Glossary / Distribution & channels

OTA (Online Travel Agency)

Definition

Third-party online platforms that aggregate hotel inventory and sell rooms directly to consumers. Booking.com, Expedia, Hotels.com, Agoda, Hotelbeds, and similar.

What it tells you

OTAs offer reach and customer acquisition; they charge 15–25% commission per booking. The trade-off between OTA-driven volume and direct-booking margin is a central distribution-strategy question.

How to track it

PMS tracks OTA-channel bookings. Channel manager dispatches inventory and rates to OTAs.

Where it fits

OTAs are the primary distribution channel for most independent hotels. Direct-booking strategy is largely about reducing OTA dependency.

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