Online Travel Agency - third-party websites where travelers can search, compare, and book hotel accommodations.
An OTA (Online Travel Agency) is an online platform that allows travelers to search, compare, and book travel products including hotel rooms. Major OTAs include Booking.com, Expedia, Hotels.com, and Agoda. OTAs aggregate inventory from thousands of hotels, providing travelers with a convenient one-stop shop for booking. Hotels pay commission (typically 15-25%) on bookings made through OTAs.
OTAs are a double-edged sword for hotels. On one hand, they provide massive reach and visibility, driving bookings from guests who might never find your hotel otherwise. On the other hand, commissions eat into profits, and hotels lose control over the guest relationship. The key is finding the right balance - using OTAs for reach while building direct booking strategies to reduce dependency.