Online Travel Agencies

Online travel agencies, or OTAs, were originally designed to sell excess inventory in times of slow demand. Today, OTAs drive the majority of bookings around the world. They are a primary source of revenue for most hotels. In 2013, OTAs were responsible for almost $19 billion in hotel gross bookings in the United States alone, according to PhoCusWright’s white paper.

OTAs such as Expedia and Priceline have evolved into sophisticated marketing channels for hoteliers of all sizes. Never before have consumers been able to easily compare different travel options side-by-side in terms of price, time, and location. These platforms offer access to markets once unattainable by small hoteliers and hostel owners.

Airbnb helps travelers live like locals. 74% of properties are located outside the main hotel districts. This travel website is diverse in listings and can be accessed by almost anyone from air beds in apartments to enchanted castles, according to Airbnb’s website.

• Number of total guests: 200,000,000+
• Number of listings: 3,000,000+
• Number of countries: 192
• Countries/Regions where most prominent: Global
• Commission fees: 3% host service fee every time a booking is completed on their online platform. Charge guests a guest service fee to cover the cost of running the site.
• Other fees: Depending on the laws of the jurisdiction involved, VAT on the service fees may be included as an additional amount over and above the total 3% service fee.
• Any operating restrictions: N/ABooking.com is the most popular travel website.There are more than 49,960,000 verified reviews and counting, as listed on their website.
  • Number of active users: 40 million
  • Number of listings: 1,408,202
  • Number of countries: 212 (79,118 destinations)
  • Countries/Regions where most prominent: Global
  • Commission fees: starts at 15% per booking, but increases based on a variety of factors
  • Other Fees: N/A
  • Any operating restrictions: As of April 21, 2015, Booking.com has abandoned its price, availability, and booking conditions parity provisions with respect to other online travel agencies to increase transparency.Ctrip is China’s leading travel website. They provide service to more than 90 million registered members. There are more than 70,000 hotels listed, 30 million reviews, and 400,000 international hotels. Ctrip is a strong brand within China and dominates their local market.
    • Number of active users: 90 million+ registered
    • Number of listings: about 1,000,000
    • Number of countries: 200
    • Countries/Regions where most prominent: Asia, specifically China
    • Commission fees: minimum 10% and up to 25%
    • Other Fees: N/A
    • Any operating restrictions: N/AFlipKey
      • Number of active users: Multi-millions (specific number not available)
      • Number of listings: 830,000
      • Number of countries: 190
      • Countries/Regions where most prominent: Primarily North American and Europe, but offers many global listings
      • Commission fees: 3% fee on each booking secured through FlipKey and TripAdvisor
      • Other fees: N/A
      • Any operating restrictions: advertise everything from private rooms to castles, houseboats to villas. Travelers book on FlipKey and TripAdvisor because they’re looking for something a hotel cannot provide.

      Source: https://www.flipkey.com/pages/about_us/ Hotels.com

      • Number of active users: 16,000,000 monthly unqiue visitors
      • Number of listings: 435,000+
      • Number of countries: 60+
      • Countries/Regions where most prominent: Global
      • Commission fees: 10%+
      • Other fees: N/A
      • Any operating restrictions: N/A
      • Source: comLonely Planet 
        • Number of active users: 4,000,000 monthly unique visits
        • Number of listings: 500,000+
        • Number of countries: N/A
        • Countries/Regions where most prominent: Global
        • Commission fees: N/A
        • Other fees: N/A
        • Any operating restrictions: N/A

        Source: Lonelyplanet.comOrbitz

        • Number of active users: 11,000,000+ per month
        • Number of listings: N/A
        • Number of countries: N/A
        • Countries/Regions where most prominent: Global
        • Commission fees: 10%+
        • Other fees: N/A
        • Any operating restrictions: parity agreements in most countries
        • Source: comTravelocity
          • Number of active users: 14,000,000+ per month
          • Number of listings: 510,000+
          • Number of countries: N/A
          • Countries/Regions where most prominent: Global
          • Commission fees: N/A (likely 10-15%)
          • Other fees: N/A
          • Any operating restrictions: parity agreements in most countries
          • Source: comExpedia
            • Number of active users: 25,000,000+ per month
            • Number of listings: 510,000+
            • Number of countries: N/A
            • Countries/Regions where most prominent: Global
            • Commission fees: 10%+
            • Other fees: Increased commission fees with packages
            • Any operating restrictions: parity agreements in most countries
            • Source: comConclusion:- Online travel agencies offer property owners of all types a lot of opportunities. From extended reach to extensive consumer information, OTAs hold a lot of significance for consumers. Not every OTA is right for every property. By analyzing each OTA and identifying what works best for your property and leverage OTAs to their full advantage. 

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