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The Complete Guide to Booking Travel Online

What is an online travel agency, and what are the best sites and apps to use to search for hotels and flights we break it all down for you..

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There’s a lot to navigate when researching and booking travel online.

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My first travel adventure was to Venezuela. I booked the ticket with a travel agent over a pay phone. The agent searched a dozen flight itineraries over a few days, all so I could save $15.

Times have changed. Today, flight searches start online , often on your mobile device. Passengers book either directly with the airline or hotel or with online travel agencies. Rarely do we get on the phone. In fact, American Airlines and United Airlines charge $25 to make a domestic flight booking by phone. And pay phones hardly exist anymore.

So, what is the best way to book online? Here is our complete guide to online travel agencies, search tools, and the variety of booking options available on both mobile devices and desktops.

What is an OTA?

An online travel agency, or OTA, is a website or mobile app that allows users to search for and book travel services such as flights, hotels, car rentals, cruises, and activities. The booking is made directly with the online travel agency but confirmed by the service provider, such as an airline or a hotel. As a customer, your relationship is with the OTA.

What are the main OTAs?

Many online travel agencies nowadays are owned by two main companies: Expedia and Priceline. The Expedia Group is the largest online travel agency in the United States with 70 percent market share, according to travel data firm Phocuswright. Expedia Group operates Expedia.com , Orbitz, Hotels.com , Trivago, CheapTickets , Hotwire , Vrbo , and Travelocity .

Priceline is a major competitor to Expedia, with global revenues larger than the Expedia Group. The company owns Priceline.com, Booking.com, Cheapflights, Momondo, and Kayak—the latter two being metasearch engines (more on that below).

There are also independent newcomers such as Hopper (a mobile-only booking tool) and Kiwi.com (which allows you to book flights on air carriers that don’t normally have a commercial relationship).

Are OTA fares lower than booking directly?

Generally, no. The fares that are displayed by an OTA will be similar if not slightly more expensive when compared to an airline’s website. They’re usually only a few dollars higher or lower. The OTAs charge a booking fee to the airlines, and often that fee is passed directly to consumers. For example, Lufthansa tacks on an additional $18 to any booking made through an OTA for Lufthansa flights. The same flights are exactly $18 cheaper on the airline’s website.

Where you can score a good travel deal through an OTA is when booking a last-minute hotel and flight package. Many OTAs have cut agreements with airlines allowing last-minute travelers to access lower rates than are typically available when passengers book a flight alone.

Are all airlines available to be booked through OTAs?

No. Many OTAs do not display flights from some of the low-fare leaders. For example, Southwest and Allegiant flights are not available through OTAs; the same goes for Ryanair in Europe. And, earlier this year United Airlines threatened to pull out of Expedia altogether, only recently signing a multi-year agreement to stay in. The airlines would rather not lose any margin to online travel agencies in an already low-margin industry and would rather maintain a direct relationship with the customer.

Are smaller OTAs safe to use?

Expedia and Priceline are the two largest players in the online booking space, but there are dozens of independent OTAs, such as CheapOAir, OneTravel, JustFly, and SmartFares. Confusingly, you might actually stumble on ads for these OTAs while using Expedia or Priceline sites. That’s because the larger OTAs earn revenue through advertising, sending passengers to smaller OTAs and charging those OTAs for the favor.

Buyer beware: some of these lesser-known OTAs are masters at hidden fees. For example, a flight search on JetBlue allows for free seat selection in many instances. If you perform the same search on FlightNetwork, an independent OTA, and select a seat, you will be charged an additional $25—despite the fact that JetBlue doesn’t charge a seat selection fee if you book directly.

What if you need to change your itinerary?

Itinerary changes are often a pain. If your plans change, it won’t matter whether you’ve booked directly with an airline or with an OTA—you’re going to pay fees for the privilege, if you can even change your ticket at all.

For example, CheapTickets.com, which is part of the Expedia Group, charges $25 to change or cancel a ticket if that change is requested after 24 hours of making the booking—it is free if you do so within 24 hours of booking. However, the fees go up from there. JustFly, an independent OTA, charges a $75 fee for changes to domestic flights in addition to airline change fees, plus the difference in fare, for tickets that can be changed. For an international trip, the fee rises to $200. That means to change an international flight with Delta (which charges a $100 change fee) booked through JustFly, you’ll be assessed $300 in fees, plus the difference in fare. At that rate, you may as well book a new flight. FlightNetwork indicates in its terms of service that changes may incur a change fee but doesn’t specify what those fees are. That hardly makes the few dollars you saved by booking with the OTA in the first place worth it.

What is an OTA price match policy?

To assure travelers that they are getting the lowest fare possible, many OTAs have a price match policy. The rules vary and so do the benefits.

For example, if you book with Orbitz and find a less expensive flight, car rental, or activity on any U.S.-based website within 24 hours of your booking, Orbitz will refund you the difference you paid. And it works: I have personally found a flight in the same class, on the same airline, for the same origin and destination cities, and requested Orbitz to refund the difference of around $35. Within a few weeks, I received a check in the mail. A similar program applies for CheapOAir, but there’s a catch—the price difference must be found on a major OTA such as Expedia or Travelocity.

Expedia has a particularly good price match policy, but you have to pay extra for it at the time of booking. Expedia offers the price match option as an add-on that costs between $5 and $30 when you book. With the price match applied, if the airfare on Expedia drops between 120 days of the flight and up to six hours before the flight, Expedia will automatically refund you the difference in fare. Unfortunately, fares generally do not drop substantially as the travel date approaches, so while this might give you peace of mind, it’s probably not worth the expense.

How do Google Flights and other travel metasearch engines work?

Frequent fliers are likely familiar with websites such as Google Flights, Kayak, Momondo, or Skyscanner. On these websites, passengers search on the site but are redirected to the service provider to complete the booking, such as an airline, rental car company, or hotel.

Metasearch started with a product called ITA Matrix, which is a tool for searching airfares online but not for actually booking online. ITA Matrix allows for multi-city searching, such as setting two different departure or arrival airports, and for offering a calendar view of fares for easier comparison. That company was acquired by Google in 2011, and savvy travelers swear by it to help find the least expensive fares online. Most consumers are more familiar with Google Flights, which has gained traction more recently not least because it has the benefit of being displayed first in search results on Google.

Metasearch engines receive distribution fees from the airlines for sending traffic to the supplier websites. There are no additional hidden fees for using a metasearch engine because you’re booking directly with the airline or hotel.

A major benefit of the metasearch engines is their price tracking tool, which lets users know whether the displayed fares are low, average, or high for the flight, allowing travelers to make a more informed decision on whether to book a flight or not . Google Flights and Kayak, for instance, both have price tracking tools.

Why not just book directly?

The airlines would definitely much rather you book directly with them. Over the past five years, they have gotten much better at marketing and selling their product directly to consumers online and through mobile sites and apps. But in the past, they weren’t so good at it. In fact, Delta, Northwest, United, American, and Continental got together to invest $145 million to launch Orbitz in 1999 to counter the threat from Expedia. Now Orbitz is owned by Expedia.

The airlines also try to encourage customers to book directly so that they can maintain a closer relationship with them. It allows carriers to connect bookings with loyalty programs and create special offers and discounts catered to individual passengers.

There is another benefit to booking directly. The U.S. Department of Transportation requires carriers to hold a reservation at the quoted fare for 24 hours without payment or allow a reservation to be cancelled within 24 hours without penalty, so long as the booking is made at least seven days before travel. The law applies, however, only to U.S. and foreign air carriers that have websites marketed to U.S. consumers. This means that, in theory, an online travel agency does not have to offer such a policy, although most OTAs do.

What are the options for booking on your mobile device?

Airlines and the major OTAs all have apps to help you book and manage your trip on your mobile device, but their functionality is lacking compared to these websites’ desktop editions. For example, Expedia’s app doesn’t allow you to view flights on a month-view calendar. Kayak has an app with more bells and whistles and a better user interface, including a month-view calendar with color-coded pricing. It also has a handy “augmented reality” function to help you see if your carry-on bag will fit in the overhead bin (a feature originally developed by KLM). Point your phone’s camera at the luggage, and it’ll give you the dimensions.

While apps are improving and gaining in popularity, you still might find it easier to locate the best deals on flights and hotels by using your desktop, where you can have multiple tabs open and have all the available search tools at your disposal. Apps are fine for booking directly with an airline once you know which flights you want to book.

If you’re determined to use your mobile device, you may want to look into Hopper. Hopper is a mobile-first flight booking tool that has a solid price prediction tool. You can research travel options and book directly on the app. Another benefit of Hopper: Of its team of 300 employees, nearly half are dedicated to customer support and are based in Canada versus some OTAs and airlines that outsource much of their customer service further afield.

The bottom line?

Like many travelers, I enjoy a flight deal as much as the next person, but I also don’t like any added hassle. I typically start my travel searches using the ITA Matrix or Google Flights to get a general sense of the fares. It helps to know what is a good deal and what is expensive for a particular route. I do my research, typically on a desktop computer. When I’m ready to book, I’ll book directly with the airline. I’ve found that customer service is better when booking directly with the service provider. But I’ve also saved money by using OTAs and have booked with them, too. Whichever way you choose to book, you can be safe in the knowledge that finding and purchasing travel online is a lot easier today than searching for a deal with a travel agent on a pay phone.

>> Next: How to Get the Best Last-Minute Travel Deals

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How 25 years of the Web inspired the travel revolution

The introduction of the worldwide web not only fundamentally changed the travel experience, it also turned an entire industry on its head as new brands emerged to take advantage of it, while many existing players were left struggling to keep up with a blistering rate of change. As increasingly empowered and connected consumers have demanded more from their travel providers, what have been the most important developments over the past 25 years?

In March, British computer scientist Tim Berners-Lee wrote a proposal for what would eventually become the World Wide Web. For a bit of fun, visit the Wayback Machine to see how some of the early brands looked when they first appeared online.

Similar to the Yahoo listing-style of the time, Travelweb.com emerged as the first comprehensive catalogue of hotel properties around the world and, a short time later, included a component to make bookings. The site was created by a relatively small team under The Hotel Industry Switch Company's (THISCO) John Davis, a key figure in the history of online travel, who formed one of the industry's major reservation technology providers, Pegasus. The site was conceived primarily as a showcase for what the company did behind the scenes, but its uniqueness made it popular with many early visitors to the web. Davis left Pegasus in 2008 and is now CEO of RoomKey , a multi-hotel chain-backed search engine.

US travel writer Jeff Greenwald triggered what has since evolved to become a cottage industry for dreamers, travellers and countless others the world over: travel blogging . He posted a 1,600-word article called One Hundred Seconds of Solitude on behalf of Global Network Navigator , the first commercial web publication, from a tourist bureau in Mexico.

A basement business in Palo Alto, California, known as Internet Travel Network (ITN), laid claim to having overseen the first airline ticket booking made over the web, for a flight from San Francisco to Las Vegas. ITN was the forerunner of GetThere , a company which later sold to airfares distribution provider Sabre – a path trodden by many of the pioneers at the time, who were quickly snapped up by those powering much of the non-web technology around in the industry. In GetThere's case, it was for a cool $757m in 2000.

Viator Systems (now Viator ) launched a travel technology business to help provide bookings for destination tours and excursions via the web. Twenty years on, this incredibly fragmented part of the industry still lags behind its air, hotel and car hire cousins.

To some extent, Lonely Planet was the major gatekeeper of the written word when it came to travel guides prior to the web. But it soon realised that if it was to capitalise on the emergence of the internet, it had to get online quickly. The web may not have democratised the selling of travel, but it certainly levelled the playing field when it came to accessing travel information – with big brands no longer having control over audiences via travel agent brochures or advertising campaigns. Lonely Planet's reasonably successful expansion to the web inspired hundreds, perhaps even thousands, of similar travel guide brands to appear online, each promising unique advice and, of course, tips on discovering "untouched places".

Microsoft, the most high-profile technology company on the planet at the time, realised there was probably something in this early momentum and unveiled its attempt at an online travel agency, known as Expedia . The rest is history. The site set the pace for countless imitators and now has myriad sister brands in both the leisure and corporate travel industry.

Two Stanford University students, Larry Page and Sergy Brin, started examining the rest of the web to find a way to index pages based on popularity with other users and websites. The result was Google. A relatively slow burn in its early stages, Page and Brin's creation eventually swept aside almost all other search engines and became the first place that online consumers went to. As a result, travel providers spend billions to advertise alongside the search results. It was the beginning of a love-hate relationship with the industry that continues to this day.

Inspired in part by US carrier Southwest , easyJet and Ryanair changed the European airline industry forever with their take on the low-cost airline model – cheap, cheerful, expansive and ambitious. "Book on our website" started to replace "Book through your local travel agent".

As online travel agencies took root in the US, in Europe two bright young things created an iconic web brand. Brent Hoberman and Martha Lane Fox led the brash and playful Lastminute.com into the still somewhat new world of web commerce, cementing the idea in the minds of consumers that travel can be bought over the internet with ease and, well, at the last minute. A listing on the London Stock Exchange and a busy period buying countless other brands eventually led to US counterpart Travelocity (owned by Sabre) buying it in 2005 in a deal which valued the company at almost £600m.

US site FareChase appeared on the scene with a different slant on the online travel shopping experience, spawning countless other (and more successful) brands in the years to come. Known as metasearch in the industry, FareChase was a simple travel search engine which collected fares from booking sites (agencies, airlines, hotels). It was later bought by Yahoo and laid the groundwork for the likes of Sidestep , Kayak , TravelSupermarket , Skyscanner to follow.

Not many could have guessed a business located above a pizza parlour in Massachusetts would eventually become one of the most popular travel websites in the world, not to mention the most disruptive influence on the hotel industry ever created. TripAdvisor , the original and still by far the biggest social travel site on the web, was incredibly simple – travellers left reviews of hotels; fellow travellers found the reviews and could make a decision on whether to stay at a property based on what they'd read. Hoteliers freaked out, but travellers loved this new "wisdom of the crowds".

Many travel figures now point to the 9/11 tragedy as a pivotal moment in the history of online travel. As the industry evaluated how it would deal with new security measures and cope with a downturn in both leisure and business trips, web brands became the marketplaces for air and hotel suppliers trying to offload huge amounts of unfilled inventory – a strategy that has pretty much continued to this day. It seems remarkable now, but airlines in particular discovered the web was the easiest and most expansive way of communicating with confused and nervous passengers.

Priceline , the US online travel agency which formed with the "Name Your Own Price" idea in the late 1990s, began its gradual surge to global dominance with the purchase of Active Hotels and then, in 2005, Booking.com . The two acquisitions spearheaded an international and renewed focus on hotel bookings for Priceline and ensured the over-arching Booking.com website became the envy of the industry and is now one of the most widely known brands on the web.

A plaything of Harvard student Mark Zuckerberg that quickly became a fully baked business, the launch of Facebook heralded the beginning of a new concept in the online travel experience: sharing. Travellers turned to Facebook (and later Twitter , FourSquare , Pinterest , Instagram et al) as a platform to, let's face it, show off to their "friends" where they had been or were planning to go on holiday. Most consumer-facing travel companies now have a presence on at least one of these networks, allowing them to interact with customers and – still in its relative infancy – make bookings

Though not directly responsible for the evolution of online travel, the launch of the Apple iPhone – giving the users access to the web via their handsets – had a huge influence on what became the start of travel services on mobile devices. Its apparent coolness, like that of the iPod a few years earlier, ensured that the mobile web became accessible to the masses. The corresponding App Store also triggered the creation of a mind-bending number of travel-related applications.

AirBedAndBreakfast (which soon changed its name to Airbnb ) quickly became a darling of the second wave of travel brands hitting the web in the late 2000s. The idea of creating a virtual marketplace where property or house owners could share their space for short-term rents struck a chord with a new breed of travellers looking for a different way of seeing in a destination.

Thinking of imaginative ways to combine Twitter with travel wasn't lost on the good folk of this particular publication, with writer Benji Lanyado going to Paris on what became the first of a series of TwiTrips around Europe and the US. Lanyado was taken on a guided tour of the French capital using only recommendations from his followers on Twitter. For the industry at large, it was another demonstration of how powerful "real-time" communication was becoming.

After taking the travel industry's advertising dollars for over a decade, Google ramped up its interest in the travel industry with the $700m acquisition of airfare search technology company ITA Software . The deal signalled the start of a debate which is still raging: can it be a provider of independent search results, sell keyword adverts and have its own travel services, and led to the launch of search tools for flights and hotels, plus the acquisition of respective travel and review services, Frommer's and Zagat .

Few modern travel businesses are more of a time and a place than HotelTonight , which hit the ground running in early 2011 with a mobile app that allowed users to find a vacant room in a city for the same day and have it booked at the touch of a button on the device.

KLM may be just another very large global airline, but when it comes to social media and commerce it has arguably pushed the boundaries more than any other carrier. It reached a peak of sorts in 2012 when it started Meet & Seat , a way to select where you sit on a flight based on the social profiles (LinkedIn or Facebook) of fellow passengers.

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What are online travel agencies? The ultimate guide to OTAs

Love them or not, online travel agencies (OTAs) play a critical role in every property’s distribution strategy. According to Expedia Group’s 2023 Path to Purchase report, OTAs captured 51% of online hotel & lodging bookings and possess the visibility and marketing power that most individual properties cannot achieve on their own. 

Working with OTAs isn’t just a matter of signing up and hoping for the best. To take advantage of the opportunities and avoid the pitfalls, you need to actively manage your listings, pricing, and inventory and take a strategic approach to online distribution. 

If done correctly, adopting the right OTAs as part of your distribution strategy can actually help drive direct bookings through the “billboard effect.” Building a comprehensive channel mix incorporating different types of OTAs will ensure you reach your target audience and secure a steady stream of reservations. 

See which OTAs dominate globally, regionally, and across property types based on Cloudbeds customer data and how properties like yours use OTAs as part of their distribution strategy. 

At Cloudbeds, we know the world of OTAs and distribution channels can be complex. We’ve created the Big Book of OTAs to help demystify this process and explain how to create a recipe for success when working with third-party distribution channels.  

What is an online travel agency (OTA)?

An online travel agency (OTA) is a website that acts as a search engine for travel. They connect providers across the travel industry to help travelers easily plan their trips. On OTA sites, travelers can often access package deals with accommodations, airfare, cruises, rental cars, and more .

On average, travelers view 141 pages of travel content in the 45 days before booking a trip, with OTAs making up 67 of those pages. Therefore, properties must be active on as many channels as possible to increase brand awareness and drive bookings — both OTA bookings and direct bookings (more on this later). With the increased popularity of OTAs around the world, hoteliers now have access to markets once unattainable.

How do OTAs work?

Online travel agencies emerged in the 1990s, using the internet’s extensive reach to aggregate global travel supply into a single place so consumers could book their own travel online. These self-service tools reshaped the hotel industry and the way travel was researched and booked, as the general public could now easily plan their trips and reserve their airfare, accommodations, and tours on their own rather than rely on a physical travel agent.

Sites such as Expedia.com, Booking.com, Airbnb, Orbitz, Hotels.com, and TripAdvisor are often consumers’ first stop when researching and booking their next trip. These sites offer a seamless user experience at all stages of the buying process: problem/need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Properties of all types and sizes can connect to multiple OTAs through an integrated channel manager . A distribution system, like a channel manager, shares room inventory and rates from your property management system (PMS) to your booking engine and OTAs. Properties that use a channel manager can streamline hotel operations, increase hotel revenue via revenue management best practices , and increase occupancy across channels (all without the fear of overbookings). 

OTA business models

Hotels form partnerships with OTAs by basically outsourcing marketing to OTAs, who then make money through two business models: the merchant model (guest pays the OTA  in advance) and the commission model (guest pays the hotel at check-in or check-out). Most OTAs offer a blended model so that hotels can let guests choose which option they’d prefer. 

The merchant model

In this model, the online travel agency acts as the merchant of record and collects payments from guests at the time of booking. Once the guest has checked out, the OTA pays the hotel. Contracts exist between hotels and OTAs to provide a set number of rooms to the OTA at a favorable rate. The OTA then makes a profit off each room sold but must meet its contractual thresholds.

The agency (commission) model

In this model, the consumer books via the OTA but pays the hotel directly at the time of checkout. The hotel then pays the OTA a commission on the total value of the booking after checkout. There are no contracts, and rates are set by hotel management. 

The advertising model

This model has increased in popularity and exists on metasearch sites such as Google Hotel Ads, Tripadvisor, Trivago, and KAYAK. Metasearch engines work primarily on a cost-per-click basis where hotels can promote their rooms with links to their direct booking engine, and pay a fee based on the number of clicks they receive. Some of these sites, such as Google, also offer a cost-per-acquisition model (also known as “pay per stay”) where the property pays a percentage of the total reservation cost upon completion of the stay.

For hotels, it can be frustrating to watch distribution costs rise without getting more in return, but there are costs associated with direct bookings too. Demand doesn’t appear without at least some sort of distribution or marketing strategy in place, and those marketing campaigns, loyalty offers, special deals, and direct booking tools have a cost to the hotel. That’s why it’s important to use OTAs wisely and in conjunction with your own direct marketing strategy. 

Online travel agencies vs. online travel agents

Before the rise of OTAs, it was the role of a travel agent to book leisure and business travel. This is because travelers back then did not have access to hotel availability and rates the way we do today. While the internet has made it easier for travelers to book their own trips online, some segments like luxury, corporate, and group travelers still prefer to utilize a person, or online travel agent, to help plan and book a trip.

Travel agents are beneficial when planning complex trips such as a destination wedding, honeymoon, or corporate trip. They have the expertise and connections to find unique accommodations at better rates than most people can find themselves.

Travel agents such as Kuoni have a team of destination experts who work behind the scenes to curate tailor-made accommodations, experiences, and itineraries. Their in-person stores allow travelers to enjoy a glass of champagne while meeting with a travel expert to plan their dream vacation.

Travel agents usually have a portfolio of properties they recommend to travelers and take a commission fee, similar to OTAs. Strong relationships with travel agents can help properties drive more bookings in alternative segments than the OTA market.

Difference between OTAs and metasearch

With so many online booking channels available today, it can be challenging to understand the difference between certain channels.

Metasearch websites like Skyscanner act as aggregators and display hotel information and room rates from a variety of online channels, including OTAs like Agoda, Trip.com, Travelocity, or Priceline.com and a hotel’s website. It enables travelers to compare all of their hotel booking options in real time across the web so that they can book the best deal.

OTAs provide room rates and booking capabilities for only one channel — their own. Meanwhile, metasearch sites can display up to twenty or more results.

Properties can invest in hotel marketing efforts through metasearch engines. Metasearch sites rank listings and it pays off to be near the top. Paying to have your listing higher in the ranks to drive more direct bookings can drive serious results. 

Is Google an OTA?

Google is often a traveler’s first stop when looking for a hotel room. In recent years, Google has changed the hospitality industry with its products. Google offers Google Hotel Search, which acts as a hotel metasearch platform. When a traveler enters a property’s name into Google, it will show all of the rates and listing information from across the web.

Google also has free booking links , a game-changer for independent hotels as they can list their direct rates and links to their own website within the Google Hotel Search box. This option encourages potential guests to book direct.

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The Pros and Cons of Booking Through Online Travel Agencies

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You’re likely already familiar with online travel agencies, even if you don’t travel often. These companies — such as Priceline , Expedia and Orbitz — act as intermediaries between you and a travel provider.

Booking your travel through an OTA can be a good idea in some circumstances, but you’ll want to be wary of its pitfalls. Let’s take a look at the pros and cons of online travel agencies, so you’ll know what to use to book your next vacation.

Pros of booking through online travel agencies

There are certainly advantages booking through online travel agencies, though you’ll find different experiences whether you’re using public OTAs — such as Kayak — or private ones like those offered by your card issuer, such as the Chase's travel portal .

✅ It may be cheaper

When searching for flights online, you may see different prices for the same routes that vary across websites. Although it may be a result of fare type — for example, some search results may not clarify that a fare is basic economy rather than main cabin or economy — other times, the difference comes down to competition for your business.

Online travel services will often offer slightly lower prices on flights in an effort to entice you as a customer. This is true for both hotels and airlines.

» Learn more: Best credit cards for online travel-booking websites

✅ It can earn you more rewards

Have you ever heard of shopping portals ? By logging into a shopping portal, you can earn rewards for purchases made with many online merchants. Some hotel chains, such as Hilton , Marriott and IHG , can be accessed through shopping portals while still booking directly on the hotel website. In this way, you can earn rewards with the hotel directly as well as with the shopping portal.

The same isn’t true for shopping portals and most airline sites. However, many public online travel agencies are accessible through shopping portals, which can then earn you rewards for airfare bookings. By opting to book in this way, you’ll be able to earn points or cash-back rewards through the shopping portal that you’d otherwise miss.

Some card issuers will also reward you heavily when using their online travel services. Clear examples of this can be seen with Capital One and Chase. With the Capital One Venture X Rewards Credit Card , for example, you’ll get 10 miles per dollar spent on hotels and rental cars booked through Capital One Travel .

The Chase Sapphire Reserve® is similar. With this card, you can get 10 Ultimate Rewards® points per dollar spent on hotels and rental cars booked through Chase's portal.

While these numbers are high, it’s important to remember that there are trade-offs when booking through an OTA rather than directly with a hotel or airline. We’ll get into that a little later.

Online travel agencies offered by your card issuer may not feature the same prices as booking directly; you’ll want to compare these before committing to a purchase.

Some card issuers will go so far as to give your points more value when redeeming through their online travel agencies.

This is true with the Chase Sapphire Preferred® Card . When redeeming points on Chase's travel portal, you’ll get 1.25 cents in value per point rather than 1 cent elsewhere.

» Learn more: How much are your airline miles and hotel points worth this year?

Cons of booking through online travel agencies

There are several downsides when it comes to using online travel services for booking travel. It mainly comes down to the fact that travel providers prefer that you book directly with them — and offer more perks to woo your business.

❌ It can be harder to change a booking

Ever needed to change a flight after it's booked? No matter the reason, attempting to alter or otherwise cancel a flight can be a hassle — especially if you’ve booked through a third party.

Generally speaking, rather than offering you direct assistance, both hotels and airlines will recommend you contact the online travel agency you’ve booked with in order to make any changes.

While you may be able to make changes or get refunds with the travel agency, airlines and hotels can — and will — offer much more flexibility when you’ve booked with them directly. You may also be subject to additional fees charged by the online travel agency, which can erase any savings you’ve received.

❌ You may not receive elite benefits

This is the real kicker for anyone wanting elite status. Although airlines will almost always recognize your elite status and allow you to earn miles even for bookings made through an online travel agency, hotels and rental car companies will not.

This is especially important for hotel chains. Earning elite status with hotels generally relies on elite night credits. Although these can be earned in a variety of ways — including having complimentary status by holding certain credit cards — the main method of acquiring elite night credits is by spending nights in hotels. Rooms booked through an online travel agency do not count toward elite status as elite night credits.

Additionally, you will not receive any of the benefits of your existing elite status if your booking is through a third party. This can mean the loss of perks such as room upgrades, complimentary breakfast and even free Wi-Fi.

» Learn more: The best airline and hotel rewards loyalty programs this year

❌ It may be more expensive

Did you know that many hotel chains have best price guarantees? Hyatt, Hilton, Marriott and IHG all have a guarantee that’ll give you either points or a discount if you find a better rate elsewhere.

These guarantees are generous; Hilton, for example, will match the rate and then discount it by a further 25%.

Although you’ll need to file claims for these guarantees and they face limitations — such as a 24-hour window from when you made the booking — you can save a lot of money on your stay if your request is approved.

Online travel agencies can be hit or miss

There are two sides to every coin and this is no different, as there are several benefits and limitations of online travel services. Depending on your needs and loyalty program status, you’ll want to choose whether to book directly with a travel provider or rely on OTAs to do the job for you.

Booking travel through credit card portals from issuers like Chase and Capital One can earn you big rewards. But if you anticipate altering your travel plans or aim to earn elite status instead, booking directly is the way to go.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Chase's website

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1.5%-6.5% Enjoy 6.5% cash back on travel purchased through Chase Travel; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

$300 Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!

on Capital One's website

2x-5x Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options.

75,000 Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel.

Expedia’s 23-Year Evolution in Online Travel

Isaac Carey, Skift

December 4th, 2019 at 2:20 PM EST

Expedia has come a long way since its launch nearly a quarter century ago, making acquisitions a key part of its strategy. It will be interesting to see what's next for the company following its sudden leadership shake-up.

Pioneering travel technology company Expedia is undergoing a huge change in leadership, as former CEO Mark Okerstrom and former Chief Financial Officer Alan Pickerill announced their resignations Wednesday . Launched in the 1990s, Expedia soon became one of the first successful online travel agencies, acting as a business model for legions of travel sites that came afterward. We take a look back at how the travel agency grew over the years, expanding into nearly every corner of the travel search market.

October 1996  — Expedia was founded as a division of Microsoft .

September 1999  — Expedia was spun off as its own company.

July 2001  — IAC/InterActiveCorp , a U.S.-based holding company, bought a controlling interest in Expedia for $1.5 billion.

August 2005  — IAC/InterActiveCorp spun off Expedia, Inc. This included its group of travel businesses, Expedia, Egencia , TripAdvisor , Classic Vacations , eLong , Hotels.com , and Hotwire.com .

August 2005  — Dara Khosrowshahi , formerly the chief financial officer at IAC/InterActiveCorp, became CEO of Expedia. Barry Diller resigned as CEO of IAC/InterActiveCorp, but retained a controlling interest in Expedia. He remains chairman of IAC, the company he founded.

March 2011 — Expedia Inc. launched its first mobile app, called TripAssist.

December 2011  — Expedia, Inc. spun out TripAdvisor Media Group , retaining its portfolio of travel transaction brands.

December 2012  — Expedia bought a majority stake in travel search engine Trivago for €477 million (about $529 million).

March 2012  — Expedia’s Egencia acquired Via Travel , the largest travel company in Norway.

July 2014  — Expedia acquired Australian booking site Wotif for $658 million.

January 2015  — Expedia acquired online travel agency Travelocity from Sabre Corporation for $280 million.

February 2015 — Expedia acquired travel fare aggregator Orbitz for $1.2 billion.

November 2015  — Expedia acquired vacation rental company HomeAway . This deal included all of HomeAway’s global brands: VRBO , HomeAway.com , and VacationRentals.com

August 2017 — Khosrowshahi announced he would be resigning as CEO. Later that month, Mark Okerstrom stepped in as CEO of Expedia, Inc.

March 2018  — Expedia, Inc. announced that it had changed its name to Expedia Group, Inc.

October 2018  — Expedia bought Pillow and ApartmentJet , two startups that help landlords convert apartments into short-term rentals .

March 2019  — Expedia rebranded HomeAway as Vrbo (pronounced VER-boh).

December 2019  — Expedia CEO Mark Okerstrom and Chief Financial Officer Alan Pickerill resigned .

Sources: Skift, Wikipedia

The Daily Newsletter

Our daily coverage of the global travel industry. Written by editors and analysts from across Skift’s brands.

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Tags: expedia , online travel agencies

Photo credit: Home page for Expedia's main travel site, Expedia.com. The company has grown rapidly since its launch nearly 25 years ago.

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Category: Travel

Date: October 20, 2023

Online Travel Agencies – A Brief Introduction

The role of an online travel agency (OTA) is becoming increasingly important in the accommodation industry as they provide a convenient way for travelers to arrange their stay. From the comfort of their home, travelers can compare hotel prices and book them over the internet. 

In this blog, we are going to discuss what an OTA is, the best OTA platforms, travel website development and how to do it right, and more.

Ready? Let’s go.

What Are Online Travel Agencies?

An online travel agency (OTA) arranges and sells accommodations, tours, transportation and trips on an online platform for travelers. They are third parties who sell services on behalf of other companies.

Usually, these OTAs offer many benefits with added convenience with more of a self-service approach. They also include a built-in booking system which allows instant bookings.

How Do Online Travel Agencies Work?

OTAs generally work on two models. They are,

1. Merchant Model

In this model, hotels sell rooms to OTAs at a discounted or wholesale price. Then, the OTA sells them to the customer at a markup price

2. Agency Model

This is a commission-based model where OTAs acts as a distribution partner. OTAs receive full commission after the stay has taken place. The hotel directly receives the payment from the end customer and does not wait for the payment transfer from third-party distributors.

What Are the Benefits of Partnering with Online Travel Agencies?

In one word – exposure! Online travel agents get thousands of website visitors from all over the world. Plus, they have positioned themselves as an authority on everything related to travel. So, people trust the recommendation they receive from OTAs.

By listing in OTAs, accommodation businesses like hotels not only reach a vast set of audience but will also find their service among many other reputable sources of information.

In addition, hotels that are listed on OTAs can also benefit from what is referred to as the ‘billboard effect’. This means that OTAs provide a form of advertising for service providers such as hotels on their platforms. Once the user gains this awareness, they may even go to the website of that particular hotel to make a direct booking.

What Are the Advantages and Disadvantages of Selling Through Online Travel Agents?

Accommodation businesses like hotels and B&Bs have pros and cons of getting listed in OTAs. Let’s take a look at them.

Advantages Of Online Travel Agents

• Low-cost method of selling accommodation services
• Reduced online marketing spend as OTAs invest in advertising to attract potential customers
• Impartial reviews give customers the confidence to book
• Users can easily compare various accommodation costs at one place

Disadvantages Of Online Travel Agents

• Commission rates are charged on every sale. It can range between 10-15% of the gross cost
• Restrictive cancellation terms
• Even if accommodation businesses use OTAs, the need for their own website and booking engine does not go away
• Investment in a balanced multi-channel strategy may be needed to boost sales

Even though OTAs can help to fill your rooms, accommodation businesses must try to maximize revenue through their own website. Consistent work on search engine optimization tactics and other digital marketing techniques is a must. Accommodation businesses must focus on customer retention techniques and directly target their existing customers through emails and direct marketing.

How To Start An Online Travel Agency?

Travel agencies no longer inform customers about the availability of flights and rooms. They issue rooms and get a commission from the respective accommodation businesses. That is why most of the new travel businesses follow the OTA model.

If you plan to enter the OTA arena, you can specialize in pilgrimages, leisure travel, business travel or any niche. But, focusing on how effectively you offer things is the key to success.

Here Are Some Points You Have To Consider When Starting An Online Travel Agency.

• Register the name of your agency and if applicable, take a license as per your local laws
• Try to get a membership in IATA or any other reputed travel organization
• Gain more knowledge about the travel industry and particularly the nice you want to concentrate
• Get your travel website designed by a professional company like ColorWhistle
• Offer deals that focus on a specific geography. Focusing on a particular niche will also bring more success
• Publicize your business in the online space
• Utilize the power of blogging
• Create a good social media presence

Why Do People Use Online Travel Agencies?

 here are some of the main reasons they prefer ota’s..

• Few OTAs offer reward programs which can be used for future travel needs
• Special rates which cannot be found elsewhere
• Some OTAs may have generous cancellation policies. For example, Priceline does not offer any penalty if the user cancels the ticket until the end of the next business day
• Most users may not have an idea on where to book other than an OTA
• OTAs make it easy to compare different rates

Who Are the Top Online Travel Agents?

1. booking.com.

Booking.com is one of the largest accommodations websites which has now expanded to smaller markets such as family-operated bed and breakfast, vacation rentals and self-catering apartments.

Interesting statistics

• Every day, 1,550,000 nights are booked
• 68% of nights booked came from families and couples
• 42% of nights booked came from unique places such as homes and apartments
• 38% of reviews are given by guests which are useful for other travelers
• 75% of nights booked come from guests who booked more than 5 times

2. Expedia’s Hotels.com

Expedia’s Hotels.com is a popular brand which has a global audience and attracts diverse travelers. The company gained more power in the industry by acquiring Travelocity.

• Gets over 675 million monthly site visits
• Operates in 70+ countries and 40+ languages
• Attracts 75 million monthly flight shoppers

Airbnb revolutionized the travel accommodation industry by introducing home-sharing. The website has diverse listings and travelers get a sense of safety as they can know their guest’s identity.

• 2.9 million hosts are present on Airbnb
• Average of 800k stays each night
• 14k new hosts join every month

Apart from these major OTAs, there are many small ones such as OneTravel, Vayama, Tripsta, TravelMerry, ExploreTrip, Kiss&Fly, Webjet, GoToGate, Travelgenio, Bookairfare, Fareboom, Skybooker, Travel2be, OneTwoTrip!, and eBookers.

Drive Conversions and Boost your Business with Expert Travel Website Development.

What the future holds for online travel agencies.

It is clear that, in the near future, accommodation businesses are not about to back down from OTAs. They are enjoying the billboard effect and trying their best to retain website visitors and convert them into direct booking. 

Sure, there is a cost involved. The upside of this is that accommodation businesses are working hard to create a loyal customer base that will continue to seek direct bookings.

The chances of OTAs suffering in the long run are pretty slim. Smaller accommodation businesses have a lot to gain from the exposure they receive through OTAs. Plus, a large portion of the younger generation prefers OTAs. So their market will continue to grow.

If you need any help to design, develop or market an OTA website, contact our travel web design and development experts at ColorWhistle . 

We can create an amazing website with beautiful designs combined with dynamic content such as live rates and special offers. Contact us today for your free business analysis and consultation.

In quest of the Perfect Travel Tech Solutions Buddy?

Be unrestricted to click the other trendy writes under this title that suits your needs the best!

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About the Author - Anjana

Anjana is a full-time Copywriter at ColorWhistle managing content-related projects. She writes about website technologies, digital marketing, and industries such as travel. Plus, she has an unhealthy addiction towards online marketing, watching crime shows, and chocolates.

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Best Online Travel Agencies

Booking.com is our top choice for making your trip arrangements

Ligaya Malones is an editor, blogger, and freelance writer specializing in food and travel. Ligaya's work has appeared in publications including Lonely Planet and BRIDES.

We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more .

Planning a trip can be easier through an online travel agency than if you handle each aspect of the planning separately. You can book hotels, air travel, rental cars, and more through a single site, and booking everything together sometimes results in discounts. By inputting a destination, a range of dates, and other preferences, you will see a list of options for each aspect of travel.

The best online travel agencies offer options from the largest number of airlines, hotels, car rental agencies, and more. Look for sites that offer discounts for combining reservations for different aspects of your trip. For example, the best sites will have lower rates if you book both plane tickets and a hotel through their services. The best sites also provide reviews from customers who actually have booked through the service. These are our top picks.

• Best Overall: Booking.com
• Best Budget: Skyscanner
• Best Price Predictor: Hopper
• Most Innovative: Kiwi.com
• Best for Eco-Conscious: Kind Traveler
• Best for Social Impact: I Like Local
• Best for Design-Forward Homestays: Plum Guide
• Our Top Picks
• Booking.com

Kind Traveler

I Like Local

• See More (4)

Final Verdict

Frequently asked questions, methodology, best overall : booking.com.

 Booking.com

This industry leader offers one of the most comprehensive trip planning platforms on the Internet.

Lots of options to choose from

Interface is easy to use

Numerous filters to customize your search

Tricky to tell whether changes/cancellations can be made with Booking.com or the vendor directly

Booking.com was founded in 1996 and has grown into an industry leader that stands out for being one of the most comprehensive trip planning platforms out there. From one website, you can compare and book accommodations, flights (including one-way and multi-city flights), sightseeing activities, and even airport taxis. The website lists more than 28 million accommodation options, from hotels, hostels, and B&Bs to vacation homes and luxury resorts—you can browse more choices per destination on Booking.com than other online travel agencies. The website also performs well on cost and typically returns lower-than-average prices for flights and hotels. 

Booking.com's interface is also easy to use. On the home page, search for a hotel by entering your chosen destination and dates. Then, use the extensive list of filters—such as price range and distance from the city center—to narrow the results down and find the best fit. You can also search for a specific hotel, or seek inspiration by clicking through options grouped by destination or property type or by topic such as the country’s best Michelin-starred hotel restaurants or the top cities for vegan travelers. The flights, car rental, and other tabs are just as intuitive. 

Best Budget : Skyscanner

 Skyscanner

You can compare prices across airlines, hotels, and car rentals.

Simple interface

Option to toggle searches between specific dates or by monthly calendars

Search Everywhere button is great for spontaneous planners

Extra clicks are required to make a final purchase

Must read fine print for changes/cancellations—may need to deal directly with the vendor

Ads on the sidebar can be distracting

Find deals on airfare, hotels, and car rentals with an aggregator site like Skyscanner , which uses a metasearch engine to compare prices from all online travel agencies and the airline, hotel, or car rental company in question. Run searches with fixed dates, opt to compare airfare prices month to month, or click “Cheapest Month.” Searches also include options for nearby airports or non-stop flights only. With hotel searches, you can choose to select only from properties with free cancellation, a cleanliness rating of 4.5/5 or higher, or 3- or 4-starred hotels only. Car rental searches include an option to select “return car to different location.”

Once you’ve found the best rate, click on the link to be redirected to the third-party site to make your booking. Feeling spontaneous? The Search Everywhere button on the homepage offers a list of the cheapest flight deals for destinations both locally and across the world—just plug in your departure airport first.

Best Price Predictor : Hopper

The company claims a 95 percent accuracy rate at predicting when flights and hotel rates will be cheapest.

Color-coded system makes it easy to determine cheapest days to buy

App is easy to use

Option to track flights and receive alerts when the best time to buy arises

Some have mentioned the app functions better as a research tool than a booking tool

Unclear whether Hopper will price match if you find a cheaper flight elsewhere

Hopper is a travel app available on iOS and Android that aims to help travelers save on airfare by usng historical data and their own algorithm to predict when flights will be cheapest. Just type in where and when you’d like to fly and Hopper will present you with a color-coded pricing calendar indicating how much tickets are likely to cost. (Green is the least expensive, then yellow, orange, and red for most expensive.) Hopper will also recommend you either buy now or wait, or you can choose to watch a trip and receive notifications on the best time to buy. In addition, the app has expanded to offer hotel and car rental price predictions, too.

Some newer features since the app’s inception in 2009 include an option to freeze a price for a limited time—for an extra fee—as well as exclusive app-only discounts. Hopper is free to download, and you can choose to book directly through the app, though some users mentioned they use Hopper as more of a research tool before booking directly with the airline or hotel. The company claims a 95 percent accuracy rate at predicting flight rates up to a year ahead.

Most Innovative : Kiwi.com

This metasearch engine scours the web to piece together the ideal itinerary using planes, trains, buses, and more.

Creative itineraries get you where you need to go, especially if you’ve got a multi-stop trip

Kiwi Guarantee offers rebooking or cancellation protections

Nomad option appeals to travelers with a lot of flexibility

Creative itineraries mean you may not fly out of the same airport you flew into

Kiwi Guarantee has an additional fee

Charges all-in-one fee for booking flights, trains, buses (though you can always purchase a la carte)

Travelers planning multi-city destinations and seeking a bargain, as well as those looking to take planes, trains, and automobiles to get there, might consider Kiwi . Kiwi is a metasearch engine that scours and pieces together itineraries from various airlines (even if they don’t have a codeshare agreement), considers multiple airports (even if your arrival airport is different from departure), and offers booking options, whether you’re looking at very specific dates or more general ones (up to 60 nights).

Some will find the ability to make multiple bookings for a particular trip more convenient than going at it manually several different times, though note that you must opt into the Kiwi Guarantee program to access rebooking and refund protections should your reservation change or be canceled. Kiwi’s Nomad option allows you to plug in a bunch of destinations you’d like to visit and the length of your intended stay, and the website will churn out the most affordable itineraries for review.

Best for Eco-Conscious : Kind Traveler

A give-and-get business model means booking accommodations with exclusive perks, a donation to environmental organizations, and more.

All participating hotels include a local give-back component

Exclusive savings and perks

Participating hotels are located in some of the most beautiful places in the world

Inventory is much smaller compared to other booking platforms

Some of the amenities mentioned are based on availability only

In 2022, Kind Traveler (an online trave agency focused on hotel bookings) announced an increase in environmentally and socially conscious hotels, charity donations, voluntourism opportunities, and additional perks like waived resort fees or a welcome amenity.

Unlock exclusive hotel rates and perks from participating Kind Traveler hotels with a minimum $10/night minimum donation to a local charity. For example, stay at the Six Senses Laamu in the Maldives and receive up to $33 off the nightly rate and perks such as a food and beverage credit and an Earth Lab or Alchemy Bar workshop when you make a donation to Manta Trust. The organization funds coastal research to protect the island nation’s large yet fragile population of reef mantas.

Select from more than 140 participating hotels from the Hawaiian Islands to Bozeman, Montana, and the Maldives. Charities include wildlife, human rights, arts, education, and environmental preservation organizations.

Best for Social Impact : I Like Local

Choose from a host of travel experiences with the peace of mind that 100 percent of the cost goes directly to local partners.

Social impact mission woven into organization’s business model

Immersive experiences led by local guides

Range of experiences offered

May not be best fit for those seeking upscale, luxury experiences and stays

Can’t sort experiences by a list of countries (though an interactive map is available)

No experiences outside of Africa and Asia

For an online travel agency with a booking platform designed to route dollars spent directly to the communities travelers intend to visit, consider I Like Local . Visit the website to browse a host of travel experiences in countries including Indonesia, Kenya, and Cambodia. Experiences include homestays and farmstays as well as wellness and culturally oriented experiences—from cooking and cycling tours to weaving classes.

To search for an experience, select from drop-down items like travel dates and experience categories, or view a global map and click on a country to view experiences that way.

The platform got its start in 2014 and has grown to 4,000 local hosts across nearly 20 countries. As a social impact organization, 100 percent of each booking fee goes to local hosts. To date, 16,000 travelers have booked with I Like Local.

Best for Design-Forward Homestays : Plum Guide

Browse and book seriously vetted, design-forward vacation homes.

Highly curated inventory of vacation rentals across the world

Design-forward

Thorough vetting process

Does not publish guest reviews

Other platforms have homes available across more destinations

When it comes to booking a vacation home, serviced apartment, or condo, travelers are spoiled for choice. Plum Guide is an online travel agency that specializes in accommodations—though not just any home makes its directory. The company claims that each potential home listed on its site must jump through 150 hoops to be included, from internet speed and mattress and pillow quality to the showers’ water pressure and the home’s proximity to dining, shopping, and attractions.

Search by a featured collection on the website such as “ pet-friendly homes ” or “one-of-a-kind homes in Palm Springs.” Scroll to the bottom of its homepage to view its top destinations, as well as a list of all destinations where Plum Guide homes are available, including Barbados, Mexico, Portugal, Switzerland, the U.S., and Turkey. Note: From the top right-hand corner of the site, use the dropdown menu to select currency of choice.

As long as you know what you value most out of your travel experience—such as affordability, social impact, or luxe accommodations—there’s an online travel agency to help plan your next trip. Be sure to read the fine print, as some agencies are third-party websites and not direct vendors. If you're not sure where to start, Booking.com is your best bet for a smooth user experience and hard-to-beat offers on flights, hotels, and other travel arrangements.

What Is the Biggest Travel Agency?

Our choice for best overall, Booking.com, is known as an industry leader with listings for all major hotels, airlines, car rental companies, and more. It boasts more choices for accommodations per destination than any other site, and we found its interface to be user-friendly.

Are Online Travel Agencies Worth It?

This depends on your needs and priorities. The best online travel agencies certainly can save time by booking everything all at once. However, if you're someone who is good at haggling and enjoys the details of planning a trip, you might be able to find better deals by reaching out to hotels or other destinations and speaking to someone personally.

Is It Cheaper to Book Online Than With a Travel Agent?

Not always. A travel agent you know and trust should have the experience and connections to find deals that can match or surpass what you'll find online. Additionally, if something goes wrong, travel agents provide you with an actual person you can use as an advocate to correct the problem . But if you don't have access to a good travel agent, online sites still provide plenty of ways to streamline planning and save money .

We considered dozens of online travel agencies and narrowed down the options based on user experience, volume and quality of inventory, unique offerings and specials, and customer reviews. We also assessed travel companies’ environmentally and socially conscious policies.

Catherine Falls Commercial / Getty Images

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The 10 best online travel agencies in 2024

The top 10 online travel agencies.

• Booking.com
• Lastminute.com

Best online travel agencies for business travel

1. travelperk.

Main offerings and features:

• Industry-leading travel inventory
• Flexible booking with FlexiPerk
• Safety alerts with TravelCare
• Integrated travel policy & approval flows
• Centralized invoicing
• Easy & real-time expense reports
• Carbon offsetting with GreenPerk
• 24/7 fast customer support in target 15s
• VAT reclaim
• Integration with 3rd party tools , such as expense management or HR software like Expensify and BambooHR

Save time and money on your business travel with TravelPerk

2. sap concur.

• Works with some of the biggest brands
• Easy tracking and reporting of expenses for expense reports
• Many connected apps, such as Uber and Airbnb for cars and hotels
• One solution for a variety of business travel spending

Click below to compare both platforms’ features and benefits

• Ample integrations
• Award-winning mobile app
• Employee-centric travel management

Click below for a more detailed comparison between both platforms:

Best online travel agencies for leisure travel, 1. booking.com.

• Intuitive booking tool and website
• Flight + Hotel booking for easily planning trips with no cross-referencing travel websites
• Simple car rental options and taxi hire
• Available in over 40 different languages and offers over half a million properties across 207 countries
• You can book experiences in your destination city to entertain you on your travels
• Genius rewards program

• Simple interface and booking tool
• Deals when making more than one booking
• 38 different languages and offers a 24-hour, multilingual customer support service
• Free cancellation within 24 hours of booking
• Millions of reviews to help make your decision

3. Lastminute.com

• Filter hotels according to budgets, star ratings, guest ratings, board types, and more
• ATOL protection on flight + hotel bundles
• Flash sales for last-minute deals
• Payment plans to spread out the cost of travel
• Extra entertainment booking for your trips, like theatrical productions and day trips
• Gift cards for gifting travel

• Expedia rewards for hotels, cars, and more
• Experienced support
• Compare cruise lines
• Big savings when booking flights, hotels, and car
• Operates in nearly 70 countries and in over 35 different languages
• Luxury travel options

• Book hotels, flights, cars, and bundles
• 24/7 support
• Lower prices on the app
• Great last-minute deals for spontaneous travel

6. Bookmundi

Best online travel agencies for flights

1. skyscanner.

• Super flexible booking filters
• Cheaper flights and hotels than other OTAs
• Price alerts for travel routes of interest
• Easy-to-use booking tool and UI
• Hundreds of location and currency options
• One-way, return, and multi-city travel options

2. Kiwi.com

• Simple flight booking tool
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What is an online travel agency?

Online travel agencies have become an essential part of doing business for many tour operators. But what is an online travel agency and what do they do?

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For a lot of tours and activity providers, working with online travel agencies is an essential part of doing business. These have strong, well-known branding, can reach guests in new markets and have marketing budgets that most operators could only dream of. But what is an online travel agency?

An online travel agency, or an OTA, is an online marketplace for travel that sells products to consumers. There are a large number of these, and many focus on specific segments or markets. The big 3 OTAs, according to Skift, are Trip.com, Booking Holdings, and Expedia . For tour operators, some of the main ones are GetYourGuide, Viator, Expedia and Musement.

A brief history of OTAs

OTAs have become the way that most consumers purchase travel products. The first were founded in the mid-90s, with Travelweb selling hotels, the Internet Travel Network for flights, and in 1995, Viator launched for experiences. Since then, the OTA market has grown to $475 billion and is predicted to be $1 trillion in 2030 . Two-thirds of all travel revenue is spent with an OTA.

Despite Viator being one of the first OTAs, tours and activities have always lagged behind airlines and hotels when it comes to online sales. In part, this is because many of the companies that operate in the sector are smaller and lacked the resources to come online. Cost-effective reservation systems changed that , as did the ability to stop and work on different parts of businesses during the pandemic. Phocuswright and Arival say that online bookings jumped from 17 per cent of all bookings in 2019 to 30 per cent in 2021 .

In 2019, OTAs only accounted for three per cent of all bookings for experiences, according to the same research. By 2021, this was four per cent, and by 2025, it is expected to be seven per cent. This represents a jump from $8 billion in revenue to $20 billion by 2025. In 20 years, OTAs have come a long way.

Travellers use OTAs for several reasons. In 2020, Arival found that these were because of price, ease, best ticketing options and where the consumer first found the trip . Operator websites performed better when it came to providing the best options and finding what they wanted. However, 45 per cent of travellers said that OTAs had the best price and, since the survey, their marketing budgets will have ramped up, meaning that these are where consumers will discover products.

Difference between online and offline agencies

The main difference between an OTA and a brick-and-mortar travel agency is that the consumer is expected to do some of the work. Offline agencies contain a huge amount of expertise and contacts that should give travellers a worry-free holiday. They will book the flights, hotels and sometimes experiences so that the traveller doesn’t have to.

OTAs are cheaper because they turn this on its head. They offer do-it-yourself travel to their customers. On an OTA, a traveller will find the contacts and content they need but must rely on their own ability to book the right trip. The traveller also uses reviews provided by others to judge the quality of their trip. All the knowledge and experience of the in-person travel agent has been outsourced.

OTAs are also able to reduce costs because they do not need to rent a high-street location or spend money on other associated costs. However, they do need to spend more on customer service for those customers who have problems and on marketing. The difference in cost is the main reason that most consumers are happy with a DIY approach to travel, although there are a lot of people who love researching and making their holiday plans.

Offline travel agencies still exist, and many of the larger brands have moved to a hybrid model. In this case, they offer the full-service, high-street experience while also offering their own OTAs. For example, TUI’s office can still be found in town centres, while their website offers packages and DIY options. TUI is also the owner of the European tours and activities OTA, Musement.

Types of OTA for experiences

There are as many different types of OTA for tours and activities as there are types of trips. Operators who work in the adventure or wellness spaces will be able to find OTAs that work specifically in their niche. Some OTAs focus on specific geographic markets or languages, such as Civitatis for the Spanish-speaking segment. KKDay and Klook have different approaches to the Asian market. Then there will be those that focus on a specific segment and language.

The largest OTAs do not do this. They cast their net wide — both in terms of the activities they offer and the customers they wish to sell to.

Operators wishing to expand their sales reach should connect to both the main players and choose other OTAs who fit their niche and market. This can be made easier with a channel manager, such as TourCMS, which offers a range of connections to different OTAs, resellers and a marketplace .

What OTAs do

OTAs will use different techniques to sell tours and activities and will take a percentage of each sale. These will include consumers searching for a tour on the OTA’s site, on a search engine, and targeted marketing on social media.

When a traveller searches for an activity on an OTA, they will be shown a range of results that have been decided by the company’s algorithm. This will be based on the type of search, as well as other factors such as review scores, relevance and popularity. A general search for experiences in Monte Verde, Costa Rica, will display the OTA’s ranking of all the experiences in that area for the guest to choose from. A more specific search for walking tours in Paris will do the same, but just for that segment. The traveller will be able to filter the results, but they will always be ranked by the algorithm.

However, that’s not how most searches made by those planning their travel begin. This will happen on a search engine, almost certainly Google. Because of their size, the large OTAs will often show up in the first results organically due to their search engine optimisation. Guests will click through and see the trips they offer. The OTAs will also feature in the Google Things To Do section for that destination.

The very first results shown on a lot of searches are sponsored. These are adverts where a company has paid to appear next to a certain set of words that have been searched for. OTAs target these words so that they appear as the very first link, with their price showing, on that search. The results of this will be constantly monitored and optimised. 

OTA advertising will work slightly differently on social media platforms, particularly Facebook and Instagram. These have access to so much information about their users that it is possible to send targeted adverts that aim for a traveller to see exactly what they want when they want to buy it (which doesn’t always happen in practice). This traveller may also have visited the OTA’s site for research, in which case they will receive highly specific retargeting ads that are based on exactly what they have looked at.

This is why some tour operators consider the commission they pay OTAs, which can be 30 per cent of the total price, as a marketing cost. It means the operator can reach customers in source markets and in-destination that are actively looking for things to do, and who they would not have been able to advertise to themselves.

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The Evolution of Online Travel Agencies in the Last Decade: E-Travel SA as an Exceptional Paradigm

• Conference paper
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• Cite this conference paper

• Dimitra Psefti 3 ,
• Ioulia Poulaki 4 ,
• Alkistis Papaioannou 5 &
• Vicky Katsoni 6  

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

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The recent evolution in tourism industry driven by the technological advances is really significant. This paper aims to highlight the development of the online travel agencies (hereinafter OTAs) and the way that technology has contributed to this direction by investigating the case of an OTA company, namely e-Travel SA. The Internet seems to have changed dramatically and in a positive way the tourism industry. Information and communication technologies (ICTs), such as artificial intelligence and machine learning, virtual and augmented reality, Internet of things as well as gamification, offer valuable tools and applications both to businesses and to customers. At the same time, the increased use of mobile devices, digital tools and social media along with the unlimited access to information has made consumers demanding and updated. Consequently, they require more and more useful services based on their needs. Considering the aforementioned, it is easy to understand that marketing strategies of many companies have changed and that these companies are now exploiting the state of the art in digital marketing tools in order to get the best possible result. E-Travel is a real example of the OTAs’ evolution during the last decade, and their success proves that opportunities may be generated by exploiting the technological advancements.

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Acknowledgements

The authors would like to thank all the departments of the company e-Travel SA for the provision of the data used in order to conduct this study.

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Dimitra Psefti

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Correspondence to Ioulia Poulaki .

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Psefti, D., Poulaki, I., Papaioannou, A., Katsoni, V. (2021). The Evolution of Online Travel Agencies in the Last Decade: E-Travel SA as an Exceptional Paradigm. In: Katsoni, V., van Zyl, C. (eds) Culture and Tourism in a Smart, Globalized, and Sustainable World. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-72469-6_40

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