guide on online travel agencies
OTAs

A Hotelier’s Guide on Online Travel Agencies 2024

Suniti Bahl
Suniti Bahl

Table of Contents

In 2024, online travel agencies are still an important part of how hotels get bookings. Whether managing a big hotel chain or a small boutique property, working with OTAs helps you reach more travelers and fill more rooms.

This blog will explain OTAs, how they work, and why they're essential for hotels.

OTAs offer a platform where people can compare hotels, check prices, and book their stay instantly. For hoteliers, listing their rooms on OTAs can attract more guests because it enhances their visibility. 

What are Online Travel Agencies (OTAs)? 

Online Travel Agencies are websites from which travelers can book flights, car rentals, and hotels. They act as middlemen helping hotels reach a bigger audience. OTAs like Expedia, Booking.com, and Agoda are popular because they allow travelers to search for and book rooms quickly. 

For hotels, OTAs are a way to be found by travelers who may need to learn about their hotel. OTAs handle reservations, cancellations, and even guest questions, which can save time and team effort.

OTA Examples 

Some of the popular OTAs in the hotel world are: 

  1. Expedia – Expedia is a global leader in travel bookings, offering hotels, flights, and rental cars. It's especially popular in North America and Europe.
  2. Booking.com – Booking.com is loved for its easy-to-use website and app and has a huge international audience.
  3. Agoda – Popular in Asia, Agoda lists hotels, hostels, and vacation rentals, making it great for budget and luxury travelers.
  4. Airbnb – While known for vacation rentals, Airbnb now offers hotel bookings, giving hoteliers access to a new type of traveler.

Each of these platforms can help your hotel reach more guests and get more bookings.

How do Online Travel Agencies Work for Hotels?

OTAs allow hotels to list their rooms online, so travelers can easily find and book them. For hoteliers, using an OTA means your property is seen by millions of people looking for a place to stay. 

But how do OTAs and hotels work together? Read on: 

How do OTAs Tie Up with Hotels?  

For hotels, partnering with an OTA means signing a contract. This contract states that your hotel will appear on their website, and in return, the OTA takes a commission for every booking they send you. The commission is usually between 10% to 25%, depending on the OTA and the market.

Here's why this partnership matters:

More visibility: OTAs spend a lot on ads, ensuring that more travelers see your hotel.

Reach new guests: Travelers using OTAs might not have found your hotel through other methods.

Instant bookings: OTAs make booking fast and easy, reducing hassles for your team.

How do OTAs Rank Hotels?

Marketing your hotel through an Online Travel Agency (OTA) can help you reach more guests. Here's how to do it:

  • Use high-quality Photos

High-quality photos make a big difference. You can hire a professional to take clear, bright pictures of your hotel's rooms, amenities, and surroundings.

  • Show All Areas

Make sure you show off different angles of your hotel that highlight its best features, such as the restaurant, pool, spa, etc.

  • Write Clear Descriptions

Focus on what makes your hotel different, such as the location, free breakfast, or family-friendly services, and write short, to-the-point descriptions.

  • Use Popular Search Terms

Adding words people use to search for hotels, like "pet-friendly" and "close to the beach," clarifies what they will get by staying in your hotel.

  • Offer Good Prices

Adjust your prices based on the season and what other hotels are charging. You can also offer special deals like discounts for early bookings or longer stays to attract more guests.

  • Encourage Reviews

Ask happy guests to leave reviews after they complete their stay. Positive reviews can help future travelers choose your hotel.

  • Use OTA Advertising Tools

Pay for ads or use promotions that make your hotel appear higher in OTA search results, especially during busy times.

Some OTAs allow you to target specific groups, like families or business travelers.

  • Offer OTA-Exclusive Deals: To attract more guests, you can offer special discounts that are only available on the OTA.

OTAs want to provide the best options to their users, so hotels that deliver a great experience, have strong reviews, and drive bookings will be rewarded with higher rankings. Optimizing your content, pricing, and promotions while maintaining strong performance metrics is key to climbing the OTA rankings.

Read Also: Guide on Hotel Cancellation Policy

Why Should Hotels Promote on  OTAs? 

Although OTAs charge a commission, the benefits often outweigh the costs. Here's why promoting on OTAs makes sense:

  1. More guests: OTAs attract millions of travelers daily, which is otherwise not possible directly. 
  2. Reach international markets: OTAs help attract guests from different countries.
  3. Ready-to-book travelers: People using OTAs are usually ready to make a booking, so the chances of converting them are higher.
  4. Less marketing effort: OTAs handle much of the hotel advertising, which saves time and money.

Is Google Hotels an OTA? 

Google Hotels isn't technically an OTA, but it pulls information from OTAs and hotel websites, giving travelers an easy way to compare prices and availability. Google Hotels doesn't take bookings directly; instead, it sends travelers to an OTA or the hotel's direct website to complete their booking.

Read Also: Increase Direct Bookings with Google Hotel Finder

Conclusion

Online Travel Agencies (OTAs) will be an important part of how hotels attract and book guests in 2024. By partnering with OTAs, hotels can reach a larger audience, get instant bookings, and benefit from the marketing power of these platforms. Understanding how OTAs work and how to market your hotel effectively on these platforms can help you stay competitive in the modern hotel industry.

As you plan your strategy for the year, keep your OTA partnerships strong. With the right approach, you can attract more guests, increase bookings, and grow your hotel's success tremendously.