If you are planning and booking some accommodation online, be it for vacation or business travel, you will most likely find online travel agencies (OTAs) such as Agoda, Trip Advisor, Expedia and Booking.com. These OTAs have been around since the late 1990s and early 2000s and have grown in size, strength and popularity every year, so in today’s online marketplace you can hardly avoid anything when making any reservations. type of online travel arrangements; Hotels, villas and rooms, cars and bikes and flights. Anything you see on OTA is on the first page of Google results, and Google Adspace positions are also prevalent. Of course with the growth of monster-sized travel agencies, there has been growing concern that hotel owners, car rental companies and other businesses that need to catch more direct bookings may or may not be fully in third-party booking portals. . The cause for concern is the loss of profits that business owners have to make when booking reservations, directly from consumers; rates vary from agency to agency, but will never be so low, even if it has no significant impact on the “bottom line” of providers. Hotel owners and owners, for example, have to pay anywhere from 15-35% commissions to bookings received from the TAO, the value% usually depends on the location of the property / hotel and the number of rooms in it. TAO (the more rooms listed, the lower the 50% commission that OTA will have to pay).
You may think to yourself with this huge expense that comes with joining OTA, ‘why do hotels and resorts continue to rely more heavily on third-party booking agents when capturing far more direct bookings?’ this is something that all providers will have to consider and reflect on and discuss with their teams, and the answer is that most are now unable to make OTA reservations. Unless the Hotel or Resort Hotel has gained so much notoriety on its own, even if they can successfully fill the bedroom throughout the year, one or more OTAs must be combined. it can survive. Actually, even with the well-known and popular hotels and resorts I mention, there will be low seasons and other times and times when bookings are low and additional exposure to room / villa reservations will be required; So the truth is, joining TAOs is a must have for any business in the holiday accommodation business.
Where do these OTAs come from and who owns them?
When most people talk about OTAs, we see a lot of companies, “big players” who are very aggressive in their marketing activities to make sure that every traveler will see them frequently and promotions, both online and offline. . The four most popular OTAs are Expedia, TripAdvisor, Agoda and Booking.com; These are the platforms for booking rooms that generate the most change in the market and will be on the list of most hotel owners. The four oldest of these four agencies were formed by Expedia in 1996 by a small Microsoft department, and then in Booking.com in Amsterdam in 1996. Trip Advisor came in 2000. Massachusetts, a small US office and finally came to Agoda, founded in 2002 and based in Bangkok, Thailand. In fact, almost all of the major OTAs and online booking platforms are all under the umbrella of two monster-sized organizations; Expedia Inc is one of The Priceline Group’s.
So, the TAO was wondering how they are affecting the holiday accommodation industry in answering the original question in this post; for consumers, it makes all accommodation more accessible and has greatly improved the user experience, making it easier to compare different locations. The added benefit of being able to consult the reviews of each place before booking is another positive change that consumers may have. On the other hand, hosting providers have negative and positive consequences. Higher commissions and costs for the best OTA website rankings eat up the profits that property owners may have, but, for many hotels, resorts and other accommodation providers, they get exposure from the list. Within OTA websites they mean that they are able to reserve a lot of other rooms while at the same time being “branded” on the map and thus providing good rooms at a great price. Effective service, which will grow over time with the support that their TAO partners receive.
After all, I think TAOs are positive for the industry.