What are OTAs for hotels?
OTAs (Online Travel Agencies) are third-party platforms where travelers can search, compare, and book accommodations. They provide hotels with a broad audience and a strong distribution channel without requiring large marketing budgets, though they do charge commissions.
Why are OTAs important for hotels?
OTAs are an essential part of a successful distribution strategy. They offer:
- Global reach: Expand beyond your direct booking channels.
- Trust and credibility: Guests unfamiliar with your brand may prefer booking through a well-known OTA.
- Increased bookings: Capture travelers who might not have found your hotel otherwise.
- Marketing power: OTAs invest heavily in advertising, which benefits your visibility.
OTAs introduce new guests to your hotel, which you can later convert into loyal direct bookers.
Different types of OTAs
OTAs come in various categories depending on their reach, specialization and how they sell. Here's a breakdown:
Metasearch Engines
Metasearch engines like Google Hotels, Kayak, Skyscanner and Trivago aggregate prices from different OTAs, enabling travelers to compare rates before booking.
Global OTAs
Expedia, Booking.com and Agoda offer hotel bookings, vacation packages and car rentals worldwide.
Specialized OTAs
Specialized OTAs service niche markets, such as Hostelworld for budget travelers or Mr & Mrs Smith for luxury stays.
Niche OTAs
Niche OTAs look to the need in the market and then offer that specific service. This could be last-minute deals, vacation rentals or business travel. For example, vacation or apartment rental sites like Airbnb or VRBO.
Wholsalers
Wholesale platforms like Hotelbeds and WebBeds sell inventory to travel agencies, rather than directly to consumers.
How OTAs can increase your hotel bookings
Increasing hotel bookings is a top priority for hoteliers, and OTAs play a key role in achieving that. By listing on OTAs, hotels gain access to a global audience of potential guests who might be difficult to reach through direct marketing alone.
Beyond visibility, OTAs offer powerful market intelligence. With vast amounts of data on booking behavior and customer preferences, OTAs help hotels refine their pricing strategies and optimize marketing efforts. Hotels can use these insights to adjust rates, run promotions and maximize occupancy.
OTAs also act as a form of advertising. Many travelers browse OTAs for research before booking directly with the hotel - a phenomenon known as the "billboard effect." To take full advantage, hotels need a seamless booking engine to capture these direct reservations.
How do online travel agents work?
OTAs facilitate online bookings and charge hotels a commission for each successful reservation. The structure of these fees depends on the OTA and the level of service provided. Some OTAs charge commissions per booking, while others operate on a monthly fee or after the guest's stay.
Commission rates typically range between 10-30% of the total booking amount. Some hotels opt to pay higher fees to improve their ranking on OTA search results. While OTAs can drive significant revenue, hotels should be strategic about balancing OTA costs with direct booking efforts.
How do I add my hotel or property on OTAs?
To add your hotel or property on OTAs, follow these steps:
Choose the right OTAs - Identify which OTAs align with your target market. For example, if you run a luxury property, consider niche platforms like Mr & Mrs Smith. Budget hotels might benefit more from Hostelworld.
Sign up - Visit the OTA's website and look for options like "List Your Property" or "Sign Up."
Complete your profile - Provide detailed information, including location, contact details, room types, amenities, pricing, and availability. High-quality photos are essential for attracting bookings.
Set your policies - Establish your pricing strategy, cancellation terms, accepted payment methods, and check-in/check-out details.
Sync with a channel manager - A channel manager helps keep pricing and availability updated across multiple OTAs to prevent overbookings.
Optimize your listing - Use compelling descriptions, offer promotions or discounts, and highlight key selling points to stand out.
Submit for approval - Once approved, your property will go live, and you can start receiving bookings.
How does the booking process work?
Once a guest books through an OTA, they receive an instant confirmation. If your hotel uses a channel manager, the system will automatically update availability and prevent overbookings. The more automated your process, the smoother the experience for both guests and staff.
And the reviews?
OTAs collect reviews after a guest's stay, influencing future bookings. Since guests book through the OTA, hotels have less direct control over review management. However, you can:
- Send post-stay review requests to guests.
- Use mini satisfaction surveys during their stay to gather feedback.
- Request permission to share positive reviews on your website and social channels.
Engaging with reviews - both positive and negative - demonstrates excellent customer service and encourages more guests to book with confidence.
13 best OTAs to increase your hotel bookings
Now that we understand how OTAs can help increase your hotel bookings, let's take at 13 of the most widely used OTAs.
1. Booking.com
Booking.com is one of the most established OTAs, launched in 1996. With nearly one million rooms booked daily, it provides hotels with extensive visibility. Hoteliers don't pay listing fees - only commission on completed bookings.
2. Expedia
Expedia is a key player in North America and Asia, with a strong focus on budget-friendly accommodations. It attracts 25 million travelers annually and owns several other OTAs, including Hotels.com.
3. Hotels.com
A subsidiary of Expedia, Hotels.com specializes in repeat customers through its rewards program, which offers a free night after 10 bookings. Plus, listings on Expedia automatically appear on Hotels.com, increasing your exposure.
4. Airbnb
Originally a home-sharing platform, Airbnb now welcomes boutique hotels and unique properties, especially those with strong local character. This makes it ideal for independent and small-scale accommodations.
5. Agoda
Owned by Booking.com, Agoda has a strong presence in Asia. It offers tailored marketing strategies through dedicated market managers to enhance hotel visibility in specific regions.
6. Tripadvisor
Once solely a review site, Tripadvisor now allows hotels to list directly and integrates with OTAs like Expedia and Priceline, making it a vital platform for travelers researching accommodations.
7. Travelocity
Now a part of the Expedia Group, Travelocity is one of the veteran OTAs on the market. It's particularly popular in the U.S. and specializes in package deals, making it a great option for hotels looking to boost bookings through bundled offers.
8. Orbitz
Another Expedia Group brand, Orbitz is focused on the U.S. market and includes a loyalty program that offers immediate discounts. It is important to note however, that because of this, room rates tend to be reduced. Hotels listed here also appear on Expedia.
9. Trip.com
A rapidly growing OTA from China, Trip.com is an essential platform for targeting outbound Chinese travelers. With 90 million active users, it presents a strong opportunity for international hotel bookings.
10. E-dreams
Popular with Spanish-speaking travelers, eDreams specializes in budget-friendly accommodations like B&Bs and hostels. It processes around 90,000 bookings per night with no maintenance or setup fees for hoteliers.
11. Priceline
Priceline offers an "Express Deal" feature that allows hotels to provide discounted rates without revealing their name until after booking. This is useful for filling last-minute availability without affecting brand positioning.
12. Hotwire
Similar to Priceline, Hotwire enables hotels to sell discounted rooms under "Hot Rate Deals." This attracts budget-conscious travelers while maintaining brand integrity.
13. Lastminute.com
Famous for its "Top Secret Hotels" deals, Lastminute.com caters to flexible travelers seeking discounts at upscale hotels. It's a great way to fill last-minute vacancies while introducing new guests to your property.
How to choose the best OTAs for your property?
Selecting the right OTAs depends on your target audience and revenue strategy. A balanced approach includes 1-2 major OTAs like Booking.com or Expedia, combined with niche platforms that align with your market focus.
Tips and strategies to increase your hotel revenue from OTAs
Leverage reports and insights
Use OTA dashboards to track performance, optimize pricing, and adjust marketing strategies. Insights can help identify trends and areas for improvement.
Encourage reviews
Higher ratings improve visibility and credibility. Encourage satisfied guests to leave reviews, as they significantly influence booking decisions.
Don't neglect special discounts
Exclusive offers can boost bookings, whether for last-minute stays or early reservations. Many OTAs also offer mobile-only discounts, capturing travelers who book on the go.
Optimize prices
Use dynamic pricing to maximize revenue. Lower rates during low seasons and increase them during high-demand periods, such as events or festivals in your area.
Conclusion
OTAs are a powerful tool for increasing bookings and reaching a global audience. While it's important to balance these with direct channels, the marketing exposure and booking volume that OTAs provide can well outweigh the commission cost for many hotels. By carefully selecting the right OTAs, optimizing pricing and leveraging guest reviews, hotels can maximize revenue while maintaining control over their distribution strategy.
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