Being an independent hotelier is no easy feat. Fierce competition, tight budgets, and limited resources all add to the challenge of securing bookings.
So, how do you make sure the right guests find your property among a sea of choices? That’s where online travel agencies (OTAs) come in.
OTAs are an undeniable force in the hospitality industry. They’ve completely changed how travelers book their stays. In fact, 80% of global travelers feel it’s important to be able to book their trips entirely online.
Today, OTAs offer a platform where even the smallest properties can compete with big-name chains. And for independent hoteliers, they can be incredibly helpful if you know how to use them strategically.
Having a successful OTA strategy expands your reach and booking potential. But it’s all about knowing which OTAs to invest in and how to manage your pricing, inventory, and listings effectively.
There’s a caveat, though. The OTA landscape is vast and constantly moving, with new ones popping up all the time. Evolving guest preferences and booking habits also make knowing which ones to invest in a little tricky.
We’ve created this directory to act as your one stop shop to navigate the world of OTAs with confidence.
What is an online travel agency (OTA)?
An OTA is an online platform that connects travelers with accommodations, flights, car rentals, and other travel-related services.
For independent hotels, OTAs can be powerful marketing tools. They help you gain additional visibility and bookings from a global audience that might not otherwise find you.
Popular OTAs like Booking.com, Expedia, and Agoda provide a convenient way for travelers to search, compare, and book accommodations.
For hoteliers, these platforms act as intermediaries, showcasing your property to millions of potential guests in exchange for a commission fee (typically ranging from 15% to 30%) on each booking.
OTA vs. metasearch: what’s the difference?
You may have also heard the term metasearch in the same breath as OTAs. So how do they differ?
Well, while OTAs handle the entire booking process, metasearch engines like Skyscanner, Google and Trivago simply aggregate listings from various OTAs and your direct website.
OTAs: Guests book directly on the OTA platform, which collects the commission.
Metasearch: Guests are redirected to the booking source (OTA or your website) to complete the reservation. You may still pay fees for visibility, but metasearch can help drive direct bookings if managed correctly.
Four reasons OTAs are important for independent hotels
When you’re an independent business, competing with well-known chains and capturing the attention of travelers might feel like an uphill battle.
OTAs can help level the playing field, giving you a way to expand your reach, attract new bookings, and gain credibility by showcasing your property on recognisable websites for customers and receiving reviews.
1. Global reach without a global budget
OTAs, put simply, are popular. They give your property access to millions of potential guests from around the world.
2. Boost credibility and trust
Travelers trust OTAs as a convenient, one-stop shop for booking accommodations. Reviews, photos, and detailed descriptions help build trust with potential guests, encouraging them to book.
3. Fill rooms in the off-season
During slower periods, OTAs help fill gaps in your occupancy. Many platforms offer tools to promote last-minute deals or discounts to help you shift empty rooms when demand dips.
4. Reach niche markets
OTAs cater to various traveler types, from budget backpackers to luxury seekers. Specialized OTAs make it easy for you to target guests that align with your property’s offerings.
How OTAs work
OTAs act as both a booking engine and a marketing partner. Understanding how OTAs operate is key to maximizing their potential.
Here’s a look at how OTAs work from both the traveler’s and the hotelier’s perspective.
The traveler’s journey
Search and compare
Travelers visit an OTA platform to search for accommodations using filters like location, price, amenities, and guest ratings. The OTA presents results tailored to their preferences, often sorted by relevance or rankings.
Booking and payment
Guests book directly through the OTA, which handles the transaction and sends a confirmation to both the traveler and the hotel.
The hotelier’s journey
Listing your property
You create a profile for your property on the OTA, including photos, descriptions, room types, rates, and amenities.
Rankings and visibility
The OTA’s algorithm determines where your property appears in search results based on factors like availability, pricing, guest reviews, and your engagement with the platform’s tools (e.g., promotions or special deals).
Receiving reservations
Once a traveler books, the OTA sends you the reservation details, either through your email, property management system (PMS), or channel manager.
Paying commission
For every booking made through the OTA, you pay a commission fee, typically between 15% and 30%, depending on the platform and your negotiated terms.
Your channel mix: what it is and why it matters
Creating the right channel mix is critical to maximizing occupancy, revenue, and profitability while avoiding over-reliance on any one channel.
But what exactly is a channel mix and how do you create one?
What is a channel mix?
A channel mix is the combination of online travel sites you use to sell your rooms for maximum visibility and bookings.
Having a varied channel mix also reduces risk. For example, should an OTA temporarily suspend your listing due to a technical glitch, you’ll have other OTA listings to fall back on.
Different channels cater to different travelers or regions. Some perform better during specific times of the year. Having a variety of channels in your mix means you’re more likely to reach your intended audience and weather market changes as they occur.
Why it’s important to choose the right OTAs
Picking the best OTAs for your business can significantly impact your success. The right OTAs for your hotel will:
Attract the right audience
Specialized OTAs can help you connect with the specific type of traveler your property caters to, whether it’s business travelers, luxury travelers, or budget backpackers.
Improve profitability
By balancing commission costs with the bookings generated, you can ensure your OTA partnerships deliver a strong return on investment.
Enhance visibility in key markets
Regional OTAs, for example, help you capture demand in countries or areas where your property has little organic reach.
How to build a good channel mix
Now let’s look at how to build a channel mix that drives as much visibility and as many bookings as possible.
Who are you targeting?
Consider your target audience. If you’re an airport hotel, you may be focused on business travelers or layover passengers. If you’re a resort, you may be focused on families or couples.
Select the right OTAs
It’s time to choose your OTAs. You’ll want to include global, regional, and niche OTAs in your selection. Research each OTA’s user base, commission structure, and tools to find those that align with your goals.
Consider the number of channels you’ll use
Too few channels might limit your reach, while too many can dilute focus and increase administrative burden. It’s best to focus on quality over quantity and continually monitor your performance.
Balance direct and OTA bookings
While OTAs are essential for visibility, prioritize direct bookings where possible to save on commission costs. Use OTAs as a marketing channel to draw guests to your property and encourage future direct bookings.
Compare fees and commissions
Different OTAs charge different commission rates based on their business models. Today, these rates typically sit between 15% and 30%. Push for the lowest rate possible when negotiating with OTAs.
Now that you understand how to create the ideal channel mix for your hotel, it’s time to use our comprehensive directory below to explore the best OTAs to work with to help you attract more bookings, boost revenue, and expand your business.
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About Lighthouse
Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways. Trusted by over 70,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners—their success is our success. For more information about Lighthouse, please visit: https://www.mylighthouse.com.
