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OTAs in the tourism sector

OTAS in tourism

The acronym OTAs in the tourism sector come from Online Travel Agencies or what is the same translated in Spanish, Online Travel Agency . They are those companies whose business model is based on offering tickets to travel by any means of transport (train, plane, bus...), making hotel reservations or contracting tourist packages online, either through websites, applications or social networks (it is very common for small OTAs to operate through WhatsApp or Telegram, in addition to their own website).
Currently, the online channel has caused a revolution in the travel agency sector , bringing with it multiple benefits for both the agency itself and the user.

User benefits:

  • For the user, it is much more convenient to contract or reserve any travel service online than in person.
  • Competitive prices and good quality of service for the amount of offer in the online channel.

Benefits for the agency:

  • Online brand development much faster with well-defined strategies.
  • Virtually unlimited possibility to scale the business.

Difference between OTA in tourism and Metasearch

It is important to know how to distinguish the difference between an ota and a metabuscator . For example, Airbnb, Booking or Expedia are Otas, since within their platforms they offer a set of tourist services offered by themselves; However, Kayak acts as a metabuscator offering different results of the previous OTAS appointed based on the selected date and city.

How do OTAs work in tourism?

OTAs in tourism have a very simple operation . They act as intermediaries between the supplier and the end user, acquiring a percentage for contracting the tourist service through them . This commission normally ranges between 10% and 25% of the sale price.
The commission is one of the biggest disadvantages of the operation of OTAs, although, on the other hand, they provide the user (both suppliers and end users) with a secure platform on which to operate.

Most important OTAs in tourism

In Europe, OTAs are key platforms for the functioning of tourism. Below we will see the best-known OTAs or vacation rental platforms :

  • Booking : most popular tourist accommodation ota, in which you can reserve stays in hotels, vacation apartments and homes for tourist purposes (Vft) . Currently, the platform also allows you to buy plane tickets and even rent vehicles.
  • Airbnb : OTA specialized in the rental of tourist homes. It includes the offer of all types of tourist rentals, from rooms in an inhabited home, to rooms shared with other people or the rental of complete homes.
  • Expedia : Expedia Group is the largest OTA in the world. The parent company owns carrentals.com, expedia.com, vrbo.com, hotels.com, hotwire.com, orbitz.com, travelocity.com, trivago.

Benefits of advertising tourist accommodation on OTAs

Scalability

When we work with Otas, there are no language limits or geographical barriers, something that with the traditional market yes; Therefore, it is much easier to internationalize and climb the business without having to make large investments. Through the integration of Check-in Scan with the most popular Otas, we can facilitate the check-in process by conversioning the traditional check-in with paper and ball to the automatic check-in online .

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OTAS in tourism

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Visibility and advertising

Integrating OTAs into your marketing strategy or plan can be a great idea to increase the number of reservations. OTAs make large investments in advertising to acquire traffic on their platforms, so indirectly, the tourism service provider that decides to advertise here will increase its online visibility. If we add to this good service from the tourism service provider, generating positive reviews from the end user, OTAs will give increasing visibility to the quality service offered.

Drive direct bookings

OTAs increase the visibility of the tourist services that are in them, but, as we have already mentioned before, they work on a commission per reservation. For this reason, many end users, once they have learned about the service offered by a company (hotel or apartment reservation, plane or train tickets, tourist packages...) through OTAs, prefer to make the reservation directly on the provider's website, This way they save the OTA commission and can find the same service cheaper.

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