OTA: How to use online travel agencies to your advantage
Posted: Mon Jan 20, 2025 8:32 am
Online travel agencies (OTAs) are digital platforms that allow travelers to search, compare and book accommodation, airline tickets, package tours and other tourism-related services.
They are very popular with consumers as they offer convenience, variety and competitive prices. But how can they benefit your hotel or guesthouse?
In this article we will explain what these online travel “agents” are, how they work, which are the main ones operating in Brazil and much more.
Come with us!
What are OTAs?
Online travel agencies are intermediaries between tourism service providers , such as hotels, airlines and car rental companies, and end customers .
They bring together multiple accommodation options in one place, making it easy for travelers to search and compare.
Due to this wide visibility, it is a great showcase for hotels and inns.
Did you know that the online travel industry market size uk whatsapp data reached $475 billion in 2022 ? The value is expected to reach over $1 trillion by 2030.
These figures point to the success of online travel agencies, so it is interesting to understand how it works.
How do Online Travel Agencies work?
Online Travel Agencies can operate under two different models:
Commission model: the guest makes the reservation through the agency, but pays the hotel at check-out. The establishment pays the online agency a commission on the total amount. In this case there is no contract, and the rates are set by the hotel itself.
Retail model : a contract exists between the hotel and the online agency. The establishment makes a certain number of rooms available at a favourable price and the agency makes a profit for each room sold. It collects payment from the guest at the time of booking and, after check-out, transfers it to the hotel.
The major hotel OTAs offer a mixed model, but let's understand commissions better.
OTA Commissions
Due to increased visibility and an increase in the number of reservations, hotels and inns must pay commissions to online travel agents for reservations made through them.
These commissions vary depending on the type of agency, contract and service , and may be a fixed payment or a percentage of the sale.
They usually account for between 10% and 30% of the daily rate .
These commissions represent an expense for hotels, but they can also be seen as an investment in marketing and sales. After all, the platforms help increase the visibility, occupancy and revenue of the establishments.
And what are OTAs?
Discover the main OTAs in Latin America
The main OTAs in Brazil serve different segments and customer profiles. They operate worldwide, including.
Booking and Expedia , for example, offer a wide range of services, including online hotel and flight bookings and car rentals.
They are two of the largest and best known in the world.
Statista data shows that as of June 2023, Booking.com was the most visited travel and tourism website in the world with 614 million visits .
Tripadvisor.com and Airbnb.com followed with around 189 million and 109 million visits, respectively.
The market leader (Booking.com) has a market value of approximately $78 billion , followed by Airbnb ($54 billion), Trip.com ($22 billion) and Expedia ($13 billion).
We leave you a list below so you can discover some Online Travel Agencies in Latin America :
1. Despegar.com: Based in Argentina, Despegar.com is one of the largest online travel agencies in Latin America, offering a wide range of tourist services.
2. Decolar.com: It is one of the main OTAs in Brazil, offering hotel reservation services, flights, tour packages and more.
3. BestDay.com: Based in Mexico, BestDay.com is an OTA that offers hotel, flight, tour packages and activities reservation services in various destinations.
They are very popular with consumers as they offer convenience, variety and competitive prices. But how can they benefit your hotel or guesthouse?
In this article we will explain what these online travel “agents” are, how they work, which are the main ones operating in Brazil and much more.
Come with us!
What are OTAs?
Online travel agencies are intermediaries between tourism service providers , such as hotels, airlines and car rental companies, and end customers .
They bring together multiple accommodation options in one place, making it easy for travelers to search and compare.
Due to this wide visibility, it is a great showcase for hotels and inns.
Did you know that the online travel industry market size uk whatsapp data reached $475 billion in 2022 ? The value is expected to reach over $1 trillion by 2030.
These figures point to the success of online travel agencies, so it is interesting to understand how it works.
How do Online Travel Agencies work?
Online Travel Agencies can operate under two different models:
Commission model: the guest makes the reservation through the agency, but pays the hotel at check-out. The establishment pays the online agency a commission on the total amount. In this case there is no contract, and the rates are set by the hotel itself.
Retail model : a contract exists between the hotel and the online agency. The establishment makes a certain number of rooms available at a favourable price and the agency makes a profit for each room sold. It collects payment from the guest at the time of booking and, after check-out, transfers it to the hotel.
The major hotel OTAs offer a mixed model, but let's understand commissions better.
OTA Commissions
Due to increased visibility and an increase in the number of reservations, hotels and inns must pay commissions to online travel agents for reservations made through them.
These commissions vary depending on the type of agency, contract and service , and may be a fixed payment or a percentage of the sale.
They usually account for between 10% and 30% of the daily rate .
These commissions represent an expense for hotels, but they can also be seen as an investment in marketing and sales. After all, the platforms help increase the visibility, occupancy and revenue of the establishments.
And what are OTAs?
Discover the main OTAs in Latin America
The main OTAs in Brazil serve different segments and customer profiles. They operate worldwide, including.
Booking and Expedia , for example, offer a wide range of services, including online hotel and flight bookings and car rentals.
They are two of the largest and best known in the world.
Statista data shows that as of June 2023, Booking.com was the most visited travel and tourism website in the world with 614 million visits .
Tripadvisor.com and Airbnb.com followed with around 189 million and 109 million visits, respectively.
The market leader (Booking.com) has a market value of approximately $78 billion , followed by Airbnb ($54 billion), Trip.com ($22 billion) and Expedia ($13 billion).
We leave you a list below so you can discover some Online Travel Agencies in Latin America :
1. Despegar.com: Based in Argentina, Despegar.com is one of the largest online travel agencies in Latin America, offering a wide range of tourist services.
2. Decolar.com: It is one of the main OTAs in Brazil, offering hotel reservation services, flights, tour packages and more.
3. BestDay.com: Based in Mexico, BestDay.com is an OTA that offers hotel, flight, tour packages and activities reservation services in various destinations.