plan their vacations. Online travel agencies help consumers book flights, hotels, cars, tours, or vacation rental homes directly from the supplier.  

Online travel agencies make reaching potential guests easier than traditional marketing and provide insight into the market and tools to help you get more bookings. These platforms also help to enable secure bookings, manage reviews, and communicate directly with guests. 

Top Online Travel Agencies for Vacation Rentals

The top online travel agencies for vacation rentals include: 

• Booking.com
• TripAdvisor

What Is the Best OTA for Vacation Rentals?

The best online travel agency for your vacation rental business depends on the specific features that you’re looking for. For example, if you’re renting out a single property, you might opt for Airbnb because of its lower commission fees. On the other hand, if you have a boutique hotel, Booking.com could be more suitable for your business.

While all the previously mentioned OTAs are leaders in the industry, each owner should decide for themselves what works best for their property. Ask yourself the following questions: What kind of audience would you like to be exposed to? Which OTA provides the user experience that you are looking for? What resources stand out? By knowing the demographic of each platform and the tools that they provide for both hosts and guests, you’ll be able to make an informed decision. 

What Is the Largest Online Travel Agency?

Airbnb is the largest OTA for vacation rentals with more than 6 million rental properties in 100,000 cities across 191 regions. Its popularity is primarily due to its user-friendly booking interfaces. 

How Do Online Travel Agencies Work for Vacation Rental Owners?

Most online travel agencies allow vacation rental owners to list and advertise their properties for free. Depending on the platform, the OTA may take a commission of 3% to 25% of each sale made on their site. 

Although every OTA varies, most of them will require a simple sign-up process. You’ll then be prompted to describe your property, including the location and size of the home as well as what amenities you offer. After uploading photos and setting your prices, you’ll be ready to accept bookings. 

Depending on the OTA and settings you choose, guests will either make direct reservations or request to make a reservation. 

Travelers find your home by searching for rentals in the location and the dates of their vacation. They can also apply filters like the number of guests they are searching for and property types and amenities offered. 

Guests can contact you directly through the OTA inbox or by phone or text message if the specific OTA allows you to share your contact info. Refer to our online travel agency list above to find the best OTA for your property.

• Read more: Vacation Rental Listing Sites: Comparison of Rates and Fees

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Why do you need an Online Travel Agency (OTA)?

Working with an Online Travel Agency (OTA) not only helps you reach more travelers globally, it allows you to engage them when they’re researching, planning and booking their next trip. Discover how they work, what tools they offer and how to choose the right one for your business.

What is an OTA?

An online travel agency (OTA) is a web-based marketplace that allows consumers to research and book travel products and services, including hotels, flights, cars, tours, cruises, activities and more, directly with travel suppliers. Every day, millions of travelers around the world use OTAs to plan leisure and business travel.

OTAs provide access to your potential guests in locations and at volumes that would be difficult for you to access through your own marketing efforts. Additionally, OTAs provide market insights and tools for targeting travelers, securing and processing bookings, communicating with guests and managing reviews.

How do hotels work with OTAs?

Hotels of all sizes–including bed & breakfasts, inns and ryokans–sign contracts to list their properties on an OTA. There are no upfront fees to list rooms in the marketplace. OTAs make money only when rooms are booked, collecting a percentage of the total value of each secured reservation.

The OTA provides opportunities to  showcase rooms and properties  through amenity descriptions, photos, nearby points of interests and more. Listings are displayed to travelers searching for places to stay in your destination. If they use filters to narrow their search—e.g. only looking for pools, free Wi-Fi, or air conditioning—the OTA will align travel criteria with the detail provided by the hotel, displaying the properties that match best.

The OTA provides a secure booking platform and is the traveler’s main point of contact for booking amendments and cancellations. At no cost,  OTAs provide a variety of tools —from real-time access to market data to tools for managing reviews—to help their partners be successful.

Why work with an Online Travel Agency (OTA)?

OTAs are increasingly popular. In fact, travelers today use OTAs  50% more  than hotel websites to compare leisure travel options. And that means OTAs can play an important part in your  distribution strategy.

Here’s why hotels like yours are choosing to use OTAs.

Online marketing investments you don’t have to make

Every year OTAs spend millions of dollars attracting consumers from around the world to their online travel marketplaces. Their investment in on online and tv advertising, billboards and sponsorships, social media and other marketing channels helps hotels to engage hard-to-reach travelers they couldn’t afford to reach otherwise. OTAs give you a low risk opportunity to grow your business, especially if you have limited marketing funds.

Greater visibility for your own website

Evidence shows that being listed on an OTA can bring more traffic to your property’s own website, because consumers often use OTAs for their search before booking directly. This is known as “ The Billboard Effect ”.

A  2011 study  which looked at consumers’ online pre-purchase behavior found that around 75% of people who made direct reservations with a major hotel brand had visited an OTA website before booking directly with the hotel.  Another report in 2017  showed that the “Billboard Effect” still occurs, as many people still visit an OTA prior to booking direct.

Increased ability to target high-value guests

Through their listing tools and marketing programs, many OTAs can help hotels target guests who will be delighted with their stay and drive profitable growth. Possibilities range from packaging rooms with flights to attract guests who tend to cancel less, to targeting business travelers, budget or luxury guests, families or those from specific regions.  Marketing programs  can help you achieve specific business goals, including maintaining high  average daily rates (ADRs) , driving longer stays to reduce costs or capture last-minute bookings. Best of all, when you attract the right guests for your property, you increase the likelihood of positive, glowing reviews.

Access to rich tools, analytics and insights

OTAs give you  free access to market data , competitive insights, traveler preferences and tools that otherwise can be costly to acquire on your own. Most will offer easy-to-use analytics to help you better understand your  year-over-year performance  and how you compare to like properties in your market. Based on their data and the booking trends in their marketplace, they may make suggestions to help you improve your results and offer tips and resources to support your decision making.

Dedicated support teams

Many OTAs support their partners’ success through regionally based account teams. These individuals have extensive market knowledge, can share insight on regional trends and advise on tactics that will help drive business success. When partners have issues or concerns, support teams and  help content  is available. Additionally, most OTAs provide travelers with service when they experience challenges before, during and after a trip.

What should you consider when choosing an Online Travel Agency (OTA)?

There are many OTAs to choose from, and they come in all shapes and sizes, from large, global OTAs to local and niche-interest ones. Here’s what to consider when comparing OTA options.

Who is their audience?

Many OTAs target specific audiences. Think about the region and segment you want to target and whether an OTA caters to this audience. For example, if you own a small B&B mainly catering to families, you would want to avoid signing up with an OTA which mainly targets business travelers.

You can find out more about an OTA’s target audience by looking at the properties listed on their website, or by simply asking a representative at the OTA before  signing up .

What is the user experience for guests?

Take a look at their traveler-facing websites (such as expedia.com) and get a feel for what the searching, browsing and booking experience is like for your potential guests.

If you find the experience difficult or frustrating, it’s likely other travelers will too. Frustrated travelers are likely to look elsewhere to make their bookings.

What features do they offer to partners?

Every OTA has a different set of  tools and analytics  to help with revenue management, pricing decisions, and promotion of your property. Some larger OTAs have whole teams dedicated to creating these tools, so it is worth assessing which OTAs offer the most useful tools for you.

Another important thing to consider is whether an OTA integrates with your  channel manager . This integration will be important to your  distribution strategy , helping smooth management of bookings and eliminating the risk of overbooking errors.

Once you’ve considered all these options and found the perfect OTA, it’s time to  sign up !

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12 Online Travel Agents (OTAs) to Increase Your Hotel Bookings

Online Travel Agents

Online travel agents (OTAs) are digital platforms that allow consumers to book travel services such as flights, hotels, and car rentals online. They are important because they offer convenience, competitive pricing, and a wide range of options, simplifying the travel planning process for millions of users globally.

Key Takeaways

• Online Travel Agents as Marketing Channels: OTAs serve dual roles as marketing and distribution channels, offering a ‘ one-stop-shop ‘ for customers to search, compare, and book hotels.
• Commission Structure: OTAs typically charge a commission fee for bookings, varying between 10 to 25%. This fee can be higher for better search result rankings.
• Expanding Hotel Visibility: Listing with multiple OTAs can significantly increase a hotel’s visibility and booking potential, with services like Booking.com and Expedia being prominent players.
• Competition and Pricing: Staying competitive on OTAs requires monitoring and responding to market changes, including adjusting prices based on demand.
• Niche OTAs: Specialized OTAs cater to specific markets or interests, offering targeted exposure to relevant audiences.

Table of Contents:

What is an Online Travel Agent (OTA)?

• The Most Important Online Distribution Channel

Why Are Online Travel Agents Important?

How does commission work with online travel agents.

• 1. Booking.com
• 2. Expedia.com
• 3. Hotels.com
• 4. Agoda.com
• 5. Priceline.com
• 7. Airbnb.com
• 8. Orbitz.com
• 9. Laterooms.com
• 10. Tripadvisor.com
• 11. Trip.com
• 12. Travelocity.com

Table: Differences Between Online Travel Agents: Booking.com, Expedia & TripAdvisor

• How to Distribute Your Hotel Inventory With All OTAs?

Tips To Increase Your Hotel Bookings Through Online Travel Agents

Expedia extranet and how to get the most from online travel agents, online travel agents: utilising the admin booking extranet.

• More Distribution Tips

Introduction

The role of an online travel agency, or OTA for short, has become increasingly important within the hotel industry, because they provide a convenient way for customers to compare hotels and book them over the internet, from the comfort of their home or on the go. In this article, you will learn more about online travel agents and the best platforms to turn to to increase the number of hotel bookings you attract from customers.

An online travel agency, or OTA, is a website or service that sells travel-related products to customers. These products may include hotels, flights, travel packages, activities, and car rentals. Crucially, OTAs are third parties reselling these services on behalf of other companies, including those in the hotel industry .

Typically, an OTA will offer many benefits of using an offline travel agency, with added convenience and more of a self-service approach. They will also include a built-in booking system, allowing for instant bookings.

The Most Important Online Distribution Channel

Although online travel agencies can play a vital role in distribution, allowing those within the hotel industry to reach a wider audience, it is important to understand that your website should always be the number one priority. After all, bookings made through your website do not require you to pay a commission to a third party, which is important for revenue management, as it maximizes the money you receive.

You can find useful tips for gaining more bookings through your website in the article “Tips To Gain More Bookings With Your Hotel Website” .

Online travel agents are increasingly important for hotels because they serve as both a marketing and a distribution channel. A growing number of potential guests now turn to OTAs to search for their hotels because they function as a kind of ‘one-stop shop,’ allowing them to search for hotels easily, read reviews, and compare prices.

In addition, hotels that are listed on online travel agent websites can also benefit from what is sometimes referred to as the ‘billboard effect’ . This refers to the fact that OTAs can advertise, making users aware of the hotels on their platform. After gaining this awareness, users may decide to research a hotel and perhaps even go on to make a direct booking through the hotel website.

Video: OTAs (Online Travel Agents) Explained 

Effectively, online travel agents make bookings on behalf of their users, and they make money by charging a commission fee to suppliers. The precise fee can vary significantly from service to service but is generally a percentage of the customer’s pay.

In most cases, the commission fee is paid either after the customer has made their final payment or after the travel itself has been completed. The commission fee varies per online travel agent. The commission could be somewhere between 10 and 25%. Higher fees can be charged for a higher ranking within search results. This is the trade-off for those in the hotel industry , because an OTA can help them to sell rooms, but it is also likely to be one of their most expensive distribution channels.

12 Online Travel Agents Your Hotel Should Be Working With

There is a wide range of online travel agencies on the market, an industry constantly growing, especially as new technology emerges. Below you will find 12 of the most significant OTAs that hotel management can consider to increase their visibility and bookings.

Booking.com is owned by the same company as Priceline, and is one of the oldest online travel agents, originally founded in 1996. The business has its headquarters in Amsterdam, the Netherlands, and the website has listings that cover close to 200 different countries around the world. According to the Booking.com Website Statistics by Statista, Booking.com had 565.2 million website visits in January 2024. Like many OTAs on the market, Booking.com allows users to book hotels, motels, holiday homes, and other similar accommodation types while functioning as a travel fare aggregation service.

Click here to list your hotel on Booking.com.

Video: Rate Plans on Booking.com

Expedia.com is a travel booking service and the main OTA operated by the Expedia Group, which also owns several subsidiaries. It is based in Bellevue, Washington, in the United States, and was founded in 2001. It is one of the highest-grossing travel companies in the world and has localized sites in 40 countries. According to the Revenue of Expedia Group, Inc. Worldwide Report by Statista, the worldwide 2023 earnings by the company were estimated to be $12.84 billion. Customers can book hotels, holiday homes, B&Bs, flights, rental cars, activities, and other travel services. In terms of marketing, it places an emphasis on cheap and affordable accommodation.

Click here to list your hotel on Expedia.com.

Hotels.com is a service that allows users to book hotels, B&B accommodations, and condos online. It is based in Dallas, Texas, in the United States, and is owned by the Expedia Group. The platform operates internationally, and most of its business model is based on repeat business. Indeed, a major component of the company’s offering is the ‘Hotels.com Rewards’ scheme, where users can claim a price reduction after every 10 overnight stays booked through the service. Hotels.com is part of The Expedia Group.

Since Hotels.com is part of the Expedia Group, your hotel will be visible on Hotels.com when listed to Expedia. Click here to list your hotel on Hotels.com.

Agoda.com is a global accommodation booking service, which is based in Singapore. Like several other OTAs on this list, it forms part of Booking Holdings; the parent company behind Booking.com. The Agoda network provides users with over one million hotels or holiday homes, with a strong focus on the Asian market. However, it is increasingly targeting Europe and the Americas too. In terms of its marketing approach, the company strongly emphasizes providing customers with cheap or discount accommodation.

Click here to list your hotel to Agoda.com.

As previously stated, Priceline.com is owned by Booking Holdings, the same company that operates Booking.com. However, the Priceline.com company has its headquarters in Norwalk, Connecticut, in the United States. Click here to list your hotel on Booking.com. The main difference between Priceline.com and Booking.com is that Priceline.com focuses even more heavily on the discount travel market. To achieve this, it offers a ‘Name Your Own Price’ model, where customers can set their ideal price, location, and hotel star level, and the service will find a suitable option.

Since Piceline.com partnered up with Agoda.com, your hotel will be visible on Priceline.com when listed on Agoda.com. Click here to list your hotel on Priceline.com.

HRS.com is an online travel agent website based in Cologne, Germany, with major offices in London, Paris, and New York. It began life as an offline travel agency, and the company was founded in 1972. While the HRS.com service provides hotel bookings for both private and business travelers, it clearly focuses on the latter group, promoting a special 30 percent discount, or ‘business rate’ . It can be an excellent choice for hotels prioritizing business customers too.

Click here to list your hotel on HRS.com.

Airbnb is an online hospitality marketplace that allows members to offer lodgings or book overnight stays. Its offerings primarily consist of homestays, although the brand has branched out and now lists hotels too. However, Airbnb tends to be quite strict about the hotels it will allow to be listed on its platform, as they must meet certain criteria. Typically, a hotel must prove its unique design characteristics, its rooms have a clear local influence, and guests have access to shared common spaces.

Click here to list your hotel on Airbnb.com.

Orbitz.com is an online travel metasearch engine and OTA, which serves as a subsidiary of the Expedia Group. Although it is primarily geared toward the American market, it provides a range of international travel options. Aside from offering hotel bookings, it also caters to flights, car rentals, cruises , and package deals. The Expedia Group acquired the service in 2015, with several sources stating that it would help them compete with the Priceline.com component of Booking Holdings’ business model. Click here to list your hotel on Booking.com.

Since Orbitz.com is part of the Expedia Group, your hotel will be visible on Orbitz.com when listed to Expedia. Click here to list your hotel at Orbitz.com.

LateRooms.com is a dedicated hotel reservation platform based in Manchester, United Kingdom. The company was founded in 1999 but did not offer online hotel bookings until 2002. As a platform, LateRooms.com clearly emphasizes attracting customers looking for last-minute deals on overnight stays, including bookings for the very same day. In many cases, these late deals are sold at a discount. As a result, it can be a solid option for hotels prone to having spare rooms that they need to fill.

Click here to list your hotel at LateRooms.com.

The TripAdvisor.com platform is an online travel and restaurant service primarily focused on reviews and other user-generated content. However, it also has a built-in hotel booking service. The company has its headquarters in Needham, Massachusetts, in the United States, and was founded in 2000. Click here to list your hotel on Booking.com. TripAdvisor works with third-party connectivity partners, displaying live hotel prices and availability listings. The website also has an advertising partnership with Expedia and its Priceline.com subsidiary.

Click here to list your hotel on Tripadvisor.com.

Based in Shanghai, China, Trip.com is the largest online travel agency in the country. It primarily targets the Chinese market, including both domestic and international travelers. Most of its sales come from people living in Shanghai, Beijing, Shenzhen, and Guangzhou. The trip also has a strategic partnership with Booking.com, which allows the Chinese company to access Booking.com’s global portfolio, and allows Booking.com to gain greater access to the Chinese market.

Click here to list your hotel on Trip.com.

The Travelocity.com brand was founded in 1996, making it one of the older active OTAs on the market, and it, too, is now owned by the Expedia Group. The company has its headquarters in Dallas, Texas, in the United States. Regarding how it differentiates itself from its parent brand, Travelocity places an increased focus on package deals and on providing positive travel experiences. One of its unique features is a ‘Travel for Good’ scheme, where customers are rewarded if they participate in volunteering opportunities while on their travels.

Since Travelocity.com is part of the Expedia Group, your hotel will be visible on Travelocity.com when listed to Expedia. Click here to list your hotel on Travelocity.com.

How to Distribute Your Hotel Inventory With All Online Distribution Agencies?

One major challenge for hotels that use online travel agencies involves distributing a hotel inventory to as many online platforms as possible. The best solution to this problem is a hotel distribution channel management solution, which allows the various distribution channels to be managed from one place.

The article “ Hotel Distribution Channel Manager: What Are the Advantages? “ provides more information about hotel distribution channel managers.

Online travel agents, or OTAs, are a vital part of the marketing mix and function as a major distribution channel. Of course, with these OTAs taking a commission for bookings made through their platforms, it is crucial that you optimize your hotel listings and maximize the value these services provide.

In the article “Tips To Increase Your Hotel Bookings Through OTAs” you will find valuable information about some of the specific actions and strategies you can adopt, to increase online bookings.

The Expedia Extranet is a built-in management platform connected to the Expedia service, and other online travel agents also offer similar tools. With the Expedia Extranet, hotel owners and marketers can optimize their listings, manage room rates, amend hotel descriptions, add photographs, and more.

To learn more about the Expedia Extranet, what it has to offer, and how it can be used to increase bookings, take a look at the “Tips & Strategies to Use the Expedia Extranet to Get More Bookings” article.

The admin Booking extranet is the management platform associated with Booking.com, and like similar offerings from online travel agents, it allows hotels to manage their listings on the platform. This includes the hotel description, a list of available services, room rates, and photographs, while access is offered to various exclusive programs.

If you are interested in exploring more about how the management platform works, what it can offer your hotel, or how the programs can benefit you, read “How to Maximise Admin Booking Extranet Possibilities” .

Online Travel Agents FAQs

Why are online travel agents cheaper than airlines.

Online travel agents (OTAs) can sometimes offer cheaper rates than airlines due to bulk buying, special agreements, or offering combined travel packages. They may also apply discounts to attract more customers to their platforms.

What is the difference between travel agent and online travel agent?

A traditional travel agent provides personalized service, offering advice and handling bookings in person or over the phone. An online travel agent (OTA) operates through a website or app, allowing customers to make their own bookings directly online.

Why choose online travel agents?

People choose online travel agents for convenience, the ability to compare prices and options from multiple providers, access to reviews and ratings, special deals, and the flexibility to book travel arrangements at any time.

What is a limitation of online travel services?

A limitation of online travel services is the lack of personalized service; customers may find it difficult to get help or resolve issues without direct contact. Information might be overwhelming or misleading, and specific preferences can be harder to accommodate.

What are online travel agents called?

Online travel agents are commonly referred to as OTAs. They include platforms like Booking.com, Expedia, and Agoda, among others, that allow users to book flights, hotels, and other travel services through their websites or apps.

Online travel agents play a key role in the hotel industry, serving as a useful distribution channel, especially in the modern digital age. The 12 OTAs mentioned above are among this type’s best-known and most popular platforms and will provide hotel owners with the best possible chance of increasing hotel bookings.

More Distribution Tips to Optimise Revenue

The distribution mix that hotels choose to use significantly impacts their revenue management strategy and overall success. In the following articles, you will find more distribution strategies to optimize your revenue:

• List of Corporate Travel Agents for Hotels to Gain More Business Travellers
• Global Distribution System (GDS): What Are the Benefits for Hotels?

The Most Important Online Distribution Channels for Hotels

• Tips To Gain More Bookings With Your Hotel Website
• Essential Hotel Marketing Strategies

More Tips to Grow Your Business

This article is written by:.

Martijn Barten

Related posts.

15 Essential Hotel Marketing Strategies

8 Tips to Improve OTA Conversion Rates

9 Tips to Increase Bookings Through Hotel Metasearch

10 Pricing Strategies to Increase Your Hotel Revenue

Hotel Distribution Channel Manager: What Are the Advantages?

10 Comments

Wow, thank you for the information about all travel agents. keep up the good work!

Very nice article. I can say that adding your hotel to these OTAs is very important and useful if you want to increase your bookings. You should also have a Property Management System or PMS in order to manage all of this to avoid overbooking (which is sometimes damaging the reputation of a hotel).

Nice article, thank you. Are there any list of OTAs who are doing things differently for hotels to be cost-efficient on their online sales. I came across one as entradio.com and searching for other options on the same line.

Thanks for all useful information.

Wow! Thanks for writing the blog about the online travel agents in detail, please keep writing like this.

Thank you for this useful article.

Thank you for sharing such a useful article about travel agents, really informative.

Thank you for proving this good list of travel agencies.

Thank you for the overview of online travel agents. Very useful. I’m still learning how to get the most out of OTAs.

Thank you for this overview of online travel agents!

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• About Xotels

OTA – Online Travel Agency

What is the meaning / definition of OTA , in the hospitality industry ?

OTA stands for: Online Travel Agency .

OTAs are online companies whose websites allow consumers to book various travel related services directly via Internet. They are 3rd party agents reselling trips, hotels, cars, flights, vacation packages etc. provided / organised by others.

Travel shopping via online agencies has become very popular nowadays. Especially in the last minute segment and also because of the frequent usage of the smartphones. Today consumers are on-the-go and the advantage of a booking engine and the reservation solutions provided by the OTAs is that it offers instant payment and booking confirmation.

Examples of the most commonly known OTAs are:

• The Priceline Group ( Booking .com, Priceline.com, agoda.com, KAYAK, rentalcars.com, OpenTable)
• Expedia, Inc. (Expedia.com, Hotels.com, Egencia, Hotwire, Trivago, Venere.com, CarRentals.com, Classic Vacations, Expedia CruiseShipCenters, Expedia Local Expert (LX), Wotif Group, Travelocity)
• TripAdvisor Inc (tripadvisor.com)
• Opodo (opodo.com)

Synonyms for OTA are Alternative Distribution System ( ADS ) and Internet Distribution System ( IDS ).

• Electronic Distribution ( ED )
• Distribution Strategy
• Channel Management
• Online Travel Agency

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About the author:.

What is an OTA?

The definition of an online travel agency (OTA) is a website that sells travel-related products, including airline tickets, car rentals, cruises, experiences, accommodations and more. 

Vacation rental managers would utilize OTAs that specialize in renting temporary housing to travelers. Some well-known OTAs in this category include Airbnb, Booking.com, TripAdvisor Rentals, HomeAway, Vrba, Expedia and FlipKey. 

How Do Online Travel Agencies Work?

An OTA allows vendors in the travel industry like vacation rental owners and managers to list and advertise their products, usually free of charge. 

The channels earn money by taking a commission on every sale. OTA rates and pricing vary between platforms, with commission ranging from approximately 3% to 25%. 

How Do I List My Rentals on OTAs?

Though each OTA has its own specific guidelines, most will walk you through a simple sign-up process, during which you’ll relay details about your property, and then create a listing description , upload photos of your rental, check off the amenities you provide and set your prices. 

How Does the Booking Process Work?

Once you’ve completed the process, you can publish your listings and wait for booking requests to come in, unless you’ve enabled guests to instantly book your properties without requiring your approval. In this case, you’ll receive direct reservations rather than requests. 

Travelers will generally search for rentals based on date, location and the number of guests in their party, but they can also apply a variety of additional filters, like room type, amenities and facilities. 

Initial communication with prospective guests will take place through the channel inbox. With some platforms, once a booking has been made, guests will be able to access the contact information you’ve provided and can then reach out to you personally, either via phone, email or SMS. 

How Do I Get Paid for Bookings Made Through OTAs?

Payment policies vary across channels. While some channels process payments on your behalf and then release your cut of the revenue at a certain stage in the reservation, others may allow you to process the payments independently. Hosts can choose how they wish to be paid (i.e. via credit card or bank transfer). 

How Do I Get Reviews?

After your guests check out, it is a good idea to kindly request that they review you on the original booking channel, as prospective guests often base their booking decisions on other guests’ reviews. In some cases, the channel will reach out on your behalf and ask guests to rate their experiences. 

You will often be prompted to review your guests as well since guest reviews give hosts some indication of how trustworthy and responsible guests are before accepting their booking requests. 

Read more about Vacation Rental Management Software

What to Include in Your OTA Listing Profile The Most Popular OTAs for Short-Term and Vacation Rentals How to List and Manage Rentals on Multiple OTAs

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A Step-by-Step Guide: How to Start an Online Travel Agency (OTA)

Building a new online travel agency (OTA) can be an exciting and rewarding business venture. While starting an OTA can be an attractive opportunity, it also involves significant challenges and competition.

To succeed in this industry, it’s essential to conduct thorough market research, develop a strong business plan, and focus on providing exceptional customer experiences and unique value propositions. In this article, you will find all the information you need to start an online travel agency.

Boost your travel business with the right technology

You will learn:, state of travel industry in 2024, key travel trends and technologies, customer experience with ai and ar, automation and efficiency in travel business, strategic technology investments, what is an online travel agency (ota), business benefits of starting an online travel agency, key steps to start your online travel agency, difference between an online travel agency, a channel manager and a property management system, what is a travel search engine, a travel booking engine and a metasearch engine, the role of a global distribution network (gds).

• Key statistics on online travel agencies
• Fees and commissions between an online travel agency, a channel manager and a hotel

Latest innovations in the online travel agency industry

How to personalize the booking experience for travelers when running an ota, building a travel application or extending your development team.

🚀 We're here to assist you in accelerating and scaling your business. Send us your inquiry, and we'll schedule a free estimation call .

An online travel agency (OTA) is an online platform that allows users to search, compare, and book travel services such as flights, hotels, car rentals, cruises, and vacation packages. OTAs act as intermediaries between travelers and travel suppliers, such as airlines, hotel chains, and car rental companies.

OTAs offer customers the convenience of planning and booking their trips online, often providing competitive pricing and a wide range of options to choose from. Some well-known examples of OTAs include Booking.com , Expedia, and Agoda.

These platforms typically make money by charging commissions on each booking made through their websites or apps. OTAs have become increasingly popular in the travel industry, as they simplify the booking process for consumers and help travel suppliers reach a broader audience.

The market of online travel agencies offers several advantages and opportunities:

Growing market

The travel industry has been expanding rapidly in recent years, driven by increasing disposable incomes, globalization, and technological advancements. A new OTA can tap into this growth and cater to the evolving needs of modern travelers.

Niche opportunities

While there are already several large OTAs in the market, there is still ample room for new players focusing on niche markets or offering unique products and services. By targeting specific customer segments or travel experiences, a new OTA can differentiate itself from the competition and build a loyal customer base.

Convenience for customers

OTAs provide a one-stop-shop for travelers, allowing them to search, compare, and book various travel services in a single platform. By starting an OTA, you can offer customers the convenience of planning and booking their trips online, potentially attracting a significant share of the market.

Global audience

Operating an OTA allows you to reach a worldwide audience, expanding your potential customer base and increasing your opportunities for growth.

Flexibility and scalability

An OTA is a largely digital business, making it easier to adapt and scale as the market evolves. You can quickly add new products, services, or partnerships, and expand into new markets or customer segments as needed.

Low overheads

Compared to traditional brick-and-mortar travel agencies, an OTA often has lower overheads, as it doesn’t require physical office space or a large staff. This can result in higher profit margins and increased financial flexibility.

Leverage technology

By starting an OTA, you can take advantage of the latest technology advancements in the travel industry, such as artificial intelligence , machine learning, and big data analytics, to enhance your product offerings, optimize your marketing efforts, and improve customer experience.

Collaboration opportunities

Starting an OTA offers the opportunity to forge strategic partnerships with various travel suppliers, such as airlines, hotels, and tour operators. These collaborations can lead to exclusive deals, improved inventory access, and competitive pricing.

Starting an online travel agency (OTA) can be a rewarding business venture, but it requires careful planning, research, and execution. Here’s a practical guide to help you establish your own OTA:

1. Market research

Conduct thorough market research to understand the current travel trends , competition, and customer preferences in the travel industry. Identify your target audience, their needs, and the niche you want travel company to focus on (e.g., luxury travel, budget travel, adventure travel, etc.).

2. Create a business plan

Develop a comprehensive business plan outlining your goals, target market, competitive analysis, marketing strategy, operational plan, and financial projections. This document will serve as a roadmap for your business and help you secure funding if needed.

3. Legal requirements

Register your travel business, obtain the necessary licenses and permits, and comply with any specific regulations in your region. This may include registering as a travel agent or agency, obtaining insurance, and adhering to consumer protection laws.

4. Establish relationships with suppliers

Build relationships with travel suppliers and businesses such as airlines, hotels, car rental companies, tour operators, and other service providers. You may need to negotiate contracts, commission rates, and access to inventory.

5. Choose a technology platform

Select a suitable technology platform to power your OTA. This may involve purchasing or developing various travel agency software such as a booking engine , custom search engine , hotel inventory management system, travel management solution , integrating with Global Distribution Systems (GDS) or other supplier APIs, and setting up a user-friendly website and mobile app.

6. Design and develop your website and mobile app

Create a visually appealing, easy-to-navigate website and mobile app that showcases your travel agency business plan, products and services. Ensure the platform is mobile-friendly, responsive, and optimized for search engines (SEO).

7. Payment processing

Set up a secure payment processing system to handle online transactions. This may involve partnering with a payment gateway or merchant account provider, and ensuring compliance with Payment Card Industry Data Security Standards (PCI DSS).

8. Marketing and promotion

Develop a comprehensive marketing strategy to promote your OTA and attract customers. This may include search engine marketing (SEM), search engine optimization (SEO), social media marketing, email marketing, content marketing, and public relations efforts.

9. Customer support

Provide excellent customer support to assist travelers with their booking needs, handle inquiries, and resolve any issues. This may involve setting up a dedicated support team, offering multi-channel support (e.g., email, phone, live chat), and providing self-help resources.

10. Monitor and analyze performance

Regularly track and analyze your OTA’s performance using analytics tools and key performance indicators (KPIs). Use this data to identify trends, optimize your marketing efforts, and improve your product offerings.

11. Continuous improvement

Continuously update your travel products, improve your travel website, and mobile app, and refine your marketing strategies based on customer feedback and industry trends.

By following these steps and remaining adaptable to the ever-changing online travel industry here, you can successfully establish and grow your online travel agency.

These travel industry related terms can be confusing. so when discussing how to set up your own OTA, it’s worth looking closely at these terms to understand the differences.

An online travel agency (OTA), channel manager, and property management system (PMS) are distinct components within the online travel business and hospitality industry, each serving a specific purpose:

Online Travel Agency (OTA)

An OTA is a web-based platform that allows customers to search, compare, and book various travel services such as flights, hotels, car rentals, and vacation packages. OTAs act as intermediaries between travelers and travel suppliers, providing a convenient way for consumers to plan and book their trips. Examples of popular OTAs include Expedia, Booking.com , and Agoda.

Channel Manager

A hotel channel manager is a software solution that enables hotels and accommodation providers to manage their room inventory, rates, and availability across multiple distribution channels (including OTAs, metasearch engines , and direct booking platforms) from a single, centralized interface. The primary function of a channel manager is to simplify and streamline the process of updating room information across various channels, reducing the risk of overbooking or double-booking, and ensuring accurate, real-time data synchronization.

Property Management System (PMS)

A PMS is a software application designed to help hoteliers manage the day-to-day operations of their properties. It typically includes functionalities such as reservation management, yield management , guest check-in and check-out, billing and invoicing, housekeeping management, and reporting. A PMS can also integrate with other systems, such as channel managers and point-of-sale (POS) systems, to enable seamless communication between various aspects of hotel operations.

To sum up, an OTA is a platform for travelers to search and book travel services, a channel manager is a tool for managing room inventory and rates across multiple distribution channels, and a PMS is a system for managing daily hotel operations.

These components often work together to provide a comprehensive solution for managing and optimizing a hotel’s online presence, distribution strategy, and operational efficiency.

[Read also: How to Start Real Estate Busines ]

Travel search engine, travel booking engine, and metasearch engine are distinct terms used in the travel industry, each referring to a different type of online platform or tool:

Travel Search Engine

A travel search engine is an online platform that allows users to search for travel-related information, such as flights, hotels, car rentals, and vacation packages. These search engines typically crawl and index travel websites, aggregating relevant data for users to browse and compare. However, they may not offer the ability to make bookings directly on their platform. Instead, they often direct users to the respective travel suppliers’ websites or other booking platforms to complete the reservation process. Examples of travel search engines include Kayak and Skyscanner.

Travel Booking Engine

A travel booking engine is an online platform or software application that enables users to search, compare, and book travel services directly on the platform. It is typically integrated with various travel suppliers’ inventory systems or Global Distribution Systems (GDS) to provide real-time availability and pricing information. Travel booking engines can be found on travel suppliers’ websites (e.g., airline or hotel websites) or on Online Travel Agencies (OTAs) such as Expedia and Booking.com .

Metasearch Engine

A metasearch engine is a specialized type of search engine that aggregates information from multiple travel booking platforms or OTAs, enabling users to compare prices and availability for flights, hotels, and other travel services in one place. Unlike a regular travel search engine, a metasearch engine focuses on collating information specifically from booking platforms and often allows users to book directly through their site or redirects them to the appropriate booking platform to complete their reservation. Examples of travel metasearch engines include Google Flights, Trivago, and TripAdvisor.

Again, let’s recap mentioned terms. A travel search engine helps users find travel-related information by crawling various sources, a travel booking engine facilitates the booking process on a platform, and a metasearch engine aggregates data from multiple booking platforms to enable users to compare prices and availability more easily.

A Global Distribution System (GDS) plays a crucial role in the travel industry as a centralized network that connects travel service providers, such as airlines, hotels, and car rental companies, with travel agencies and consumers. It facilitates real-time inventory management, pricing, and booking of travel services, making the process more efficient and streamlined for all parties involved.

The key roles of a Global Distribution System include:

Inventory management

GDSs store and manage inventory data from various travel service providers, including seat availability on flights, room availability in hotels, and available rental cars. This centralized inventory management enables service providers to update their availability and pricing information in real time, ensuring accurate data for their travel agents, agencies and customers.

Distribution

GDSs act as intermediaries between travel service providers and travel agencies (both online and offline), allowing the agencies to access and book inventory from multiple providers through a single, consolidated platform. This broadens the reach of service providers and simplifies the booking process for travel agencies.

Booking and reservation

GDSs enable travel agencies and consumers to search, compare, and book travel services seamlessly. They provide real-time information on pricing, availability, and booking conditions, allowing users to make informed decisions and complete reservations efficiently.

Marketing and sales

GDSs offer marketing and sales opportunities for travel service providers, as they can promote their services to a vast network of travel agencies and consumers. They can also implement targeted marketing campaigns and offer special deals or promotions to increase their visibility and sales.

Reporting and data analysis

GDSs provide valuable data and insights on booking trends, customer preferences, and market dynamics. This information helps travel service providers and agencies make data-driven decisions to optimize their offerings, pricing strategies, and marketing efforts.

Some of the major Global Distribution Systems in the market include Amadeus, Sabre, and Travelport (Galileo and Worldspan). By connecting travel service providers with travel agencies and consumers, GDSs play an essential role in streamlining the booking process, enhancing the visibility of the host agencies and travel services, and improving the overall efficiency of the travel industry.

Key statistics on Online Travel Agencies

Some key statistics that illustrate the scale and impact of OTAs in the travel industry:

Market size

The global online travel market was valued at around USD 765.34 billion in 2019 and was expected to reach approximately USD 983.39 billion by 2023, according to a report by Statista.

Market share

OTAs account for a significant portion of travel bookings. In the hotel industry, for instance, OTAs were responsible for around 39% of total room bookings in the United States in 2019, as reported by Phocuswright.

Key players

The OTA market is dominated by two major players, Expedia Group (which owns brands such as Expedia, Hotels.com , and Vrbo) and Booking Holdings (which owns brands like Booking.com , Priceline, and Agoda). Combined, these two companies accounted for approximately 70% of the U.S. OTA market share in 2019, according to Phocuswright.

Mobile bookings

Mobile devices have become an increasingly important channel for travel bookings. In 2019, around 38% of OTA bookings were made through mobile devices, as reported by eMarketer. This trend is expected to continue as more consumers adopt smartphones and mobile booking apps.

Growth drivers

Some of the key factors driving the growth of the OTA market include increasing internet penetration, rising disposable incomes, and a growing preference among consumers for online booking platforms due to their convenience, pricing transparency, and extensive range of options.

Customer demographics

Millennials and Gen Z travelers are more likely to use OTAs for travel planning and booking, as they tend to be more tech-savvy and value the convenience, choice, and comparison capabilities offered by these platforms.

Fees and comissions between an online travel agency, a channel manager and a hotel

The fees and commissions in the travel industry are typically split among the involved parties, including online travel agencies (OTAs), channel managers, and hotels. Here’s a general overview of how fees and commissions may be distributed:

Online Travel Agency (OTA) commissions

OTAs earn revenue by charging a commission on each booking made through their platform. The commission rate can vary depending on the OTA, the market, and the negotiated terms between the OTA and the hotel. Generally, OTA commission rates range between 15% and 25% of the total booking value. This commission is paid by the hotel to the OTA for facilitating the booking and providing access to their customer base.

Channel manager fees

Channel managers usually charge a monthly subscription fee or a per-booking fee for their services. The fees can vary depending on the channel manager, the number of channels being managed, and the level of service required. These fees are paid by the hotel directly to the channel manager for providing the software and services necessary to manage their inventory and rates across multiple distribution channels.

Hotel revenue

Hotels earn revenue from the bookings made through OTAs, minus the OTA commission and any channel manager fees. The net revenue for the hotel depends on factors such as their room rates, occupancy levels, and the efficiency of their revenue management strategies.

[Read also: Guide to Hotel Revenue Management: Best Strategies and Tips ]

How to avoid an overbooking as an online travel agency

As an online travel agency (OTA), avoiding overbooking is crucial for ensuring customer satisfaction and maintaining a good reputation.

Here are some strategies to prevent overbooking:

1. Real-time inventory updates

Make sure your platform is integrated with hotels’ property management systems (PMS) or channel managers to receive real-time inventory updates. This ensures that your OTA displays accurate room availability information, minimizing the risk of overbooking.

2. API integration

Establish a robust API connection with hotels’ PMS or channel managers to facilitate seamless data exchange and real-time synchronization of room availability, rates, and other relevant information.

3. Set booking cutoffs

Collaborate with hotels to establish booking cutoffs, such as a certain number of hours before check-in, to minimize the risk of last-minute overbookings that may not be communicated to the hotel in time.

4. Monitor booking trends

Regularly analyze your OTA’s booking data to identify patterns that could lead to overbooking, such as high demand for specific dates or hotel properties. Use this information to adjust inventory allocations and prevent potential overbooking issues.

5. Use a centralized reservation system

Encourage your hotel partners to use a centralized reservation system or a channel manager, which can help manage inventory across all distribution channels more effectively and reduce the risk of overbooking.

5. Overbooking management policies

Develop clear overbooking management policies and procedures in collaboration with your host agency and hotel partners. This may include providing alternative accommodation, compensating the affected guest, or offering incentives for voluntary changes.

By implementing these strategies, you can significantly reduce the risk of overbooking as an OTA and provide a better experience for your customers. It’s essential to continuously monitor your booking processes and maintain strong relationships with your hotel partners to ensure a seamless and efficient booking experience for your customers.

The Online Travel Agency (OTA) industry has experienced several innovations in recent years. These advancements aim to enhance user experiences, streamline processes, and stay competitive in the evolving digital landscape.

Some of the latest innovations in the OTA industry include:

Artificial Intelligence (AI) and Machine Learning

OTAs are leveraging AI and machine learning algorithms to provide personalized travel recommendations, enhance customer service with chatbots, and optimize pricing strategies based on customer behavior and market trends.

Mobile-first strategies

As more travelers use smartphones to research and book trips, OTAs are focusing on mobile-first strategies, developing responsive websites, and user-friendly mobile apps. They also utilize mobile-specific features, such as push notifications, to engage with customers and provide real-time updates on bookings.

Augmented Reality (AR) and Virtual Reality (VR)

OTAs are exploring AR and VR technologies to create immersive experiences for customers, allowing them to virtually explore hotels, attractions, and destinations before booking. This can help users make more informed decisions and enhance the overall booking experience.

Blockchain technology

Some OTAs are exploring the potential of blockchain technology for secure, transparent, and efficient transactions. This technology could enable decentralized booking systems, streamline payment processing, and enhance loyalty programs.

Voice search and booking

With the increasing popularity of voice-activated devices, OTAs are developing voice search and booking capabilities to cater to this growing market segment, making it more convenient for users to search for and book travel services using voice commands.

Sustainable and responsible travel options

As the demand for sustainable and responsible travel options grows, OTAs are integrating eco-friendly accommodations and activities into their platforms, allowing users to make more environmentally conscious choices when planning their trips.

Enhanced customer service

OTAs are utilizing AI-powered chatbots and virtual assistants to provide instant customer support, address common queries, and assist with bookings. This enables OTAs to provide 24/7 support without significantly increasing operational costs.

Dynamic packaging

OTAs are offering dynamic packaging, which allows customers to create customized travel packages by bundling flights, hotels, car rentals, and other services. This approach provides more flexibility and personalization for users and can increase customer satisfaction.

These innovations are continually evolving as new technologies and market trends emerge.

[Read also: Digital transformation in the travel industry ]

Personalizing the booking experience for travelers can lead to increased customer satisfaction, loyalty, and conversions. By implementing these personalization strategies, you can create a more engaging and customized booking experience for travelers, ultimately leading to increased customer satisfaction, loyalty, and conversions:

Data collection and analysis

Collect and analyze data on traveler behavior, preferences, and booking history. This can help you understand their needs, interests, and patterns, enabling you to tailor your offerings accordingly.

Personalized recommendations

Use the collected data to provide personalized travel recommendations, such as hotels, destinations, or activities that align with the traveler’s preferences and interests. Machine learning algorithms can further enhance the accuracy of these recommendations.

Tailored offers and promotions

Send targeted offers and promotions based on the traveler’s booking history, preferences, and search patterns. These could include discounts, upgrades, or special packages that cater to their specific interests.

Customized communication

Personalize your communication with travelers by addressing them by name, acknowledging their previous bookings, and offering relevant content based on their preferences. Ensure that the communication is consistent across all channels, including email, social media, and mobile app notifications.

Allow travelers to create customized travel packages by bundling flights, accommodations, car rentals, and activities based on their preferences. This flexibility can enhance their booking experience and lead to higher customer satisfaction.

Personalized user interface

Personalize the user interface on your website or app to display relevant content, offers, and recommendations based on the traveler’s preferences and browsing history. This can make the booking process more efficient and engaging.

Localization

Adapt your website or app to cater to travelers from different regions by offering language options, displaying local currency, and providing region-specific content and recommendations.

Chatbots and virtual assistants

Implement AI-powered chatbots and virtual assistants to provide instant, personalized support to travelers. These tools can answer frequently asked questions, help with booking processes, and offer recommendations based on the traveler’s preferences.

Post-booking personalization

Continue personalization efforts after the booking is complete by providing tailored pre-trip information, such as destination guides, travel tips, and itinerary suggestions based on the traveler’s interests.

Collect feedback

Encourage travelers to provide feedback on their booking experience and preferences. Use this feedback to further refine your personalization efforts and enhance the booking experience for future travelers.

Final words

Starting an online travel agency can be a challenging but rewarding venture. By following these practical steps and leveraging the latest technology and industry trends, you can create a successful business that offers personalized and convenient travel experiences to your customers.

Remember to prioritize customer service, stay up-to-date with industry developments, and continuously innovate to stay competitive in the ever-evolving digital landscape.

With determination, hard work, and a commitment to excellence, you can turn your dream of starting your own travel business as an online travel agency into a reality.

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THE JOURNAL

Travel Inspiration

Online Travel Agencies: Do They Offer the Best Value? (Hint: No)

The Modern Travel Agency

https://www.foratravel.com/the-journal/online-travel-agencies

Do online travel agencies offer the best deal? And what’s the difference between an online travel agency (a.k.a. OTA) and a host agency for independent travel agents ? We have all the intel you need to make the right decision.

Already know the difference between OTAs and real, human travel advisors? Connect with Fora to book and plan your trip with expert advice, VIP travel perks and more (i.e., all the things you don’t get when you book with an OTA).

First, what is an online travel agency (a.k.a. OTA)?

Online travel agencies are “travel agencies” in name only. More accurately, they’re automated marketplaces that allow travelers to book accommodations, flights and car rentals from a single user interface. 

Expedia, Booking.com and Travelocity are among the most well-known examples, but there are dozens of choices that offer similar experiences.

Which online travel agency is the most popular? What’s the biggest OTA?

Booking Holdings, which owns Booking.com, Priceline.com and a few other recognizable names, is the largest online travel agency. But Expedia Group Inc., which owns Expedia, Travelocity, Vrbo and, again, other recognizable OTAs, isn’t far behind. 

It might be surprising to learn that these two companies own virtually all the most popular OTAs in the United States. But the more important point is that because of a lack of real competition, these OTAs have a lot of leeway in the prices they charge. 

Worse, most hotels and suppliers don’t have much of a choice but to allow OTAs to charge high prices on their behalf because such a high percentage of their bookings go through online platforms. Which is where online host agencies come into play. But we’ll come back to that later.

Are there different types of OTAs?

Technically, there are three different types of online travel agencies. However, within the industry, there’s a conscious effort to create separation between them. 

The three models are as follows: merchant agencies like Expedia, advertising platforms like Google and, in the strictest, most literal definition of an online travel agency, most modern host agencies.

Merchant-model OTAs 

Merchant-model online travel agencies are exactly what we’ve been talking about thus far. This is the most common type of OTA, and further down, we explain why they’re not your best choice for planning and booking trips.

Of the three choices, hotels generally prefer to get as few bookings from merchant OTAs as possible because hotels don't see as much of the booking value acquired through such sites, and are often delivered less reliable clients. This type of OTA has played a major role in soaring hotel prices since the early 2000s, especially domestically, because hotels have largely been forced to raise rates to protect their profits.

Advertising-model OTAs

Advertising-model OTAs aren’t agencies so much as they are ad platforms. The most prominent example? Google. Hotels basically pay to advertise their rooms on search engines and similar websites using a cost-per-click model. 

For hotels, advertising-model OTAs can offer a slightly better deal than merchant OTAs. But they’re still not most hotels’ favorite choice. Moreover, these OTAs can be frustrating for consumers, as they often display inaccurate prices for hotels and other suppliers.

Contemporary host agencies

Contemporary host agencies are considered online travel agencies only in the sense that their services are available via the internet.

Host agencies such as Fora provide a variety of tools, exposure and other benefits for independent travel advisors, who remain in charge of their own business. The best agencies also provide extensive travel agent training , community resources and more.

In the host-agency model, clients work directly with independent travel advisors — real people — who can not only make reservations anywhere, but also plan itineraries, which is something merchant online travel agencies can’t do. Additionally, travel advisors can answer nuanced questions, set up special accommodations and do much more that an automated system can’t even begin to address.

What do we mean when we refer to online travel agencies?

We’re talking about the merchant model (i.e., Priceline.com, Airbnb, etc.). Advertising models aren’t as popular, and host agencies are, again, only semantically considered online travel agencies. 

How do online travel agencies work?

We’ve covered the basics, but here’s how online travel agencies work — and why you may not be getting the best deal if you book through one.

How exactly do OTAs make money?

There are two common ways OTAs make money: first, they operate similarly to a traditional travel agency by earning commission from hotels and other suppliers — car rental agencies, tour operators and so on. Additionally, some OTAs will purchase blocks of hotel-room bookings at a discount, only to turn around and sell them for a profit.

(How do travel agent commissions work? See our guide.)

The top online travel agencies charge hotels & other suppliers exorbitant commission rates

Unlike traditional travel agencies, which typically earn between five and 10 percent commission from a partner, the OTAs typically demand much higher rates, usually around 30%. Many hotels have grown to rely on these bookings, so they have no choice but to raise their rates and comply. 

Unfortunately, this has had a ripple effect throughout the industry. However — and this is a big however — contemporary remote travel agents who work with a host agency (like us) are able to one-up online travel agencies by offering awesome upgrades, perks and other benefits to dramatically increase the overall value (we’ll come back to this later) at no extra cost.

Want to know what types of perks Fora Advisors can unlock for you? Book and plan your next trip with Fora .

Why do travelers use online travel agencies?

The simple answer: most travelers aren’t aware of the alternatives. 

Traditional travel agencies were decimated by OTAs in the 1990s and early 2000s. Plus, a lot of travelers today either assume that travel agents are a thing of the past (they’re not) or only plan and book bespoke vacations for elite clients (anyone can use a travel advisor).

Are there any benefits of using an online travel agency?

There’s no arguing that OTAs aren’t fast. And occasionally, you may find that online travel agencies offer a good, though rarely the best, deal. 

But when you take a look at all the drawbacks below, you may question whether it still makes sense to book through an OTA.

Client-focused drawbacks of using online travel agencies

Curious to know why online travel agencies aren’t your best choice for booking? Read on. 

Already convinced? Connect with Fora to plan and book your next trip.

1. You’ll rarely receive the best value (and sometimes you’ll pay more for less)

Online travel agencies may play a role in dictating hotel rates, but they can’t offer the enticing perks you get when you book through a travel advisor instead. In other words, you may be charged the same rate regardless of how you obtain a reservation, but you’ll get a lot more for your money if you book through a travel advisor.

What kind of perks are offered? It depends on the hotel and host agency, but property credits (usually between $50 and $100 in value), complimentary meals, extended check-in/out times and special amenities are just a few of the awesome extras Fora Advisors can unlock. 

Fora Advisors may occasionally be able to score better rates, too, particularly at independent hotels.

2. You won’t get a personalized experience

Ultimately, online travel agencies only care about putting heads in beds. That’s their bottom line, and it’s a deeply impersonal process. A personalized stay is off the table.

In contrast, you’ll exclusively work with an actual human if you book through a travel advisor. Better yet, travel advisors can work with a hotel to VIP your stay (even if perks aren’t offered). This is especially beneficial if you require some sort of special accommodation. OTAs can’t do this — and even if by some miracle you manage to put in a request, OTAs don't make sure the hotel follows through. 

3. You can’t always redeem rewards perks

This varies by the online travel agency, but oftentimes, you can’t book special rates or redeem rewards when you book with an OTA. Some won’t even allow you to earn points toward loyalty programs. 

4. It can be harder to change a booking

Seriously: good luck. 

If you need to change a booking, you generally have to jump through all sorts of hoops and hope that the supplier actually hears about the changes — or you have to outright cancel the booking and hope that you can rebook. At best, it’s a hassle. At worst, it can be a nightmare that causes you to lose money that otherwise could have been spent during your trip.

Want to avoid the pitfalls of booking through an OTA? Get personalized service, VIP travel perks and more when you plan and book your trip with Fora .

5. And worse, your booking can be changed or canceled with little heads up

Imagine living out your Spain bucket list only to find out one of your bookings was canceled, and no real effort was made to warn you. Online travel agencies are automated systems — they can’t, and don’t, always react in a timely manner if a hotel is forced to alter or cancel a booking. 

Worse, OTAs have been known to overbook hotels or rental cars, leaving some travelers stranded or unsheltered at the last minute. This isn’t a common occurrence, but why even take the chance?

In either scenario, a travel advisor would be able to help you immediately.

6. Hotels know they’re getting lower-quality clients, so they’re less likely to roll out the red carpet

First, let us be clear: when we say “lower-quality clients,” we only mean clients who aren’t likely to rebook the same hotel in the future.

Going back to “putting heads in beds,” hotels have no idea whom they’re catering to when a booking is made through an OTA. At reputable hotels, this matters. Great hotels want to take care of their guests because there’s a promise of repeat business, and it’s the right thing to do.

When a travel advisor makes a booking, they can let the hotel know who their client is and the hotel can take steps to make sure their guest — you — is well cared for. At a minimum, the hotel knows that if they do a good job, the advisor is likely to send back more clients.

For the client, this means they’re far more likely to enjoy an awesome experience when they book with a travel advisor because the hotel is incentivized to roll out the red carpet. When they book with an online travel agency, though, the hotel wants to recoup the OTA commission cost, so they typically offer nothing extra.

Recap: if not OTAs, what are the best travel agencies to go through?

Host agencies such as Fora offer a much better deal than online travel agencies.

Fora advisors offer actual guidance & real service

Fora travel advisors are subject-matter experts. They can break down any aspect of your trip to make sure you’re getting the trip you desire. There’s no guesswork involved, which can’t be said when you book through an online travel agency. 

Let’s say you’re booking with a Virgin Voyages travel agent from Fora. They’ll be able to tell you the differences between all the cabins, itineraries and so on. Better yet, they can help you decide which options best suit your preferences and budget, offering a truly tailored experience.

You’ll get the best value when you book with a Fora Advisor

We’ve touched on this before, but it’s worth repeating. 

Fora Advisors secure the best available rates for clients, and there are extras to take advantage of when you book with them. Our travel advisors can score all sorts of perks for clients who stay at partner properties (nearly 5,000 hotels globally and counting). 

For example, say you book a room at Hotel Californian, one of our favorite hotels in Santa Barbara , through an online travel agency for $500 per night (it’s a nice hotel). You’ll still pay that same rate with a Fora Advisor, but when you book with us, you’ll also get complimentary daily breakfast, a $100 hotel credit that can be put toward the onsite spa and, whenever possible, extended check-in/out times — and potentially more. You’ll also get VIP treatment, personalized service and an all-around better stay.

Find out for yourself when you plan and book with Fora .

A nd even if you don’t stay at a partner hotel, you will still get better service (plus potential upgrades at many hotels around the world) when you book with a Fora Advisor. 

Fora travel advisors offer peace of mind and can help if things go awry

One of the absolute best advantages of booking with a Fora Advisor over an online travel agency: we can help if something goes wrong with your booking. 

Whether you receive the wrong room, have a reservation canceled or suddenly require some sort of special accommodation, Fora Advisors can work with the hotel to make things right at a moment’s notice. (Our personal relationships with thousands of hotels around the world help make this possible.)

OTAs often don’t even try — or they put you through a bureaucratic process, days or even weeks later, after your trip. 

Does it make sense to book corporate travel through OTAs?

It’s not unreasonable to wonder if online travel agencies offer a better deal for corporate clients. But for all the reasons mentioned above, corporate travel agents still offer better value than OTAs. This is doubly true for more nuanced bookings — like corporate group travel — where it’s wise to have an actual person there to make sure that reservations and itineraries are honored by suppliers.

Want the best value for your trip? Book with Fora instead

Overall, online travel agencies simply can’t compete with the value that a Fora Advisor offers. From A+ travel perks to unwavering assistance if something goes wrong, it makes so much more sense to plan and book your trips with Fora .

P.S. Love the idea of travel planning as a career? Become a Fora Advisor

Considering a job in the travel industry ? Check out all the reasons to become a Fora Advisor , from uber-flexible schedules to extensive marketing and training resources — not to mention unlimited earnings potential.

Interested? Sign up to become a Fora Advisor . Or check out our posts below to learn how to become a travel advisor .

How Much Do Travel Agents Make? Fora’s Full Guide  

Everything You Need to Know about a Fora Travel Advisor Salary (and How Our Advisors Get Paid)  

What Does It Take to Become a Travel Agent?  

The Ultimate Travel Side Hustle: Selling Vacations  

How to Become a Disney Travel Agent  

Why Group Bookings Are Great: Tips from an Expert  

Debunking 3 Myths about Becoming a Travel Advisor

Book with Fora

Tell us more about yourself to get matched with a Fora Advisor and start planning your dream trip today.

Online travel agency (OTA)

An online travel agency or OTA is a business that allows users to search and book travel products such as air tickets, lodging, car rentals , tours, cruises, and more. In other words, OTAs are intermediaries between travel inventory suppliers (airlines, hotels, tour operators , etc.) and customers (usually they are travelers or other OTAs).

OTAs often act as tour operators making tour packages and also provide additional travel-related information like reviews, tips, and so on.

OTAs source most of their inventory either directly from end suppliers (via APIs or an extranet) or through such middlemen as GDSs , air consolidators , bed banks , hospitality marketplaces , other OTAs, channel managers , etc. (typically, via API integration). 

On the customer side, OTAs have an online search and booking interface for travelers to make reservations and often a set of APIs for efficient B2B connection with distributors.

The biggest OTAs today are Expedia Group (including Expedia, Vrbo, Travelocity, etc.) and Booking Holdings (including Booking.com, Priceline, Agoda, etc.).

Recommended content for you

Understanding the online travel agency business: partners, building blocks, how to grow, video: travel tech expert breaks down launching an online travel agency, travel agency software: choosing tools for booking, tour building, accounting, and marketing, online travel agency analytics: data-driven approach to the best-cost strategy, marketing for travel agencies: understanding and surviving in the online travel industry.

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OTA vs. Metasearch: A Quick Vocabulary Lesson!

Erin Miller

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Online Travel Agency

Metasearch engine, final thoughts.

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Let’s delve into a brief lesson on the basic concept of OTAs vs. metasearch engines.

Previously, these terms were fairly straightforward to define, but technology has progressed and there are now many ways in which these services overlap. We’ll do our best to make a decent distinction between them here, but we’ll warn you…it’s not always that simple!

Online Travel Agency : a website that traditionally offers both search and booking capabilities.  OTA services usually include flights, hotels, and rental cars, with some also offering vacation rentals, cruises, and events/activities. OTAs often offer bundles to secure greater discounts when booking multiple services together.

An OTA is a sort of “middle-man” between the user and the airline/hotel/etc. While they no longer make commissions on flights, OTAs may take a cut of 15%-20% of your booking fee from the hotel.

Additionally, OTAs also often have toll-free phone numbers for personal assistance with booking/re-booking reservations.

Big players you’ve likely heard of in the OTA industry include Expedia , Hotels.com , Travelocity , Orbitz , Priceline , and Booking.com , among others.

Metasearch Engine : one overarching search engine that aggregates data from various sources (including other third-party search engines, OTAs, hotel websites, etc.) to provide a more comprehensive results page. This tool basically does what you’d do yourself by checking multiple different websites to compare airfares; it just checks more sites much faster… and no offense, but it’s probably smarter!

In the past, metasearch engines only offered the capability to search, directing the user to a third party OTA or individual airline to book and charging a small fee for their services. That’s no longer always the case, as we’re seeing some metasearch engines emerge with the capability to book directly through their websites.

Similar to OTAs, metasearch engine services usually include flights, hotels, and car rentals; some even provide packages to rival OTA’s discounted prices when booking services together.

Big players you’ve likely heard of in the metasearch industry include Google Flights , Kayak , Momondo , and Hipmunk, among others.

Here’s where it gets confusing. Most OTAs now offer price comparison features that essentially stack their results up against other search results, providing a more metasearch-like result.  However, this option usually allows users a max of 3-4 comparison sites, whereas metasearch engines compare many more.

In addition, some metasearch engines like Hipmunk now offer assistance with travel planning, booking, canceling, etc., whereas before this was strictly OTA territory.

Things get even more convoluted when an OTA (ex: Expedia) buys a metasearch site like Kayak. Or when a metasearch site like Hipmunk uses an OTA (Travelocity, owned by parent company Expedia ) to power their hotel bookings. Or when a metasearch site like Skyscanner offers various OTAs (Kiwi.com, lastminute.com, etc.) through which to book your flight.

Lastly, we all know OTAs rank their results. How do they do that? Is it fair? Our friends at Duetto Research provide an eye opening report into the ins and outs of OTA search results.

The list goes on, but by now your head may be swimming!

The point is, whether you choose to use multiple OTAs or a certain metasearch engine is really personal preference, and truly depends on how much digging you want to do yourself.

We list both types in our travel resource post on flight searches  and go into our thoughts on the best of the best in a separate post.

Additionally, we’ve got an entire article dedicated to the best websites for booking hotels at the cheapest prices. 

After all, it is an extensive look into travel resources, and we wouldn’t be Upgraded Points if we didn’t go in-depth!

Frequently Asked Questions

What is the difference between an ota and a metasearch engine.

An Online Travel Agency is a website that traditionally offers both search and booking capabilities.  OTA services usually include flights, hotels, and rental cars, with some also offering vacation rentals, cruises, and events/activities.

A Metasearch Engine is one overarching search engine that aggregates data from various sources (including other third-party search engines, OTAs, hotel websites, etc.) to provide a more comprehensive results page.

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Online travel agencies (OTAs) offer users the possibility to book their holidays online. Well-known platforms such as Booking, HRS, or Expedia provide additional information like hotel reviews, travel tips, or package holidays. Often OTAs also act as tour operators. Hotels and tourism-related businesses can register to reach potential guests. In order to do so, information such as room availability and prices must be provided. If a stay is booked through the online travel agency, usually the hotel or tourism-related business has to pay a commission fee. Nowadays the majority of reservations are made via online travel agencies, transforming them into an important distribution channel for tourism businesses.