ota travel

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

Scott Keyes

August 7, 2023

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

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

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

What are online travel agencies?

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

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

How do online travel agencies work?

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

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

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

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

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

Why are fares sometimes cheaper on online travel agencies?

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

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

What benefit can online travel agencies have?

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

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

What drawbacks can online travel agencies have?

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

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

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

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

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

How do OTAs make money? 

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

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

Am I going to get scammed by online travel agencies?

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

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

Why do some online travel agencies have terrible reviews?

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

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

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

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

Are all airlines listed on OTAs? 

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

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

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

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

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

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

Questions to consider:

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

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

Founder & Chief Flight Expert

Published August 7, 2023

Last updated January 9, 2024

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A complete guide to all the OTAs

Online Travel Agencies (OTA) are a key component for tour and attraction operators — but with so many of them available, how do you know which one to choose?

Even as travel suppliers start to move away from OTAs to focus on direct bookings, these massive online marketplaces can still help your company reach tons of new customers. This is particularly true for newer tour businesses.

In this post, we’ll explain exactly what is an Online Travel Agency and which ones your company might consider joining.

• What are online travel agencies?

What’s the difference between offline and online travel agencies?

• Is it worth it to list your tours and experiences on OTAs?

Top 22 OTAs

1. getyourguide, 2. touriosity, 5. musement, 6. expedia local expert, 7. airbnb experiences, 8. google things to do, 9. tourradar, 10. travelzoo, 11. thrillophilia, 13. booking.com, 15. trip.com, 16. hostelworld, 17. edreams, 18. despegar, 19. tripways, 21. tripshock, 22. adrenaline, what are online travel agencies .

Online Travel Agencies (OTAs) are online marketplaces where travelers can research and book their trips. These marketplaces are a key distribution channel for tour and attraction operators because they help expose their products to a wide network of internet browsers.

There are over 400 OTAs today, including all global OTAs, metasearch engines, hostel websites, vacation home rentals, and tour and activity resellers. This includes companies like Expedia, Priceline, and Booking.com that sell everything from flights and hotel stays to local tours and attraction tickets online.

These platforms are very common within the hotel industry; potential guests will often check OTA websites to find the best deal before booking directly with the hotel. Yet many of them also have a robust tours and activities section, where travelers can sift through hundreds of options from different companies in the cities they’re visiting.

That being said, OTAs have become the most preferred medium for travel bookings in the world. It’s never been easier for travelers to find things to do in a destination, read reviews, and compare prices. Research shows that price is, in fact, one of the biggest motivators. Notably, 45% of U.S. travelers who purchased an attraction ticket through an OTA did so because they thought that the platform offered the best ticket price available.

In the tours and activities space, the most well-known OTAs are Viator, Expedia, Google Things to Do, GetYourGuide, and Airbnb Experiences. Tour companies and attractions often list their offerings with one of these OTAs to increase their exposure and bring in more bookings.

Meanwhile, the hospitality industry — as well as smaller travel brands like tours and attractions — are investing in marketing campaigns to drive more direct bookings. While listing your experiences is free, you’ll pay a commission fee for every booking made through the platform.

How do OTAs work?

There are dozens of different OTAs , from niche platforms like Adrenaline — which caters to adventure travel activities — to massive agencies like Expedia.

The first step is to choose the one that best fits your company’s needs.

Then, you’ll need to go through an application process to become a supplier of that OTA. Signing up is typically free. The process consists of an online questionnaire where you’ll describe your tour offerings and prices. You’ll also upload photos to visually showcase your experience and come up with a catchy title and description for your experience(s). 

Then, a representative should reach out to negotiate commission fees, unless a standard fee is already in place.

Your tours or attraction will then be listed on the platform. Every time a guest searches for a related activity on the platform, your company will be among the search results.

Every OTA has a search algorithm that determines where your listings will appear in search results. It’s up to you to familiarize yourself with that algorithm and make the necessary improvements to your listing so that it reaches more people.

Once your listing is up, guests can book experiences or purchase tickets through the platform. Here’s the catch: You’ll need to pay the OTA a commission fee for every booking.

Offline travel agencies were the go-to source for travel booking two to three decades ago. These agencies often had brick-and-mortar locations helmed by physical travel agents.

These agents would book hotels, flights, and more on behalf of the traveler.

Most travel agents had years of experience and many brand partners in the travel industry. This allowed them to find and negotiate the best possible deals for their customers. Many times, travel agents could put together trip packages that included accommodation, transportation, and activities for a discounted rate.

At a time when online booking wasn’t available, travelers would turn to these agents to do the work for them.

Offline travel agencies still exist today, though they’re now focused more on luxury trips or special itineraries like honeymoons.

Most modern-day travelers have taken a do-it-yourself approach to travel planning. They prefer to book their trips themselves usually with the help of OTAs, where they can browse through hotel, flight, and activity deals themselves.

Is it worth it to list your tours and experiences on OTAs? 

There debate between direct bookings vs. OTA bookings will always exist. There’s no denying that your brand can increase its visibility by working with an OTA, but it’ll come at a cost.

For example, if you list your experience on an OTA like Viator — which is part of the Tripadvisor distribution network that receives over 455 million monthly visitors — your tours will likely reach a lot of travelers.

OTAs have massive marketing budgets to bring in as many eyes to their listings as possible. Since they only make a commission on actual purchases, it’s in their best interest to drive as many bookings as possible.

They market their tours on an international scale and many translate their listings into several languages.

Yet the number of travelers that actually see your tours or attractions depends on your ranking within the platform. Every OTA uses an algorithm to rank tour and activity listings in search results. As a supplier, you need to familiarize yourself with that algorithm so that you know how to improve your ranking.

OTAs can also help you collect customer reviews. These agencies know that travelers are drawn to their platforms to compare activity options, and reviews / social proof play a big role in that. There are often tools that encourage guests to leave reviews after their experience.

How do OTA commission rates work?

Relying on OTAs does come at a cost. Most OTAs make money off of each completed booking, including every flight, hotel room, rental car, tour, or event ticket purchased through the website.

Average commission rates range from 20% to 25% — but can be even higher on some platforms. You’ll likely have a chance to negotiate a rate with the platform before signing up.

Many of these platforms also insist that you list your tours for the same price or lower than what’s listed on your website. This is because they don’t want your website to compete with their platform by offering a discounted rate.

While OTAs can help you reach more people, you shouldn’t rely on them for 100% of your online bookings.

How will ChatGPT impact OTAs?

The travel industry is carefully paying attention to ChatGPT, a free artificial intelligence chatbot that can perform an outstanding number of tasks, like holding human-like conversations, writing code, and — most notably – planning trip itineraries.

There’s no denying that the chatbot can assist travelers with itinerary planning. One travel writer already tested it for a familymoon trip to Denmark.

Meanwhile, large OTAs like Expedia and Booking.com have leveraged AI technology to streamline their online booking services for some time now. Expedia’s chatbots, for example, have supported 29 million virtual conversations in recent years, saving over 8 million hours of agent time. And they plan to use ChatGPT to get further ahead in the online booking space.

Now, Expedia hopes to tap into ChatGPT’s advanced technology to help travelers narrow down their hotel search. The company has created a plugin that can research travel costs and suggest resorts and local activities based on traveler preferences.

Meanwhile, Hopper, a platform for finding cheap flights, aims to use the chatbot for concierge-like services, hoping to further personalize the customer booking experience.

Many travel companies see OTAs as a necessary component of their digital marketing, distribution strategy, and overall business model.

Yet there are hundreds of small OTAs that cater to specific regions, travel niches, and activity types. There’s a total of 10 companies that dominate most of the market. The top two — Expedia Group and Booking Holdings — control the largest portion.

 If you’re not sure which OTA to work with, here’s a list of the top 22 OTAs on the travel market.

GetYourGuide launched in 2009 as an OTA specializing in travel activities and experiences. The platform sells tours, attraction tickets, city cards, cooking classes, transfers, multi-day tours, and special travel items like Wi-Fi sticks or experiences like wearing traditional costumes. The platform today has over 60,000 bookable activities.

Touriosity is a Scottish nonprofit that takes zero commission from suppliers. Instead, it charges an upfront fee to list your offerings on the platform. The idea is to help suppliers grow their direct bookings while complimenting their own digital marketing efforts, according to the platform. To join, tour and attraction operators who want to join the project must have their business rated at least 4 stars on TripAdvisor, Google, and Facebook, and also register on the website.

Tripadvisor purchased Viator in 2014 to offer its users an easy way to book tours and activities. Today, Viator is one of the leading OTAs in the tours and attractions space, with more than 140,000 bookable activities. The website receives over 450 million unique monthly visitors through Tripadvisor’s expansive distribution network.

Klook is a travel experience booking platform based in Hong Kong. The website and app are popular with solo and independent travelers making their way through Mainland China, Hong Kong, Taiwan, Korea, and Southeast Asia. The OTA now has a growing audience in parts of Europe and the U.S., too.

Musement allows travelers to book local tours and attractions, including temporary, exclusive, hidden gem, and free activities. The company was founded in Milan in 2013 and has since expanded to 1,000 destinations in 80 countries.

Expedia is mostly known as a booking engine for hotels and flights, but it also sells tours and activities. The Expedia website has a “things to do” section where travelers can discover local experiences at their destination of choice. The Expedia Group owns several OTAs, including Expedia.com, Vrbo, Hotels.com, Hotwire.com, Orbitz, Travelocity, Trivago, and CarRentals.com.

Airbnb is the leading marketplace for home-sharing and vacation rentals. The Airbnb website welcomes over 75 million website visitors every month. Many of these travelers are booking not only stays but also experiences. In 2016, Airbnb jumped into the tours and activities market with its signature tour brand called “Airbnb Experiences,” which included immersive tours and activities led by local hosts. The company also launched a slew of virtual experiences in response to the pandemic in 2020.

Google Things to do is a search experience that connects travelers to attractions, tours, and activities through their Google searches. When users search for a specific attraction, point of interest, or activity, they’ll be shown general information as well as booking links. They can book directly on the operator’s website or the various OTAs that sell the experience.

TourRadar is an OTA that focuses specifically on multi-day tours. The platform offers more than 50,000 tours in 160 countries around the world. TourRadar was founded in 2010 as one of the first OTAs to offer private and group tours that span multiple days.

Travelzoo works with over 5,000 suppliers to offer travel, entertainment, and lifestyle experiences to over 6 million visitors every month. The platform also aggregates the best travel deals for hotels, flights, vacation packages, cruises.

The Thrillophilia marketplace has over bookable 12,000 activities across 125 destinations. The company started with experiences in Bangalore, and today sells experiences in 15 Asian countries with Dubai, Thailand, Singapore, and Bali leading the charts after India. There are more than 5,000 suppliers selling tours and tickets on the platform.

Manawa is a booking platform focused on outdoor activities like scuba diving, hiking, and helicopter tours. It currently has over 5,000 activities listed across 59 countries. Experiences are divided into six categories, including the “crazy” category where you’ll find crocodile diving, survival training, and other wildlife experiences.

Booking.com is the leading OTA in the hospitality industry. The company owns several big-name brands, including Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK, and OpenTable. It also counts with a number of smaller OTAs like Rocketmiles, HotelsCombined, Cheapflights, and Momondo as part of its network.

Agoda is a popular OTA based in Singapore. The Agoda website offers hotels, vacation rentals, and flights in 39 different languages. It’s one of the many brands owned by Booking Holdings.

Trip.com is a full-service travel agency offering hotels, flights, cars, as well as tours and attraction tickets online. The website is owned by Trip.com Group, one of the largest OTAs in the world with over 400 million users worldwide. The Singapore-based company also owns Skyscanner.

Hostelworld is the leasing OTA for hostel accommodations. The platform has more than 17,000 hostels listed across 179 countries. It has amassed over 13 million reviews since it was founded in 1999.

eDreams is a Barcelona, Spain-based OTA offering flights, hotels, car rentals, holiday packages, and travel insurance. The company currently operates in 40 countries, including Spain, Italy, France, Portugal, the UK, and the U.S. In 2011, eDreams became the first international OTA to expand into Turkey.

Despegar is the leading OTA in Latin America. The company owns two brands: The global brand Despegar and the Brazilian brand Decolar. The OTA offers airfare, hotel bookings, travel packages, and other travel products.

TripWays connects travelers to local tour companies and guides around the world.  The OTA focuses on cheap flights, cheap hotels, tour packages, travel insurance policies, and visa services. It works with a limited number of tour operators for each destination, with a focus on multi-day and all-inclusive tours.  

Veltra is Japan’s leading experience-focused OTA. It offers tours and activities across 150 countries. Founded in 1991, it was one of the first OTAs to offer bookable tours and activities online.

TripShock is a niche OTA focused on tourism excursions in and around the Gulf of Mexico and the Southeast. The Florida-based OTA offers activities in over 40 destinations spanning the region, including 1,000 tours, tourist attractions, and outdoor activities mostly suitable for individuals, couples, or families. The OTA was recently added to the many integratrations offered in Xola .

Adrenaline is an adventure-focused OTA offering 1,400 different travel excursions ranging from skydiving and helicopter tours to whitewarer rafting and zipline tours. It’s one of many OTAs that can be easily connected with Xola .

There are dozens of smaller OTAs on the market, but understanding how they work will help your business choose the best one.

It’s important to weigh the pros and cons of selling your experiences through an online marketplace — and try not to rely on them for all of your online bookings.

Writer Carla Vianna

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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

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Top online travel agencies

Based on Cloudbeds’ data gathered from thousands of customer properties between 2021 (the benchmark used in our last report) and 2023, we’ve seen a remarkable pace of recovery for OTAs. While top OTAs like Booking.com, Expedia, and Airbnb have held onto their spots as the highest-revenue generating OTAs, we saw China’s Trip.com rise two spots, indicating the return of Asian travelers to the market. Here are the highest revenue-generating OTAs of 2023.

Highest revenue-generating OTAs

1. booking.com.

Booking.com is one of the largest and most popular travel websites in the world, with over 1.5 million nights booked every day. Its website and mobile apps are accessible in 43 languages and feature over 50 million verified guest reviews of properties in 200+ countries. Its parent company, Booking Holdings, includes OTA brands and metasearch engines such as Priceline.com, KAYAK, Agoda, Rentalcars.com, OpenTable and more.

Expedia.com is the flagship brand of Expedia Group, which includes 200 travel booking websites, including Hotwire, Orbitz, Trivago, and Travelocity, serving 75 countries in 35 languages with over 600 million monthly visits. The website includes searches for all types of accommodations, as well as booking flights, car rentals, cruises, and vacation packages. By activating the Expedia connection, properties will broadcast their inventory on Hotels.com, Wotif, and many other channels.

Airbnb is known for providing access to unique accommodations around the world, with the vast majority of properties located outside of main hotel districts. While the company continues to expand into hotel room inventory following its acquisition of HotelTonight (known for booking last-minute lodging), its community expects a certain type of experience. Namely, something that is less cookie-cutter and more oriented to the local vibe.

4. Hostelworld

HostelWorld is a leading OTA for hostel-focused accommodations worldwide, with 12+ million guest reviews. Their inventory also includes hotels, B&Bs, and other budget accommodation types. Hostelworld aims to be a leader in social travel via its online booking options and mobile app, addressing the needs of guests who want to make connections with others as they experience the world around them. Their app and website operate in 20 different languages.

Agoda was founded in 1998 and later acquired by the Priceline Group (now called Booking Holdings) in 2007. Agoda’s website is available in 38 languages and focuses on listing all types of properties. It’s currently one of the leading online travel booking sites for the Asian market but is pushing into the US, India, and European markets.

6. Trip.com

Trip.com is China’s leading provider of travel services including reservations for accommodation, transportation, tours, and corporate travel. Founded in 1999, the company owns and operates several other OTAs and aggregators, including Trip.com, Skyscanner, Qunar, and Ctrip. 

7. Hotelbeds

By connecting to Hotelbeds, will gain unrivaled exposure to the travel industry’s largest network of B2B buyers, including more than 71,000 tour operators, travel agents, airlines, and loyalty & points schemes which can be great for business travel. 

With over 2 million bookable vacation rentals, Vrbo caters to a diverse range of needs and preferences, offering everything from cozy, intimate cabins for romantic getaways to spacious, well-appointed villas suitable for large family reunions or group vacations.

9. Traveloka

Based in Indonesia, Traveloka is one of Asia’s largest online travel agents. Traveloka lists hundreds of thousands of properties across Southeast Asia, Australia, and around the globe. The company also provides lifestyle products and services, such as tickets to attractions, activities, car rentals, and restaurant vouchers.

10. Despegar/Decolar

Despegar/Decolar is a leading online travel company in Latin America, with Despegar functioning as the global brand and Decolar representing the brand in the Brazilian market. Their marketplace operates across 20 markets and offers a broad suite of travel products in the region, including airfare, hotel bookings, travel packages, and other travel products to a large customer base.

Highest revenue-generating OTAs by country

Based on Cloudbeds data, we’ve highlighted the OTAs that are generating the most revenue for our customers in leading travel destinations. 

Hostelworld has moved up on the list across multiple countries, demonstrating that demand for hostels (jumping 5 spots in Thailand and the Philippines), shared accommodations, and experiences is back. In addition, we can see the return of Asian travelers as Agoda and Trip.com rise in North America and make their first appearance on Latin American lists. 

Top 10 OTAs in the U.S

• Booking.com
• Hostelworld 
• Agoda 
• HotelTonight 
• Hotelbeds 

Top 10 OTAs in Canada 

• Booking.com 
• Expedia 
• Dorms.com 
• Mrs & Mrs Smith
• Tripadvisor

Top 10 OTAs in Mexico

• Hostelworld
• Despegar/Decolar 
• PriceTravel
• Mr & Mrs. Smith

Top 10 OTAs in Spain

• Keytel 
• Mr & Mrs Smith

Top 10 OTAs in other countries 

Learn more about the top revenue-generating OTAs around the world in our Big Book of OTAs, including:

• Philippines

Highest niche revenue-generating OTAs

What are niche otas.

Niche OTAs are online travel agencies catering to specific audiences and travel needs. Many niches exist today, including OTAs for skiers, campers or glampers, adventure travelers, luxury travelers, and more.

Niche platforms can be the best online travel agencies as they are built to target more specific guest segments. Once you identify what guest segments make sense for your property, you can look into local partnerships to expand your offerings to provide a more tailored experience that complements your guests’ travel plans. For example, if you have a property close to the beach, you can find local surf instructors to partner with and offer lessons through your booking engine to attract surfers. When the guests check in, you can show them where the best surf is in town to improve the guest experience.

After a guest’s first trip is booked through a niche OTA, the guest will likely forego OTAs for their next trip in favor of booking directly on the hotel website. Niche OTAs are an essential part of any property’s online distribution strategy as they build loyalty and encourage direct bookings.

In the niche OTA market, many new channels have emerged over the past few years, especially surf & sport OTAs and luxury OTAs.

Highlighted niche OTAs surf & sports 

The global surfing tourism market is predicted to grow at a compound annual growth rate of 6%, from 9.5 billion USD in 2022 to 17.1 billion USD by 2032. Travelers are increasingly looking for unique experiences, many tailored to specific activities like surfing, and seek out properties that cater to their needs. Today, the top revenue-generating Surf & Sport OTAs include:

Thermal offers a handpicked collection of the best surf trips in the world, with a focus on amazing guides who create one-of-a-kind, authentic experiences.

Good Story has an inventory of surf hotels and internationally recognized surf schools and camps for both novice and experienced surfers. 

Surf Holidays provides unique places to stay with quality local surf instruction to deliver the surf holiday of a lifetime on some of the best breaks in the world. 

Luex Surf & Snow Travel connects travelers with operators/ suppliers of once-in-a-lifetime sports travel experiences and products.

KiteSurfHolidays.com specializes in kitesurfing holidays, including accommodations and kitesurfing schools.

Highlighted niche OTAs luxury

In May 2023, Deloitte reported that the luxury travel industry had rebounded to pre-pandemic levels and is currently thriving, with a global market value of 1.2 trillion USD. Bookings at five-star hotels rose 19% over the first three quarters of 2021, and luxury travelers are more keen than ever to experience “Instagram-worthy” experiences in unique and remote locations. 

The following OTAs cater to travelers looking for luxury accommodations:

Mr & Mrs Smith includes a collection of carefully curated hotels that are first anonymously evaluated and visited by staff. This exclusive OTA works on an invitation-only basis. 

Prestigia is made up of hand-selected quality and unique hotels from all over the world. This OTA offers the best price guarantees, promotions, and exclusive offers. 

icastelli.net luxurious, historical, and unique high-level hotels are the property types found on this OTA. Collections include exclusive boutique hotels, golf hotels, spa hotels, and more.

i-escape provides unforgettable travel experiences, including eco-retreats, safari lodges, and boutique hotels. Also included is an award-winning booking system with a direct dialogue between guests and property and free advice from travel consultants. 

Tablet Hotels the official hotel selection of the MICHELIN Guide. This OTA showcases hotels that provide meaningful experiences to guests, regardless of budget. 

Spotlight – LGBTQIA+ OTAS

The global LGBTQIA+ travel market is valued at over $568.5 billion USD annually . While many countries have become increasingly welcoming to the queer community, discrimination is still prevalent today. A Booking.com study revealed that 58% of LGBTQ+ travelers face discrimination while traveling, and 41% canceled a trip within the past year after seeing their destination wasn’t LGBTQ+ friendly. 

 OTAs like ebab have emerged to offer safe and friendly accommodations to the LGBTQIA+ community.

Top OTAs by property type

Our data shows that while the top global OTAs dominate across almost all property types, some OTAs offer more opportunities for specific property types.

Channels such as Hostelworld have traditionally been popular for searching for hostels, while channels such as Vrbo and Airbnb have catered to vacation rentals. However, we’ve seen that our hotel customers are increasingly adopting Airbnb as part of their channel mix. Airbnb welcomes hotels that have a unique, independent environment and style.

Download our Big Book of OTAs to see the list of the five most popular channel connections by property type, including:

• Most popular channel connections for Hotels & Boutiques
• Most popular channel connections for Hostels
• Most popular channel connections for Vacation Rentals
• Most popular channel connections for Bed & Breakfasts

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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.

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

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

What is an OTA?

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

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

How do hotels work with OTAs?

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

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

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

Why work with an Online Travel Agency (OTA)?

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

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

Online marketing investments you don’t have to make

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

Greater visibility for your own website

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

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

Increased ability to target high-value guests

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

Access to rich tools, analytics and insights

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

Dedicated support teams

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

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

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

Who is their audience?

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

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

What is the user experience for guests?

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

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

What features do they offer to partners?

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

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

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

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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.

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Category: Travel

Date: October 20, 2023

Online Travel Agencies – A Brief Introduction

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

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

Ready? Let’s go.

What Are Online Travel Agencies?

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

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

How Do Online Travel Agencies Work?

OTAs generally work on two models. They are,

1. Merchant Model

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

2. Agency Model

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

What Are the Benefits of Partnering with Online Travel Agencies?

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

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

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

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

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

Advantages Of Online Travel Agents

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

Disadvantages Of Online Travel Agents

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

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

How To Start An Online Travel Agency?

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

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

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

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

Why Do People Use Online Travel Agencies?

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

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

Who Are the Top Online Travel Agents?

1. booking.com.

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

Interesting statistics

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

2. Expedia’s Hotels.com

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

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

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

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

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

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

What the future holds for online travel agencies.

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

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

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

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

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

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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?

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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India travel trends: Search for spiritual destinations surges 97%, Delhi scores high in inquiries

S piritual destinations are stealing the show in India's travel market with such locations recording a 97 percent surge in searches in the last two years, according to an analysis by online travel aggregator (OTA) MakeMyTrip.

Searches for Ayodhya grew 585 percent, Ujjain by 359 percent and Badrinath by 343 percent in 2023 over the previous year, said the report launched by the OTA on April 22.  Tier-2 and tier-3 cities are embracing spiritual journeys, it added.

The report also added that people taking more than three trips per year has grown by 25 percent in 2023 as compared to 2019.

Where India travels

On the international front, 30 percent of all foreign travel searches from India are for Dubai, Bangkok and Singapore, while London, Toronto and New York are the most searched long-haul destinations.

Searches for emerging international destinations grew by multi-fold in 2023 and the hot favourites include Hong Kong, Almaty, Paro, Baku, Da Nang and Tbilisi. Travel to unexplored destinations has increased which has led to over 30 percent growth in searches for 16 emerging destinations. As many as 31 unique destinations contribute to 60 percent of searches from all six metros including Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Mumbai.

Delhi NCR and Goa are the most searched destination from all six metros. Delhi has the highest share in terms of searches in 2023 at 11.4 percent, followed by Mumbai at 7.2 percent, Bengaluru at 5.4 percent, and Goa at 5.3 percent.

In the domestic flights category, tier II cities have emerged as the highest growth destinations. Lucknow, Thiruvananthapuram Indore and Bhubaneshwar lead with maximum searches.

Travel sentiment touched an all-time high in November 2022 with seven out of 10 people planning travel, the OTA said. It added that there has been 45 percent growth in searches as compared to the pre-pandemic period. As many as 100 million people are actively searching for travel on MakeMyTrip platform annually.

How India travels

Family travel bookings surged by 64 percent in 2023 as compared to 2022, followed by solo travel booking a 23 percent growth.

Two people travelling together make for 50 percent of all bookings.

Indians continue to make last minute travel plans with a significant portion of travel bookings in India are made spontaneously, with 46 percent of domestic flights booked less than a week before the travel date. On the other hand, about half of all international bookings are made at least two weeks in advance. Only one-third of international bookings are made more than a month before the travel date, suggesting a flexible approach to international travel planning among Indian travellers.

For flight bookings, women prefer to pre-book window seats and men pick aisle seats. Tomato cucumber cheese lettuce sandwich is the most ordered in-flight meal on domestic flights. Vegetarian Hindu meal is the most ordered in-flight meal on international flights.

Delhi travellers are over-indexed on booking domestic flights less than a week ahead of travel date while travellers from Kolkata have a higher inclination to book flights over three months in advance for both international and domestic destinations.

Where India stays

Alternative accommodations including homestays and villas recorded 24 percent growth in bookings in 2023 on MakeMyTrip as Indians are searching for stays that provide an emotional connection with culture and nature, the platform said.

Hostels and apartments recorded maximum search growth of 39 percent and 31 percent respectively in 2023.

For hostels and apartments, the preference is for those properties which cost less than Rs 2,500 per night but for villas, it is higher. Close to 20 percent of family travellers searched for properties with tariffs over Rs 10,000 per night last year.

More than 50 percent of the family travellers and 75 percent of the solo travellers booked a property for stay below Rs 4,500 .

Weekend getaways emerged as the highest growth destinations in the domestic hotels category. Jim Corbett leads with 131 percent growth in searches on MakeMyTrip followed by Ooty and Munnar. A large number of these hotel customers are driving to these destinations from nearby metros.

People from Maharashtra contribute to highest domestic hotel searches. Travellers from Maharashtra, Kerala and Karnataka searched more for villas while maximum searches were done for hostels in Himachal Pradesh, Uttarakhand and Goa.

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