ota means in travel

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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 booking experience with functionality that allowed the general public to easily plan their trips and reserve their airfare, accommodations, vacation packages, car rentals, 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 apps 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 Does OTA Stand For in Travel? (The Ultimate Guide)

Ota Stands for “Online Travel Agency”

When you’re planning a trip, you have a lot of options to choose from. You can book your flights, hotels, and other travel arrangements directly with the providers, or you can use an online travel agency (OTA).

OTAs are third-party websites that aggregate travel deals from multiple providers. This makes it easy for you to compare prices and find the best deals on flights, hotels, rental cars, and other travel services.

OTAs can also be a great source of information and advice. They often have travel experts who can help you plan your trip and answer any questions you have.

In this article, we’ll take a closer look at OTAs. We’ll discuss what they are, how they work, and what the benefits and drawbacks of using them are. We’ll also provide some tips on how to find the best deals on travel through an OTA.

So if you’re planning a trip, be sure to read on to learn more about OTAs and how they can help you save money and make your trip more enjoyable.

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What is OTA?

OTA stands for online travel agency. OTAs are websites that allow travelers to book flights, hotels, and other travel-related services. OTAs are not travel agents, but they do work with travel agents to provide their services.

Definition of OTA

An OTA is a website that allows travelers to book flights, hotels, and other travel-related services. OTAs are not travel agents, but they do work with travel agents to provide their services. OTAs typically offer a wider range of travel options than travel agents, and they may be able to offer lower prices.

History of OTAs

The first OTA was established in 1950. The company, called TravLodge, offered travelers a way to book hotel rooms online. In the early days of OTAs, travelers were hesitant to use these services because they were not familiar with them. However, as OTAs became more popular, travelers began to trust them and use them to book their travel arrangements.

Today, OTAs are a major part of the travel industry. They account for a significant percentage of all travel bookings. OTAs offer a convenient and affordable way for travelers to book their travel arrangements.

Types of OTAs

There are many different types of OTAs. Some of the most popular types of OTAs include:

• General OTAs . These OTAs offer a wide range of travel options, including flights, hotels, car rentals, and tours. Some of the most popular general OTAs include Expedia, Orbitz, and Travelocity.
• Specialty OTAs . These OTAs focus on a specific type of travel, such as cruises, tours, or vacation rentals. Some of the most popular specialty OTAs include CruiseDirect, Booking.com, and Airbnb.
• Metasearch engines . These OTAs aggregate the results of multiple OTAs into one place. This makes it easy for travelers to compare prices and find the best deals. Some of the most popular metasearch engines include Kayak, Google Flights, and Skyscanner.

How do OTAs work?

OTAs work by connecting travelers with travel providers. When a traveler books a travel arrangement through an OTA, the OTA sends the traveler’s information to the travel provider. The travel provider then confirms the booking and sends the traveler a confirmation email.

OTAs typically charge a commission to the travel provider for each booking that they make. The commission is a percentage of the total cost of the booking. OTAs use this commission to cover their operating costs and make a profit.

The process of booking a travel through an OTA

Booking a travel through an OTA is a simple process. Here are the steps involved:

1. Choose an OTA. There are many different OTAs to choose from. Consider the type of travel you are looking for, your budget, and your preferred features when choosing an OTA. 2. Find a travel deal. Once you have chosen an OTA, you can start searching for travel deals. You can filter your search by destination, dates, and other factors. 3. Book your travel. When you find a deal that you like, you can book your travel. You will need to provide your personal information and payment details. 4. Receive your confirmation. Once you have booked your travel, you will receive a confirmation email. This email will include all of the details of your booking.

The benefits of using an OTA

There are many benefits to using an OTA when booking your travel. Some of the benefits include:

• Convenience . OTAs make it easy to book your travel arrangements. You can search for deals, compare prices, and book your travel all in one place.
• Affordability . OTAs often offer lower prices than travel agents. This is because OTAs do not have the same overhead costs as travel agents.
• Choice . OTAs offer a wide range of travel options. You can find flights, hotels, car rentals, and tours from a variety of providers.
• Flexibility . OTAs typically offer flexible booking policies. This means that you can change or cancel your booking without incurring a fee.

The drawbacks of using an OTA

There are some drawbacks to using an OTA when booking your travel. Some of the drawbacks include:

• Hidden fees . OTAs may charge hidden fees, such as cancellation fees or change fees. Be sure to read the fine print before you book your travel.
• Less personalized service . OTAs typically offer less personalized service than

What Does OTA Stand for in Travel?

OTA stands for online travel agency. OTAs are websites that allow travelers to book flights, hotels, and other travel-related services online. OTAs are a convenient way for travelers to compare prices and book their travel arrangements, and they offer a wide range of options to choose from.

OTAs have become increasingly popular in recent years, as more and more people are booking their travel online. In 2023, the global online travel market is expected to be worth \$935 billion.

The impact of OTAs on the travel industry

OTAs have had a significant impact on the travel industry. They have made it easier for travelers to book their travel arrangements, and they have helped to drive down prices. OTAs have also made it possible for travelers to book their travel arrangements from anywhere in the world, at any time of day or night.

However, OTAs have also had some negative impacts on the travel industry. They have put pressure on traditional travel agents, who have seen their business decline in recent years. OTAs have also been accused of driving up prices, as they take a commission on every booking that they make.

The positive impact of OTAs

OTAs have had a number of positive impacts on the travel industry. They have made it easier for travelers to book their travel arrangements, and they have helped to drive down prices. OTAs have also made it possible for travelers to book their travel arrangements from anywhere in the world, at any time of day or night.

Here are some of the specific benefits of OTAs for travelers:

• Convenience: OTAs make it easy for travelers to compare prices and book their travel arrangements. They offer a wide range of options to choose from, and they allow travelers to book their travel arrangements quickly and easily.
• Affordability: OTAs can help travelers to save money on their travel arrangements. They often offer discounts on flights, hotels, and other travel-related services.
• Accessibility: OTAs make it possible for travelers to book their travel arrangements from anywhere in the world, at any time of day or night. This is especially beneficial for travelers who are on the go or who have busy schedules.

The negative impact of OTAs

OTAs have also had some negative impacts on the travel industry. They have put pressure on traditional travel agents, who have seen their business decline in recent years. OTAs have also been accused of driving up prices, as they take a commission on every booking that they make.

Here are some of the specific challenges facing OTAs:

• Competition: OTAs face a lot of competition from other OTAs, as well as from traditional travel agents and online booking engines. This can make it difficult for OTAs to maintain their margins and stay profitable.
• Regulation: OTAs are subject to a variety of regulations, which can make it difficult for them to operate efficiently. These regulations include laws on consumer protection, data privacy, and anti-trust.
• Technology: OTAs need to constantly invest in new technology in order to stay ahead of the competition. This can be expensive and time-consuming.

The future of OTAs

The future of OTAs is uncertain. There are a number of challenges facing OTAs, but there are also a number of opportunities.

Here are some of the factors that are likely to impact the future of OTAs:

• The growth of mobile travel: More and more people are booking their travel arrangements using mobile devices. This trend is likely to continue, as more people have access to mobile devices and as mobile technology improves.
• The rise of social media: Social media is becoming increasingly important for travel planning. Travelers are using social media to research destinations, compare prices, and book their travel arrangements.
• The development of new technologies: New technologies, such as artificial intelligence and machine learning, are likely to have a significant impact on the travel industry. These technologies could make it easier for OTAs to personalize their offerings and provide travelers with a more seamless travel experience.

Overall, the future of OTAs is likely to be shaped by a number of factors, including the growth of mobile travel, the rise of social media, and the development of new technologies. OTAs that are able to adapt to these changes are likely to be successful in the future.

OTAs have had a significant impact on the travel industry. They have made it easier for travelers to book their travel arrangements, and they have helped to drive down prices. However, OTAs have also put pressure on traditional travel agents and have been accused of driving up prices

What does OTA stand for in travel?

OTA stands for online travel agency. OTAs are third-party websites that allow travelers to book flights, hotels, and other travel-related services. OTAs typically offer a wider range of options than traditional travel agents, and they often have lower prices. However, it’s important to note that OTAs are not always the best option, as they may not offer the same level of customer service as a traditional travel agent.

What are the benefits of using an OTA?

There are several benefits to using an OTA, including:

• Wide range of options: OTAs offer a wide range of flights, hotels, and other travel-related services, so you’re more likely to find the perfect option for your needs.
• Lower prices: OTAs often have lower prices than traditional travel agents.
• Convenience: OTAs make it easy to book travel online, and you can often do so 24/7.

What are the drawbacks of using an OTA?

There are a few drawbacks to using an OTA, including:

• Less customer service: OTAs typically offer less customer service than traditional travel agents.
• Hidden fees: OTAs may charge hidden fees, such as booking fees or cancellation fees.
• Unclear policies: OTAs may have unclear policies, which can make it difficult to know what you’re entitled to if something goes wrong.

How do I choose the right OTA?

When choosing an OTA, there are a few things you should consider, including:

• Your budget: OTAs offer a wide range of prices, so you should choose one that fits your budget.
• Your needs: Consider what kind of travel you’re planning and what kind of options you’re looking for.
• Your customer service preferences: If you’re someone who values customer service, you may want to choose an OTA that offers a strong customer service reputation.

What are some popular OTAs?

Some of the most popular OTAs include:

• Booking.com
• Travelocity
• Google Flights

Is it safe to book travel through an OTA?

Yes, it is generally safe to book travel through an OTA. However, it’s important to read the terms and conditions carefully before you book, so you know what you’re entitled to if something goes wrong.

What are some tips for using an OTA?

Here are a few tips for using an OTA:

• Compare prices: Be sure to compare prices from multiple OTAs before you book.
• Read the terms and conditions: Read the terms and conditions carefully before you book, so you know what you’re entitled to if something goes wrong.

Here are some key takeaways from this article:

• OTAs are a convenient way to book travel, but it’s important to be aware of the fees they charge and the terms and conditions of their services.
• OTAs typically charge a commission on each booking, which can add up to a significant amount of money.
• Some OTAs may also charge hidden fees, such as cancellation fees or baggage fees.
• It’s important to read the terms and conditions of an OTA’s services carefully before you book a trip.
• By doing your research, you can find the best OTA for your needs and save money on your next trip.

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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?

What Are OTAs & Why They Will Change the Travel Industry Forever

Definition of Online Travel Agencies (OTAs)

Key characteristics of otas, types of otas, how otas work, benefits of using otas for travelers.

In 2023, 72% of travelers preferred to make their travel arrangements online. As much as 80% of them relied on OTAs rather than Google, social media, and meta-travel websites. 

Traveler habits and preferences indicate that OTAs are no passing trend. For those in the travel business, that means only one thing: OTAs are crucial for survival and success in the industry. Understanding what they are, how they work, and what benefits they offer is no longer optional. 

Everyone uses OTAs, but most people outside the industry don’t know them under their acronym – or what it stands for – even when they have a broad idea of how they work. 

What are OTAs? 

OTA is short for Online Travel Agency, a website, platform, or marketplace that allows travelers to buy travel-related products and services. Using an OTA, anyone can book a flight, reserve a hotel room, rent a car, buy event tickets, or book a cruising trip. 

Some of the most used and globally known online travel agencies are: 

• Booking.com
• TripAdvisor Rentals
• Hostelworld
• Lastminute.com

OTAs are similar to metasearch engines like Google Hotels , but the two are not the same. The key difference is that travelers can book travel products and services directly from OTAs. These agencies serve as online reservation systems for researching and comparing travel options. 

How do OTAs differ from traditional travel agencies?

As a direct link between travelers and travel suppliers, OTAs are a serious threat to traditional travel agencies. While they are completely online-based, many modern travel agencies offer a combination of online and offline services. All their differences stem from this main one. 

In OTAs, travelers have dedicated self-service centers with more travel options than they can choose. As opposed to that, traditional agencies put an emphasis on human relations and personalized service. Both options have their pros and cons, as well as their loyal target audience. 

Online travel agencies rose to prominence after the Great Financial Crisis, which marked the golden era for industry leaders like Expedia and Booking.com. Although the OTA market share is not as formidable as it once was, it still puts traditional travel agents at dire risk of irrelevance. 

The role of OTAs as intermediaries between travelers and travel service providers

Although we call them “agencies,” OTAs don’t employ travel agents or do any agent work, at least not in a traditional sense. They simply provide space for rental and vacation managers, airlines, and other travel service providers to make their offers directly to potential customers. 

Let’s say you want to go to Croatia for a summer vacation. If this is your first time visiting the Balkans and you want to travel the coast by boat and visit Dubrovnik, but you don’t speak the language, it’s probably easier (and safer) for you to outsource everything to a travel agent. 

But if you’ve arranged your own trips before, why pay a travel agent when you can get everything you need on Airbnb? OTAs bookings cost less because the fee is charged to service providers. Are they more convenient? Well, that depends on the type of traveler and the trip. 

A typical OTA is like Google for travel – it’s comprehensive, convenient, and trustworthy. Aside from these industry-disrupting traits, some other key characteristics of OTAs are: 

Online platforms for researching, comparing, and booking travel services

OTAs are online platforms that facilitate booking, but they do more than that. Like search engines, these agencies allow travelers to research desired locations before they pick a destination and book a room. Users can filter search results by budget, facilities, property type, review score, etc.

Search filters like these are incredibly helpful and contribute to OTAs’ great success. They allow travelers to find what they’ve pictured, no matter how specific their desires and requirements are. If you want a beachfront villa with a gym and a poker room, just tick the right boxes. 

Another advantage of using OTAs is the ability to compare offers and prices from multiple travel service providers. So, in addition to finding just what they need, travelers can also get it for the most affordable price. It’s precisely that searchability that gives OTAs their disruptive power. 

A wide range of travel products offered 

Can OTAs really help you plan entire trips? Absolutely, yes. The wide range of travel-related products and services offered by online travel agencies typically include the following: 

• Accommodation – Hotels, apartments, villas, holiday homes, resorts, and more. 
• Flights – One-way and round trips, domestic and international flights, and more.
• Car rentals – Reliable rentals at affordable prices by popular car hire brands.
• Airport taxis – Standard or executive airport transfer per number of passengers. 
• Attractions – Explore tours and activities, book priority tickets, and more. 
• Vacation packages – Create your own travel bundles with stay, transport, tours, etc.

And it’s not only various product categories that can be found on OTA websites. Even more importantly, travelers can explore many different types of products and services, including property and room types, car brands, excursions, etc. There are also detailed descriptions and pictures. 

Aggregation of prices and options from multiple travel service providers

If you type “New York” in the Airbnb search box, more than 1,000 results will pop up. That’s more than any travel agent can offer. OTAs are so popular because they showcase numerous options from multiple travel service providers, making travelers spoiled with choices. 

  User-generated content to inform traveler decisions

One of the major concerns travelers have about travel booking platforms is, “What if the place doesn’t match the description?” OTAs have come up with an elegant solution for this: social proof . Buyers are strongly encouraged to leave detailed reviews with descriptions and ratings. 

To say that OTAs have turned user reviews into an art form would not be an overstatement. They, too, can be filtered based on topics such as cleanliness, location, or aesthetics. All guest impressions are dated (so you know what season they apply to) and accompanied by photos. 

Secure payment processing and customer support

OTA payments are designed to be fast, secure, and flexible. For added convenience, customers have various payment options, including credit, debit, and prepaid cards; digital wallets like PayPal, Apple Pay, and Google Pay; and local payment options like WeChat and Alipay.

Are OTA payments safe? Sure. They are based on the same security protocols and standards as all other online payments. Encryption and 2-step verification are non-negotiable. Major OTAs like Airbnb, Expedia, and Booking.com guarantee secure transfers and financial data privacy. 

On the off chance that a payment goes wrong, customer service is there to help. Online travel agencies don’t have agents, but they have dedicated customer support reps on multiple channels. That usually includes FAQs, live chat, email, and 24/7 phone support for emergencies. 

Despite being accessible worldwide, online travel agencies sometimes choose to specialize in a single region or travel segment. Here are the different types of OTAs:

Full-service OTAs 

The global market is vast and unpredictable. No single travel agent or tour operator can offer all types of products and services in all destinations in the world. But guess who can? That’s right: OTAs. Full-service OTAs provide an array of destinations and services. 

The most prominent names in the industry belong to this wide bracket. Expedia, Airbnb, and Booking.com are good examples of successful full-service travel booking platforms. They offer everything you need to arrange a trip, including spa reservations, concert tickets, and local tips. 

Specialized OTAs 

Competing with full-service OTAs like Expedia or Airbnb is virtually impossible, so many online travel agencies are forced to quit or specialize. So-called specialized OTAs cater to travelers in need of specific products, like airplane tickets, hotels, or specific types of vacation rentals. 

For example, CheapOair is an online travel agency specializing in discounted flights and hotel bookings. Hostelworld is one of the most famous agencies for budget-friendly accommodations like hostels and low-cost hotels, while Vrbo offers condos, cabins, and other vacation rentals. 

Regional and global OTAs

OTAs can be regional or global, depending on their area of coverage. Similarly to local agents, regional online travel agencies are closer to the destinations you want to travel to, and not just geographically. They usually have local guides recommending tours and writing travel guides. 

Some of the best regional OTAs are Indy Guide (Central Asia), Travello (Australia and New Zealand), Civitatis (Spain and Latin America), LinkParis (Paris), LovetoVisit (UK), Swiss Activities (Switzerland), TrueStory (Scandinavia), Tripster (US and Canada), and Almundo (Latin America). 

How do OTAs work? Most people assume that online travel agencies make money in a similar way travel agencies do. That’s not far from the truth, but it’s only one piece of the puzzle. 

The OTA business model 

Different OTAs make revenue in different ways based on their business model:

• Commission – Many OTAs (Airbnb, Booking.com, Expedia) employ a commission model, where they allow hosts and other travel service providers to list their offers for free. In return, OTAs receive a percentage of their money every time a booking is made. 
• Subscription – Online travel agencies like Furnished Finder charge product and service providers a fixed rate for listings and promotions whether they make a booking or not. 
• Advertising – This model is more common on meta-travel websites like Google Hotel Ads, where hosts pay for clicks that take potential customers to their official booking pages. 
• Hybrid – A small number of OTAs have a hybrid approach to earning revenue, including commission, subscription, and advertising-based business models. 

Relationships between OTAs and travel service providers

As mentioned before, OTAs serve as intermediaries between travelers and travel service providers. Both of them use online travel agencies as self-service platforms. There’s no direct communication with an agent except in rare emergencies when hosts need to contact OTA support.

Everything else is automatic, with a lot of customization options for hosts.

• Getting listed

While every OTA has its own set of guidelines, listing a travel product or service is generally a frictionless process navigated by the website. Hosts are instructed to leave contact information, write descriptions, tick boxes to assign categories to their listing, and add photos of rentals. 

• Getting booked

What happens when a booking is made? That’s usually up to the host to decide. The “ instant booking ” option allows guests to automatically book without the host’s approval, but hosts can also choose to vet prospective customers. In any case, booking reveals the host’s contact info. 

OTAs sometimes let guests send a message to potential hosts before they decide to book. After that, guests and hosts can continue communication via SMS, email, or phone. 

• Getting paid 

How do you get paid as an OTA-based host? Again, that varies from one agency to another. VCCs (Virtual Credit Cards) and independent payment are the two common methods. In the first case, an OTA collects and loads money onto a VCC that hosts use like regular credit cards. 

Although independent payment processing is sometimes allowed by OTAs with subscription business models, commission-based payments are much more common. Hosts can set cancellation fees and choose a preferred payment system, such as a credit card or bank transfer. 

  The role of technology in OTA operations 

Technology holds limitless possibilities in the travel industry, many of which are already being explored by online travel agencies. Some of the best OTA tech applications include: 

• Search algorithms – Like all search engines, OTAs rely on algorithms to rank search results for specific queries. These algorithms are highly sophisticated and can be personalized based on customer data. They include conversion and average daily rate , guest review score ( Booking ), competitive prices, quality content, and cancellation rate ( Vrbo ). 
• Pricing optimization – Online travel agencies like Expedia and Booking.com help hosts get more bookings by optimizing their prices. How? They employ data analytics and keep track of supply, demand, proximity, and seasonality. Based on these factors, OTAs recommend or automatically adjust prices to capture travelers’ attention and boost the average daily rate.  
• Personalization – More than 71% of customers demand personalized experiences from product and service providers. The travel industry is no exception. Online travel agencies are in a perfect position to provide personalized service because of the amount of customer data they collect daily. Data feeds OTA’s algorithms, allowing them to create custom-tailored bundles and packages based on individual preferences, budgets, and special requirements. 

Why are online travel agencies so popular among modern-day travelers? There are several possible answers, but first in line are convenience, accessibility, and option comparison. 

Convenience and ease of booking

According to the Trends Global Survey, 76% of global travelers look for apps that reduce the friction and stress of travel planning. Nobody does this better than OTAs. Online bookings are available 24/7 from all devices, but not only that. They are also convenient and easy to use. 

The best OTAs have user-friendly interfaces and powerful search filters that allow travelers to research and book trips faster than ever before. Tips and guest reviews contribute to their ease of use and provide recommendations and social proof that further simplify the experience. 

Access to a wide range of travel options and prices

OTAs are unmatched in the industry when it comes to the amount of travel products and services they provide. So much so that travelers can plan their trips on a whim, knowing they will never be out of exciting choices – no matter how demanding, frugal, or picky they become. 

Here’s an example: not only are there over 28 million accommodation listings on Booking.com, but this online travel giant also allows you to browse based on your current “vibe” – like “romance,” “outdoors,” or “relax.” Expedia and Airbnb have similar options on top of standard filters. 

Ability to compare prices and read user reviews

Ample options, searchability, and personalization are a powerful combination. With OTAs, travelers are empowered with choices and can contrast and compare offers and their prices. That is undoubtedly the most attractive characteristic of leading OTAs like Airbnb and Expedia. 

Statistics prove that – in 2023, 53% of travelers who used online travel agencies cited it’s because of the speed at which they can plan their trip; 47% said it’s easier to compare prices, and 42% said it’s better to find cheaper deals. Price, location, and reviews are top considerations for OTA users. 

Reputable OTAs have secure payment protocols that guarantee speed, convenience, and safety – all with a single click. Most offer a wide range of payment options, as well, allowing travelers to pay for trips using a preferred method, be that a credit card, digital wallet, or bank transfer. 

Post-COVID travelers have increasing expectations when it comes to customer service. Premium service, multichannel support, and 24/7 availability are no longer considered a luxury – they are the new norm. Even though they are mostly digitized, most OTAs can afford to provide this level of service. 

Online travel agencies are modern-day leviathans – they trump traditional travel agencies in size, impact, and resilience. More importantly, they are a perfect product of their time. Nothing in the travel industry (except for AI) can answer post-pandemic expectations and demands better than OTAs. 

One thing is for sure – OTAs will change the industry forever. As technology evolves, human agents will specialize in personal relations and curated service. Online bookings could easily take over all the rest, so professionals, beware. Recognizing OTAs’ significance could be key to a prolific future. 

OTAs and metasearch engines both allow travelers to research and compare accommodations, flights, tours, rental car options, and other travel-related products and services. The main difference between them is that you can’t book a trip directly from a metasearch engine. Websites like these only aggregate and promote offers. By clicking on a listing, you get directed to a provider’s official booking page. The engine usually gets a commission based on a pay-per-click model.

Most online travel agencies don’t charge travel product and service providers for listing offers on their websites, but they take a commission from every booking. Other ways OTAs make money is from fixed subscriptions, ads, or a combination of all these elements.

While OTAs have many advantages, some possible downsides of using online platforms for planning and booking a trip include a lack of personalized customer service and deep customization options. Compared to a travel agent, an online travel agency can never meet the expectations of luxury travelers. OTAs also fall short in arranging complex group trips, such as destination weddings. In addition, OTA prices are sometimes higher than prices set by providers.

The most important factors to consider when choosing an OTA to book with are the selection of travel options, searchability, ease of use, price transparency and discount deals, cancellation fees and refund policies, payment options and security, and customer service and support. Challenges in Room Mapping: discuss common difficulties such as inaccuracies, time consumption, and the need for constant updates. Technological Advances: discuss new technologies like blockchain, NLP, or big data analytics that are influencing room mapping. Case Studies: share real-world examples of companies that have successfully implemented the hotelmize room mapping solution and what improvements they achieved. ROI of Room Mapping: explain how effective room mapping can lead to increased profits and customer satisfaction. Compliance and Standards: discuss if there are any industry standards or regulations affecting room mapping. Choosing a Room Mapping Service: criteria to consider when choosing a mapping service, perhaps including a comparison table of popular options.

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Cristóbal Reali, VP of Global Sales at Mize, with over 20 years of experience, has led high-performance teams in major companies in the tourism industry, as well as in the public sector. He has successfully undertaken ventures, including a DMO and technology transformation consulting. In his role at Mize, he stands out not only for his analytical and strategic ability but also for effective leadership. He speaks English, Spanish, Portuguese, and Italian. He holds a degree in Economics from UBA, complementing his professional training at Harvard Business School Online.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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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!

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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.

Photo by Rawpixel.com/Shutterstock

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

Top 9 Online Travel Agents (OTAs) in 2024

What is an OTA? OTA stands for Online Travel Agency or Online Travel Agent. OTAs are one of the key distribution channels that hotels have at their disposal in order to market and sell their room nights.

For most hotels, online travel agents (OTAs) have become the most important distribution channel. In many ways, they’re a natural evolution of the traditional travel agency model, as platforms like Expedia and Hotels.com offer consumers easy comparisons and booking processes to most hotels listed in any given region.

What are the benefits of OTAs?

A typical OTA charges between 10% and 30% in commission for every room booking passing through it, leading to a dollar-for-dollar seemingly less profitable margin than direct bookings. However, for that investment, hotels benefit in a few crucial ways they would almost certainly otherwise be missing out on:

• Hotels listed on OTAs are able to increase awareness and even unlock new markets, relying on the OTAs popularity and marketing-focus, instead of their own marketing spend.
• OTAs help hotels to meet their audience where they are online, with the leading travel websites in the U.S. serving more than 30 million visitors every month.
• Hotels can benefit from the so-called billboard effect: Listings on OTAs provide initial awareness for potential travelers, who could ultimately book directly, via a booking engine , on the hotel’s site, minus the OTA’s commission costs.
• OTAs make revenue management far less complicated. Hotels can capitalize on seasonal demand by simply adjusting room rates according to recommendations made by the OTAs.

Combining these benefits, and the revenue benefits of listing your hotel on popular OTAs becomes clear. They actually provide a lot of heavy lifting for their fee, but of course, you still need to know just where to place these listings strategically. 

What are the most important OTAs in 2024?

There are several dozen OTAs available today, with each one offering a very specialised set of services.

A success story of the gig economy over the past few years, Airbnb is unique in that it acts largely as a marketplace for non-conventional travel accommodations and consumer-to-consumer rentals. It has begun to expand into commercial listings after acquiring HotelTonight in 2019, earning it a spot on this list.

Hotels looking to be listed on Airbnb need to prove their unique design characteristics. At acceptance, they become one of seven million listings in more than 200 countries, with access to more than 150 million active users. Commission ranges between 14% and 20% for hotels.

Advantages of Listings on Airbnb

• Thanks to the service’s marketplace vibe, hotels listed on Airbnb can benefit from more authentic, word-of-mouth-type marketing compared to other OTAs on this list.
• Airbnb’s emphasis on local influences and unique designs make the platform a perfect fit for boutique hotels competing against larger, less personal chains.
• Airbnb expands into areas outside the typical tourism hotspots, offering the ability to stand out and go beyond the norm.

2. TripAdvisor

Founded in 2000, TripAdvisor has become one of the largest travel websites in the world. It is largely known for its user reviews, approaching 500 million in total for hotels and restaurants.

That said, the platform’s Instant Booking platform enables its visitors to read reviews and make the call to book a room right on the platform. It charges its 7+ million listings of attractions, hotels, and restaurants an average of 15% commission.

Advantages of Listings on TripAdvisor

• A potentially massive audience, with 450+ million monthly active users around the globe.
• A strong reputation for and volume of user reviews. If your listing ranks well, the audience will trust its quality.
• The connections between hotels, attractions, and restaurants allow potential visitors to think about your lodging opportunity in a broader context.
• An advertising partnership with Expedia and Priceline allows for connections with other high-visibility OTAs.

3. Expedia.com

The U.S.-based Expedia group, founded in 1996, actually includes more than 200 travel booking sites that total more than 600 million monthly visits, including some others on its list. Its flagship OTA is Expedia.com, which focuses on hotels, flights, and rental cars.

Expedia.com is home to listings of more than 500,000 properties, spanning more than 60 countries. Commission for rooms booked through the site ranges between 5% and 30% based on property type and dynamic pricing, but averages around 16%.

Advantages of Listings on Expedia

• An emphasis on low prices and affordability means Expedia.com attracts an audience that might not otherwise seek out your individual hotel’s website on their own.
• The close connection with other OTAs pays off for hotels. Placing a listing on Expedia, for instance, automatically links it to Hotels.com.
• Customers can book hotels in connection with flights and rental cars, placing your hotel listing into a more comprehensive experience.
• The global recognition of the platform makes it easy to unlock new markets, especially when expanding internationally.

4. Booking.com

Founded in 1996, Booking.com was among the first OTAs to emerge in the dotcom boom. As an international company by design, its bookings (accessible in 43 languages) cover more than 200 different countries on every continent.

In total, the platform processes more than 1.5 million hotel nights every day, with decisions driven by its 50 million verified reviews by guests. Fees average about 15% but fluctuate depending on the market segment and property type listed.

Advantages of Listings on Booking.com

• As part of a larger company umbrella that also includes brands like Priceline and Agoda, listings on Booking.com tend to have a magnified impact.
• The platform focuses not just on hotels. Instead, it offers options for motels, vacation homes and apartments, hostels, B&Bs, and other types of properties as well.
• An easy setup process, including the ability to import information from other OTA platforms, allows hotels to set up their listing in as little as 15 minutes.

As mentioned above, Agoda is part of the Booking Holding that encompasses several other major OTAs. Originally founded in 1998, its largest pool of property listings is in Asia. However, the company has expanded into Europe and America as well, with its website and 2 million listings available in 38 languages.

Much like Expedia in the European and American market, Agoda focuses on low-priced listings and affordability. Commissions for listings average around 16%, with variations depending on the size and type of property.

Advantages of Listings on Agoda

• A strong focus on the Asian market is beneficial for hotels and brands looking to branch out specifically to this audience.
• Close connections with other OTAs like Booking.com and Priceline under the same corporate umbrella allow for cross-listings and increased convenience.
• Commission discounts for multi-property hotel brands can lead to sizable discounts and higher profit margins.

6. Hotels.com

An American company, Hotels.com has been headquartered in Dallas, Texas since its founding in 1991 as the Hotel Reservations Network. It has been part of the Expedia network of OTAs for almost two decades, benefiting from significant economies of scale on listings as a result.

In total, the platform hosts more than 360,000 listings in more than 19,000 locations, most of them in the Western Hemisphere. Average commission is just above 17%.

Advantages of Listings on Hotels.com

• The close connection with Expedia mentioned above also works in reverse, meaning listings on Hotels.com receive increased audience attention.
• The platform’s Hotels.com Rewards program attracts higher than usual return customers, leading to increased repeat business for listed properties.
• A focus on the Western Hemisphere makes the service beneficial for hotels and other properties looking to improve their awareness in this market.

7. LateRooms

In a clear distinction from services like Airbnb, LateRooms focuses only on hotels. Founded in 1999, the company is headquartered in the United Kingdom. It emphasizes last-minute deals for single-night stays, catering to more spontaneous and urgent audiences.

With its more niche focus, LateRooms leads to fewer but faster transactions. More than 200,000 daily users book more than 50,000 rooms every month, including some same-day bookings. Its listings are limited to the U.K.

Advantages of Listings on LateRooms

• A laser focus on the United Kingdom is perfect for properties situated in that market.
• The flexibility offered by LateRooms makes sense for hotels who have some rooms to fill in order to minimize losses even when offering discounts.
• Unique search categories, like secret rooms and quirky hotels, make this platform a good fit for niche properties with a specific target audience.

Based in Cologne, Germany, HRS was actually founded as a standard travel agency in 1972. It pivoted to become an OTA in the early years of the world wide web, and now offers more than 300,000 listings to about one million active users.

HRS offers listings around the globe, but most of its inventory is in Europe. Similarly, while it offers listings for both consumers and business travelers, its emphasis on business (including discounts for professional travel) is clear throughout the website. Expect an average commission of 16% for bookings through HRS.

Advantages of Listings on HRS

• A focus on business customers makes HRS a great fit for hotels who are prioritizing this audience.
• The company’s history in the offline travel agency field shines through in its user experience and service, offering a more bespoke experience than many others in this article.
• Inventory and experience in the European market is a key advantage for hotels in this area looking to attract a global audience.

9. Google Hotel Ads

A relative newcomer to the market Google started showing hotel information in a more useful way with sponsored hotel prices back in 2010. According to Google, their hotel ad partners (participating hotels) received 65% more leads year over year and Google Hotel Ads has now emerged as the most profitable metasearch platform for accommodation providers globally.

Google has an unrivalled advantage when it comes to traffic: an estimated 4.5 billion searches are made per day on Google, accounting for 77% of the world’s total search traffic. Couple that with the fact that Google Hotel Ads has expanded to over 150 countries and you can understand why Google Hotels Ads is such a popular choice for hoteliers.

Advantages of Listing on Google Hotel Ads

• Attracts travellers searching for accommodation in your hotel’s specific area.
• Increases the number of direct bookings your hotel’s website generates. According to Google, 60% of leisure travellers and 55% of business travellers use its search engine to plan their trips.
• Google Hotel Ads makes it possible for you to access some of the guests data, and does not keep it all hidden like most OTA’s. This means that you can get useful analytics and insights from the guest’s trip-planning process.
• When the potential guest clicks on your hotel’s advert, they have already been filtered according to specific details like price range, availability, amenities, location, rating, etc. This means that they are mostly sales-qualified leads who are about to place a booking.

OTA’s will never be a replacement for your hotel’s own website, which remains a crucial revenue stream. But when approached strategically, OTAs offer a vital part of the distribution chain to increase your bookings, increase awareness, and improve your revenue.

At the same time, not every OTA is created equal. The list above offers a great start to help you find the right homes for your listings, but it’s important to dig deeper again. By finding the platforms that work best for your hotel and audience, you can effectively diversify your marketing and sales efforts, fine-tuning for better business as you go.

Another great idea is to run a fully customisable and integrated online booking engine in parallel with your OTA strategy. Having your own online booking engine is a simple way to convert your website visitors into hotel guests, simultaneously saving you money on commission fees and providing you with a branded opportunity to upsell to guests before they check-in.

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Category: Travel

Date: May 31, 2024

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

Which Are the Best OTA Platforms?

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.

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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.

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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) in Travel?

If you've heard the term "OTA" thrown around in the travel industry but aren't quite sure what it means, you're not alone! OTA stands for online travel agency.

Don't go just yet though! Stick with us through the article and soon you'll be a pro when it comes to understanding:

• what an OTA is in travel,
• what role OTAs play in the travel ecosystem and
• how OTAs make money.

What is an OTA (Online Travel Agency)?

Now you've passed the first test, which is knowing what OTA stands for in the world of travel. But let's dig in more. What classifies a travel agency as online?

An online travel agency (OTA) is a travel agency that offers an online platform where travelers can search for and book their travel.

Is a traditional travel agency--ones with travel agents that make bookings for clients--an online travel agency if it has an online presence like a website? Does an agency need to have the ability for clients to book online in order to be an OTA? What if only 20% of the agency's bookings come in online?

An online travel agency (OTA) is a travel agency that offers an online platform where travelers can search for and book their travel. All of the OTA's bookings are typically done through their booking engine.

Here's some of the larger OTAs you're likely familiar with:

• Expedia.com
• Booking.com
• Priceline.com

Like a traditional travel agency, the OTA's inventory comes from suppliers such as airlines (through the GDS ), hotels, tour operators , car rental companies, and cruise lines.

Unlike a traditional travel agency, OTA clients do the searching and booking of their travels without the support of a travel advisor.

What Percent of Bookings Go Through OTAs?

The travel agency distribution channel has always been a helpful route for suppliers looking to sell their product. Travel agencies—both traditional and OTAs—account for just under half of all travel sales in the U.S. 1 .

Phocuswright's 2024 US Travel Agency Landscape Report projects that in 2026, U.S. travel agencies will book $141.3 billion in travel.

How much of that $141.3 billion in sales will be from OTAs? It may surprise you.

While OTAs gobbled up market share from traditional travel agencies starting in the early 2000s, the pendulum is swinging back the other direction. OTA's market share in the U.S. is projected to drop from 22% in 2022 to 21% in 2026, overtaken by traditional travel agencies whose market share is projected to jump from 21% to 26%.

Who woulda thunk?

How Do OTAs Make Money?

Like traditional travel agencies, OTAs have an accreditation number that helps suppliers recognize them as a travel agency, which opens up the door to commission payments.

Due to their huge reach, OTAs have been able to negotiate higher commission rates compared to traditional travel agencies. OTA commissions can be 15-30% for hotels vs. roughly 10% for traditional travel agencies.

In recent years, as high commissions eat into profits, hoteliers have begun to encourage travelers to book direct with the hotel. This led to initiatives like:

• Marriott's Best Rate Guarantee (price match + 25% off or 5000 points)
• Your Rate by IHG Rewards Club (special rates + perks for booking direct)
• OTA bookings not being eligible for points or loyalty perks

In most situations, because of the lower commissions paid to traditional travel agencies, hoteliers continue to offer points and perks when travelers book through a traditional travel agency. ( More on what travel agents do and how they do it . )

Here's Hilton's policy:

Having a Travel Industry Acronym Conundrum?

Congrats!! You know what an OTA is, how OTAs make money, and the overall OTA market share in the US. (I bet you never thought you'd be spouting off that factoid! I know I didn't...) 

If you're new to the travel industry or thinking about becoming a travel agent , there is a lot of learning ahead of you. We're glad you found us because we're always happy to help answer questions. Drop your questions in the comments below or tune in to our Friday 15 podcast , where we answer the questions you've sent our way. :)

Last thing! If travel industry acronyms are killing you, take a look at our 7 Day Setup Accelerator course . There's a nice 700+ word glossary of travel terms that should get your ship righted in no time!

Happy learning to you!

• Phocuswright 2024 US Travel Agency Landscape Report. https://www.phocuswright.com/Special-Projects/2024/US-Travel-Agency-Landscape-2024 ↩

About the Author

Steph grew up in the travel industry, helping on and off with her mom's homebased travel agency. She has worked with thousands of agents in her role as a former host agency director before leaving in 2012 to start HAR. She's insatiably curious, loves her pups Fennec and Orion, and -- in case you haven't noticed -- is pretty quirky and free-spirited.

If you’re looking for Steph, she leaves a trace where ever she goes! You can find her on Facebook, Instagram, LinkedIn (her fav) and Pinterest as 'iamstephly'. 🙂 You can also catch her on her Substack, Bumblin' Around, where she writes on things outside the world of HAR.

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Understanding OTA in the Travel Industry

In the fast-paced world of travel, technology has revolutionized the way we plan, book, and experience our trips. One of the key players in this digital transformation is the Online Travel Agency (OTA). Understanding what an OTA is and how it operates is essential for both travelers and industry professionals.

What is an OTA?

An Online Travel Agency (OTA) is a website or mobile app that allows users to research, plan, and book travel products and services online. OTAs provide a one-stop platform where travelers can compare prices, read reviews, and make reservations for flights, hotels, car rentals, activities, and more.

How do OTAs work?

OTAs aggregate travel inventory from various suppliers, such as airlines, hotels, and tour operators, and display them on their platforms. Users can search for specific destinations, dates, and preferences to find the best available options. OTAs earn revenue through commissions or markups on the products and services they sell.

Key features of OTAs:

• Search and Compare: OTAs offer advanced search functionality that allows users to filter results based on price, location, ratings, and other criteria.
• Reviews and Ratings: Users can read and leave reviews to help others make informed decisions about their travel bookings.
• Secure Booking: OTAs provide secure payment gateways to ensure that transactions are safe and protected.
• Customer Support: Many OTAs offer 24/7 customer service to assist users with booking issues, changes, or cancellations.

Popular OTAs in the Market:

There are several well-known OTAs that have established a strong presence in the travel industry. Some of the most popular OTAs include:

• Expedia: Expedia is one of the largest OTAs globally, offering a wide range of travel products and services.
• Booking.com: Known for its extensive hotel listings, Booking.com is a go-to platform for accommodation bookings.
• Priceline: Priceline is popular for its "Name Your Own Price" feature, allowing users to bid on hotel rooms and flights.
• Agoda: Agoda specializes in Asia-Pacific travel and offers competitive rates on hotels and vacation rentals.
• Travelocity: Travelocity is known for its user-friendly interface and exclusive travel deals.

Benefits of using OTAs:

For travelers, OTAs offer convenience, flexibility, and access to a wide range of travel options. Users can easily compare prices, read reviews, and make bookings from the comfort of their homes or on the go. OTAs also provide competitive pricing and exclusive deals that may not be available elsewhere.

For suppliers, partnering with OTAs can increase visibility, reach a broader audience, and drive bookings. OTAs use marketing strategies and technology to promote travel products effectively, helping suppliers attract more customers and boost revenue.

Challenges of using OTAs:

While OTAs offer many benefits, there are also challenges associated with using these platforms. Some of the common issues include:

• Price Discrepancies: Prices on OTAs may vary from direct bookings on suppliers' websites, leading to confusion and potential higher costs for travelers.
• Customer Service Concerns: Due to the high volume of transactions, customer service on OTAs may sometimes be slow or inadequate, causing frustration for users.
• Hidden Fees: Some OTAs may have hidden fees or additional charges that are not clearly disclosed during the booking process, impacting the overall cost for travelers.
• Dependency on Technology: OTAs rely heavily on technology, and system failures or glitches can disrupt bookings and cause inconvenience for both users and suppliers.

Online Travel Agencies play a vital role in the modern travel industry, offering a convenient and efficient way for travelers to plan and book their trips. By understanding how OTAs work, the benefits they provide, and the challenges they pose, both travelers and industry professionals can make informed decisions to enhance their travel experiences.

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What Is an OTA (Online Travel Agency)?

Online travel agencies (OTAs) are a popular way for business and leisure travelers to book flights, hotels, and rental cars.

While OTAs offer convenience, they lack the comprehensive features that make it easy for businesses to manage their travel budgets and provide service to business travelers.

That’s why many companies turn to dedicated corporate travel management companies (TMCs) and online booking tools (OBTs) instead of using an OTA for business travel.

For travel managers, it’s important to be aware of and understand the benefits and shortcomings of using an OTA for business travel. Here’s everything you need to know about OTAs and why your business travel program will benefit from a dedicated corporate travel platform.

What is an OTA?

An online travel agency is a website where travelers  can book flights, hotels, rental cars, cruises, tours, vacation packages, short term rentals, and more.

The first OTAs launched in 1996: Travelocity , which stemmed from a partnership between American Airlines and Sabre, and Expedia , which was created from a partnership between Microsoft and Boston Consulting Group.  

These companies brought self-service travel booking to the Web for the first time at scale. Before then  travel had to be booked through brick-and-mortar travel agents or directly with suppliers. There were outliers, like the eAAsySabre tool in the late 1980s and the web-based Hotel Reservations Network in 1995, but OTAs were the first to bring together multiple types of travel products in one full-service shopping environment.

These early OTAs were primarily focused on providing a simple and convenient way for consumers to book flights and hotels. However, their offerings were limited compared to what is available today. Popular sites like Priceline , Agoda , and Trip.com followed afterwards.

OTAs generally have two main business models : the merchant model, where a site acts as the merchant of record and sends payment to a supplier after a trip minus its commission, and the agency model, where suppliers are paid directly and send a commission back to the OTA for bookings.

In the late 1990s and early 2000s, the popularity of OTAs began to grow rapidly as more and more consumers began to embrace the internet as a way to book travel. This growth was driven by several factors, including the increasing availability of high-speed internet, the growing number of travel options available online, and the increasing number of consumers who were comfortable making online purchases.

As OTAs grew more popular, these companies began to expand their offerings to include a wider range of travel products and services. Rental cars, vacation packages, and travel insurance were added. Many OTAs also began to invest heavily in their websites and mobile apps, making it even easier for consumers to book travel from anywhere, at any time.

Today, OTAs are an integral part of the travel industry and are responsible for a significant portion of all travel bookings made online.

What are OTA’s best features? 

Ota shopping experience.

Online travel agencies provide a good shopping experience to leisure travelers by offering a wide range of travel options in one place. This allows them to quickly compare prices, read reviews, and view photos of different hotels, flights, and rental cars, making it easy to find the best option for their needs. 

Additionally, many OTAs offer recommendations, which can help travelers discover new and exciting destinations, activities, and accommodations they may not have considered before.

The process is secure and fast, giving travelers the peace of mind that their booking is confirmed, and providing them with all the necessary information to begin their trip.

Choice of travel options

Online travel agencies offer leisure travelers a wide range of options when considering a vacation. 

Many online booking tools provide discounts on packages and bundles as well as reviews from other travelers so that people can make an informed decision about their trip. 

OTA travel inspiration

Travelers often find inspiration when researching travel using an online travel agency by browsing through a wide range of options, including destinations, accommodations, and activities. They can read reviews from other travelers, view photos, and compare prices to help them make an informed decision. 

Traveler Reviews

It’s rare for travelers to book a trip without reading reviews. Travelers can turn to online travel agencies for verified reviews of hotels, vacations, and other types of travel experiences. 

Reading reviews on OTA websites helps travelers feel reassured that they’re making a good choice about the quality of accommodations and services offered at each destination.

Areas where business travel platforms are better than OTAs

Cost savings.

A benefit of using a corporate booking tool instead of an online travel agency is cost savings. 

Corporate booking tools can save businesses significant amounts of money by providing access to corporate rates, negotiating discounts from suppliers, and managing group bookings. 

Additionally, many corporate booking tools provide customers with tailored reporting so that businesses can easily track expenses and ensure they are getting the best deal for their travel needs.

Policies and travel inventory

Modern corporate travel platforms like Spotnana provide access to travel options from OTAs like Expedia and Booking.com in addition to a wide array of global content. This means that employees can still access the same deals and offers that they would find on an OTA, but they can do so within the context of the organization’s travel policy. This can help to ensure that all travel is compliant with company guidelines and can help to control costs by presenting preferred and negotiated rates. 

At the same time, having comprehensive travel inventory options in one place makes it easier for employees to find and book the right travel arrangements for their needs.

Using a modern corporate travel platform like Spotnana helps  streamline the travel booking process . This is particularly beneficial for organizations with many travelers. This can save time and resources, and can help to ensure that all travel is booked in a timely and efficient manner.

When businesses choose to use a corporate booking tool instead of an online travel agency, they benefit from the added level of service that comes along with it. 

Corporate online booking tools and travel management companies provide comprehensive support to travelers and businesses with complex itineraries and needs, such as managing large groups or negotiating corporate rates. They also offer timely support from experienced travel agents with shorter wait times and personalized service across the phone, email, and chat.

Using a corporate travel platform instead of an OTA  can save businesses significant amounts of time and effort. 

Reporting and analytics

If business travelers book across a variety of consumer sites, it’s impossible for travel managers and finance professionals to have a full understanding of travel spending and traveler behavior in real time.

Business travel platforms like Spotnana offer real-time reporting features, allowing organizations to easily track and analyze all aspects of their corporate travel program . This includes everything from flight and hotel bookings, expenses, and employee behavior, to travel policies and more. This level of detail and customization makes it easier to identify areas for cost savings and to optimize the travel program for maximum efficiency and savings.

Business travel platforms also integrate with other systems used by the organization, such as expense management and accounting systems. This integration eliminates manual data entry, reducing the risk of errors and ensuring that all data is up-to-date and accurate. A modern business travel platform provides a single source of truth for all travel data, making it easier to analyze and make informed decisions.

Security and duty of care

Businesses also benefit from added security when using a corporate booking tool instead of an online travel agency. Corporate booking tools provide businesses with additional layers of security by verifying the identity of travelers, ensuring that they remain compliant with company policies, and providing access to real-time updates on flight statuses and other important travel information. 

Spotnana offers safety tools including a Live Map that shows the location and status of every traveler in your program.

What is an OTA versus an OBT?

Businesses that choose to use a corporate booking tool instead of an online travel agency can benefit from cost savings, better service, and a streamlined booking processes. 

Additionally, modern corporate travel platforms include inventory provided by online travel agencies, making it easy to get a wide variety of travel options with better visibility and control over travel spend. Corporate online booking tools can help ensure that all travel is compliant with company policies and within budget, making it a valuable asset for any organization looking to maximize the efficiency and efficacy of their travel program.

Want to learn more about how you can transform your travel program? Get a demo of Spotnana today.

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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OTA Meaning Explained

• October 5, 2021

By The Hospitable Team

Online travel agencies (OTAs) are very popular among travelers because they offer an easy and convenient way to arrange their stay from the comfort of their home via the internet. Year after year, online travel agencies are increasing their customer base and their volume of business.

If you are looking to start a vacation rental business , you should know that listing your rental property on OTA websites will open the door for many opportunities and experiences. And the best thing is that it will allow you to reach more potential guests and get more bookings. So what is an OTA?

In this article, we’ll explain the OTA meaning and provide you with basic information about how they work.

What Is OTA?

OTA stands for online travel agency. It is a web-based marketplace that allows users to research and book travel products and services directly from suppliers.

OTAs arrange and sell accommodations, tours, flights, cars, cruises, activities, and trips on an online platform for travelers. They are third parties who sell services on behalf of other companies and vacation rental property owners.

Such well-known OTAs as Booking.com, Airbnb, TripAdvisor Rentals, Vrbo, Expedia, and FlipKey specialize in renting temporary housing to travelers.

Check out this article to learn more about the best rental listing sites for hosts .

How Do OTA Channels Work for Vacation Rental Owners?

Investing in a vacation rental property is a great way to earn extra income and build a successful business. And thanks to OTA websites, making money in short-term rentals has become easier than ever before. They allow you to create a rental business under their umbrella and provide everything you need to market your business.

Some agencies allow rental owners and property managers to join their community and list and advertise their properties for free, while some other agencies require paying them upfront.

The OTA channels typically use a commission-based model to earn money. They take a commission on every booking. As to rates and pricing, they vary between different OTA platforms, and commission may range from approximately 3% to 25%.

For example, Vrbo offers hosts two pricing models : an annual subscription that costs $499 and is paid in advance and a pay-per-booking with a commission starting 8% per booking.

How to List Your Rentals on OTAs

Each OTA has its own specific guidelines. But typically, a sign-up process is rather simple. You need to provide details about your property and then create a precise listing description. You also have to upload professional photos of your house or apartment to attract potential guests and set your prices .

You should also make sure that you have the necessary amenities to make your guests feel comfortable. In this host checklist , you’ll find a list of essentials that you should provide to impress your guests. It’s also essential to give your house a deep clean. You can use our cleaning checklist to ensure you keep your property guest-ready.

Ensure your property is short-term-rental-ready. Furnishing a short-term rental apartment is different from the place you live in yourself. Check our guide on preparing your apartment for short-term rental business —it will save you from extra expenses.

If you want to grow a successful vacation rental business, you should list your property on multiple OTAs. This way, you’ll be able to get more bookings and earn more money, although managing multiple listings can take quite a bit of time. You need to be quick responding to guests’ requests, keep your availability calendars in sync between OTAs, effectively manage your cleaning and maintenance teams.

But you’ll be able to save a lot of time and improve your guests’ experience if you use automation tools like Hospitable.com.

All your STR business in one convenient window

How does the booking process work.

After you complete the registration, you can publish your listings and be ready to accept bookings. You’ll have to wait for booking requests from potential guests. You can also enable instant bookings and let travelers instantly book your property without requiring your approval. Then you’ll receive reservations rather than requests.

Travelers typically search for vacation rentals based on date, location, and the number of guests they can accommodate. But OTA platforms may also offer them to apply a variety of additional filters, for example, room type, amenities, and facilities.

Hosts can communicate with prospective guests through the OTA channel inbox. And with some platforms, once guests have made a booking, they will be able to have access to the contact information that you’ve provided in your listing. Then they can reach out to you personally, either via phone, text message, or email.

How Do Hosts Get Paid for Bookings Made Through OTAs?

OTA channels have different payment policies. Some OTAs will process payments on your behalf and then release your part of the revenue at a certain stage in the reservation. Others may allow you to process the payments from your guests independently. Hosts can choose how they want to be paid, for example, via credit card or bank transfer.

How Do Hosts Get Reviews?

Prospective guests often base their booking decisions on other guests’ reviews. So after your guests check out, you should kindly request that they review you on the original booking channel. In some cases, the OTA will reach out on your behalf and ask guests to rate their experiences. And if you use Hospitable.com, our system will automatically remind your guests to leave a review using your template.

In addition, you will often be prompted to review your guests because guest reviews help hosts understand how trustworthy and responsible prospective guests are before accepting their booking requests.

Bottom Line

OTAs receive millions of website visitors every month from all over the world. That’s why listing your short-term rental property on multiple OTA channels will allow you to get more exposure and generate maximum income. You will be able to reach a wider audience that you wouldn’t have otherwise reached. And that leads to more bookings and more revenue.

Airbnb Host Checklist: Setting Up for Airbnb

Planning to start a short-term rental business on Airbnb and are looking for an Airbnb startup checklist? In this post, you’ll find an Airbnb host checklist of essential things you will need to invest in for the greatest experience for your guests.

Best Rental Listing Sites for Hosts

Are you a host looking for the best rental listing sites for your vacation rental property to get more bookings and maximize your profit? This article will help you get started.

Starting a Vacation Rental Business: 101 Guide

Are you thinking about starting a vacation rental business? First and foremost, you need to ensure you understand the industry and all the operations. If you don’t know where to start, read this article where we discuss the basics. Here you’ll find some must-know tips for vacation rental success.

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What Does OTA Mean in Tourism?

By Anna Duncan

If you’ve ever booked a hotel room or a flight online, chances are you’ve come across the term OTA. But what exactly does OTA mean in tourism? In this article, we’ll dive into the world of online travel agencies and what they offer.

What is an OTA?

OTA stands for Online Travel Agency. These are websites that allow users to book travel-related services such as flights, hotels, car rentals, and more. Some of the most popular OTAs include Expedia, Booking.com, and Priceline.

How do OTAs work?

OTAs work by aggregating inventory from various travel suppliers such as airlines and hotels. When a user searches for a particular destination or travel service on an OTA website, the site searches its inventory to find available options that match the user’s search criteria.

Once the user selects a service they want to book, the OTA processes the payment and sends a confirmation email with all necessary details. In exchange for their services, OTAs typically charge a commission fee to suppliers.

What are the benefits of using an OTA?

One of the biggest benefits of using an OTA is convenience. Rather than having to visit multiple websites or call various suppliers to compare prices and availability, users can easily search for and book everything they need in one place.

Another benefit is access to exclusive deals. Many OTAs offer discounts or special promotions that users wouldn’t be able to find elsewhere. Additionally, some OTAs offer loyalty programs that reward frequent users with perks such as free upgrades or room discounts.

Are there any drawbacks to using an OTA?

While there are certainly benefits to using OTAs, there are also some potential drawbacks to keep in mind. One common issue is hidden fees – some OTAs may not disclose all fees upfront which can lead to surprises when it comes time to pay.

Another potential downside is lack of flexibility. Because OTAs are essentially middlemen between users and travel suppliers, they may not be able to offer the same level of flexibility or personalized service as booking directly with a supplier.

10 Related Question Answers Found

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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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Air Asia ( 877:559:0133)Cancellation and Refund Policy 2024

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