How Online Travel Agencies Affect The Holiday Accommodation And Vacation Industry

If you have been planning and booking accommodation online, whether for vacation or business travel, you will surely have encountered some Online Travel Agencies (OTA’s), for example, companies such as Agoda, Trip Advisor, Expedia & Booking. com. These OTAs have been around since the late 90s and early 2000s and have grown in size, strength and popularity every year, so in today’s online marketplace you are literally almost unable to avoid them when you book any type. online travel souvenirs; anything from hotels, villas and rooms to cars and bikes and even flights – You’ll always see an OTA jumper on the front page of Google results and even dominating Google Adspace positions. Certainly with the increase in these monster travel agencies, there has been a continuing concern from hotel owners, car hire companies and other businesses that they need to capture more direct bookings to avoid being totally or almost completely dependent on third party booking portals. . The reason for the concern is of course because of the loss of profit that companies have to take when receiving their bookings from booking agents rather than directly from consumers; rates vary slightly by each agency, although it will never be a% so low that it will not have a significant impact on the “bottom lines” of providers. For hotel and real estate owners, for example, they are required to pay anywhere from 15-35% commission to the OTA for any booking received, the% value is dependent on the site of the real estate / hotel and also of the number of rooms that are listed. OTAs (the more rooms you list, the lower the% commission you have to pay at OTAs).

With this big expense coming from partnering with OTAs, you might think to yourself, “why hotels and resorts continue to rely on third-party booking agents when they can enjoy much more important margins than catching bookings?” direct? ” this is something that all homeowners have considered and reflected upon and discussed with their teams and the answer is really that most of them are now in a position where they cannot just live without OTA reservations. Unless the Hotel or Resort is one that has gained so much notoriety and is so popular that they can successfully fill their rooms throughout the year, then this is a case of having teamed up with an OTA or a few for which can survive. In fact, even with the famous and popular hotels and resorts I refer to, there will be low seasons and other times and occasions when booking numbers will be low and you will need additional exposure to bring room / villa reservations; so in reality the partnership with OTA is now a necessity for all companies that are in the business of vacation rentals.

Where did these OTAs come from and what do they get?

When it comes to OTAs most people have a few companies, who are really the “main players” who have extremely aggressive marketing activities to ensure that almost all travelers often see their brands and promotions, both in line is in situ offline. . The four best known OTAs are Expedia, TripAdvisor, Agoda &; these are the room booking platforms that are creating the biggest change in the market and those that will be on most Hotel Owners listings to partner with. Out of these four agencies, the two oldest are Expedia which was formed by a small department at Microsoft in 1996, and then which also originated in Amsterdam in 1996. Trip Advisor came after 2000, formed by a small office in Massachusetts, USA and last but not least Agoda, formed in 2002 and originally from Bangkok, Thailand. In fact, almost all major online and online booking platforms are now owned and come under the umbrella of only two major monster-sized organizations; Expedia Inc is one and the other is The Priceline Group.

So, to answer the original question of this post I was asking how OTIs affect the vacation rental booking industry; for the consumer it really only has to make all the accommodations more accessible and the user experience has been greatly improved, making it much easier and more efficient to compare different locations. Also having the added benefit of being able to check reviews from anywhere before making any reservations is another positive change that consumers can enjoy. For accommodation providers, on the other hand, it has had some negative and even positive effects. The additional fees and costs for a better listing on OTA websites eat a lot of the profits that real estate owners can make, but on the other hand for many hotels, resorts and other accommodation providers, they have the exposure they get from the list on the OTA site means they are now able to get many more rooms booked and at the same time their brand / location is placed “on the map” so to speak, and provided they provide good rooms At a good price, with efficient service, they can grow over time because of the support they receive from their OTA partners.

All in all, I think OTTA is a positive for the industry.