online travel agency advantages

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The Pros and Cons of Booking Through Online Travel Agencies

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

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.

Advantages and Disadvantages of Online Travel Agencies (OTAs)

Table of Contents

For many travelers, Online Travel Agencies (OTAs) are the preferred way to search for and book package deals, accommodation, flights, tours, and other travel. Online travel agents like Expedia, Hotels.com and Booking.com are among some of the most popular websites in the world.

For business-savvy tour operators who recognize that organic search engine traffic alone may not generate enough revenue, OTAs are an important component of a successful distribution channel strategy. They can help you reach many more travelers and generate more bookings. However, the advantages of OTAs need to be balanced with the disadvantages, like having to pay a commission on every booking.

To help you figure out the best plan of action, here’s a rundown of the pros and cons of online travel agents, and how you can use them to benefit your business.

What is an Online Travel Agency (OTA)?

An OTA is a one-stop online travel marketplace where travelers can search for, compare, and book everything from flights and hotels, to tours and car rentals.

Think of an OTA as an Amazon.com for travel. OTAs like GetYourGuide and Expedia attract millions of visitors every day because of their convenience, price and product comparison capabilities, and their huge range of hotels, tours, and other travel.

From an OTA’s perspective, the typical business model involves making money by taking a commission from each booking. Many also offer display advertising or charge companies a “pay-per-click” fee to ensure their listing appears at the top of relevant search results. 

Advantages of Online Travel Agencies (OTAs)

Expand your reach.

The main advantage of OTAs is their huge popularity, which enables tour operators to reach more travelers. It’s no secret why OTAs attract so many people:

• Breadth of choice: Just as consumers use Amazon for buyer research and price comparison purposes, OTAs offer a huge range of experiences and price points for travelers who are shopping for something specific or looking for ideas. 
• Price comparison and deals: OTAs are also popular among price-conscious travelers and bargain hunters. They let people search for travel within a set budget, and weigh their options in one place—comparing different options side by side. 
• Convenience and ease of use: Like other online retailers, OTAs are simply an easy and convenient way to shop compared to the offline equivalent. The ability to use filters to narrow down their selection according to their preferences makes OTAs an invaluable time-saving tool when researching travel.

Create marketing efficiencies

OTAs spend enormous amounts of money promoting their websites. If you have a limited marketing budget, it’s a cost-effective way to reach a much larger audience. Listing your tours on an OTA could also increase sales through your own website—a phenomenon known as the “billboard effect” . 

Many savvy buyers use OTAs as a type of meta search engine (a search engine within a website that surfaces results from lots of different search engines).  For example, a traveler searches for “things to do Waikiki” on Expedia. To explore their options and narrow down their preferences, they’ll skim through activities, read reviews, and compare pricing before switching over to Google. Now they have a better idea of what’s out there and what they’re interested in, so their search keywords will be very specific. For example, “Atlantis Submarines Waikiki.”

So how do you benefit from this buyer behavior and make sure your business takes advantage of the billboard effect on OTA websites?

• Have a strong direct pricing strategy. Consider all of your costs, including digital marketing, resellers commission, etc. to come up with a price that works for your audience, market, and business.
• Build a strong SEO and paid-search strategy so you show up prominently in search results.
• Protect your brand name with selective organic and paid keyword combinations.
• Thoroughly read through an OTA’s terms before signing on. Make sure you own your brand name in paid search.

Generate more low season bookings

If you experience a downturn in sales during the low season , listing your tours on an OTA lets you piggyback their marketing efforts—at a time when you may need to reduce your costs—to sell tours more quickly, easily, and cost-effectively (even factoring in commissions) than you might be able to do yourself. 

Gain invaluable insights

When you list your tours on an OTA, you may receive access to the analytics and data insights generated by the platform. Carefully consider how to measure your customers’ buying patterns. You can test different pricing strategies and use the platform’s analytics to spot potential new trends and opportunities, or use these insights to make better-informed business decisions.

Done correctly, all of these things allow business-savvy tour operators to use OTAs as a valuable tool for direct business.

Disadvantages of Online Travel Agencies (OTAs)

Having to pay a commission.

While listing on an OTA is free, OTAs make their money by charging a commission on every booking. This can be as much as 20% of the cost of the sale or even higher. Of course, this cost may be offset by selling more tours, faster. 

Customer service issues and cancellation rules

One reason some travelers don’t like using OTAs is the customer service, or lack thereof. Post-sale, OTAs typically become the main contact for cancellation, booking changes, or issue resolution. If something goes wrong, such as a cancellation due to an unforeseen event, travelers can be left dealing with a large company and the impersonal and unsatisfying customer service that often goes along with that. This may also affect their impression of your business.

Risk of overbooking

Overbookings can be a common problem even if you don’t currently list on an OTA. You might already be taking bookings over the phone, at your office, on your website, and through resellers. Adding multiple online travel agents to the mix can create more work to manage overbooking your tours and activities. Doing it manually or using a number of different systems and processes can be unproductive, reducing the many benefits of selling through OTAs. The best solution for overbooking is a centralized booking system with a channel manager that lets you keep track of all your bookings.

Potential loss of business

It is actually possible to hurt revenues by using an OTA due to common OTA marketing strategies. For example, an OTA might favor some tour companies over others due to them receiving a higher commission. That means your business finds it more difficult to appear in searches, while a competitor appears prominently.

Loss of complete control

The moment you start using an OTA, you face limitations around how you can market your business on their site. This includes restrictions on how tour descriptions are presented, a limited ability to edit and update listings, and so on. The good news is that you can offset this potential disadvantage by connecting to an OTA via a centralized booking system that allows you full control over your content.

Examples of Online Travel Agencies (OTAs)

Ready to get started with OTAs? Here’s an online travel agency list to check out—from huge global brands selling everything from flights to vacation rentals and experiences, to smaller, more niche OTAs. 

A leading booking site for the Asian market in particular, offering all types of travel bookings, especially accommodation. 

Part of the Expedia Group, which owns multiple OTAs, also including Orbitz and Travelocity.

One of the largest OTAs for tours and activities in the world.

GetYourGuide

A growing OTA specializing in unique experiences, especially for millennial travelers.

A growing OTA focused on selling tickets to museums and other attractions, but that does list other local experiences.

All of these websites have a section explaining how they work with tour companies, what their commission is, and how to get started.

Already selling through OTAs? Integrate Rezgo with Expedia, Viator, and GetYourGuide to manage your availability and revenues in one place and ensure a smooth customer experience.

Editor’s Note – July 2022: Updated to reflect the current percentages charged by OTAs.

Written By | Rob Mathison

Rob Mathison is a Vancouver-based freelance writer focusing on tech, travel, digital marketing, and education. He is a co-author of The Complete Resident’s Guide to Vancouver.

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Pros and cons of an online Travel agency vs. offline travel agency

What is the difference between an online travel agency and an offline travel agency? We will look at the pros and cons of online travel agencies vs. offline travel agencies

By Jessica Freedman

February 9, 2024

As travel managers constantly look for ways to optimize their corporate travel programs, part of doing so is understanding the differences between going digital or taking your travel management needs offline. In this explanatory guide, we will look at the pros and cons of online travel agencies vs. offline travel agencies so that you are prepared to understand the differences in order to choose the travel booking tool and management system that is most suitable for your company.

Here’s what we’ll cover:

• What is a TMC?

What is an OTA?

Pros and cons of online travel agencies, offline travel agencies, pros and cons of offline travel agencies, how to choose the best corporate travel platform.

Let’s start with a short introduction to some simple terminology to give you a guiding hand.

Types of online booking tools

For starters, to recognize the difference between online travel agencies and offline, it’s important to understand that there is a wide range of online booking tools available for travel. Let’s take a look at the different types:

Travel aggregators

Corporate online booking tools, direct bookings, travel agencies.

Travel aggregators are websites that essentially consolidate the travel offers and prices from multiple sources all in one place. This allows users to book at the lowest prices based on the results listed in the search results. This helps users find the best prices out of all the results the aggregator has found. This way it is easy for consumers to know that they are booking at the lowest price possible.

TMCs like BCD (which we will discuss more in detail below) can function as a travel aggregator. For instance, for hotel bookings, TMCs combine GDS content with content from Expedia, Booking.com, HRS, and others offering this all together in a mobile app or website. In the case of AMEX, they have a proprietary online booking tool, called KDS, which also serves as a travel aggregation tool.

 When it comes to business travel, corporate online booking tools are frequently used by businesses to keep a hand on their business travelers. Corporate online booking tools are ideal for keeping track of trips, travel spend, and ultimately streamlining business travel.  GetGoing  and Booking.com for business are examples of corporate online booking tools, as well as EHI Direct .

Direct bookings are carried out by going directly to the airline, hotel, train or rental car company’s respective sites and booking directly instead of through a third party.

We will look more at online travel agencies, or OTAs below, but the idea is that you can get access to travel inventory all in one place. Online travel agencies are the most common way of booking online travel.

What is a TMC?

A TMC, or a Travel Management Company uses a Global Distribution System (GDS) as a travel booking tool. TMCs started before the boom of online travel. Travel was booked in a traditional way via telephone or email and then arrangements were made by travel agents.

Nonetheless, TMCS have evolved since their beginnings, investing in making business travel more digital even though they still have a way to come in terms of technology. TMCs offer the value of industry experience while offering more personal service through their agents. TMCs integrate custom-built booking  preferences to give business travelers the best choices within their travel  policy , allowing them to compare options. As a travel manager you can work with your TMC to decide how you want to set up your business travel program.

A TMC like BCD Travel, AMEX, and CWT can help companies make the most of their travel in general beyond just booking travel. They can give a helping hand with cost analysis, reporting, duty of care, etc., but that isn’t to say that an online travel agency won’t provide you with data reports of your travel spend.

Full-service business and corporate travel management companies can help optimize, manage and improve your business travel, ensuring you adhere to your travel policy, and providing seamless booking experiences, while offering a hand with travel data, allowing you to optimize your travel spend and costs to make the most out of your business travel program.

OTAs, or online travel agencies offer customers the possibility to book their travel online. OTAs started in 1996 with Travelocity being the first online travel agency. Most of them started off with a strong digital product and platform and added agent support/service as an added benefit.

They are third party agents who sell services on behalf of airlines, hotels, car rental companies, tour operators and others. They arrange and sell accommodations, tours, transportation and trips on an online platform for travelers. Some well-known travel platforms such as Booking or Expedia act both as travel agencies and tour operators allowing customers to read reviews to decide where to stay, and also book package holidays.

Several online travel agencies are only customer-facing, like the above examples, whereas other OTAs can service both B2B and B2C like Booking.com, which offers services for business clients as well as regular customers. On the other hand, OTAs like  GetGoing   and Travel Perk are designed exclusively with Business travelers in mind .

What is an online travel agent?

An online travel agent is an OTA that is part of web-based platform that allows users to book travel services over the internet. Online travel agents are intermediaries between travelers and service providers like airlines, hotels, car rental companies and tour operators. They provide a central platform to book, compare and search for travel arrangements, whether it be for business or leisure.

OTAs have a big market share

The global business travel market is a  $695.9 billion industry as of 2020 , and is expected to reach $2,001.1 billion by 2028. Whereas the online travel market is a $433.2 billion dollar industry, with the revenue share of online sales in the global travel and tourism market at 66% (according to a study by  Statista.com ).

As can be noted by the 66% market share of online travel sales, the great majority of reservations are being made via online travel agencies, and for this reason, OTAs have become an important distribution channel for tourism businesses. While OTAs are often used to book holidays and leisure trips, there are also online travel agencies, known as Travel Management Companies, or TMCs that have the same functionality as OTAs but are primarily used by companies or businesses.

Advantages and disadvantages of online travel agency

An online travel agency is convenient, has a wide range of options, allows you to easily compare prices, can be a great way to see reviews and ratings from other users, gives special deals and discounts and is available 24/7. Some disadvantages of an online travel agency is that there may be hidden fees, you have less leeway for personalization, customer service is harder to track down, and there is less flexibility.

Now that you have a better idea of some of the basic terminology, and some of the advantages and disadvantages of an online travel agency, let’s look at some of the pros and cons of an online travel agency.

online travel agency

1. an online travel agency is self-service .

Online travel agencies are a way to self-manage your travel needs. They have an integrated online booking tool that allows you to make travel arrangements, make cancellations, manage bookings and do everything that a brick and mortar travel agency would let you do with the convenience and benefits of a self-service approach. 

2. Keep track and manage travel expenses

In addition to being self-service, as a travel manager, with an online travel agency or TMC you can keep track of your travel spend and optimize your expenses while at the same time automating your travel policy so that travelers will be notified when their travel expenses are out of policy, and ensuring that you stay on budget.

3. Increased productivity

Working with an online travel agency leads to more productivity because you spend less time managing your trips. All your trip information is conveniently stored in your profile so that you can manage, edit and cancel hotel bookings, car rentals, train bookings as necessary. This means that in the case of travel managers, you can work with the OTA to automate your travel policy, which takes the automated work out of the hands of you and your travelers.

4. Help keep travelers safe

In the case of an online travel platform like GetGoing, you can have added assistance in keeping your traveler’s safe thanks to built-in AI technology that prefers the safe travel options, like not passing through high-risk countries, helping to fulfill your duty of care. You can also have access to traveler tracking and emergency support in the case of need. 

1. Less personal

While online provides great convenience, one of the cons is that it is less personal, lacking the personal touch of an in-person offline travel agency. Of course there is always the possibility to call, chat or speak to a representative, it’s not the same as a face-to-face encounter, especially for managing business.

2. Less hand-holding

For those inexperienced travelers, online travel agencies can be more “do-it-yourself” meaning that there is less hand-holding if you need it . This can take away from productivity because travelers must evaluate the options themselves, rather than having a TMC that can give you a helping hand. A TMC would be able to discover the most effective (and safest options), meaning less layovers in potentially risky countries.

3. Hard to get around the rules

When you are working with an offline agency it’s easier to bend the rules or get around travel provider’s policies. TMCs can oftentimes make changes to bookings without charges that travelers or travel managers on their own wouldn’t be able to do thanks to their business relationships with the providers.

Now that we’ve looked in depth at online travel agencies, let’s take a look at offline travel agencies, including their pros and cons.

What is an offline travel agency?

Offline Travel Agencies are travel agencies, including corporate travel departments, who operate from “brick and mortar” offices. This means that they have physical offices rather than operating as an OTA with only a website. Customers typically call or go to their offices to get travel-related services, which they provide using a GDS like Galileo. An offline travel agency usually has a team of travel agents who can help clients book flights, hotels, car rentals and other travel services.

While it’s true online travel agencies have gained popularity for their convenience, there are still many who prefer the personalized service provided by a face-to-face interactions at offline travel agencies. Offline travel agencies may cater to a specific market or specialize in certain kind of travel, i.e., business travel, group trips, leisure travel, etc. and this kind of assistance and hand-holding may give clients a sense of reassurance.

Advantages and disadvantages of offline travel agency

An offline travel agency has its advantages like the ability to get expert advice, personalized service, the face-to-face component, the ease of problem resolution, and the convenience of being hand-held along the process of booking travel. However, there are also some disadvantages like limited accessibility, potentially higher costs, limited choices, time-consuming, constraints on availability of store hours, and perhaps less transparency.

Now that you have a better idea of what an offline travel agency does, as well as the advantages and disadvantages, let’s take a look at some of the pros and cons.

offline travel agency

1. it’s more personal.

As much as we move more and more towards a digital-first approach, there is still an element of face-to-face contact that can’t be replaced. This is one of the main pros of an offline agency, being able to meet in person to book travel and even design your corporate travel program. Also for the travel agency, it’s easier to cater to the traveler’s needs, and really understand what they are looking for.

2. Enhanced service

Since online agencies tend to be more self-service, it can be argued that offline agencies offer enhanced services. Trip planning, including more complex routings or integrated travel booking, which include multiple forms of transport, accommodation and leisure activities can be more easily managed with an offline travel agency, setting them apart from their offline counterparts.

3. It’s more inclusive 

While for the purposes of this article, we are more focused towards business travel, it goes without saying that offline travel agencies are more inclusive. According to a study by the UN’s ICT agency, an estimated 37% of the world’s population (2.9 billion people) have never used the Internet. For that reason, in underdeveloped countries, an offline travel agency is still crucial in order to service this part of the population.

1. Not as flexible

With an offline travel agency, you must adhere to business hours in order to make your business travel plans. If it’s late at night and you are working after hours to plan your business trip, this means you’ll have to wait until the next business day to book your trip. 

2. Less technology-forward

Of course, offline travel agencies use technology like GDS to book your travel, it goes without saying that a traditional offline travel agency is less technologically advanced. Unlike online agencies, they don’t have to rely on technology or even have a fast website to help make travel plans. Since they are dealing with external systems for the most part, there is no precedent for having a technologically-forward website. 

3. Less efficient

While it can be efficient to work with an offline agency when you are booking complex trips with multiple providers, it can be less efficient for everyday use. With OTAs, all the information is readily available making it quick and efficient to book a trip. In the case of going offline, you have to rely on the help of an agent to take care of your everyday travel needs, which can be less efficient than handling travel plans on your own.

Now that you’ve fully understood the pros and cons of an online travel agency vs. an offline travel agency, here are some tips to choose a corporate travel platform that’s right for you.

• Look for balance between online technology with offline support
• Ease of creating your travel policy
• Safety first
• Simple approach to data
• Allows you to save money

1. Look for balance between online technology with offline support

This means that you have a tool that has all the functionalities of an online travel platform, but with expert service and assistance when you need it most. Sometimes business travel doesn’t go as planned; there might be delays, lost luggage, long wait times, cancellations, overbookings or a wide range of other issues. This is why you need to have a support system in place that is ready to help when the going gets tough. At GetGoing you have the ease of digital but with the guarantee of 24/7 service when you need it.   This way you can travel worry-free knowing that an expert is there to lend you a hand if any of these unexpected circumstances arise.

2. Ease of creating your travel policy

When it comes to creating your travel policy, you want to find a travel management company that will support you in creating a policy that allows you to save money, protect your travelers and optimize your business travel. This is why you should look for a TMC that allows you to automate your travel policy . Automation is at the core of productivity and by optimizing your travel policy, you can also save money. 

3. Safety first

Whether you decide to go with an online travel agency or an offline travel agency, ensure that your traveler’s safety is first and foremost. This means that you should be able to offer certain security measures to your travelers so that as business travel slowly recovers, they feel safe to get going. 

4. Simple approach to data

Not everyone on your team is data-savvy, so you want to find a corporate travel management system that makes understanding data easy. Whether you’re a Finance manager , an HR or Office Manager , you need to have a system that allows you to visualize your data, including travel spend, seeing how much travel is booked within your travel policy, and using detailed reports to optimize routes, supplier relations and keep your travelers happy. Having data at your fingertips is the best way to optimize your business travel program. 

5. Allows you to save money

While optimizing your travel program, and understanding your data, you will without a doubt save money.  However, another very important part of business travel is having access to corporate travel deals . Not only does having access to deals save you money, but your staff will also be more productive because they don’t have to look in a million different places for the best deals. 

Get a helping hand in business travel

GetGoing is your helping hand in business travel so that you can book, manage and optimize your business travel. We provide the ease of a digital platform but with the peace of mind of a travel agency.

• Empower your team
• Save time and money
• Gain more visibility
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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

Exploring the Pros and Cons of Online Travel Agency Bookings: A Comprehensive Guide

When planning a trip, there are numerous options available for booking accommodations, flights, and activities. One popular avenue is booking through online travel agencies (OTAs). These platforms provide a convenient way to compare prices, read reviews, and book all aspects of your trip in one place. However, like any other option, booking through OTAs has its pros and cons.

The Pros of Booking Through Online Travel Agencies

1. Convenience and Time-Saving: One of the biggest advantages of using OTAs is the convenience they offer. With just a few clicks, you can compare prices, check availability, and make reservations. This saves valuable time and effort that would otherwise be spent researching multiple websites or contacting providers individually.

2. Extensive Options: OTAs typically have a wide range of accommodations, airlines, and activities listed on their platforms. This gives travelers the opportunity to explore different options and choose the one that best suits their preferences and budget. Whether you’re looking for a luxury hotel or a budget-friendly hostel, OTAs have got you covered.

3. Deals and Discounts: OTAs often offer exclusive deals and discounts that may not be available elsewhere. These promotions can help you save money on accommodations, flights, car rentals, and more. By taking advantage of these offers, you can stretch your travel budget further and potentially enjoy additional perks like complimentary breakfast or room upgrades.

4. User Reviews and Ratings: One of the key features of OTAs is the ability to read user reviews and ratings. This allows you to get a sense of the quality and reputation of a particular provider before making a booking. By relying on the experiences shared by other travelers, you can make more informed decisions and avoid potential disappointments.

The Cons of Booking Through Online Travel Agencies

1. Lack of Personalized Service: While OTAs offer convenience, they often lack the personalized service that you might receive when booking directly with hotels or airlines. If you have specific requests or preferences, it can be more challenging to communicate them through an intermediary platform.

2. Hidden Fees and Charges: Some OTAs have been known to add hidden fees and charges during the booking process. These additional costs may not be apparent until you reach the final stages of making a reservation. It’s important to carefully review the terms and conditions to avoid any unexpected expenses.

3. Limited Flexibility: When booking through an OTA, you may encounter restrictions or limitations in terms of changes or cancellations. These policies can vary depending on the provider and the type of reservation. It’s crucial to understand the terms and conditions before committing to a booking.

4. Potential Information Gaps: Although OTAs strive to provide comprehensive information, there may be times when important details are missing or incomplete. This can include updates on renovations, construction nearby, or other factors that could impact your stay or travel experience. It’s essential to conduct additional research and reach out directly to the provider if necessary.

In conclusion, booking through online travel agencies offers convenience, extensive options, deals, and access to user reviews. However, it’s important to consider the potential drawbacks such as limited personalization, hidden fees, inflexibility, and potential information gaps. By weighing the pros and cons, travelers can make an informed decision about whether to use OTAs or explore alternative booking methods for their next adventure.

Exploring the Ups and Downs of Booking through Online Travel Agencies: A Comprehensive Analysis

Related questions, what are the advantages and disadvantages of using online travel agencies for booking travel arrangements.

Advantages: 1. Convenience: Online travel agencies (OTAs) offer a convenient platform for travelers to search, compare, and book various travel arrangements from the comfort of their own homes. 2. Wide range of options: OTAs provide access to a vast selection of airlines, hotels, car rental services, and other travel products, allowing users to choose from a wide range of options at different price points. 3. Competitive prices: Due to their large network and bargaining power, OTAs often offer competitive prices and exclusive deals that may not be available through other channels. 4. User reviews and ratings: Most OTAs include customer reviews and ratings for hotels, airlines, and other services, providing valuable insights and helping users make informed decisions. 5. Ease of customization: Many OTAs allow users to customize their travel itineraries by selecting specific flights, accommodations, and additional services to meet their particular needs.

Disadvantages: 1. Additional fees: Some OTAs may charge extra fees for services such as booking changes, cancellations, or seat selections, which can increase the overall cost of the trip. 2. Lack of personalized assistance: Unlike traditional travel agents, OTAs do not typically provide personalized customer service or assistance in case of travel disruptions or emergencies. 3. Limited flexibility: Certain travel arrangements, such as complex itineraries or multi-city trips, may be challenging to book through OTAs, as their systems may not accommodate all specific requirements. 4. Potential misinformation: Occasionally, OTAs may display incorrect information regarding flight schedules, availabilities, or hotel amenities, leading to misunderstandings or inconveniences for travelers. 5. Less negotiation power: While OTAs offer competitive prices, they may have limited flexibility for negotiating terms or additional perks compared to direct bookings with airlines or hotels.

Overall, using online travel agencies can be a convenient and cost-effective option for many travelers. However, it is essential to weigh the advantages and disadvantages carefully and consider individual travel preferences and needs before making a booking decision.

How do online travel agencies impact the financial aspects of planning a trip, such as savings and costs?

Online travel agencies (OTAs) have a significant impact on the financial aspects of planning a trip. They offer several benefits that can help travelers save money and manage costs more effectively.

Savings: OTAs play a crucial role in providing competitive prices for flights, accommodations, and other travel services. They often negotiate exclusive deals and discounts with airlines, hotels, and car rental companies, allowing travelers to access lower prices than those available through traditional booking methods. This competition among different OTAs can result in considerable savings for travelers who shop around and compare prices.

Costs: OTAs also provide transparency and convenience in comparing prices and services across multiple vendors. By using an OTA, travelers can easily compare various options and select the most cost-effective one. Additionally, some OTAs offer package deals that include flights, accommodations, and other services at a bundled price, which can often be cheaper than booking each component separately.

Expert Insights for Financial Planning: Many OTAs also provide helpful financial planning tools and insights. These resources can assist travelers in managing their budgets, tracking expenses, and optimizing their spending during the trip. Moreover, some OTAs offer loyalty programs or reward systems, allowing users to earn points or discounts for future travels, essentially providing a long-term financial benefit.

Travel Insurance: OTAs often offer optional travel insurance packages that provide coverage for unexpected events such as trip cancellation, medical emergencies, or lost luggage. While these add-ons may increase the overall cost of the trip, they offer financial protection and peace of mind in case of unforeseen circumstances.

However, it’s important for travelers to exercise caution when using OTAs. Some OTAs may charge additional fees or have less flexible cancellation policies. It’s crucial to carefully read the terms and conditions, compare prices across different platforms, and consider the reputation and reliability of the OTA before making a booking.

In summary, online travel agencies can have a positive impact on the financial aspects of trip planning. They offer competitive prices, convenient comparison tools, and often provide financial insights and protection options. However, travelers should remain vigilant and make informed decisions to ensure they are getting the best value for their money.

Are there any specific risks or considerations to be aware of when using online travel agencies for booking travel, particularly in relation to credit card payments and protection against fraud?

When using online travel agencies (OTAs) for booking travel, there are certain risks and considerations to keep in mind, especially related to credit card payments and protection against fraud.

1. Security of Payment Information : It is essential to ensure that the OTA’s website has secure socket layer (SSL) encryption, indicated by a padlock symbol in the website address. This encryption protects your credit card information from being intercepted by hackers.

2. Use Credit Cards for Payments : When making online bookings, it is generally recommended to use a credit card rather than a debit card or bank transfer. Credit cards offer better fraud protection and dispute resolution options compared to other payment methods.

3. Read Reviews and Do Research : Before choosing an OTA, read reviews and do thorough research. Look for customer experiences related to any credit card fraud issues or instances of identity theft. Stick to well-established and reputable OTAs.

4. Check the OTA’s Terms and Conditions : Carefully review the OTA’s terms and conditions regarding cancellation policies, refunds, and chargebacks . Ensure they have a fair process in place to protect your rights in case of fraud or unauthorized charges.

5. Monitor Your Credit Card Statements : Regularly monitor your credit card statements for any suspicious activity or unauthorized charges. If you notice anything unusual, contact your credit card provider immediately to report fraud and take necessary actions.

6. Consider Travel Insurance : Travel insurance can provide additional protection against trip cancellations, interruptions, or other unforeseen circumstances. Some policies also cover fraud-related losses, providing an extra layer of security.

Remember, while most OTAs maintain high-security standards, no system is entirely foolproof. By taking these precautions and staying vigilant, you can reduce the risk of credit card fraud and ensure a safer online booking experience with online travel agencies.

Disclaimer: The information provided here is for general informational purposes only and should not be considered as professional financial advice. Always seek the advice of a qualified expert or conduct thorough research with official sources before making any financial decisions.

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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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Are Online Travel Agencies Safe To Use? 👨🏻‍💻 17 Best Online Travel Agencies For Seamless Journeys: Travel Like A Pro ✈️

Are Online Travel Agencies Safe To Use? Online travel agencies are generally safe to use, but it’s essential to choose reputable and well-established platforms with positive customer reviews.

The rise of online travel agencies (OTAs) has made travel planning and booking extremely easy in today’s world.

By providing passengers from all over the world with a variety of services, offers, and packages, these platforms have changed the travel business.

Online travel agents can help you with your search for flights, hotels, holiday packages, or tours.

🤔 What are online travel agencies?

4. travelocity, 5. skyscanner, 6. lastminute.com, 8. trip.com, 10. booking.com, 11. expedia, 12. tripadvisor, 14. priceline, 15. cheapoair.

• 🧐 Things To Consider While Making Reservation Through OTA's

⭐ Advantages & Disadvantages of Online Travel Agencies

Q. is it cheaper to book online or through a travel agent, q. do online travel agencies offer better deals than airlines and hotels directly, q. can i trust user-generated reviews on online travel agency platforms, q. do online travel agencies provide customer support, q. are there any hidden fees when booking through online travel agencies.

• Q. Are the Online Travel Agencies Reliable?

Q. Do Online Travel Agencies offer personalized itineraries?

Q. are online travel agencies more expensive than booking directly, q. can i book international trips through online travel agencies, 😇 conclusion, 🗨️ tell us in the comments as per you which one is the best online travel agencies.

Online Travel Agency (OTA) is the name for a website that sells travel services. It lets customers book flights, hotels, and other trips all from one place. They are like a travel agent in the digital world.

📃 List of 17 Best Online Travel Agencies at Your Fingertips

After a lot of research and considering travelers’ reviews we have shortlisted some of the best online travel companies that are operational nowadays.

• Travelocity
• Lastminute.com
• Booking.com
• TripAdvisor

A US-based internet travel company called VRBO focuses on vacation rentals. Landlords and managers can directly register their houses on VRBO, similar to Airbnb.

When booking through Vrbo, visitors may also get travel insurance. In addition to being a part of one of the largest travel companies in the world, VRBO has a reputation for being a trustworthy lodging option.

A website called Parkos.com makes airport parking stress-free. Thanks to the company’s new online platform, potential consumers can now compare various airport parking and facilities, make a reservation, and pay for it in advance of their trip day.

Both locals and visitors have provided overwhelmingly good feedback since Parkos entered the parking sector in 2014.

All technologically aided services revolve around giving automobile owners confidence that their vehicles are safe when they are away from them.

The majority of people may gain more from this comparison, but those who drive pricey high-end cars may find it interesting.

Also Read: 10 Best Places For New Year Celebration

Hotel reservations are the focus of Agoda , a multinational online travel firm located in Singapore.

Along with many other comparable OTAs on this list, it is owned by Booking Holdings, the parent company of Booking.com.

The Agoda network, which offers more than a million hotels and vacation rentals, is primarily focused on the Asian economy but has now grown into Europe and the United States.

The company’s marketing strategy is centered on giving customers affordable or reduced housing.

In 1996, Travelocity was established as an online travel agency with several services for customers. It is owned and operated by the international travel service provider The Expedia Group.

You can check for airfare and hotel bundles, choices for a rental vehicle, cruises, and more using Travelocity’s website.

Additionally, you can read travel-related articles, order tickets for well-liked attractions, and communicate your journey arrangements with loved ones.

A well-known company with a big customer base is Travelocity. They provide a huge selection of vacation packages, many of which are aimed at families.

Skyscanner is a metasearch aggregator that gathers prices for flights, hotels, and rental cars from all online travel agents (OTAs) in one location. Booking flights and hotels with Skyscanner typically results in the most affordable options.

After making your choice, you will be sent to a third-party booking form on the Skyscanner website where you can complete the transaction and reserve your flight.

Skyscanner is used by millions of people to compare rates and options for their travel arrangements. Simply said, it compiles and presents to customers all of the offers from all online travel agencies (OTAs).

Also Read: 15 Best Countries For Solo Travel 

City hopping is a popular pastime in Europe because of how close together the cities are. Among the top three booking sites is lastminute.com .

In this OTA, flight bookings are made through an aggregator website, and hotel reservations are made through an OTA, both of which we have seen before.

Finding last-minute discounts on hotels, flights, and all-inclusive holiday packages is the specialty of the website lastminute.com.

If you’re brave enough to play the chicken, Last Minute has the best travel deals. For tourists looking for a dealer who isn’t scared to wait until the last minute, there are a couple of better OTAs. We’re certain to have the flight or hotel bargain you’re looking for.

Members of Airbnb are allowed to advertise their available lodging and accept overnight reservations. However, the business has added hotels and homestays to its list of offerings.

However, Air b nb is extremely particular about the standards it must uphold when it comes to hotels that can be offered on its platform.

The majority of hotels must demonstrate their distinctive design, how the neighborhood affects their rooms, and how guests can access communal areas.

The most economical choice may be an Airbnb vacation rental. Additionally, compared to hotels, you are more likely to locate more beds in the same property on Airbnb.

Many Airbnbs provide sofas or futons to accommodate larger groups. For longer visits, many of these hotels provide kitchens and washing machines, enabling visitors to save money by preparing their meals.

The largest OTA in China, Trip.com , a Chinese firm, created Trip.com, an international OTA. Trip.com’s marketing initiatives are primarily aimed at domestic and international travelers to China.

Contrarily, Trip.com has a partnership with Booking.com that enables it to broaden its global reach.

Today, Trip.com has hundreds of millions of users worldwide. The organization wants to give both domestic and foreign travelers the best travel experiences possible.

Wotif also owns LastMinute, a website that offers last-minute discounts on lodging, transportation, and other travel essentials to Australians and New Zealanders.

This local internet travel business mostly caters to travelers from the UK and Europe. On this website, tourists can search for and buy flights, lodging, auto rentals, excursions, and package deals.

Also Read: 11 Best Ways To Become A Travel Enthusiast

The biggest hotel booking website in the world, Booking.com , also lets you book travel and a rental car. It can be used by travelers to learn about different types of lodging, locations, and offers.

However, making reservations for different types of lodging is where its true power lies. For the typical person, it serves as an all-inclusive travel agency.

Hotels and other accommodation facilities are only billed by Booking.com after a reservation is made.

There isn’t a monthly cost that must be paid. An all-inclusive internet travel firm called Bookin.com provides lodging and travel options all around the world.

Online travel agencies (OTAs) are a business model used by many E x pedia Group businesses, notably Expedia, the largest OTA.

The company was founded in 2001 and was based in Bellevue, Washington, in the US.

It is one of the most prosperous travel companies in the world, having localized websites in more than 40 nations.

Expedia has provided access to flights, hotels, and rental cars for more than ten years. They are the largest travel company in the world.

Its marketing plan places a strong emphasis on the value of providing affordable lodging options.

Expedia is an excellent option if you want to pay for your airfare, hotel, and car hire all at once.

One of the most well-known travel platforms, TripAdvisor provides a variety of user-generated information in addition to booking services.

Travelers get access to reviews, images, and ratings posted by other travelers, allowing them to plan their trips with greater knowledge.

The website also offers the ability to compare flights and book excursions and other activities, making it a complete online travel agency (OTA).

A meta-search engine called Kayak searches the internet for the finest travel offers on several platforms.

It provides full results on a single page by comparing costs for airfare, accommodation, rental cars, and other services.

Users of its “Explore” feature can find new places to go and the most cost-effective times to travel.

Budget-conscious travelers choose Kayak because of its simple UI and time-saving features.

The “Name Your Own Price” option on Priceline is known for allowing customers to place bids on hotel rooms and rental vehicles at the prices they like.

Priceline provides regular booking choices like flights, hotels, and rental cars in addition to the bidding system, which may not appeal to everyone.

Travelers who are flexible with their travel plans can take advantage of their Express Deals feature, which offers big reductions on unpublished rates.

Travelers seeking low-cost airline options without sacrificing quality are catered to by CheapOair .

The network appeals to people who are concerned about their spending because it offers exclusive deals and discounts on hotels, flights, and car rentals.

CheapOair makes arranging travel reservations simple with its user-friendly interface and round-the-clock customer service.

Flights, hotels, holiday packages, and activities are just a few of the travel options that Orbitz provides.

Orbitz Rewards, the platform’s loyalty program, enables customers to earn rewards and take advantage of special member advantages.

If customers discover lower rates elsewhere, Orbitz guarantees they will be refunded the difference with its price guarantee promise.

Hotwire is known for providing significantly lower rates for accommodation, travel, and transportation.

Partner hotels can offer lower rates without publicly undercutting their usual pricing because the platform hides the identity of specific hotels until after booking.

For tourists eager to take advantage of this method of surprise booking, Hotwire’s “Hot Rates” provide huge savings.

🧐 Things To Consider While Making Reservation Through OTA’s

When making reservations through an Online Travel Agency (OTA), consider the following:

• Price and Deals: Compare prices and look for exclusive deals and discounts offered by the OTA.
• Cancellation Policies: Understand the OTA’s cancellation and refund policies to avoid any inconvenience in case of changes in your plans.
• User Reviews: Check user reviews and ratings to gauge the reliability and quality of the service.
• Customer Support: Ensure the OTA provides accessible and responsive customer support for assistance during and after booking.
• Hidden Fees: Be wary of hidden fees or additional charges that may not be clearly stated upfront.
• Booking Security: Verify the OTA’s security measures to protect your personal and financial information.
• Travel Insurance: Consider purchasing travel insurance for added protection against unexpected events.
• Flexibility: Choose an OTA that offers flexible booking options to accommodate any last-minute changes.
• Available Services: Confirm that the OTA offers the services you need, such as flights, hotels, car rentals, and activities.
• User-Friendly Interface: Opt for an OTA with an intuitive and easy-to-navigate website or app for a seamless booking experience.

Advantages of Online Travel Agencies

• Convenience: Users can book flights, hotels, and other travel arrangements from the comfort of their homes, saving time and effort.
• Wide Selection: Online travel agencies offer a vast inventory of travel options, providing a variety of choices for different budgets and preferences.
• Price Comparison: Users can compare prices across multiple airlines, hotels, and car rental companies to find the best deals.
• User Reviews: Travelers can read reviews and ratings from other users to make informed decisions about their bookings.
• Exclusive Deals: Many online travel agencies offer exclusive discounts and promotions for their customers.
• 24/7 Access: Online travel agencies are available round the clock, allowing users to make bookings at any time.

Disadvantages of Online Travel Agencies

• Hidden Fees : Some online travel agencies may have hidden fees or additional charges that are not disclosed upfront.
• Lack of Personalized Service: Unlike traditional travel agents, online platforms may lack personalized recommendations and support.
• Technical Issues: Technical glitches or website outages can cause inconvenience and delay in making bookings.
• Limited Flexibility: Some online travel agencies have strict cancellation and refund policies, limiting flexibility for travelers.
• Scams and Fraud: There is a risk of encountering fraudulent websites or services when booking through unknown or unverified platforms.
• Overwhelming Options: The abundance of choices on online travel agency websites can sometimes lead to decision paralysis for users.

🙋🏻‍♀️ FAQs For Online Travel Agencies

There are a lot of questions that come to our mind while making reservations through online travel agencies some of the commonly asked questions are answered below.

A. Booking online often offers better deals and discounts compared to traditional travel agents.

A. Yes, online travel agencies often negotiate special deals and discounts with airlines and hotels, which can result in more cost-effective options for travelers.

A. While most user-generated reviews are genuine and helpful, it’s essential to consider multiple sources and exercise discernment when making decisions based on reviews.

A. Yes, reputable online travel agencies offer customer support via phone, email, or live chat to assist with booking inquiries and travel-related issues.

A. While some online travel agencies may charge service fees or have specific booking terms, reputable platforms are transparent about any additional costs during the booking process.

Q. Are the Online Travel Agencies Reliable ?

A. Absolutely! Online Travel Agencies are reputable and reliable. They work with established partners and have a track record of excellent customer service.

A. Yes, they do! Online Travel Agencies take your preferences and interests into account to craft personalized itineraries tailored to your needs.

A. Not necessarily. Online Travel Agencies often secure exclusive deals and discounts, making them competitive with direct bookings.

A. Yes, you can! Best Online Travel Agencies offer a wide range of international travel options and guide visa requirements.

In conclusion, online travel companies have completely changed how we organize and book our journeys.

These OTAs have evolved into crucial tools for modern travelers thanks to their user-friendly interfaces, vast inventory, and affordable prices.

The top online travel agencies included in this article can assist you in organizing an enjoyable trip, regardless of whether you are an experienced traveler or preparing for your first excursion.

Also, don’t forget to book your personalized holiday package with  Fiery Trippers . Let us make your vacation a romantic as well as a dreamy getaway.

Unlock Your Adventure: 💡 Mastering the 23+ Best International Travel Tips for Seamless Journeys! 🌍✈️ Exclusive Offer Inside!

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Rahul Siddharth

He is a dedicated travel writer with a wealth of 10 Years + experience that enriches his narratives. He holds a degree in Hospitality and Hotel Administration from IHM Dehradun, which he couples with hands-on expertise in the field. Drawing from his diverse experiences, Rahul's writings offer readers a captivating glimpse into the world of travel. Embark on a journey of exploration and inspiration with Rahul as your guide. Read More

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THE JOURNAL

Travel Inspiration

Online Travel Agencies: Do They Offer the Best Value? (Hint: No)

The Modern Travel Agency

https://www.foratravel.com/the-journal/online-travel-agencies

Do online travel agencies offer the best deal? And what’s the difference between an online travel agency (a.k.a. OTA) and a host agency for independent travel agents ? We have all the intel you need to make the right decision.

Already know the difference between OTAs and real, human travel advisors? Connect with Fora to book and plan your trip with expert advice, VIP travel perks and more (i.e., all the things you don’t get when you book with an OTA).

First, what is an online travel agency (a.k.a. OTA)?

Online travel agencies are “travel agencies” in name only. More accurately, they’re automated marketplaces that allow travelers to book accommodations, flights and car rentals from a single user interface. 

Expedia, Booking.com and Travelocity are among the most well-known examples, but there are dozens of choices that offer similar experiences.

Which online travel agency is the most popular? What’s the biggest OTA?

Booking Holdings, which owns Booking.com, Priceline.com and a few other recognizable names, is the largest online travel agency. But Expedia Group Inc., which owns Expedia, Travelocity, Vrbo and, again, other recognizable OTAs, isn’t far behind. 

It might be surprising to learn that these two companies own virtually all the most popular OTAs in the United States. But the more important point is that because of a lack of real competition, these OTAs have a lot of leeway in the prices they charge. 

Worse, most hotels and suppliers don’t have much of a choice but to allow OTAs to charge high prices on their behalf because such a high percentage of their bookings go through online platforms. Which is where online host agencies come into play. But we’ll come back to that later.

Are there different types of OTAs?

Technically, there are three different types of online travel agencies. However, within the industry, there’s a conscious effort to create separation between them. 

The three models are as follows: merchant agencies like Expedia, advertising platforms like Google and, in the strictest, most literal definition of an online travel agency, most modern host agencies.

Merchant-model OTAs 

Merchant-model online travel agencies are exactly what we’ve been talking about thus far. This is the most common type of OTA, and further down, we explain why they’re not your best choice for planning and booking trips.

Of the three choices, hotels generally prefer to get as few bookings from merchant OTAs as possible because hotels don't see as much of the booking value acquired through such sites, and are often delivered less reliable clients. This type of OTA has played a major role in soaring hotel prices since the early 2000s, especially domestically, because hotels have largely been forced to raise rates to protect their profits.

Advertising-model OTAs

Advertising-model OTAs aren’t agencies so much as they are ad platforms. The most prominent example? Google. Hotels basically pay to advertise their rooms on search engines and similar websites using a cost-per-click model. 

For hotels, advertising-model OTAs can offer a slightly better deal than merchant OTAs. But they’re still not most hotels’ favorite choice. Moreover, these OTAs can be frustrating for consumers, as they often display inaccurate prices for hotels and other suppliers.

Contemporary host agencies

Contemporary host agencies are considered online travel agencies only in the sense that their services are available via the internet.

Host agencies such as Fora provide a variety of tools, exposure and other benefits for independent travel advisors, who remain in charge of their own business. The best agencies also provide extensive travel agent training , community resources and more.

In the host-agency model, clients work directly with independent travel advisors — real people — who can not only make reservations anywhere, but also plan itineraries, which is something merchant online travel agencies can’t do. Additionally, travel advisors can answer nuanced questions, set up special accommodations and do much more that an automated system can’t even begin to address.

What do we mean when we refer to online travel agencies?

We’re talking about the merchant model (i.e., Priceline.com, Airbnb, etc.). Advertising models aren’t as popular, and host agencies are, again, only semantically considered online travel agencies. 

How do online travel agencies work?

We’ve covered the basics, but here’s how online travel agencies work — and why you may not be getting the best deal if you book through one.

How exactly do OTAs make money?

There are two common ways OTAs make money: first, they operate similarly to a traditional travel agency by earning commission from hotels and other suppliers — car rental agencies, tour operators and so on. Additionally, some OTAs will purchase blocks of hotel-room bookings at a discount, only to turn around and sell them for a profit.

(How do travel agent commissions work? See our guide.)

The top online travel agencies charge hotels & other suppliers exorbitant commission rates

Unlike traditional travel agencies, which typically earn between five and 10 percent commission from a partner, the OTAs typically demand much higher rates, usually around 30%. Many hotels have grown to rely on these bookings, so they have no choice but to raise their rates and comply. 

Unfortunately, this has had a ripple effect throughout the industry. However — and this is a big however — contemporary remote travel agents who work with a host agency (like us) are able to one-up online travel agencies by offering awesome upgrades, perks and other benefits to dramatically increase the overall value (we’ll come back to this later) at no extra cost.

Want to know what types of perks Fora Advisors can unlock for you? Book and plan your next trip with Fora .

Why do travelers use online travel agencies?

The simple answer: most travelers aren’t aware of the alternatives. 

Traditional travel agencies were decimated by OTAs in the 1990s and early 2000s. Plus, a lot of travelers today either assume that travel agents are a thing of the past (they’re not) or only plan and book bespoke vacations for elite clients (anyone can use a travel advisor).

Are there any benefits of using an online travel agency?

There’s no arguing that OTAs aren’t fast. And occasionally, you may find that online travel agencies offer a good, though rarely the best, deal. 

But when you take a look at all the drawbacks below, you may question whether it still makes sense to book through an OTA.

Client-focused drawbacks of using online travel agencies

Curious to know why online travel agencies aren’t your best choice for booking? Read on. 

Already convinced? Connect with Fora to plan and book your next trip.

1. You’ll rarely receive the best value (and sometimes you’ll pay more for less)

Online travel agencies may play a role in dictating hotel rates, but they can’t offer the enticing perks you get when you book through a travel advisor instead. In other words, you may be charged the same rate regardless of how you obtain a reservation, but you’ll get a lot more for your money if you book through a travel advisor.

What kind of perks are offered? It depends on the hotel and host agency, but property credits (usually between $50 and $100 in value), complimentary meals, extended check-in/out times and special amenities are just a few of the awesome extras Fora Advisors can unlock. 

Fora Advisors may occasionally be able to score better rates, too, particularly at independent hotels.

2. You won’t get a personalized experience

Ultimately, online travel agencies only care about putting heads in beds. That’s their bottom line, and it’s a deeply impersonal process. A personalized stay is off the table.

In contrast, you’ll exclusively work with an actual human if you book through a travel advisor. Better yet, travel advisors can work with a hotel to VIP your stay (even if perks aren’t offered). This is especially beneficial if you require some sort of special accommodation. OTAs can’t do this — and even if by some miracle you manage to put in a request, OTAs don't make sure the hotel follows through. 

3. You can’t always redeem rewards perks

This varies by the online travel agency, but oftentimes, you can’t book special rates or redeem rewards when you book with an OTA. Some won’t even allow you to earn points toward loyalty programs. 

4. It can be harder to change a booking

Seriously: good luck. 

If you need to change a booking, you generally have to jump through all sorts of hoops and hope that the supplier actually hears about the changes — or you have to outright cancel the booking and hope that you can rebook. At best, it’s a hassle. At worst, it can be a nightmare that causes you to lose money that otherwise could have been spent during your trip.

Want to avoid the pitfalls of booking through an OTA? Get personalized service, VIP travel perks and more when you plan and book your trip with Fora .

5. And worse, your booking can be changed or canceled with little heads up

Imagine living out your Spain bucket list only to find out one of your bookings was canceled, and no real effort was made to warn you. Online travel agencies are automated systems — they can’t, and don’t, always react in a timely manner if a hotel is forced to alter or cancel a booking. 

Worse, OTAs have been known to overbook hotels or rental cars, leaving some travelers stranded or unsheltered at the last minute. This isn’t a common occurrence, but why even take the chance?

In either scenario, a travel advisor would be able to help you immediately.

6. Hotels know they’re getting lower-quality clients, so they’re less likely to roll out the red carpet

First, let us be clear: when we say “lower-quality clients,” we only mean clients who aren’t likely to rebook the same hotel in the future.

Going back to “putting heads in beds,” hotels have no idea whom they’re catering to when a booking is made through an OTA. At reputable hotels, this matters. Great hotels want to take care of their guests because there’s a promise of repeat business, and it’s the right thing to do.

When a travel advisor makes a booking, they can let the hotel know who their client is and the hotel can take steps to make sure their guest — you — is well cared for. At a minimum, the hotel knows that if they do a good job, the advisor is likely to send back more clients.

For the client, this means they’re far more likely to enjoy an awesome experience when they book with a travel advisor because the hotel is incentivized to roll out the red carpet. When they book with an online travel agency, though, the hotel wants to recoup the OTA commission cost, so they typically offer nothing extra.

Recap: if not OTAs, what are the best travel agencies to go through?

Host agencies such as Fora offer a much better deal than online travel agencies.

Fora advisors offer actual guidance & real service

Fora travel advisors are subject-matter experts. They can break down any aspect of your trip to make sure you’re getting the trip you desire. There’s no guesswork involved, which can’t be said when you book through an online travel agency. 

Let’s say you’re booking with a Virgin Voyages travel agent from Fora. They’ll be able to tell you the differences between all the cabins, itineraries and so on. Better yet, they can help you decide which options best suit your preferences and budget, offering a truly tailored experience.

You’ll get the best value when you book with a Fora Advisor

We’ve touched on this before, but it’s worth repeating. 

Fora Advisors secure the best available rates for clients, and there are extras to take advantage of when you book with them. Our travel advisors can score all sorts of perks for clients who stay at partner properties (nearly 5,000 hotels globally and counting). 

For example, say you book a room at Hotel Californian, one of our favorite hotels in Santa Barbara , through an online travel agency for $500 per night (it’s a nice hotel). You’ll still pay that same rate with a Fora Advisor, but when you book with us, you’ll also get complimentary daily breakfast, a $100 hotel credit that can be put toward the onsite spa and, whenever possible, extended check-in/out times — and potentially more. You’ll also get VIP treatment, personalized service and an all-around better stay.

Find out for yourself when you plan and book with Fora .

A nd even if you don’t stay at a partner hotel, you will still get better service (plus potential upgrades at many hotels around the world) when you book with a Fora Advisor. 

Fora travel advisors offer peace of mind and can help if things go awry

One of the absolute best advantages of booking with a Fora Advisor over an online travel agency: we can help if something goes wrong with your booking. 

Whether you receive the wrong room, have a reservation canceled or suddenly require some sort of special accommodation, Fora Advisors can work with the hotel to make things right at a moment’s notice. (Our personal relationships with thousands of hotels around the world help make this possible.)

OTAs often don’t even try — or they put you through a bureaucratic process, days or even weeks later, after your trip. 

Does it make sense to book corporate travel through OTAs?

It’s not unreasonable to wonder if online travel agencies offer a better deal for corporate clients. But for all the reasons mentioned above, corporate travel agents still offer better value than OTAs. This is doubly true for more nuanced bookings — like corporate group travel — where it’s wise to have an actual person there to make sure that reservations and itineraries are honored by suppliers.

Want the best value for your trip? Book with Fora instead

Overall, online travel agencies simply can’t compete with the value that a Fora Advisor offers. From A+ travel perks to unwavering assistance if something goes wrong, it makes so much more sense to plan and book your trips with Fora .

P.S. Love the idea of travel planning as a career? Become a Fora Advisor

Considering a job in the travel industry ? Check out all the reasons to become a Fora Advisor , from uber-flexible schedules to extensive marketing and training resources — not to mention unlimited earnings potential.

Interested? Sign up to become a Fora Advisor . Or check out our posts below to learn how to become a travel advisor .

How Much Do Travel Agents Make? Fora’s Full Guide  

Everything You Need to Know about a Fora Travel Advisor Salary (and How Our Advisors Get Paid)  

What Does It Take to Become a Travel Agent?  

The Ultimate Travel Side Hustle: Selling Vacations  

How to Become a Disney Travel Agent  

Why Group Bookings Are Great: Tips from an Expert  

Debunking 3 Myths about Becoming a Travel Advisor

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Home / Digital Marketing Blog / The Advantages and Disadvantages of Online Travel Agencies

The Advantages and Disadvantages of Online Travel Agencies

If you’re a business in the travel and tourism sector you’ve probably considered partnering with online travel agencies in an effort to boost your revenue. In this blog, we’ll explore the advantages and disadvantages of working with online travel agencies so you can make an informed decision about whether it’s the right choice for your business.

What is an Online Travel Agency?

An Online Travel Agency (OTA) is a digital platform that facilitates the booking and purchase of travel-related services such as flights, hotels, car rentals, vacation packages, tours, and more. Put simply, they are an intermediary between customers and travel suppliers, offering a centralized platform for travellers to search, compare, and book travel services online.

5 Advantages of Working with Online Travel Agencies

Working with OTAs can provide several advantages for businesses in the travel and tourism industry. Here are the top five advantages:

1. Increased Brand Awareness

Partnering with OTAs allows businesses to tap into their vast user base and reach a wider audience. Listing your business on popular OTAs such as Expedia or Booking.com may significantly increase your brand visibility and awareness among potential customers who may not have discovered your business otherwise.

2. Lower Cost of Operations

OTAs can handle various aspects of the reservation process, including managing bookings, handling returns or exchanges, and customer support. By offloading these operational tasks, businesses can reduce their internal workload and operational costs, allowing them to focus on other core areas of their operations.

3. Access to a Wider Customer Base

OTAs often cater to a diverse range of travelers, attracting customers of various demographics, regions, and preferences. By partnering with OTAs, businesses gain access to this extensive customer base, exposing their offerings to a broader audience and increasing the chances of attracting new customers who align with their target market.

4. Ability to Leverage Their Marketing Budgets

OTAs often have substantial marketing budgets to promote their platform and offerings listed on their site. By partnering with OTAs, businesses can benefit from this marketing power and leverage their advertising campaigns, reaching a larger audience and gaining exposure that may be challenging to achieve independently.

5. Simplified Bookings Process

OTAs typically provide user-friendly platforms that allow customers to browse, compare, and book various travel services seamlessly. By integrating your offerings into an OTA’s booking system, you can provide a hassle-free experience for customers, leading to increased bookings and customer satisfaction.

5 Disadvantages of Working with Online Travel Agencies

While there are several advantages to working with OTAs, there are also some drawbacks that travel and tourism businesses need to consider:

1. Lack of Direct Client Relationship

Since the OTA acts as an intermediary between the business and the customer, it can be challenging to establish a direct line of communication and build a personalized connection with clients, potentially limiting opportunities for upselling or personalized service.

2. Brand Dilution and Loss of Customer Ownership

By listing offerings on OTAs, businesses risk diluting their brand identity and losing ownership of the customer experience. Customers may perceive the services as being solely associated with the OTA rather than recognizing the business behind it. This can weaken the business’s unique selling proposition and diminish the opportunity to foster long-term customer loyalty.

3. Commission Fees

Working with OTAs typically involves paying commission fees for each booking or transaction facilitated through their platform. These fees can eat into the business’s profit margins and impact overall revenue. Therefore, the costs associated with commissions should be carefully considered and factored into your business’s financial calculations.

4. Limited Customization and Branding

Online travel agencies often have standardized templates and formats for presenting travel offerings, limiting the level of customization and branding that businesses can apply. This can restrict the business’s ability to showcase its unique features, highlight its value proposition, or differentiate itself from competitors on the OTA platform.

5. Dependency on Third-Party Platforms

Relying heavily on online travel agencies for bookings and customer acquisition can create a dependency on third-party platforms. While OTAs provide valuable exposure, businesses risk losing control over their distribution channels as any changes or disruptions in the policies, algorithms, or availability of the OTA platform could directly impact the business’s visibility and revenue.

Should You Work with Online Travel Agencies?

Deciding whether or not to work with OTAs is a strategic decision that requires careful consideration. While working with OTAs can expand your reach and boost your bookings, that doesn’t mean you should neglect your marketing efforts of generating direct bookings.

At Ontario SEO, we specialize in driving direct bookings for our clients in the travel and tourism industry. Our marketing campaigns can complement your OTA program or replace them. Contact us today to discover how our comprehensive digital marketing services can support your business goals and ensure a successful online presence.

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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?

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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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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
• Partnerships with Booking.com and Rentalcars.com
• Discover deals anywhere with the option to open up your search
• Easy-to-use app

How do online travel agencies work?

What are the advantages of booking through an online travel agency.

• Access to comparison tools
• Peer reviews to help you with your decisions
• Flexible cancellation policies
• All your travel in one place
• Local flights and deals

Rewards programs

Comparison tools, peer reviews, flexible cancellation.

Flexiperk: Cancel anytime, anywhere. Get a minimum of 80% of your money back.

One account for all of your travel needs, a local approach to global travel, wrapping up.

Make business travel simpler. Forever.

• See our platform in action . Trusted by thousands of companies worldwide, TravelPerk makes business travel simpler to manage with more flexibility, full control of spending with easy reporting, and options to offset your carbon footprint.
• Find hundreds of resources on all things business travel, from tips on traveling more sustainably, to advice on setting up a business travel policy, and managing your expenses. Our latest e-books and blog posts have you covered.
• Never miss another update. Stay in touch with us on social for the latest product releases, upcoming events, and articles fresh off the press.

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Maximizing your business potential: The benefits of Online Travel Agents

Working with different selling techniques and channels is necessary for most tour and activities operators.

There are many ways to promote your tours. You can advertise your website on Google My Business, Social Media, and OTAs. Websites like TripAdvisor and Viator are key distribution channels; Tripadvisor, for example,  has over 1 billion reviews and opinions of nearly 8 million businesses . Travelers are reaching out to OTAs for information, comparison, and bookings.

To help you make the best of working with Online Travel Agents (OTAs), in this blog, you'll learn about how they work, their benefits, and how they can increase your bookings.

What are Online Travel Agents (OTAs), and how they work

Let's start from the beginning; after all, what are OTAs? Online Travel Agents are websites or platforms that allow travelers to book travel-related services; this includes flights, rental cars, tours, activities, hotel rooms, and vacation packages. Some popular OTAs include Expedia, Booking.com, Travelocity, and Kayak.

OTAs offer many benefits for travelers; here  are some:

• Travelers can compare their preferences, budget, and travel dates with different operators in a user-friendly way and choose the most suitable tour.
• They can book and pay all in one place - e.g., the flight, hotel, and activities. According to  research by Travelport , 45% of travelers prefer booking the entire travel experience - flights, accommodation, car rental, and extras - on a single website.
• OTAs usually offer great customer support, helping travelers with any queries, changes, or cancellations to their bookings.
• Find the best option through genuine and reliable reviews that previous customers left.

In general, the intention of OTAs it's to make it easier for travelers to find, compare, and book travel services from different suppliers in one place.

Benefits of working with OTAs for tour operators

While we learned the perks of booking through OTAs for travelers, tour operators can also take advantage of the websites and platforms.

Here are some benefits of working with online travel agents (OTAs) for tour and activity operators:

• Increase your visibility.  One of the best benefits for tour operators when working with an OTA is the increased visibility to a broader audience of potential customers. Keep in mind that OTAs often have large marketing budgets and established online platforms that attract more travelers when compared with your website, for example.
• Find new partners to work with.  OTAs can offer tour operators access to their extensive network of other travel industry partners, which can help reach new travelers and grow the business.
• For those who don't have a booking solution, OTAs offer a simplified booking. Online agents often offer easy-to-use booking systems that streamline the booking process for tour operators and their customers.
• Improve your customer experience.  As we mention, many OTAs offer customer service support, which can help tour operators provide a better overall customer experience. This is particularly useful for small tour operators who may need more resources to offer extensive customer support on their own.
• Stay competitive in the travel industry. OTAs often provide competitive pricing, which can help operators attract customers who are looking for the best deals.

While working with online agents has many perks, remember that OTAs earn a commission or a fee for each booking made through their platform. This means that only some of the booking price will come directly to you.

To know more about getting bookings from your website, read  OTA vs Direct Booking: what is the best option in 2022 .

Top travel agencies in the world: OTAs you can work with

Before working with any OTAs, keep in mind that you need to research the best option for your business and read the agreements, such as policies for refund and cancellation, terms and conditions, and all the relevant information, so you don't experience any unpleasant surprises.

You can learn more by reading the article  10 tips to make more money with OTAs .

They provide travelers with flights, hotels, vacation packages, vacation rentals, cruises, activities, attractions, and services. For activities providers, they offer to show your experience through " Expedia Local Expert " to visitors who want to explore your location.

The Expedia Group, Inc, 2022, had a global revenue of 11.7 billion U.S. dollars. The group subsidiaries many websites, such as Expedia.com, Vrbo, Hotels.com, CarRentals.com, CheapTickets, Hotwire.com, Orbitz, Travelocity, and trivago.

This OTA focuses its services on tours and activities, and they offer to reach over 455 million visitors. According to the website, " Viator  is a platform that lets you create experiences that travelers worldwide can book, whether it's guided tours or surfing lessons.".

To create a profile in Viator, you must have a Tripadvisor profile.

GetYourGuide

A platform that offers travel experiences. They offer tour and activities providers to reach a global audience, and according to  GetYourGuide  "gain access to 50 million visitors per month from 190+ countries with your products optimized in 14 languages".

TripAdvisor

According to them, "travelers go to  Tripadvisor  to find deals on accommodations, book experiences, reserve tables at delicious restaurants and discover great places nearby. "

How a channel manager works and helps boost your bookings

Increasing bookings and managing a business can be challenging. Updating relevant information, such as prices and availability on multiple platforms in real-time, can take too much time, and it's an operator prone to human error. You can work with a channel manager to avoid all the work and disturbing your business.

With a  channel manager, such as TrekkSfot's , you experience many benefits, such as:

• Increase bookings. Sell over different OTAs such as Viator, Expedia, GetYourGuide, and many others simultaneously.
• Manage your bookings on one dashboard. Have your inventory updated in real-time and manage availability and pricing in one place.
• Track your sales and make data-driven decisions. Check which channels are selling more and adjust capacities across the channels you're working with.

If you want to know more about the ultimate booking solution that can help you manage your sales with OTAs and much more, get a demo!

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Is a travel agent worth it the pros and cons.

Travel experts agree there are several advantages to hiring a vacation planner.

The Pros & Cons of Using a Travel Agent

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A travel agent can save you money and time.

Need to pivot your trip plans but don't want to deal with the extra time, money and hassle of rebooking flights and accommodations on your own? That's just one area where a knowledgeable travel agent (also commonly known as a travel advisor) can help. Read on to discover the other benefits – as well as the downsides – of using a travel agent, so you can confidently decide whether or not a travel agent is worth it for your next trip.

The Pros of Using a Travel Agent

Travel agents can save you money – and get you other perks.

"In some cases, you'll actually get a better  deal by working with a travel agent," says Jackie Steele, travel expert at MagicGuides . "This could be in the form of a cruise onboard credit (free spending money to use on the ship), access to special agency/group rates, or even just learning about a discount you qualify for but weren't aware of." The best agents will even keep an eye on new discounts as they're announced and apply them to your trip even after you've booked, he notes.

Travel agents handle all the details

Hotel room? Booked. Dinner reservations? Made. Tour tickets? Ready to go. A travel agent handles every detail of your vacation itinerary. "The traveler still gets to be involved in the fun part of dreaming up ideas and providing their travel wishes, while we take and perfect them," says Jessica Parker, founder of Trip Whisperer .

Molly McShea, owner and travel advisor at McShea Travel , points out that travel agents can also help with timing logistics. "Travel agents know how many days should be spent in each destination, which tours go together, and how many things you should do in a day," she says, adding that crafting an itinerary can be challenging if it's not something you regularly do. Additionally, travel agents can help you choose the best time to visit your preferred destination(s) based on seasonality and your budget, and sift through travel insurance policies to find the best option for your needs.

Travel agents can provide local expertise

"A travel advisor's industry connections and relationships provide added value to their clients," says Valerie Edman, a luxury travel advisor and agency owner at Cultured Travel LLC. She says when working with a travel agent, travelers gain access to a global network of connections including:

• In-destination specialists who work exclusively with travel advisors and can connect travelers with unique, off-the-beaten-path experiences they wouldn't otherwise know about
• Exclusive experiences not available to the general public

You'll avoid surprise fees

When deciding if a travel agent is worth it for you, remember this: A reputable agent can guarantee you won't encounter any surprise fees on accommodations and activities once your trip is booked.

You'll have someone to troubleshoot unexpected travel issues

A travel advisor is essentially your personal vacation concierge. "Because they've been around for so long, agents really know what to look for," says Christopher Elliott , a consumer advocate and journalist. "Travel agents are among the first to know about flight cancellations and delays , making it easy for them to rebook itineraries right away." 

The Cons of Using a Travel Agent

It might not be your cheapest option.

There are some instances when it makes more sense to plan your own trip. "If you're planning a quick flight from New York City to Los Angeles, it's easy enough to book it yourself online directly or through a third-party booking site," says Elliott. "If you're planning a once-in-a-lifetime trip or bucket list honeymoon , that's when you call the experts."

You'll have less flexibility in your itinerary

The upside of working with a travel agent is having someone plan an epic vacation for you based on industry knowledge and local expertise. But this can also be a downside in the event you discover an activity you'd like to do or a restaurant you'd like to try that isn't on your pre-planned itinerary. If you alter your plans, you risk losing money; plus, the time it takes for you and your travel agent to coordinate your change of plans may not be worth the hassle.

You still have to do some research

It's important to find an agent you can trust, which means you still have to do some of the vacation planning. For this part, Parker recommends picking up the phone. "Lots of people avoid or don't pick up the phone as much anymore," she says. "That's where you get the high-touch service, tone of voice, excitement or concerns to manage." She advises to look for the following red flags:

• No fees: " Travel advisors are charging planning fees more now or increasing them, so the client knows more confidently than ever, we work for them, not the suppliers with the best commissions," Parker explains. "There are a lot of things that are non-commissionable and the advisor's time and expertise shouldn't be given away for free, either. That's the best way to show an advisor takes their business seriously."
• Limited options: If you work with someone who is inexperienced or has an incentive to book you with a certain supplier, they may not be prioritizing your best interests. "It's important to check if they are with a larger consortia, accreditations and network, typically listed on their website and signatures," says Parker. "That level of mindshare doesn't come with a lone advisor unless they have many, many years of experience."
• Slow response times: If communication is delayed, that's a sign they may be too busy to plan your trip – but again, this is something you can avoid by having the right conversations early on.

Edman suggestes starting your search with the American Society of Travel Advisors . "ASTA-verified travel advisors are committed to the highest industry standards and have verifiable industry knowledge so consumers can feel confident in working with them," she says.

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More From Forbes

9 pros and cons of using a travel agent.

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The thought of using a travel agent to book your travel, versus doing it yourself, has given some travelers pause. After all, what’s to say that you won’t end up in a Thomas Cook-type situation where you’re left stranded after your travel agency collapses? But for some, this risk of trusting someone else to plan all your travel is a minimal worry when they can avoid all the stress of travel planning. 

Connections travel shop / travel agency in Belgium. (Photo by: Arterra/Universal Images Group via ... [+] Getty Images)

If you’ve considered using a travel agent before, but are still on the fence, here are nine pros and cons to think on before deciding either way. 

1. You’re Not The One Planning Your Travel

For some people using a travel agent, it’s all about the convenience. You tell your agent where you want to go and what kind of travel you like, sit back and relax and then hop on a plane. Easy. 

This one can go either way. Some travel agents can snag you great bundled deals on your travel. Other times, the cost of using a travel agent means you won’t actually save any money. 

3. Someone’s Always On Your Side

One great thing that a travel agent can provide is advocacy. They’re always on your side. If an airline cancels your flight or a hotel suddenly doesn’t have your reservation on file, your travel agent can help things get sorted, fast. Though, this doesn't really help when they also own the hotel or airline, as was the case with Thomas Cook.

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Best covid travel insurance plans.

On a more dire scale, travel agents can also help you in the instance of a natural disaster or some other type of event that would require you to evacuate a destination quickly. 

4. They Want You To Be Happy 

An airline or a hotel brand might not care that you rebook. There will always be another traveler in line to take your place. However, with agents, they often have a limited number of clients. They want to earn your repeat business.

To do so, you’ll find that agents will go out of their way to make sure you’re pleased with your experience. That might mean throwing in something for free or upgrading your experience. 

5. They Make Seeing A Brand-New Place Easier

If you’re traveling somewhere that’s entirely brand new and completely foreign, having a travel agent can make things easier. They can recommend the best places to go, stay, eat and play, and often they have first-hand experiences with these places. This way, you’re not relying on internet research or a potentially out-of-date guidebook.

They can also clue you in to various little things that are easier to convey person-to-person, such as local customs, and any “do’s” or “don’t’s.” 

While not planning your travel is a pro to some, for other travelers, it’s a major con. Some travelers thoroughly enjoy the planning part of the travel experience. Everything from reading travel blogs, searching for inspirational destination photos on Pinterest and flipping through guidebooks can be an exciting part of the process.

They’d never dream of letting someone else take the reins. 

2. You Add Another Person To The Equation

One nice thing about booking your travel experience yourself is that you can literally do it anytime, anywhere. When you have a travel agent, you have to consider someone else’s schedule.

If you decide you want to go to Bermuda at 2 p.m. on a Sunday and you want to book it right that second, your travel agent won’t be able to help you until Monday morning. If you’re booking things yourself, you can secure your travel plans right then and there. There’s no waiting around for a returned call or email. 

3. You Actually Have To Find The Agent

Shopping for a travel agent is a little like shopping for any kind of assistant. You want to find the perfect one for you and your family. You want someone who preferably specializes in the type of travel you like, someone who makes you feel comfortable and someone with good references.

This kind of shopping around for the perfect travel agent takes time and patience, something you may not have. And, even if you do find a travel agent you think you like, you could always get burned in the end. 

4. They’re Not Great For Spur-Of-The-Moment Changes

If you’re the type of traveler that really likes to just fly by the seat of your pants while you’re traveling, that’s not going to be so easy when you have a travel agent. See a cool restaurant that you suddenly want to try? Calling your agent, just for your agent to call the restaurant where you already have a reservation to get your reservation switched to this new restaurant, can be a pain.

With no travel agent involved, you can cancel your old reservation straight from your phone and walk right into the new restaurant. Or, just skip reservations altogether and go with the flow. 

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The benefits of online travel agencies

With the current brouhaha swirling around the scuffle between American Airlines and online travel agencies Orbitz and Expedia (in case you haven't heard, American has pulled its fares from Orbitz and Expedia has pulled American's fares from Expedia.com and Hotwire.com), I've seen a lot of blog post comments basically saying, "Who needs online travel agencies? What good are they? I always book directly with the airline's website anyway. Good riddance!"

But before we dance a jig around the grave of these third-party web sites, let's all take a deep breath and remember what travel agents — whether online or "bricks and mortar" — are good for.

Online travel agencies do at least six things well that airline sites don't (meta search sites such as Kayak offer some, but not all, of these advantages):

1. Quick and easy comparison of not just fares but schedules on many different airlines at a glance It's not just fares; it's schedules, too. If your main criterion is arriving, say, by 2 p.m. and aa.com shows all flights arriving by then at $300, then wouldn't you like to quickly see that another airline has 2 p.m. arrivals for $150?

2. Flexible date searches Let's say you can only see your girlfriend in Toledo when the fare is $150 or less and you'll travel any time it goes that low. Most airline sites just do flexible date searches over plus- or minus-three or –seven days (although aa.com does this over 30 days), making flexible date searches time consuming and tedious. Travelocity.com and Cheapair.com perform searches over 330 days ahead, and Orbitz.com, Hotwire.com and Cheaptickets.com do 30-day searches quickly and easily, plus they do so on many airlines at once. (Meta search sites such as Kayak typically only do a plus or minus one-to-three day flexible date search).

3. Multi-airline itineraries It might be cheaper flying your first leg on Airline A, your second on Airline B, and your third on Airline C. Online travel agencies (and good bricks-and-mortar travel agents) will work out the best fare in such scenarios; an airline site will keep you on its own system. Even meta search sites like Tripadvisor.com/Flights and Kayak will send you only to Expedia.com or Orbitz if the best deal is flying out on Frontier and back on US Airways.

4. Packages Ever notice the TotalTrip option on Travelocity? On some trips, especially last-minute ones, we've seen hotel plus air packages for half what air alone costs.

5. Opaque fares Sites like Priceline.com and Hotwire.com sell fares for less than airline sites as long as you don't care to learn the airline and exact flight times before you buy. You can save hundreds, especially on last minute fares.

6. Code share airfares Go to Orbitz.com and you'll often see an odd thing: two flight itineraries leaving and arriving at exactly the same time on two different airlines — let's say Alitalia and Delta. But Delta is selling the trip for $1,000 and Alitalia for $600. This is a code share arrangement. Delta has bought seats on Alitalia and is free to sell them at any price it chooses. Go to Delta.com and you'll only see the $1,000 fare. If you're a savvy traveler, you might think to check Alitalia's web site; if you're not, you'll overpay. Orbitz's fare matrix is the easiest way to quickly identify code shares (Orbitz's sister site Cheaptickets.com which, by the way, still shows American's fares, works the same way).

So here's the bottom line: if American ends up selling its fares the same way Southwest does (and as Airtran will after the merger) — i.e., only on its own website — and then Delta, United/Continental and US Airways follow suit, then you'll be spending a lot more time online looking for the best deal. And you'll probably end up spending more on airfare.

Sure, you can always use online travel agencies to find the lowest fare and then book directly with an airline, but that strikes us somehow as killing the "golden geese."

Small Business Trends

How to start a travel agency.

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If you love to travel, are highly organized and enjoy working directly with people, becoming a travel agent is an awesome career choice.

You’d think with the ease of using search engines on the internet; the travel business wouldn’t be thriving. But it is.

According to statistics, a person may spend (waste) 20 hours on internet research before booking a flight. The internet is clogged with info, which is why the benefits of using a travel agent will always be valuable to most travelers.

What is a Travel Agency Business?

A travel agency is a company that provides travel and tourism booking services and planning for people. This can include making arrangements for things such as air travel, vehicle rental, hotels/lodging and travel insurance. Before you get started, find out how do travel agents make money and see if you can find out new ways to generate income.

Travel agencies can offer a wide range of services, including:

• Booking flights and hotels: Travel agencies can help you find the best deals on flights and hotels. They can also book your transportation and accommodation and even help you with things like visa applications and currency exchange.
• Planning itineraries:  Travel agencies can help you plan your itinerary, taking into account your interests and budget. They can also recommend popular tourist destinations and activities.
• Offering travel insurance:  Travel agencies can help you purchase travel insurance, which can protect you in case of flight cancellations, lost luggage, or medical emergencies.
• Providing customer service:  Travel agencies provide customer service to help you with any problems that may arise during your trip.

There are two main types of travel agencies:

• Retail travel agencies:  These agencies sell travel packages to the general public. They typically have a physical location, such as a storefront or a call center.
• Wholesale travel agencies: These agencies sell travel packages to other businesses, such as airlines, hotels, and tour operators. They typically do not have a physical location and operate online or through a call center.

Starting a travel agency business can be a great way to turn your passion for travel into a successful business.

How Much Does It Cost to Start a Travel Agency?

The cost of starting a travel agency can vary depending on a number of factors, including the size of the agency, the location, and the type of services offered. However, in general, you can expect to spend anywhere from a few thousand dollars to tens of thousands of dollars to get started.

Here are some of the expenses you’ll need to consider when starting a travel agency:

• Business license and permits:  You’ll need to obtain a business license and any necessary permits from your local government. The cost of these fees will vary depending on your location.
• Travel agency software:  You’ll need to purchase or lease travel agency software to manage your bookings and reservations. The cost of this software will vary depending on the features and functionality you need.
• Marketing and advertising:  You’ll need to invest in marketing and advertising to reach potential customers. The cost of this will vary depending on the channels you use and the reach you want to achieve.
• Office space:  If you plan to have a physical office, you’ll need to rent or lease space. The cost of office space will vary depending on the location and the size of the space you need.
• Staffing:  If you plan to hire employees, you’ll need to factor in the cost of salaries, benefits, and training.

In addition to these expenses, you’ll also need to factor in the cost of travel, meals, and other expenses associated with booking travel for your clients.

The good news is that there are a number of ways to reduce the cost of starting a travel agency. For example, you can use free or low-cost marketing channels like social media and email marketing. You can also start your agency as a home-based business, which can save you on the cost of office space.

How Much Can You Make Owning a Travel Agency?

The average salary for someone working for an established agency is $19 per hour. The average annual earnings for independent travel agents is $36,000. That varies depending on your geographical location and the type of travel business you’ve chosen as a specialty.

18 Important Steps to Start Your Own Travel Business

Here are key steps to take to get your start in the travel industry. You should decide early whether you want to work for a travel company or work on starting a travel agency.

1. Complete Relevant Training

Colleges and business schools offer associate and four-year degrees in tourism. There are some independent educators, such as The Travel Institute , which offer certifications.

All these studies will include courses in business management, marketing, accounting and customer service. As part of ongoing education, you should also keep tabs on international affairs and weather events.

2. Look at the Competition

Agencies in the travel industry typically offer all types of services but specialize in a certain niche. For example, some travel agencies focus on luxury travel, and some focus on the adventure travel industry.

Savvy travel agents know their competition well, especially before starting their own business.

3. Choose Between Host Agency, Independent Travel Agent, and Franchise

Under the umbrella of a host agency, you can work as an hourly or salaried employee. In addition to your regular pay, you may be eligible to earn commissions.

If you’re starting a travel agency, you’ll be working independently. Your source of pay will be the fees you charge clients plus commissions you earn from travel suppliers – such as airlines, hotels and rental vehicle companies. Some businesses function solely as online travel agencies, often focusing on arranging corporate travel.

You can also opt to purchase a franchise, such as Dream Vacations . A franchise will provide training programs. Both a host agency and a franchise have the advantage of existing vendor partnerships.

4. Find a Specific Niche and Target Market

Maybe your idea of a dream vacation is renting bicycles and traveling to an Inn in New England. Or you might prefer canoeing wilderness rivers, and staying in tents. Maybe you’d like to book an all-inclusive trip, where the price includes airfare, lodging, food and beverages.

Your preferences aren’t what’s most important. You need to think about your potential clients and customers. Learn the demographics of your local community area and the average income of potential customers.

5. Choose a Business Name and Register Your Travel Agency

Before you lock in on the name, go to the website for your secretary of state. That’s where businesses are registered. You can check to make sure the name you’d like to use isn’t similar or the same as a travel agency already in existence before you spend money on business cards or a website.

6. Write a Travel Agency Business Plan

Here are some helpful tips for making your business plan. A business plan should include key elements of a business plan for travel companies:

• New business name and website
• Business physical location
• Business Structure
• Niche in the industry
• Forming partnerships (cruise lines, hotels, rental companies, etc.), especially once you’ve been a travel professional for over a year
• Plans for marketing/expansion in the industry

7. Open a Business Bank Account

Opening a business bank account is a fundamental step for any budding travel business. It not only separates your personal finances from your business transactions but also enhances your professionalism.

When selecting a bank, consider factors like fees, transaction limits, online banking features, and customer service quality. Additionally, look for banks offering perks for small businesses, such as waived fees for the first year or low minimum balance requirements.

A dedicated business credit card is also advisable for handling business expenses and potentially earning rewards.

8. Make Sure You Have the Licenses and Permits Required in Your State

General Business License as required by your business location.

Travel Agents License – If required by your state.

Federal employer identification number (EIN) is needed for paying business and payroll taxes, if you have employees. You’ll need the EIN when you file taxes.

Zoning – If you’re working from a home office, you must make sure your residence meets the zoning requirements for home-based travel agents.

9. Create a Travel Agency Website and Choose a Location

You may start your own travel agency with the glitziest, most informative and most gorgeous website imaginable.

But its use will fail if it hasn’t been correctly linked – called search engine optimization. Unless you’re very savvy about this, it will pay you to hire a professional to make sure clients find your new company and social media accounts. That’s a key part of your marketing strategy.

10. Sort Out Your Accounting Software

You’ll need to manage travel contracts, travel bookings, invoices and receipts, vendors and more on the financial end. Here are some of our recommendations:

• Fresh Books
• itouroperator

11. Choose a Business Structure

You’ll need to choose a structure for starting your travel agency. Many travel agencies choose the Limited Liability Company or LLC. The LLC allows you to protect your personal assets, especially if you’re operating in your own home.

Other common structures chosen by many businesses in most states include partnerships and corporations.

12. Get Your Taxes in Order

Understanding and managing your tax obligations is crucial for a travel business. Firstly, obtain an Employer Identification Number (EIN) for tax purposes, especially if you plan to hire employees.

Familiarize yourself with the various taxes you’ll be liable for, including sales tax, payroll tax, and income tax. Use reliable accounting software to keep meticulous records of all financial transactions.

Consider consulting a tax professional or accountant to navigate complex tax regulations, ensure compliance, and identify possible tax deductions specific to travel agencies.

13. Purchase Business Insurance

There are common insurances needed, such as BOP (business operators), professional liability, commercial liability, errors and omissions, and general liability insurance.

If you’re going to sell travel, you need to offer travel insurance. What if travel restrictions suddenly impact a location? What if a natural disaster destroys the plans for a beach wedding destination?

14. Join Travel Associations

Here are a few which will serve as additional resources for you (help you with finding customers):

• American Society of Travel Advisors
• Association of Independent Tour Operators

15. Set Up Your Office and Invest in Equipment

You’ll need typical office equipment such as computers, software, internet, phone system and fax. If you’re offering travel services face-to-face, you’ll need comfortable furniture, a conference room, and ample parking.

16. Marketing

Effective marketing is key to the success of a travel business. Begin by identifying your unique selling proposition and target audience. Develop a marketing strategy that includes a mix of online and offline tactics.

Utilize social media platforms to engage with potential clients and showcase your offerings. Create informative and appealing content, such as travel guides, tips, and destination highlights.

Consider email marketing to keep your audience updated with the latest deals and offers. Attend travel expos and network events to build relationships and partnerships. Always track the effectiveness of your marketing efforts to refine your strategy.

17. Find Partners

Partners can include elements of a destination – a motel, B&B, restaurants, or spas, for example.

A partner can also be a media company, such as a newspaper, radio, or television station. You buy advertising with them and negotiate a reduced-price trip for an owner or manager.

18. Build Trust with Your Customers

Building trust with your customers is essential for the longevity and reputation of your travel business. Maintain transparency in your dealings, clearly communicate travel plans, and be upfront about costs and potential issues.

Provide exceptional customer service by being accessible, responsive, and empathetic to client needs and concerns. Encourage feedback and reviews from customers to improve your services. Develop a system to handle emergencies or unexpected travel issues efficiently.

Consistently delivering on your promises and providing memorable travel experiences will foster customer loyalty and lead to repeat business and referrals.

How to Compete with Big Brands in the Travel Industry

The travel industry is competitive, and it can be difficult for small businesses to compete with the big brands. However, there are a number of things you can do to give yourself a fighting chance.

Here are some tips on how to compete with big brands in the travel industry:

• Focus on a niche market.  Instead of trying to compete with the big brands on everything, focus on a specific niche market that you can specialize in. This could be a specific type of travel, such as ecotourism or adventure travel, or it could be a specific group of travelers, such as families or business travelers.
• Offer unique experiences.  Big brands often offer the same generic travel packages. To stand out from the crowd, you need to offer unique experiences that your customers can’t find anywhere else. This could be anything from a private tour of a hidden gem to a customized itinerary that’s tailored to your customer’s specific interests.
• Provide excellent customer service.  This is one area where small businesses often have an advantage over big brands. Big brands can be impersonal and bureaucratic, while small businesses can provide more personalized and attentive service. Make sure your customers feel like they’re valued and that you’re going above and beyond to make their travel experience as smooth as possible.
• Use technology to your advantage. Technology can be a great way to compete with big brands. You can use social media to connect with potential customers, use online booking tools to make booking their travel easy, and use analytics to track your performance and make improvements.
• Be creative with your marketing.  Big brands often have big budgets for marketing, but that doesn’t mean you can’t compete. Be creative with your marketing and find ways to reach your target audience without breaking the bank. This could include using social media, running contests, or creating original content.

Here are some additional tips that you can follow:

• Build relationships with travel suppliers.  This will give you access to better deals and will help you to provide your customers with a more personalized travel experience.
• Stay up-to-date on the latest travel trends.  This will help you to offer your customers the most in-demand travel experiences.
• Be flexible and adaptable.  The travel industry is constantly changing, so you need to be able to adapt your business accordingly.
• Never give up.  The travel industry is a tough one, but if you’re passionate about travel and you’re willing to work hard, you can succeed.

Competition in the travel industry is fierce, but it’s not impossible for small businesses to succeed. By following these tips, you can give yourself a fighting chance to compete with the big brands.

What are the legal requirements for starting a travel agency?

The legal requirements for starting a travel agency vary by country and region but may include obtaining the necessary licenses, permits, and registrations.

How do I choose a niche or specialty for my travel agency?

Consider your interests, expertise, and target market to choose a niche, such as adventure travel, luxury vacations, or corporate travel.

What technology and software do I need to run a travel agency?

You’ll need travel booking software, customer relationship management (CRM) tools, and a user-friendly website to handle reservations and inquiries.

How can I build relationships with travel suppliers and vendors?

Attend travel industry events, join travel agent associations, and establish strong communication with suppliers to build beneficial partnerships.

How do I market and promote my travel agency to attract clients?

Utilize digital marketing strategies, social media, content creation, and collaborate with influencers to increase your agency’s visibility.

What financial considerations should I keep in mind when starting a travel agency?

Plan for initial startup costs, ongoing expenses, and potential fluctuations in the travel industry. Budget for marketing, staff, and technology investments.

How can I provide exceptional customer service and stand out from competitors?

Focus on personalized travel planning, attentive communication, and 24/7 customer support to create a memorable experience for clients.

Image: Depositphotos, Envato Elements

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