ota means in travel industry

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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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.

Start accepting online bookings with Rezdy. Start your FREE 21-day trial or book a demo with our team of experts 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.

In quest of the Perfect Travel Tech Solutions Buddy?

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

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About the Author - Anjana

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

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What is an OTA? Online Travel Agency Defined

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

Today, we’re demystifying the enigma of OTAs.

What is an OTA (Online Travel Agency)?

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

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

Why OTAs Matter for Vacation Rental Hosts

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

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

Benefits of Using OTAs

1. global exposure.

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

2. Streamlined bookings for guests

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

3. Credibility and trust

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

4. Payment security

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

How OTAs Make Money

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

Commission model

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

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

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

Subscription model

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

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

Hybrid model

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

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

Maximizing Your OTA Experience

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

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

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

OTAs vs Metasearch Engines

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

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

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

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

Key Takeaway

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

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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.

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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How to work effectively with OTAs

Every day, millions of travellers use OTAs and other online travel platforms to plan and book their holidays and business trips, to destinations all over the world. The OTA market is crowded and competitive, and the Tours and Activities sector is one of the fastest growing sales channels. OTAs offer a quick, convenient way to enter the market, but local operators need to do their research, understand their target market and choose the most appropriate OTA to work with.

Contents of this page

• What is an OTA?
• What are tours, activities, experiences, attractions, and trips?
• What does the marketplace for OTAs selling tours look like?
• What are the differences between OTAs in the tours sector?
• What are the benefits and disadvantages of working with OTAs?
• Which OTA is best for you?
• Preparing your product for selling through an OTA
• Managing your bookings, online sales and multiple sales channels
• Overview of OTAs specialising in tours and activities
• How to stay informed on innovations in the OTA market

1. What is an OTA?

An OTA (Online Travel Agency) is an online marketplace selling travel products and services. Travel products and services include accommodation, flights, car hire, holidays, tours, activities, experiences, and tickets for visitor attractions. Travellers use OTAs to research their travel plans and to make bookings through the OTA platform, which are then transferred to the operator.

The term ‘OTA’ is often used to describe a range of online travel platforms including aggregators, metasearch engines, travel directories, comparison websites and travel marketplaces. They play different roles in the online travel industry sector. For the purposes of this report, an OTA means a business to consumer (B2C) sales channel. There are also business to business (B2B) OTA sales channels which handle bookings from resellers and wholesalers.

The table below outlines the three main types of online travel platforms which you should be aware of.

Table 1: OTAs and other Online Travel Platforms

Source: Acorn (2022)

In this report, the term ‘OTA’ refers to any relevant online platforms that SMEs can consider working with (Categories 1 and 2 above). Aggregators (Category 3 above) are not used by OTAs in the Tours and Activities segment, and are not considered a suitable sales channel for SMEs.

2. What are tours, activities, experiences, attractions, and trips?

The OTA marketplace is large, diverse and complex. Tours and Activities are a smaller segment of the global OTA marketplace. Certain terms are used frequently in this sector, and these are defined below:

• Tour – a journey or route to showcase a place or destination, which may be themed (e.g. sightseeing tour, heritage tour, cultural tour, walking tour, gastronomical tour).
• Activity – adventure activities that a visitor takes part in, such as cycling or walking activity.
• Experience – experiences are created to give the visitor a unique and/or authentic insight into a local community, village, or way of life. They may also be referred to as a tour. Calling a tour an ‘experience’ is a way of differentiating a product from other similar tours on the market.
• Attraction – refers to individual locations that tourists can visit and spend time at. For instance, a local festival, or World Heritage Sites like the Victoria Falls in Zimbabwe, or the Pyramids in Giza, Egypt. They may also be included in a tour.
• Excursion – another word used for a tour, activity, experience and/or visit to an attraction.

There is cross-over between all of the above concepts. There is no predefined duration for a tour, activity or experience. It may last for a few hours, a day, several days or a week or more. OTAs sometimes focus on multi-day tours, or custom tours, or day tours .

In this report, ‘tours’ is used to refer to tours, excursions, activities, experiences, and attractions.

3. What does the marketplace for OTAs selling tours look like?

OTAs, online travel marketplaces and aggregators are very well established in the marketplace. Sales growth has been driven by the hotel and airline sectors over many years.

In the global travel and tourism market, online sales accounted for 60% of global revenue in 2017, compared to 40% by offline sales. By 2021, the share of online sales had grown to 65%. Online sales are forecast to account for a 74% share in 2026, according to Statista .

In May 2022, Booking.com was the most visited travel and tourism website in the world, with 564.1 million visits during the month.

Source: SimilarWeb (31 May 2022). Most visited travel and tourism website worldwide as of May 2022 (in millions of visits) [graph]. In Statista. Retrieved 20 September 2022, from Statista

The Tours and Activities sales sector had a global value of US$254 billion in 2019 , according to travel research specialist Arival Travel.

Their report on the Size and Structure of the Global Operator Landscape 2020 states that online sales account for about 17% of global value. Most online sales (14%) were made through traditional online channels like tour operator websites. A further 4% of sales were made through OTAs.

This means that offline sales of tours and activities accounts for a much large proportion of sales (83%). These are sales via traditional methods such as direct transactions in person, over the phone, in travel agents’ shops and through other resellers.

Although 17% may seem small, an analysis of the growth shows that bookings generated by OTAs grew by 21% between 2018 and 2019, compared with 13% growth on tour operator websites and mobile apps. The reasons for OTA growth and their increasing importance in the tours industry were:

• Digitalisation continues to influence our everyday lives and OTAs are prominent in the marketplace. They attract considerable media interest and provide investor opportunities.
• Smaller tour operators are attracted to OTAs because they can use their platforms and expertise to reach a global and/or niche market quickly.
• As demand for experiential tourism and immersive, local experiences grow, more SMEs and local operators are entering the market, relying on online channels to help generate more sales.
• In turn, this leads to an increased need for OTAs to help travellers find the tours they want to do.

Now that the pandemic is behind us, the sales recovery in the tours sector will take time to reach 2019 levels again. By 2021, sales had recovered to 39% of those generated in 2019 ($99.1 billion). Another consequence of the recent pandemic was an increase in digitalisation in the travel industry.

• Read more about the online travel market. Arival publishes some free research resources and is a good place to start.
• Stay informed of how OTAs are distributed around the world. This article by Hotelmize, Online Travel Agencies market share across the world , includes lots of interesting facts and trends.

4. What are the differences between OTAs in the tours sector?

It is important to understand the differences between OTAs that sell tours. Like all travel businesses, they seek to understand their target markets and differentiate themselves by specialising in a particular niche to appeal to their customers.

The chart below gives you an idea of how varied the marketplace is. Each type of OTA crosses over with at least one other, because most OTAs offer more than one type of tour. For instance:

• Viator is best known for selling day tours, but more and more multi-day tours are appearing on the platform as demand increases.
• European OTAs Civitatis, Musement and GetYourGuide are also better known for day tours, but are adding more multi-day tours to their platforms.
• Urban Adventures specialises in day tours, and city tours, and also offers food tours. They are good examples of operators offering themed tours. Some tours are also multi-day.
• Airbnb Experiences has positioned its business carefully to attract customers seeking immersive, community-led experiences.

Figure 2: Guide to OTAs in the tours and activities sector

Source: Acorn Tourism Consulting

Have a look at these descriptions for more information:

• Core Global Market: these OTAs are the global market leaders. Expedia and Airbnb have branched out to sell tours through their specialist platforms, Expedia Local Expert and Airbnb Experiences. Tripadvisor (which owns Viator) is a travel review platform, price comparison site, and booking platform for tours and restaurants.
• Regional Market: a group of large OTAs with a regional focus. Trip.com and ClearTrip are the two largest OTAs in China and India respectively.
• Specialists – day tours: this group of OTAs specialises in day tours, or part-day tours. Germany’s GetYourGuide and Italy’s Musement are among the market leaders. They also sell multi-day tours, but in smaller numbers.
• Specialists – scheduled multi-day tours: these OTAs specialise in selling multi-day tours that have scheduled (or fixed) dates.
• Specialists – custom (or tailor made) multi-day tours: demand is growing for personalised experiences and these OTAs work directly with customers to create a custom itinerary.
• Specialists – day and multi-day, niche activities: another large group of OTAs that specialise in niche products, such as adventure, community-based tourism (CBT), hiking/trekking, food and drink, wellness, and sustainable/responsible travel.
• Specialists – local tour guides: these OTAs connect travellers with locals who are experts in whatever subject interests the visitor – city tours, history, wildlife, café culture, adventure, and so on.

Understanding the type of customer and market for each OTA will help you to select the one that best fits your business plan.

You should also check that the OTA is allowed to operate in your country.

Before working with any OTA, it’s important that you remember that OTAs are professional businesses and in order to succeed they ultimately need to be profitable within their sector. This means they have high expectations of all the suppliers they do business with, and as a supplier you will need to understand what their needs are.

Broadly speaking, your task as a supplier to an OTA is to provide:

• tours, experiences and/or packages their customers love;
• unique content that stands out;
• satisfied visitors who want to leave reviews;
• competitive prices that meet customers’ expectations;
• repeat customers and/or referrals.

The OTA will, in turn:

• market your tour (or tours) to a much wider audience than you would be otherwise able to afford to reach;
• provide a user-friendly website for your customers to use that enables instant booking, payment and confirmation;
• sell more tours;
• send more potential customers to your website, if you have one, and if the OTA allows this in their terms and conditions.

The two case studies below are presented to help you learn about some of the biggest OTAs and online travel platforms.

• Tripadvisor and Viator are two important online travel platforms that you should be aware of. Tripadvisor is the second most visited online travel platform, after Booking.com.
• Airbnb has developed a very strong global brand; it offers unique rental accommodation and its tours platform, Airbnb Experiences, is becoming well-known for providing the high quality that customers of the brand have come to expect in the field of experiences.

They should be your first point of research.

A more detailed list of interesting OTAs is included at the end of the report, in the section called, Explore OTAs specialising in tours and activities .

Best practices: Tripadvisor, Viator and Airbnb

Tripadvisor/Viator and Airbnb are two of the best-known OTAs in the world. The companies have created strong brands. These case studies give you an insight into their businesses and how you can work with them.

Case Study 1: Profile of Tripadvisor/Viator

What is Tripadvisor?

According to Tripadvisor, it is ‘the world’s largest travel guidance platform’, helping travellers to plan, book and take tours. The services it offers are:

• More than one billion reviews and opinions on almost 8 million different accommodations, tours, airlines and cruises
• Price comparison for hotels, flights and cruises
• Booking of tours
• Reservations for restaurants

The platform is both a travel metasearch engine and an OTA, and it is one of the three most commonly used online travel platforms in the world today, along with Booking.com and Expedia. Listings are ranked using sophisticated algorithms based on positive reviews, the numbers of reviews, and other customer satisfaction factors. Find out more about how to improve your chances of ranking higher on Tripadvisor and Viator, and entice more customers to book with you .

Tripadvisor has an extensive business model. It generates revenue in many ways. It collects commission on sales in the form of booking fees from hosts and suppliers. Advertising on the platform is a major source of revenue and Tripadvisor Plus, launched in 2021, is a new annual subscription service that offers discounts on hotels and experiences. Travel insurance, investments, subsidiary companies and acquisitions provide further revenue streams.

Tripadvisor Insights on the website provides a range of useful resources for suppliers, including ‘How To’ guides, and research on building your business through the platform.

Visit the other Tripadvisor sites:

• Tours and attractions tickets: Viator
• Restaurant bookings: TheFork
• Cruise reviews: Cruise Critic
• Holiday accommodation rentals: Holiday Lettings

You can list your business on Tripadvisor at: Owners – Claim Your Free Tripadvisor Listing .

What is Viator?

Viator was acquired by Tripadvisor in 2014. This platform only sells tours. Listings made on the Viator platform are automatically added to the Tripadvisor platform. Travellers are able book the same tours through both platforms.

Viator is a platform for travel businesses of all sizes. These may be large or small tour operators, family or community-run tourism experiences, local tour guides or experts in a particular destination, city or region. Once signed up, suppliers gain access to a range of business management tools to manage their online tours and can access their products easily and quickly.

Viator News is a section of the website dedicated to travel news and insights for travel businesses. Check out the Viator Travel Trends Report 2022 for useful information about your market.

You can list your tour on Viator at: Supplier Sign Up .

Travel Award Schemes

Both platforms operate travel award schemes which are useful marketing tools for suppliers. The Tripadvisor Travellers’ Choice Awards , and the ‘Best of the Best Things to Do Awards’ are based on travellers’ reviews and ratings of experiences, trips and tours. The Viator Experience Awards were introduced in 2022. They rank the world’s top experiences based on the average review ratings, share of bookings that generate a review and number of bookings over a 12-month period. The awards produce winners across 11 regions.

Case Study 2: Profile of Airbnb Experiences

What is Airbnb Experiences?

Airbnb Experiences are tours hosted by local experts (hosts) designed to help visitors immerse themselves in local culture and enjoy a unique high-quality experience. During the pandemic, many experiences were offered online. All Airbnb Experiences are reviewed to ensure they meet certain criteria, and hosts (co-hosts and assistants) also need to observe additional terms and conditions.

Airbnb Experiences’ unique selling point is that tours listed have to be ‘unique’. What this means in practice is that e.g. a ‘walking tour’ should offer something that makes it different from a standard walking tour, such as a stop at a private viewpoint that is only accessible on this tour, or the tour is accompanied by a specialist architect.

More traditional tours are finding their ways onto the platform today as demand for them is very high, but the essence of providing a unique, high-quality tour remains the same. The Quality standards for experiences sets out the relevant standards and requirements.

Airbnb provides many other guides to help, such as Create a unique Airbnb Experience , and the 3 Pillars of a Quality Experience , which offers practical advice on developing unique tours using real hosted examples.

Airbnb’s commission rate of 20% is reported to be one of the lowest on the market today.

This helpful guide, Airbnb Experiences (2021 edition) has been produced to help tour operators assess whether they can list their experience on Airbnb Experiences and how to succeed. If you are already listed on the platform, the guide will also help you make the most of your relationship with the platform.

To join Airbnb Experiences, visit Become a host .

• Browse the help guides on the Tripadvisor, Viator and Airbnb platforms to familiarise yourself with how they work and how local tour operators promote their tours.

5. What are the benefits and disadvantages of working with OTAs?

Before deciding whether to work with an OTA, you should carefully consider all advantages and disadvantages of signing up with an OTA. The table below may help you make your decision.

Table 2: Advantages and disadvantages of Working with an OTA

6. Which OTA is best for you?

There is a five-step process that you can follow to make the right decisions when choosing which OTA (or OTAs) to work with, as described in the infographic below. Figure 3: Process to select OTAs

Each step is described in more detail:

Step One – Review and understand your own business:

• Make sure you know who your customers are and where they come from (i.e. your target markets), and what motivates them to purchase your tours.
• Review your tours to establish which are the most popular and why, whether you can build more tours or change existing tours to perform better.
• Undertake some competitor research into tours that may be similar to yours, locally or even regionally. That way, you can differentiate your tour in some way to help to establish a USP (unique selling point) and identify gaps in the market.
• Review your management systems, as it is important that your business is well-managed. How do you organise your diaries, your staff and guides, your tour schedules and training?
• Make sure your budgets and financials are up-to-date and accurate.

Step Two – Assess the OTA

• Make a longlist of OTAs that interest you. Include the biggest in your target markets as a first step. Examples: GetYourGuide (Germany), Musement (Italy), Tripadvisor (UK), Civitatis (Spain), Trip.com (China), MakeMyTour (India).
• Add specialist OTAs that match your profile to the list, such as those targeting travellers seeking Adventure, Local Tour Guides, City Tours, Activity-based, CBT, and so on.
• Include any that are based in your destination – many travellers make spontaneous decisions once they have reached their destination and may prefer to choose a locally-based OTA.
• Explore the profile of the OTA to ensure that it fits with your target market. The OTA should promote tours that are compatible with your offer.
• Check that you are able to list your tour with the OTA from your destination. Some OTAs may have regional limitations.
• Look at marketing initiatives – how will your business be displayed? Can you feature your logo and/or branding? Will there be a link to your website? In Europe, OTAs are legally required to state the name of the tour operator that conducts the tour.
• Familiarise yourself with how to list your business/tour. There is usually a clear link on the Homepage to ‘Become a Supplier’ or ‘List your Tour’ or something similar. For instance, Become a Supplier (GetYourGuide), Apply to Host (Much Better Adventures) and Work with Us (Insight Guides).
• Read all the instructions on how to join the platform carefully, to ensure that you understand what they are asking you to submit. Some OTAs will ‘assess’ your business/tour to check that you meet their requirements before accepting you.
• Do contact them and ask them questions about anything that you are not sure about. OTAs will want their relationship with you to be a success and will therefore be keen to help you and give you advice.

Step Three – Calculate the financial implications

• Find out what commission the OTA charges. This is likely to be in the region of 20% to 25%.
• Work out the profit margin you can expect to achieve through the OTA. Work out all your costs for running the tour (overheads, staff) to be sure you will make an operating profit. Consider the sales, cost and profit ratios of operating a tour to compare different commission levels against direct sales.

Table 3: Example Sales, Cost and Profit Ratio Chart

• Does the OTA expect you to offer ‘seasonal offers’ or a ‘best prices guarantee’? Can you afford to do this?
• Remember, you may not charge more for your tour on an OTA platform than you charge for a direct booking. This is known as ‘undercutting’ and generally is not allowed by OTAs.

Step Four – Review and understand the terms and conditions

• Find out about the OTA’s customer cancellation and refund policies. For instance, if they allow customers to cancel up to 24 hours in advance, will that have an impact on your tour, especially if you have to pay in advance for certain items that are essential for the tour, such as transport and food?
• What are the implications for you if you need to cancel a tour for any reason? Are there financial consequences? Do they have a list of acceptable reasons for cancellation and if so, are these reasonable or too strict for you to manage?
• Does the OTA have a probation period for new suppliers? If so, is that acceptable, particularly if you will need to make a financial investment upfront?
• Who will handle customer support – you or the OTA? If you are responsible for this, are you able to meet their needs within the cost?

Step Five – Compile a shortlist

• Once you’ve completed your research, make a shortlist of the most suitable OTAs.
• Do not try to do too much at the start. Start with one OTA, maybe two. Make sure you invest time and energy to get the partnership working well before you sign up with others.
• Read some online guides on working with OTAs to help you work through this process. Examples include, Trekksoft’s 3 Steps to working with OTAs and Arival Travel’s How to work with OTAs .
• Download the report A consumer’s perception of OTAs to see how OTA brands are perceived around the world.

7. Preparing your product for selling through an OTA

Every OTA positions itself differently to attract its target customers. That means you also need to do your research before you prepare to sell your product through the OTAs you want to work with.

Decide which package to offer

Decide which tour is best to list on the OTA that you choose to work with. Choose a popular tour that you expect to sell well and that is suitable for the OTA’s market (or users). If you work with more than one OTA, you may consider listing different tours on each platform.

Build your package

Once you have decided on the tour to list, the elements you need to consider are:

• Pricing – make sure you include all elements when setting the price of the tour, including product development and marketing, staff costs, transportation, supplies/product costs like food/meals, any entry or guide fees and commission rates to OTAs. Try checking prices for similar tours that have been rated highly by customers to see what they charge and what they offer.
• Legal implications – you should know what these are, both in your destination and as set by your sales partners.
• Seasonality – bear in mind the high and low seasons in your destination as this might have an impact on your pricing if you lower your prices to attract more customers during quieter periods.

Draft written content for different OTAs appropriately

OTAs usually provide guidelines on how to prepare suitable content for the platform. You should study these guidelines carefully so that you can write copy that appeals to their target market, which is also yours. In all cases, good quality, inspirational images (and videos if appropriate) that accurately convey and communicate what a customer can expect, are essential.

This helpful guide, Presenting tours on different platforms , provides lots of useful advice and explains how each platform (Tripadvisor/Viator, GetYourGuide, Expedia and Musement) needs a different approach to content.

Build a relationship with the OTA

OTAs want to develop good relationships with their suppliers so they can generate more sales and satisfied customers. You should use this to your advantage.

Your region may have its own representative or account manager. If so, contact them and ask for their support in setting up your listings. They are the experts in their platform and their advice will be important.

Keep in regular contact with them and ask them for their advice to help you sell more tours – this can make a big difference to your sales.

Monitoring and evaluation

You should regularly assess what tours are selling well, and on which platform. That way you can step in to make changes as appropriate, to maximise sales performance on each channel. Most OTAs have a range of online tools to help you do this.

Don’t rely on OTAs for all your sales

Getting a tour listed on an OTA platform is relatively easy, quick and convenient. It can be tempting to rely on OTAs for all your sales. However, it is important that you do not rely on them for all your online bookings. If you become too reliant on one sales channel and something goes wrong – the OTA goes out of business or they put their commission, for example – you may lose that sales channel very suddenly.

Direct sales are the most lucrative sales channel, as you pay no commission to a third party. Direct sales are sales that you make through your own website or from walk-ins to your offices (if you have one), or over the phone. You should try to maximise this type of sales.

One way of encouraging a direct sale rather than a booking through an OTA is to offer a customer something which OTAs do not. This could be a complementary transfer from their hotel, a free guidebook, or something similar.

If you have a website, you should make sure that it is up to date, the information and pricing are accurate and that it looks attractive and inspirational. Check your website or ask someone else to, to see where you might be able to improve it. There should be lots of ‘calls to action’ on your website – these are large or bright buttons that catch the user’s eye, like ‘Make an Enquiry’, ‘Book Now’, ‘Contact Us’ and so on.

Make sure that your website is optimised for mobile devices. The proportion of people making bookings on their phone or tablet (mobile devices) has overtaken bookings by desktop/laptop. If your website cannot be viewed easily on a phone, users are likely to find another provider.

If you have no website, consider building one. There are many options to choose from, and some are free.

Use your social media platforms to drive traffic to your website. Post items regularly, ensuring that you link them to blogs, news, special offers and other interesting topics on your website. Create a schedule for publishing Facebook posts, Instagram stories and Tweets (depending upon which platforms you use) so that you keep on top of your social media activity. The more you communicate with your potential customers on social media, the easier it will be to drive traffic to your website.

• Check out the CBI study How to be a successful business online for more detailed advice about preparing good content and getting and managing your business online effectively.

8. Managing your bookings, online sales and multiple sales channels

As your business grows and you increase the number of sales channels you use to attract more customers, managing schedules and customer bookings will become more difficult. You will need to be very well organised and skilled in using spreadsheets and other digitalised office systems to keep on top of things.

Getting this wrong can lead to double bookings, missed bookings and disappointed customers. At worst, it can affect your reputation, as research has shown that dissatisfied customers are more likely to leave a negative review than satisfied customers are to leave a positive review. The article ‘ The Secret Ratio That Proves Why Customer Reviews Are So Important ’ offers some interesting insights into how people are likely to behave following either negative or positive experiences.

Specialised tour operator booking systems with integrated e-commerce are now widely used across the travel sector by both large and small tour operators. The infographic below shows how digital sales technology connects the businesses of supplier and seller.

Figure 4: Digital Sales Process from Customer to OTA

The definitions of ‘online booking systems’ and ‘sales channel managers’ are as follows:

• A reservation (or booking) system enables suppliers to take bookings both online and offline and take payments online. It displays availability and pricing instantly, in real time. The ability to ‘Book Now’ is a powerful incentive for customers.
• A sales channel manager connects the reservation system to any/many OTAs (if they are compatible) and your own website (if ecommerce is enabled), automating the whole process for your business and your customer.
• Sometimes these are separate systems; other times they are integrated.

Whether or not you are able to take bookings and payments online, it is a good idea to work towards digitalising your business processes to help you manage your day-to-day operations more efficiently.

The benefits of digitalisation are clear – it makes your business more professional. Instant confirmation increases customer satisfaction and confidence. The challenges are also clear – there is a cost to digitalisation and you will need a website that can be optimised to link with the software you choose.

• Research some of the companies that supply the tourism sector with online sales solutions, such as Trekksoft and Bokun . This will help you understand the implications for your business.
• Contact a developer to discuss the options for optimising your website for ecommerce.
• Review the digital processes in your business to see how you can improve. For tips on digitalisation, read the CBI report Tips to go digital . Check the sections ‘Use the right tools’ and ‘Establish a digital marketing strategy’ to help you prepare to work with OTAs effectively.
• Consider optimising your website to take bookings and payments online. For tips on taking online bookings and payments, read the CBI report How to implement online payment .

9. Overview of OTAs specialising in tours and activities

This list of 90+ OTAs, all of which were operating in July 2022, offers a broad snapshot of the market at the current time. The focus is on OTAs that offer tours, ranging from day trips to multi-day trips and holidays. The market for OTAs that specialise in tours is much smaller than the OTA market for accommodation, flights and other transportation.

However, as the OTA market for tours and activities has grown over the past decade, market leaders such as Airbnb, Booking.com and Expedia have quickly spotted the potential for selling experiences through their platforms as well as traditional travel services.

This listing has been segmented as follows:

• OTAs with a global reach that provide a full range of travel services including flights, hotels, car hire, activities, and attractions.
• OTAs which mainly offer short day or part-day tours.
• OTAs which mainly offer multi-day scheduled and/or tailor-made trips, tours and holidays.
• OTAs which connect local guides with visiting tourists.

There is usually some cross-over between types, but in particular between types 2 and 3. For instance, Viator offers both day and multi-day tours. Therefore, each OTA has been categorised according to the main type of tour it offers.

Major OTAs on the Global Marketplace

Otas with regional/local focus, otas selling day tours, otas selling multi-day tours, otas connecting local guides with tourists.

Table 8: B2B OTAs

• Download this shorter list of 22 OTAs on the market in 2021, A complete guide to all the OTAs , compiled by Xola Consulting.

10. How to stay informed on innovations in the OTA market

The OTA and online marketplaces are fast-moving and new developments are frequent. Keep an eye out for innovations in the tours and activities online marketplace. Here are some of the most recent innovations.

Google Things to Do

Google Things to Do was launched in 2021. It is a search function for tours and enables tour bookings through participating OTAs. OTAs that are compatible with Google’s digital connectivity include most of the major ones such as Civitatis, GetYourGuide, Klook, Trip.com and Tripadvisor/Viator.

How it works: when a traveller searches for a specific attraction or point of interest (like the Great Wall of China, or Niagara Falls in the USA) bookable tours are shown on the Google business profile page alongside general information, admission prices and other details. See the examples below. You can see which OTA is promoting the tour.

Figure 5: Experience listings on Google Things to Do

Source: Google

To list a tour through a business listing like this, providers need to connect with Google digitally. For SMEs this is best done through approved partners like OTAs or specialist tourism digital support partners such as Trekksoft and Bokun .

Google does not charge any listing fees – you will, of course, pay commission to the OTA for sales.

Do some research. Are you located close to a major attraction? Does it have a Google attraction profile, like the examples above? If you work with an OTA and your tour is close by, find out if you can add a listing to join Google Things to Do. Google is the world’s largest search engine with an 86% market share, and a listing on such a prominent site will reach millions of travellers who search for travel-related content every day.

Stay informed on new business practices and commission rates

In late 2021, Viator launched a new programme, Accelerate, to test a new, higher commission rate that allows suppliers to have their tours displayed higher up in the search results. Only products rated ‘good’ or ‘excellent’ are allowed to join the programme, and they appear in advertisements across the Viator platform as ‘promoted experiences’.

There has been both positive and negative feedback regarding the scheme. Many operators reported a significant increase in bookings, as much as 228% over 30 days. However, smaller operators with smaller budgets may be negatively impacted, particularly those who have worked hard to get to the top of the rankings and will now lose their ranking to another who has paid to get there and may not offer similar quality.

Others express concern that the practice could result in consumers losing trust in Viator as a platform by recommending experiences for profit, rather than due to good reviews.

Stay informed about business practices in the OTA market so you have all the facts at hand when deciding who to work with. This will help you understand whether this type of practice will help or disadvantage your business.

• Read more about Viator’s Accelerate programme.
• Read what others are saying about Accelerate. These articles are a good place to start: Viator tests new commission rate, raising scepticism with operators and Viator Introduce Accelerate .
• Set aside some time to do your own research online. For example, find out commission rates, or find out what the latest innovations in the online travel agency market are.

Explore new niches such as not-for-profit OTAs like Touriosity

Touriosity, a not-for-profit OTA in the tours market was developed during 2020 and launched in June 2021. It was a commission-free OTA, charging a small annual fee of between US$150 to US$250 to join, which is used to market and maintain the website. When it launched, 300 operators signed up within a week and 1,500 tours were listed on the site. Sales were mostly made through operators’ Facebook pages using widgets to enable online bookings.

It was created from the idea of helping small, local operators recover after the pandemic. It was successful for some suppliers but not for those who were still suffering from lockdowns, travel restrictions and lack of consumer confidence in travel. After the first year, most of the original businesses were not able to afford to re-subscribe and some were no longer in business. The OTA was discontinued.

However, it is possible that another not-for-profit OTA will emerge at some point. Stay informed about any developments in the OTA market so you can take advantage of opportunities. Find out more about the Touriosity story .

• Subscribe to relevant publications for the tourism sector or tourism research organisations, which often publish free resources. Examples include Skift and Arival .
• Tourism digital marketing agencies and businesses specialising in tourism technological solutions are also good places to find research and resources. Bookmark the resources or blog pages of Tourism Marketing Agency (TMA) and Redzy .

This study was carried out on behalf of CBI by Acorn Tourism Consulting Limited .

Please review our market information disclaimer .

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Communicate regularly with an OTA and their country representatives if there is one in your destination. You both have the same goal: selling more packages. It’s much easier to provide an offer that sells if you use their data and insights. When calculating your margins, look further than a one-off deal from the OTA, especially for day tours. One sale can lead to more sales – upgrades, more bookings, or references to your company to other customers. Make sure these bookings are direct bookings. And use the OTA offer to build trust. Guido van de Graaf, Value through Passion

  OTAs can help your business gain traction and put you in front of an audience you may never get. It’s a great way to generate revenue quickly, but you shouldn’t rely on OTAs for the bulk of your business. If you do, you aren’t really running a business but you’re the equivalent of an Uber driver for tours and activities. If you’re happy with that, then go for it, but if you want to grow a brand and business, make sure that 70% or above of your booking comes from direct channels. That’s the only way to be in control of your destiny. Chris Torres, Founder – Touriosity, Tourism Marketing Agency

Related research

• What is the demand for outbound tourism on the European market?
• What trends offer opportunities or pose threats on the European outbound tourism market?
• What are the requirements for tourism services in the European market?
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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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Featured Article

What is an OTA? A Primer for Car Rental Companies

Introduction.

The travel industry is a dynamic and constantly evolving space, with car rental companies playing an important role in the overall experience of travelers. One term that you may come across frequently in this industry is "OTA" or Online Travel Agency. In this blog post, we'll explore what an OTA is, how it differs from a GDS (Global Distribution System), and why partnering with OTAs can be beneficial for car rental businesses. We'll also touch upon the challenges of managing OTA connections and how a robust software solution can simplify this process.

Understanding OTAs

An Online Travel Agency, or OTA, is a web-based platform that allows consumers to research, compare, and book travel products and services such as flights, hotels, and car rentals. OTAs bridge the gap between travel suppliers and customers, offering a convenient one-stop solution for travel arrangements. They have gained popularity among travelers due to their user-friendly interfaces, diverse options, and exclusive deals.

Some popular OTAs are:

• Travelocity

OTAs vs. GDS

While OTAs and GDS are integral components of the travel industry, they serve different purposes. A Global Distribution System, or GDS, is a network that allows travel agencies and suppliers to access and manage travel-related inventory, such as flights, hotels, and car rentals. A GDS is predominantly used by travel agents to book and manage travel services for their clients.

On the other hand, OTAs are consumer-oriented platforms that use a GDS or a direct integration to aggregate and display car rental inventory to end customers. In essence, a GDS serves as the infrastructure for the travel industry, while OTAs are the storefronts that cater directly to travelers.

The Benefits of Partnering with OTAs for Car Rental Companies

Working with OTAs can provide numerous advantages for car rental businesses:

Enhanced visibility: Collaborating with OTAs can significantly increase your online presence, allowing you to reach a wider audience of potential customers.

Access to a larger customer base: OTAs have an established user base, enabling car rental companies to tap into new markets and demographics.

Simplified booking process: OTAs offer a streamlined booking experience for customers, increasing the likelihood of conversion and repeat business.

Marketing support: OTAs often promote their partners through various marketing channels, providing additional exposure for car rental businesses.

The Challenges of Managing OTA Connections

While partnering with OTAs can be beneficial, managing these connections can be complex and time-consuming. Some of the challenges car rental companies may face include:

Updating inventory: Ensuring accurate pricing and availability across multiple OTAs requires consistent updates and attention to detail.

Handling bookings: Processing bookings from OTAs in real-time can be labor-intensive and prone to errors.

Monitoring performance: Evaluating the success of your OTA partnerships involves tracking and analyzing various metrics, which can be overwhelming.

Resource allocation: Managing OTA connections can divert time and resources away from other important aspects of your business.

The Role of Software Solutions in Simplifying OTA Management

A comprehensive software solution can help car rental businesses effectively manage their OTA connections. By automating tasks such as inventory updates and booking processing, these platforms can save time and reduce errors. Additionally, robust software solutions provide insights into your OTA partnerships through reporting and analytics, enabling you to make data-driven decisions.

Partnering with OTAs can significantly benefit car rental companies by increasing visibility, accessing a larger customer base, and streamlining the booking process. However, managing OTA connections can be challenging. By leveraging a software solution designed to simplify this process, car rental businesses can focus on their core operations and deliver exceptional customer service.

To help you navigate the world of OTAs and optimize your partnerships, consider reaching out to our team of experts for personalized guidance. We're dedicated to helping car rental businesses like yours take the first step towards simplifying your OTA management and boosting your car rental business. Read more about how the Sofiac Travel Platform™ can help you manage your OTA connections . 

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Understanding the Role of OTAs in Boosting Hotel Revenue

The Ultimate Guide to OTA Management for Hotels: Boosting Revenue and Brand Exposure

Online Travel Agencies (OTAs) are third-party booking platforms that allow travelers to book accommodations, flights, and activities. They have become a crucial part of the travel industry, and for hotels, they provide a significant opportunity to increase revenue and brand exposure. In this ultimate guide to OTA management for hotels, we will explore the benefits and challenges of using OTAs, and how hoteliers can effectively manage their OTA relationships to boost revenue and brand exposure.

Setting up Your Hotel for OTA Management

Evaluating your hotel's current OTA strategy: Before implementing any changes, it's important to evaluate your current OTA strategy. Analyze your current distribution channels, identify areas for improvement, and assess how much of your revenue is coming from OTAs.

Choosing the right OTA partners: Not all OTAs are created equal. Consider the demographics of your target audience, the OTA's commission structure, and the platform's features and functionalities before selecting the right OTA partners.

Optimizing your hotel's online presence for OTAs: OTAs rely on compelling descriptions and high-quality images to attract customers. Ensure that your hotel's website, social media, and other online profiles are up-to-date, visually appealing, and accurate.

Understanding the OTA commission structure: OTA commission structures can be complex, and it's important to understand how they impact your hotel's bottom line. Negotiate commission rates and ensure that you're getting a fair deal.

Maximizing Your OTA Presence

Creating a compelling hotel profile on OTAs: Your OTA profile is the first impression that potential guests will have of your hotel. Ensure that it's complete, accurate, and visually appealing, and highlights your hotel's unique selling points.

Optimizing your hotel's pricing and availability: Your pricing and availability can make or break your OTA presence. Optimize your rates and ensure that they're competitive and flexible enough to adapt to changing market conditions.

Leveraging OTA tools to boost your hotel's visibility: OTAs offer a range of tools and features that can help you boost your visibility and attract more bookings. Utilize tools such as promotions, packages, and add-ons to stand out from the competition.

Managing guest reviews on OTAs: Guest reviews can have a significant impact on your hotel's reputation and visibility on OTAs. Respond promptly and professionally to all reviews, both positive and negative, to show that you value your guests' feedback.

Managing Your OTA Relationships

Building a strong relationship with your OTA account manager: Your OTA account manager can be a valuable resource for optimizing your OTA presence. Build a strong relationship by communicating regularly and working collaboratively to achieve your goals.

Negotiating better terms with your OTAs: Negotiating better terms with your OTAs can help you reduce costs and increase revenue. Use your performance data to negotiate lower commission rates, higher placement, or other benefits.

Understanding your OTA contract terms and conditions: Your OTA contract is a legally binding agreement, and it's essential to understand its terms and conditions. Consult with a legal expert if needed to ensure that you're getting a fair deal.

Managing rate parity and rate integrity across all distribution channels: Rate parity and rate integrity are critical for maintaining a level playing field across all distribution channels. Ensure that your rates are consistent across all channels to avoid customer confusion and dissatisfaction.

Using Data Analytics to Drive OTA Performance

Measuring your hotel's OTA performance: It's essential to measure your hotel's performance on OTAs to know what is working and what needs improvement. Identify key performance indicators (KPIs) that are relevant to your hotel, such as the number of bookings, ADR, occupancy rate, and cancellation rate. Use OTA analytics tools to track your performance and analyze your data to identify patterns and trends.

Understanding OTA data analytics: OTA data analytics provides valuable insights into your hotel's performance and customer behavior. It can help you optimize your pricing and distribution strategies, as well as identify areas where you can improve guest satisfaction. Learn how to read and interpret OTA data analytics, and use it to make informed decisions about your hotel's OTA strategy.

Identifying areas for improvement: Analyzing your OTA data can help you identify areas where you can improve your performance. For example, if your cancellation rate is high, you may need to adjust your cancellation policy or improve your customer service. If your ADR is lower than your competitors, you may need to adjust your pricing strategy.

Creating an OTA performance dashboard: A performance dashboard is a visual representation of your hotel's OTA performance. It provides a quick and easy way to monitor your KPIs and track your progress over time. Use OTA analytics tools to create a customized dashboard that meets your hotel's needs. Share the dashboard with your team to keep everyone informed and motivated.

Implementing a Direct Booking Strategy

Understanding the benefits of direct bookings: Direct bookings offer several benefits for hotels, including higher profits, better control over your inventory, and stronger guest relationships. Learn how to leverage direct bookings to maximize your revenue and reduce your dependence on OTAs.

Creating a compelling direct booking website: Your hotel's website is your most important marketing tool. Create a user-friendly and visually appealing website that showcases your hotel's unique features and amenities. Optimize your website for search engines and mobile devices to attract more direct bookings.

Developing a direct booking marketing strategy: A successful direct booking strategy requires a comprehensive marketing plan. Use a combination of online and offline marketing channels to reach your target audience, such as social media, email marketing, and events. Create a loyalty program to reward your loyal guests and encourage repeat bookings.

Managing your hotel's reputation and online presence: Your hotel's reputation and online presence play a crucial role in your direct booking strategy. Encourage your guests to leave positive reviews on your website and social media channels. Respond to negative reviews promptly and professionally to show that you value guest feedback and are committed to improving the guest experience.

Best Practices for Successful OTA Management

Communicating effectively with your guests and otas.

In order to have a successful OTA management strategy, it is essential to have effective communication with your guests and OTAs. Keep your guests informed about any updates or changes that may affect their stay, such as rate changes or room availability. Respond promptly to any guest inquiries or complaints, as this can help to prevent negative reviews on OTAs. Make sure that your OTA account manager is aware of any changes to your inventory or pricing to ensure that your hotel's information is up-to-date.

Maintaining rate parity and rate integrity

One of the biggest challenges of OTA management is maintaining rate parity and rate integrity across all distribution channels. This means that the rates you offer on OTAs should be the same as or lower than the rates available on your hotel's website and other channels. Failure to maintain rate parity can result in penalties from OTAs and can damage your hotel's reputation. It is also important to ensure that your hotel's room types and amenities are accurately represented on OTAs to avoid guest dissatisfaction.

Developing a revenue management strategy that includes OTAs

Revenue management is the process of optimizing your hotel's pricing and inventory to maximize revenue. When it comes to OTA management, it is important to develop a revenue management strategy that takes into account the unique characteristics of OTAs. This may include adjusting your rates and availability based on demand and utilizing OTA tools and analytics to identify opportunities for optimization.

Staying up-to-date with the latest OTA trends and regulations

OTAs are constantly evolving, with new trends and regulations emerging all the time. It is important for hoteliers to stay up-to-date with these changes in order to maintain a competitive edge. Follow industry news and attend relevant conferences and events to stay informed about the latest OTA trends and regulations. Additionally, make sure to review your OTA contracts regularly to ensure that you are in compliance with any changes in regulations or policies.

Recap of the key takeaways from the guide

In this guide, we have covered everything you need to know about OTA management for hotels. We have discussed the importance of OTAs for hoteliers, the benefits and challenges of using OTAs, and how to set up your hotel for OTA management. We have also provided tips for maximizing your OTA presence, managing your OTA relationships, using data analytics to drive OTA performance, and implementing a direct booking strategy. Finally, we have discussed best practices for successful OTA management, including effective communication with guests and OTAs, maintaining rate parity and rate integrity, developing a revenue management strategy that includes OTAs, and staying up-to-date with the latest OTA trends and regulations.

Final thoughts on OTA management for hotels

While OTA management can be complex and challenging, it is essential for hoteliers to have a strong OTA strategy in order to boost revenue and brand exposure. By following the tips and best practices outlined in this guide, hoteliers can optimize their OTA performance and build successful relationships with OTAs and guests alike.

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Otas' influence on the travel industry: key trends and business models.

Dublin, April 02, 2024 (GLOBE NEWSWIRE) -- The "Case Study: OTAs' Influence on the Travel Industry" report has been added to ResearchAndMarkets.com's offering. This case study looks at online travel agency (OTA) platforms in the travel and tourism industry. It discusses the concept of OTA platforms and the role it has in the travel industry by analyzing their use cases across multiple sectors within the tourism industry. The case study also discusses the challenges and opportunities facing OTA's. Key Highlights

During 2022, the OTA market value performance surpassed its pre-pandemic level by reaching $531.11 billion and reaching $764.69 million in 2023. It is expected that the OTA market is to grow strongly, to reach $1,214.88 billion in market value in 2027, with a CAGR of 12.27% from 2023 to 2027. The increasing penetration of the internet, the growing popularity of mobile devices, and the growing demand for personalized travel experiences are all expected to drive the growth of the market.

According to the intermediaries database, the United States is the largest contributor to the overall global OTA's market value, contributing 46.33% ($354.26 billion) in 2023. The tourism sector is on a growth path in the United States, owing to the country's rising number of tourists.

As per the Consumer Survey Q4 2021, 5,211 global respondents said that they prefer OTA's to book their holidays, of which 44.69% (2,329 respondents) belong to Gen Y (Millennials), followed by Gen X with 30.57% (1,593 respondents). Millennials and Gen X are influenced by digitally smart products, owing to which they are expected to look out for advanced booking systems that offer them a personalized experience.

During 2023, as many countries started encouraging travelers to develop their tourism revenue, the OTA's market value grew to $764.69 billion, with a 71% contribution from domestic trips ($543.65 billion) and a 29% contribution from international trips ($221.04 billion). It is expected that the contribution of OTA's market value by domestic trips is expected to reach 72% ($871.65 billion) and 28% ($343.23 billion) by international trips due to the future positive growth of the tourism industry domestically and internationally.

In 2022, the expenditure showed a positive sign, reaching $178.18 billion. However, it is lower than its pre-pandemic level. During 2023, the expenditure surpassed its pre-pandemic level, which grew to $252.55 billion and is expected to reach $404.76 billion in 2027, with a CAGR of 12.52% from 2023 to 2027.

Key Report Benefits

Gain an understanding of OTA's in the tourism industry.

Recognize the range of the potential challenges and associated opportunities of OTA's.

Gain an understanding of consumer behaiour towards OTA's.

Gain an understanding of how the market for OTA's changed.

Key Topics Covered:

Evolution of OTA's

OTA's Market Performance

Key Trends and Business Models

Industry Leaders

SWOT Analysis

Company Coverage:

Expedia group

Booking.com

For more information about this report visit https://www.researchandmarkets.com/r/sg0co2

About ResearchAndMarkets.com ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

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A year in review: Top trends influencing the OTA industry

To ensure you’re able to strategize and build the best distribution mix for your property, it’s a good idea to keep up to date with the latest news and opportunities. Here, we share some of the major OTA trends from 2023 that we expect to impact the distribution landscape into 2024. 

1. OTAs are back and stronger than ever 

After a brief lull during the pandemic, OTAs are once again reporting strong growth and a remarkable pace of recovery. In 2022, OTA business represented almost one quarter or 22% of the total U.S. travel market . 

OTA market share is dominated by two behemoths, Expedia Group and Booking Holdings, which collectively generated over $250 billion USD in travel bookings in the twelve months leading into Q1 2023. 

For Booking Holdings, which owns and operates Priceline.com, KAYAK, and Agoda, as well as Booking.com and other travel sites, 2022 was its biggest year ever . The company generated almost 900 million room nights globally, a 6% increase over 2019. In 2023, the company generated $39.7 billion USD in gross bookings in the second quarter alone, the highest quarterly figure in the company’s history.  

As for Expedia Group, which owns and operates Hotels.com, Vrbo, Travelocity, Hotwire.com, and Orbitz, among other travel sites, the numbers are lower but still formidable. In Q2 2023, the value of the company’s gross bookings was $19.2 billion USD, a record level for any second quarter in the company’s history. 

Regional OTAs have been performing well, too. In Latin America, for example, Despegar reported $1.3 billion USD in gross bookings in the second quarter of 2023, a 16% increase over the same quarter the previous year. As for Trip.com, a leading OTA for Chinese travelers, our data shows a huge jump in revenue generated in 2023 across several countries, indicating the return of this segment to international travel. 

“Many booking sites have fully recovered, or even grown, from pre-Covid levels,” Skift reported in July 2023. “Airbnb leads the online travel agency recovery, powered by the surge in demand for short-term rentals during the pandemic.” Skift also noted that, now that pandemic concerns have subsided, U.S. travelers have shifted away from direct hotel booking channels and returned to third-party booking sites. 

2. Mobile bookings are a top priority for OTAs

To encourage travelers to book more hotel rooms from mobile devices, OTAs have been channeling their resources into promoting their mobile apps. The strategy seems to be working. Data from Booking.com shows that almost half of room nights (48 percent) were booked on its mobile app in the second quarter of this year, an all-time high. 

Last year, Booking.com was the most downloaded OTA app in the world , with 80 million downloads. In second place was Airbnb, with 52 million downloads, followed by Expedia, with 27 million downloads. Also ranked within the top ten were Agoda, Vrbo, Skyscanner, Hotels.com, Trip.com, and Trivago.

Meanwhile, relative newcomer Hopper is taking the travel world by storm. Ranked in the sixth position on apptopia’s list, with 19.8 million downloads, the app-only OTA is especially popular among Gen Z travelers. And the big OTAs are taking notice. Earlier this year, Expedia ended its supply relationship with Hopper, and in October, Hopper ended its hotel partnership with Booking Holdings, perhaps as a preemptive move. 

3. Leisure travel is softening, but other segments are poised for growth

There are signs that leisure travel is slowing down, and the pent-up demand that has fueled travel since the pandemic may have run its course. Fortunately, group and corporate travel are primed to pick up the slack. 

“With less chance to bump into coworkers in the office, companies are focused on retaining their culture with more team trips and conferences,” says Booking.com . 

Lodging operators who wish to take advantage of the upswing in corporate travel need to be active on the channels where business travelers go to book rooms. And that includes the GDS and OTAs. 

“[Hotels] need to widen OTA distribution into a question of third-party distribution,” said Matt Varabkanich, Sr. Research Analyst at Cleveland Research, during Cloudbeds’ 2023 Passport User Conference in October . “I would break it down into four buckets: global OTAs like Booking.com, Expedia, Hotels.com, and Airbnb; regional direct-to-consumer OTAs like Agoda, Traveloka, Makemytrip, and Vrbo; wholesale B2B distribution; and closed user groups. 

“Closed user groups is where we’re seeing the most emergence of new channels. In North America, that takes shape through the form of banks, credit card companies, retailers, or phone service providers creating travel portals that their customers can exclusively book through, a lot of times supplied by the OTAs, but we’re seeing an emergence of that taking place more here in North America and Asia Pacific. My guess is that would be more skewed towards super apps.”

Other expected growth drivers include international travel and events. In a survey of travel managers in the U.S. and Europe from Deloitte, more than half of respondents said they expect industry events to spur travel growth this year. The popularity of remote and hybrid work may act as an impetus, with meetings, conferences, and events providing an opportunity for coworkers, clients, and prospects to connect in person, Deloitte speculates.

4. OTAs and fintech companies unite forces

Across the travel industry, there has been a steady rise in investment in fintech products and services to boost revenue and enhance the traveler experience. Fintech, which stands for financial technology, refers to the new wave of finance services companies that employ innovative technology to compete with traditional financial methods and institutions. 

Booking.com, which has traditionally operated on an agency model, has recently been shifting toward the merchant model , taking payments for hotel rooms from guests rather than requiring guests to pay the hotel directly. 

Agoda has partnered with Sunrate, a global payment platform based in Singapore, and Airwallex, a fintech company that reduces fees charged for processing overseas transactions. 

And the buy now, pay later (BNPL) craze has also taken root in OTAs. Airbnb has partnered with Klarna to allow customers to pay for bookings in four payments over a six-week period. Expedia has partnered with Affirm to allow guests to pay for flights and hotels in installments over three, six, or twelve months. 

At the same time, financial institutions are partnering with OTAs to sell travel. For example, Nubank formed a partnership with Hopper to provide a comprehensive travel portal for its customers, and Citi launched Citi Travel in collaboration with Booking.com and Rocket Travel to allow Citi ThankYou card members to access inventory on the bank’s website and app.

5. OTAs embrace a future of AI-powered travel planning

Another big shift in 2023 was the widespread adoption of ChatGPT, the generative chatbot built by OpenAI. More than one million users signed up to the service within just five days following the launch, and that number has since grown to over 100 million users. 

OTAs have been quick to jump on the bandwagon. Trip.com was the first OTA to partner with ChatGPT, introducing TripGen in March, a ChatGPT-powered chatbot. Soon after, Expedia Group announced an Expedia plug-in for ChatGPT. The following month, Expedia released a ChatGPT-powered AI chatbot on its mobile app, allowing users to ask the chatbot for help and get trip ideas while planning travel. 

Since then, KAYAK has also formed an integration with ChatGPT. And in June, Booking.com added conversational chat capabilities to its mobile app.

While the adoption of AI by OTAs has come rapidly, the usefulness of these tools has yet to be proven. Rathi Murthy, Chief Technology Officer for Expedia Group, said in March 2023 , “honestly, the travel industry as a whole has a lot of legacy technology, and it’s not super easy to move in and adopt some of this. But I do see players like us — players that have core technology in the background, large OTAs — start jumping in to experiment and try things out.”

Moving into 2024, OTAs will further develop these technologies to deliver more personalized experiences that will significantly impact how travelers research and book accommodations. 

6. Loyalty and retention are also top priorities for OTAs

If there’s a downturn in the economy and inflation remains high, travelers are expected to take fewer trips and will be more price-sensitive when choosing destinations and hotels. This will make it more challenging for hotels to attract repeat guests and build guest loyalty . 

To combat this challenge, OTAs have made significant efforts to secure traveler loyalty. Booking.com’s Genius loyalty program is wildly popular, with first-tier members receiving a 10% discount on accommodation at participating hotels – and even bigger discounts for higher tiers. Those discounts come at the expense of hotels in the form of lower rates and higher commissions.  

Earlier this year, Expedia Group launched the One Key loyalty program, which consolidates its previous programs, allowing members to earn points and use rewards on Expedia, Hotels.com, and Vrbo. Already, the program has an estimated 168 million members worldwide. While Expedia claims the program will help hoteliers accelerate demand and attract high-value travelers across its brands, hotels can expect to carry some of the costs of the perks. 

“Uber has expanded into rides and food delivery and travel services in the UK, and I imagine those super apps are looking into more ways to sell travel services,” said Varabkanich during Passport. “On the global OTA side, the biggest two have taken different avenues, with Booking Holdings on the consolidation side, having acquired wholesaler Getaroom and is currently battling the European Commission to buy the number two flight OTA in Europe. 

“Whereas Expedia has put its eggs in the baskets of Hotels.com, Expedia.com, and Vrbo and is pushing to drive more customer loyalty to the group of those brands. So, there’s different forms taking place of emergences vs. consolidation, something I think would be interesting to keep an eye on in terms of the emergence of new channels.”

7. OTAs are finding new ways to entice travelers 

OTAs are also making it easier for travelers to discover new destinations and properties that might not otherwise be on the radar. In 2022, Airbnb introduced Categories, a new way for guests to discover unique places to stay. The site now lists over 60 categories based on the accommodation style, location, and proximity to activities, including tiny homes, luxe locations, and beachfront spots. 

On Vrbo, visitors can visit the “Get inspired” section and browse categories such as family trips, the beach, pet-friendly accommodations, and places with swimming pools. Booking.com has a “pick a vibe” section with options like relax, outdoors, romance, city, beach, food, and skiing. 

In May 2023, Airbnb also introduced Rooms, a product that takes the company back to its roots as a platform for finding shared accommodation. With Rooms, travelers can browse ‘Host Passports,’ an expanded profile with photos and fun facts to choose the host they’ll connect with best. 

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A Race To The Bottom: OTAs and the Travel Industry

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Companies in the travel industry must feel as if they are in a zero-sum business. As if the only thing anyone cares about anymore is how much they’re going to pay. Consumers say it. Businesses say it. But worst of all, it’s a race to the bottom that gives the Online Travel Agencies (OTAs) – who don’t have physical locations to pay for and manage – an obvious advantage.

It’s no wonder, then, that hotels and other travel industry players have been trying to drive direct bookings and avoid OTAs altogether. Setting aside for a moment whether or not OTAs are, in a sense, the enemy, the very way they function makes it impossible for brands to distinguish themselves amongst their own competition . When they show up on an OTA, brands end up looking like just so many cans on a shelf at the supermarket, without about as much appeal and allure.

Unfortunately, it looks as if despite the importance of this strategy being successful for hotels, it wasn’t working, as a recent report suggests. Among other things, the data indicates that OTAs actually accelerated their share of online bookings AND their share of nights booked, while the data on occupancy rates as a result of direct hotel booking did not show any clear improvement.

So what’s a travel brand to do?

They should remember this: Consumers and businesses have always said that every decision they have ever made was about price. In every industry.

Which means it’s also true that for those who are creative, there still remains an extremely valuable position which can outflank the competition – just as there has always been.

To do that, let’s look more closely at the actual role of price in the equation in the travel industry. Vacation planners and business travelers generally have very prescribed budgets. And these budgets provide the starting point for any planning. They are the gateway through which all the rest of the decisions must pass. And why not - price creates the illusion of a decision that is tangible and clear. This hotel is cheaper than that one. This flight is cheaper than that one. Price yourself too high – or too low – and you are not even a part of the selection set as they move forward.

But price is only the gateway of qualification; it is not the final arbiter.

Because no vacation traveler looks back over photographs and thinks “yeah, that wasn’t very fun, but boy, did we get a great price.” No business traveler wants to tell his boss “I don’t know if I closed the deal or not, but at least I saved fifty bucks on the room.”

People plan vacations for memories. That’s the real goal.

Business people plan trips to meet business objectives. That’s why they do them. Help each get what they really want, and you will have a competitive advantage – against OTAs and your industry rivals.

How? By positioning yourself as experts on the destinations in ways that OTAs haven't.

By becoming something of a travel guide to the place your potential customer is interested in, savvy hotels and vacation rental brands can create the perception – indeed, the reality – that they are helping planners and travelers actually get more out of their money than they would otherwise . Because, in fact, they are. Because that knowledge is actually perceived as currency.

Or think of it this way; a hotel in a place that is new to you and your family simply meets the most basic needs of shelter. But a hotel that comes with the kinds of insider information, the kinds of knowledge about the location that is uniquely important to you and your family, that transforms that visit into a memory that will last a lifetime – that is ultimately more valuable to you. Because it meets your real goal.

And in this way, information, knowledge and expertise, have a sort of multiplier effect for consumers. The more they believe they can rely on you for making their destination travel better – be they vacationers or business travelers - the more often they will turn to you to provide it to them. Increasing the value of their travel for them , and increasing revenue from those customers for travel industry companies.

Which in turn, gives them a reason to direct book on your site, instead of going through OTAs – moving you away from your competition, and training them to check you first in future.

The question is, of course, how? How can hotel and vacation rental brands provide this information.

Our LEXE Travel solution helps travel industry brands transform into travel advisors for potential destination travel customers. With the power of Mass Local, we can put highly localized, highly specific, highly relevant information at the fingertips of your potential customers. All the kinds of things that insiders and locals would know, and that tourists and visitors aspire to. What festivals and events are happening and when. Who’s in town and how to get around. Where the cool club is that everyone will be talking about in six months. Which restaurant just opened that will be impossible to get into before you know it. District by district, neighborhood by neighborhood, block by block.

Information that most OTAs don't deliver, and that you can’t deliver if you’re just one more can on their shelf.

Information that fundamentally changes everything. Because you can’t beat someone when you’re fighting their game by their rules.

And they can’t beat you when they’re fighting by yours.

Mike Raleigh

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OTAs’ Influence on the Travel Industry – Case Study

All the vital news, analysis, and commentary curated by our industry experts.

Published: February 22, 2024 Report Code: GDTT-CS24-03-ST

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Table of Contents

Otas’ in the travel industry report overview.

The OTA market value was $764.69 million in 2023. The proliferation of the internet and the increasing demand for personalized travel experiences will drive the market to grow at a CAGR of more than 12% from 2023 to 2027. The United States is the largest revenue contributor, accounting for over 46% of the global OTA market in 2023. The tourism sector in the US is on an upward trajectory owing to the rising number of tourists in the country. Brazil was the second-largest contributor to the overall OTA’s market value, followed by China and Germany.

OTA Market Outlook, 2023-2027 ($Million)

Buy the Full Report for More Insights into the OTA Market Forecast, Download a Free Report Sample

The “OTAs’ in the Travel Industry Report” analyzes the importance of OTA platforms in the tourism industry. The report includes market trends, opportunities, and challenges the OTAs endure in the tourism sector.

OTA Market Trends

Online travel agencies (OTAs) are gaining popularity due to their convenience, price transparency, wide selection, user reviews, accessibility, and special deals. Online travel platforms have made it easier for travelers to access information about destinations, accommodations, transportation, and activities, democratizing travel planning and booking. They have also expanded the reach of tourism businesses by allowing small and medium-sized enterprises to showcase their offerings to a global audience, attracting international travelers. Moreover, the ability to compare prices across multiple online travel platforms encourages competition among suppliers and leads to better deals and value for travelers.

The COVID-19 pandemic had a severely damaging effect on the travel and tourism sector. However, the industry has shown its strength to recover and adapt to the new tourist perceptions and behaviors, leading to changes in travel patterns, and resulting in new travel trends. For instance, the COVID-19 pandemic has accelerated the adoption of contactless travel technologies and processes. OTAs are integrating features such as mobile check-in, digital boarding passes, and contactless payments to enhance safety and hygiene measures for travelers. Similarly, the use of AR/VR applications will play a vital role in improving visitor experiences by providing virtual guided tours.

OTA Business Models

Most travel platforms employ a variety of business models such as advertising models, merchant models, agency models, subscription models, partnership models, and peer-to-peer networks to suit their business objectives.

Advertising model: Advertising remains a valuable revenue source for OTAs. In the digital era, hotels, airlines, and other businesses get featured on the OTA’s websites through pages, advertisements, or suggestions.

Buy the Full Report for More Information on the OTA Business Models, Download a Free Report Sample

OTA Market – Competitive Landscape

A few of the industry players making their mark in the OTA market include Booking Holdings Inc., Expedia Group., Airbnb Inc., Trip.com Group Ltd., and Flight Centre Travel Group among others. In 2023, Booking Holdings accounted for the highest share of the OTA market.

Booking Holdings Inc.: The company offers various online travel and related services, including accommodation reservations, price comparisons, rental car reservations, restaurant reservations, airline ticket bookings, vacation packages, cruise bookings, and travel reservations. It operates businesses under brands such as Booking.com, Agoda, Priceline, KAYAK, Rentalcars.com, and OpenTable.

Expedia Group Inc.: The OTA company provides a wide range of services, which include the booking of hotel rooms, airline seats, car rentals, and destination services through its travel suppliers. It offers these services under various brands, including Expedia.com, Hotels.com, Vrbo, Orbitz, ebookers, CheapTickets, Hotwire, CarRentals.com, Travelocity, Traveldoo, Expedia Partner Solutions, and Wotif Group.

OTA Market Analysis by Leading Players, 2023 (%)

Buy the Full Report for More Information on the Leading Players in the OTA Market, Download a Free Report Sample

Key Highlights

In 2022, the expenditure showed a positive sign, reaching $178.18 billion. However, it is lower than its pre-pandemic level. During 2023, the expenditure surpassed its pre-pandemic level, which grew to $252.55 billion and is expected to reach $404.76 billion in 2027, with a CAGR of 12.52% from 2023 to 2027.

Reasons to Buy

The report helps to:

• Understand the influence of OTA’s in the tourism industry.
• Understand the potential challenges and associated opportunities of OTA’s.
• Understand consumer behavior towards OTA’s.
• Understand the evolution of the OTA market in recent times.

Frequently asked questions

Machine learning (ML) & artificial intelligence (AI), conversational platforms, augmented & virtual reality (AR/VR), sustainability and responsible tourism, and contactless travel are a few of the OTA market trends impacting the travel industry.

Most OTAs employ a variety of business models such as advertising models, merchant models, agency models, subscription models, partnership models, and peer-to-peer networks to suit their business objectives.

A few of the industry players making their mark in the OTA market include Booking Holdings Inc., Expedia Group., Airbnb Inc., Trip.com Group Ltd., and Flight Centre Travel Group among others.

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GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Related reports

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at OTAs’ Influence on the Travel Industry – Case Study in real time.

• Access a live OTAs’ Influence on the Travel Industry – Case Study dashboard for 12 months, with up-to-the-minute insights.
• Fuel your decision making with real-time deal coverage and media activity.
• Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.

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