Online Travel Agents

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

Key Takeaways

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

Table of Contents:

Introduction

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

What is an Online Travel Agent (OTA)?

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

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

The Most Important Online Distribution Channel

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

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

Why Are Online Travel Agents Important?

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

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

Video: OTAs (Online Travel Agents) Explained 

How Does Commission Work With Online Travel Agents?

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

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

12 Online Travel Agents Your Hotel Should Be Working With

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

 

Online travel agents - booking.com

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

Click here to list your hotel on Booking.com.

Video: Rate Plans on Booking.com

OTA - Expedia.com

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

Click here to list your hotel on Expedia.com.

 

Online travel agencies- Hotels.com

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

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

 

Online travel agents - Agoda.com

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

Click here to list your hotel to Agoda.com.

 

Online travel agent - Priceline.com

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

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

 

OTA - HRS.com

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

Click here to list your hotel on HRS.com.

 

Online travel agent - Airbnb.com

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

Click here to list your hotel on Airbnb.com.

 

Online travel agency - Orbitz.com

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

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

 

OTA - Laterooms.com

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

Click here to list your hotel at LateRooms.com.

 

Online travel agencies TripAdvisor

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

Click here to list your hotel on Tripadvisor.com.

 

Online travel agency - Trip.com

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

Click here to list your hotel on Trip.com.

 

Online travel agent - Travelocity.com

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

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

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

Aspect Booking.com Expedia TripAdvisor
Primary Focus Hotel bookings and accommodations worldwide. Comprehensive travel booking platform. Travel advice, reviews, and recommendations.
Accommodation Types Offers a wide range of accommodations, including hotels, resorts, and alternative lodgings such as apartments and guesthouses. Provides hotel bookings, flight reservations, vacation packages, car rentals, and cruise bookings. Primarily focuses on providing information and reviews for hotels, restaurants, and attractions at various destinations.
User Reviews and Ratings Features guest reviews and ratings for hotels, allowing travelers to make informed choices based on others’ experiences. Includes hotel reviews and ratings, enabling travelers to assess the quality and reputation of accommodations. Emphasizes user-generated travel reviews for hotels, restaurants, attractions, and destinations, helping travelers plan their trips with insights from other travelers.
Additional Services Offers exclusive member benefits like “Genius” discounts, provides mobile apps for convenient booking, and offers a variety of search filters for travelers. Provides loyalty programs like Expedia Rewards, offers mobile apps for travel planning, and enables booking for flights, vacation packages, and car rentals. Focuses on providing travel advice, recommendations, and forums where travelers can ask questions and share insights. It also offers booking options with less emphasis than Booking.com and Expedia.
Booking Flexibility Provides flexible booking options, including free cancellations for many accommodations, helping travelers adapt to changing plans. Offers flexible booking policies, allowing travelers to modify or cancel reservations with certain providers. Primarily focuses on providing travel advice and recommendations, so booking flexibility may vary depending on individual providers listed on the platform.

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

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

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

Tips To Increase Your Hotel Bookings Through Online Travel Agents

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

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

Expedia Extranet and How to Get the Most From Online Travel Agents

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

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

Online Travel Agents: Utilising the Admin Booking Extranet

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

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

Online Travel Agents FAQs

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

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

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

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

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

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

More Distribution Tips to Optimise Revenue

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

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This article is written by:

Martijn Barten
Hi, I am Martijn Barten, founder of Revfine.com. I am specialized in optimizing revenue by combining revenue management with marketing strategies. I have over 15 years of experience developing, implementing, and managing revenue management and marketing strategies and processes for individual properties and multi-properties.