If you have booked and booked some apartments online, whether on vacation or on a business trip, you have definitely come across online travel agencies (OTAs), such as Agoda, Trip Advisor, Expedia and Booking.com. This OTA starts in the late 90's and early 2000's, and each year they grow in size, strength, and popularity, so that in today's online marketplace you literally can't quite avoid them when you go for travel. online weather; from hotels, villas and rooms to cars and bicycles, as well as flights. On the first page of Google results you will always see some of the OTAs as well as Google Adspace. Of course, with the rising cost of this monster-sized travel agency, there is a growing concern among hotel owners, car rental companies and other businesses that need to attract more direct books to avoid completely or almost entirely relying on third-party booking. from portals. . The reason for concern is, of course, if it is because of the loss of profits that businesses need to get their bookings from book agents, rather than directly from consumers. interest rates are slightly different from each agency, although it will never be such a small percentage that it will not have a noticeable impact on providers' bottom line. For example, hotel and property owners are required to pay anywhere from 15-35% commission for any bookings received for OTA, the% value usually depends on the location of the property / hotel, as well as the number of rooms they listed inside. OTA (the more rooms there are, the lower the% commission they will have to pay to OTA).
With this huge expense that comes from working with OTA, you can think for yourself: "Why do hotels and resorts continue to rely on third-party booking agents when they could enjoy much more profits than just book capturing?" this is something that all accommodation providers will discuss and think about and discuss with their teams, and the answer really is that most of them are now in a situation where they simply cannot live without OTA bookings. As long as the hotel or resort is one that has gained so much prestige on its own and is so popular that they can successfully fill their rooms throughout the year, then you have to join OTAs or more, so that they can survive. In fact, even in the case of notorious and popular hotels and resorts, I will have low seasons and other times and occasions when room bookings will be low and there will be a need for additional disclosure to bring up room / villa bookings. so in fact a partnership with OTA is now a necessity for all companies that are in the business of holiday accommodation.
Where did those OTAs come from and who belong to them?
When talking about OTAs, a large number of people are portraying companies that are really the main "big players" doing extremely aggressive marketing to ensure that almost all travelers will see their brands and promotions frequently, both online and offline. in offline locations. . The four most popular OTAs are Expedia, TripAdvisor, Agoda & Booking.com; these are the room booking platforms that create the biggest shift in the market, and those that will be in place for most hotel owners to partner with. The oldest of these four agencies is Expedia, which was created by Microsoft in a small department in 1996, followed by Booking.com, which started in Amsterdam and in 1996. The tour advisor came next in 2000, comprising a small office in Massachusetts, USA, and last but not least, Agoda, established in 2002 and originally from Bangkok, Thailand. In fact, virtually all of the major OTA and online booking platforms now belong to and are under the auspices of only two major, monstrously sized organizations: Expedia Inc. is one and the other is The Priceline Group.
So, to answer the original question in this post that asked how OTAs affect the vacation-booking industry. For the consumer it really just makes all the conveniences available, and the user experience has been greatly improved, as comparing different locations is much easier and more efficient. And with the added advantage of being able to check in at each location before booking, another positive change is that consumers can benefit from. On the other hand, for housing providers, it has had some negative as well as some positive effects. Commissions and additional costs for better-placed listings on OTA sites eat away at the profits that property owners can get, but on the other hand, for many hotels, resorts, and other housing providers, having the effect they derive from listing. OTA sites mean they can now get more rooms ordered, and at the same time their brand / location is on the map, so to speak, as long as good rooms provide good value, efficient service, they will then be able to grow over time due to the support they receive from their OTA partners.
Overall, I think OTA is good for the industry.