OTA
The Ultimate Guide to Choosing the Right OTA for Your Property
In the ever-evolving landscape of the accommodation industry, online travel agents (OTA) have become a crucial channel for hotels and motels to reach a global audience and drive bookings. However, it is essential to understand that using the right OTA’s, rather than listing on every available platform, can significantly impact your property’s success. In this article, we will delve into the reasons why selecting the right OTA’s is important and offer some insightful suggestions to help you make informed decisions.
What in an OTA?
Firstly, let’s define what an OTA is in the accommodation industry. OTA’s, or online travel agents, are websites that provide a platform for users and travellers to book various travel services. These platforms act as intermediaries, connecting accommodation providers with potential guests and facilitating the booking process.
One of the primary reasons why OTA’s are crucial for your property is that the majority of travellers conduct their research and bookings online. According to industry statistics, 90% of travellers rely on the Internet to plan their trips, and a significant 76% of online bookings happen through OTAs. By leveraging the reach and visibility offered by OTA’s, you can tap into this vast pool of potential guests and increase your bookings.
OTAs also play a role in promoting direct bookings on your website. Surprisingly, approximately 20% of direct bookings come from people who discovered your hotel through an OTA. This indicates that while OTA’s provide exposure and bookings themselves, they can also act as a catalyst for guests to explore your website and make direct bookings. Thus, choosing the right OTA’s can boost both your direct bookings and overall revenue.
How to Determine the Right OTA for Your Property?
When it comes to determining the right OTA selection for your property, several factors should be considered. Not all OTA’s are suitable for all types of properties, and understanding your target market and property category is crucial in making the right choices.
One important consideration is the type of travellers you cater to. Some OTA’s are specifically designed to target particular market segments, making it easier for travellers to find and book accommodations that align with their preferences. For example, Expedia and Booking.com are popular choices for international guests, while platforms like Hostelworld cater to backpackers. Understanding your target audience and their preferred OTA’s will help you select the most relevant platforms to list your property.
Geographic region is another crucial factor. While many major OTAs like Booking.com and Expedia have a global presence, others focus on specific regions. For instance, Ctrip predominantly caters to the Asian market. Listing your property on OTA’s that have a strong presence in your target region can help you capture local guests and visitors from surrounding cities or regions.
Furthermore, it is important to consider the nature of your property and the amenities you offer. Not all OTA’s are equally effective for different property types. Expedia, for example, is well-suited for selling 5-star and luxury rooms, while platforms like hostelworld.com are more effective for budget rooms and hostels. If you operate a bed and breakfast establishment, listing on bedandbreakfast.com might be the most suitable choice.
Now, Let's Explore Some Specific OTA's and Their Advantages
Airbnb
Airbnb is a unique OTA that focuses on non-conventional travel accommodations and consumer-to-consumer rentals. Its emphasis on local influences and unique designs makes it an ideal platform for boutique hotels competing against larger chains. You can reach its extensive user base of 150 million active users across 200 countries by listing on Airbnb. The commission for hotels on Airbnb ranges between 14% and 20%.
This OTA is desirable to Boutique hotels with unique designs, bed and breakfast establishments, vacation rentals, and properties offering non-conventional accommodations.
There are some really good Airbnb alternatives that also cater for smaller properties. With nearly 500 million user reviews, TripAdvisor has become one of the largest travel websites globally. Its Instant Booking platform allows visitors to read reviews and make bookings directly on the platform. Listing on TripAdvisor provides exposure and helps build a strong reputation through user reviews. Furthermore, its advertising partnership with Expedia and Priceline opens doors to connections with other high-visibility OTA’s. The commission for listings on TripAdvisor averages around 15%.
This OTA is desirable to Hotels of all sizes and categories. It is particularly valuable for properties that prioritise guest reviews and reputation management.
Tripadvisor
Expedia
Expedia.com is a well-established OTA with listings spanning over 60 countries. It attracts an audience that seeks low prices and affordability, making it a great platform to reach travellers who may not have considered your hotel independently. Additionally, Expedia.com allows customers to book hotels along with flights and rental cars, offering a more comprehensive experience. The commission for rooms booked through Expedia.com varies based on property type and dynamic pricing, but it averages around 16%.
Desired by Hotels and motels that offer competitive pricing and value for money. Expedia.com attracts a wide range of travellers, including those who prioritise affordability.
As one of the pioneers in the OTA industry, Booking.com has a global reach, covering more than 200 countries and processing over 1.5 million hotel nights daily. It offers options for various types of properties, including hotels, motels, vacation homes, apartments, and B&Bs. Booking.com’s easy setup process and the ability to import information from other OTA platforms make it convenient for hotels to get listed quickly. The commission for listings on Booking.com fluctuates depending on the market segment and property type but averages around 15%.
Desired by various types of properties, including hotels, motels, vacation homes, apartments, and bed and breakfast establishments. It is especially useful for properties looking for a global reach.
booking.com
Agoda
Agoda is an OTA with a strong focus on the Asian market, making it an excellent choice for hotels looking to expand into this audience. While its largest pool of property listings is in Asia, Agoda has expanded its presence in Europe and America as well. It offers listings in 38 languages and emphasises low-priced options and affordability. Commissions for listings on Agoda average around 16%.
Desired by hotels and accommodations targeting the Asian market. This includes properties located in countries in Asia.
Hotels.com, part of the Expedia network, has a significant presence in the Western Hemisphere. With over 360,000 listings across more than 19,000 locations, it can help improve awareness of your property in this market. Hotels.com attracts travellers searching for accommodation in specific areas and provides an opportunity to increase direct bookings through its website. The average commission for Hotels.com listings is slightly above 17%.
Desired by hotels located in the Western Hemisphere, including North America, Central America, and South America. It can be beneficial for properties that want to increase their visibility and direct bookings within this specific geographic region.
Hotels.com
Google has emerged as a dominant player in the OTA landscape with its Google Hotel Ads platform. It benefits from its unrivalled advantage in traffic, with an estimated 4.5 billion searches made on Google daily. Google Hotel Ads attract travellers searching for accommodation in your hotel’s specific area and increase the number of direct bookings generated through your hotel’s website. Additionally, Google Hotel Ads provides access to guest data and analytics, giving you valuable insights into the trip-planning process. Commission rates for Google Hotel Ads may vary.
This OTA should be used by properties of all types and sizes that want to increase their online visibility and leverage Google’s extensive search traffic
Summary:
Selecting the right OTA for your hotel or motel is essential to maximise exposure, drive bookings, and increase revenue. While listing on multiple OTA’s may generate more exposure, it can also lead to higher costs and dilute your marketing efforts. By carefully considering factors such as your target audience, property type, and geographic region, you can make informed decisions about which OTA’s to prioritise. Whether it’s Airbnb for boutique hotels, Expedia for low-priced accommodations, or Google Hotels for increased direct bookings, choosing the right OTA’s will help you stand out in a competitive market and achieve success in the accommodation industry.
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