OTAs – what they are and how they work
Although the question may seem obvious, there are probably some readers who are still unclear about what OTAs are and how they work.
OTAs have become a very popular tool where millions of travellers around the world schedule and book their trips on a daily basis.
For hotel and vacation rental managers, the use of OTAs can be very useful. These platforms give them visibility to guests wishing to stay in a hotel or rental flat for a certain period of time.
If you are still unclear about the concept of OTAs, read on. We help you understand what they are, which are the most important ones, and the benefits they can bring you.
What are OTAs?
Online Travel Agencies, also known as OTAs, are booking portals dedicated to the sale of services related to the tourism sector.
All kinds of services can be booked through OTAs. For example, hotels, flights, excursions, etc. It is a kind of counter, which offers greater visibility. This helps hoteliers and other companies in the sector to increase their bookings.
The most important and recognised OTAs bring together information on all types of properties on their platforms: hotels, rural houses, hostels, etc. In this way, internet users can directly choose dates and destinations, compare prices and reviews of each establishment, and filter their searches according to their own criteria (location, price, reviews, services, etc.).
How they work
OTAs act as intermediaries between the end guest and the service and accommodation providers.
They only make money when a booking is made. They usually charge a commission of between 10% and 25% of the sales price. Although commissions may seem very high. However, it should not be forgotten that OTAs provide suppliers with a secure platform to get more visibility and more sales of their products and services.
What are the most important OTAs?
The following is a list of the most important and widely used OTAs on the market.
Booking.com
Booking is the leading online booking site. They already have almost 28 million accommodations, in 226 countries around the world. It offers a huge variety of accommodations and services, positioning itself as a market leader.
Currently, the platform sets its commissions between 15% and 17% on each booking made.
Discover our tips to improve your visibility on Booking.com.
Expedia
Another major leader in the online travel agency market is Expedia. The American company owns the well-known brands TripAdvisor, Trivago and Hotels.com.
They currently have some 2.9 million properties, 210,000 activities, and set their commissions at 19% for each booking.
Airbnb
Airbnb is one of the most famous and widely used OTAS today. This 2022, the platform has counted more than 5.6 million listings worldwide. One of the most impressive figures regarding Airbnb is the money generated by hosts, a total of 100 billion euros so far.
Airbnb sets its commissions at 14% of the booking subtotal, which will be used to keep the platform running smoothly and provide support for hosts.
Trip.com
This is one of the largest online travel agencies, with more than 400 million registered users worldwide. It belongs to the trip.com group, which also includes Skyscanner.
Trip.com’s network consists of more than 1.4 million establishments in 200 countries. They also have a highly developed flight network with more than 2 million routes, connecting to a wide variety of cities worldwide.
Discover the Top 5 platforms to advertise your vacation rentals
Benefits of advertising your accommodation on OTAs
But then, what are the benefits for you, if you advertise your property on OTAs. There is a long list of benefits to advertising your property on some of these platforms. Read on to discover them.
International Visibility
Advertising your accommodation in online travel agencies allows you to have an international reach. It eliminates geographical barriers and allows you to reach users from all corners of the planet, given its international reach.
Generating web traffic
OTAs manage to generate a large volume of web traffic, thanks to their investments in SEO and Marketing. Indirectly, you will benefit from the OTAs’ large investments in communication, which will attract a large amount of traffic, free of charge, to your ad.
Trust
This is the other great advantage of OTAs. Online travel agencies transmit confidence to users that what is advertised on these sites corresponds to reality. A multitude of photographs and descriptions, detailed services and, above all, hundreds of guest reviews.
Conclusion
Advertising your tourist accommodation on the main OTAs can allow you to boost your property’s bookings without any investment or digital marketing knowledge. Integrating OTAs is a good way to get started and get bookings quickly.
If you are thinking of advertising your property on OTAs, don’t miss our tips on How to reduce OTA commissions in your establishment.
