What is an OTA and how to leverage it for your holiday rental?

You might associate OTA with regulated parking services, but in this case, it's not about losing money, but making it. In this article, we will explain what OTAs are and how you can benefit from them.

What is an OTA?

It's the acronym for Online Travel Agency. These are websites primarily dedicated to the sale of services related to the travel sector. Tourism OTAs can be very varied. Some are exclusively dedicated to presenting information about opinions from consumers who have already visited a hotel, a restaurant, etc. One of the most famous in this sector is TripAdvisor. There are also some specialising in cheap flights, others in hotels, and some allow you to book airline tickets and accommodation without leaving their website. The latest OTAs to arrive are those specialising in holiday rentals. But they are already evolving; many of them no longer just offer accommodation, but also allow travellers to find and book different experiences they can enjoy once at their destination. OTAs are also called channels. Essentially, these channels are the places where your holiday accommodation appears, and from where your guests can find and book. Some examples of OTAs or channels for holiday rentals are Booking, Expedia, or HostelWorld.

What is an OTA for?

Channels or OTAs can perform multiple functions. Think, for example, of how Airbnb has expanded its product catalogue and no longer only offers accommodation; but also experiences. However, the most typical services of an OTA include:

• Ability to create listings for your accommodation on their websites.
• Providing your guests with a method to book. This can be done by integrating a payment gateway (Airbnb) or simply with booking confirmations (Booking).
• Notifying you that your guests have booked (either via email – the most basic – or to the channel manager).

How can you leverage a OTA in holiday rental?

Going to a travel agency to book is very old-fashioned. What's in fashion now is to do an online search, compare prices and reviews, and select the most suitable product. Your customers are acting this way, so you must ensure your holiday home is exactly where they are looking. And this is where the importance of online travel agencies lies. You must have a presence on them to attract more guests.

If you are interested in learning how you can improve your positioning on a leading OTA, check out our post on SEO for Airbnb.

Advantages of OTAs

• You increase the occupancy of your property without having to worry about marketing.
• You receive bookings directly online, which simplifies management.
• You can adjust the price of the accommodation according to the season. Sometimes the OTA itself even helps you set the most appropriate amount.
• There is no fixed cost; you only pay a sales commission if that online travel agency has indeed found you a client.

Disadvantages of OTAs

So far, this all sounds very good, but you can imagine that not everything that glitters is gold. Using this system also has some drawbacks:

• The visibility of your accommodation depends on the OTA's internal parameters.
• In many cases, you have to pay extra if you want your accommodation to be shown to a larger number of potential clients.
• In online travel agencies with better positioning and more prestige, commissions can be quite high and might not be worth it if the price of your accommodation is low.

"OTA, definitely yes"

That is the question. This system has its advantages and also disadvantages. However, today, if you want to succeed with a holiday rental, you have to use all the tools available to you – and that includes being on the main OTAs. Nevertheless, it is good to inform yourself well about their conditions and the commissions they will charge you before partnering with these types of agencies.

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