competitors of online travel agent

The 10 Best Online Travel Agencies: The Top OTAs to Connect to in 2024

Lexi DeMers

Online travel agencies don’t just make life easier for travelers. The best online travel agencies also offer a variety of benefits to business owners. From accessing niche markets to the billboard effect, listing your hospitality business on popular travel sites has many perks. 

These sites can help you cover low-season lulls or ensure you maximize your bookings year round. In this article, we’ll cover the best online travel agencies for hoteliers and other accommodation providers, as well as the benefits they offer. Discover how online travel agencies can help you capture your share of the $521 billion online travel market . 

The 10 Online Travel Agencies with the Highest Revenue 

Before you take the time and effort to list your business on a new channel, you’ll want to make sure that it will actually help you gain new guests. Below are the 10 best online travel agencies worldwide by annual revenue , as reported by Statista. 

Booking.com

Edreams odigeo, tripadvisor, manage all your channels with one centralized booking system, a closer look at the best online travel agencies.

All online travel agencies are not created equal. In fact, many channels cater best to specific businesses. Though listing your property on the highest earning online travel agencies is a great strategy, it is even better to understand the markets that each OTA serves.

Booking.com is a global powerhouse in the online travel agency sector. Its expansive platform includes a diverse array of property types, ranging from hostels to resorts to apartments. So it is a great OTA option for a variety of business models. Renowned for its user-friendly interface and extensive property listings, Booking.com attracts travelers from around the world. 

Hotels can seamlessly integrate with this booking engine, streamlining their reservations and room management. On average, Booking.com charges businesses a 15% commission on every booking, though this rate can vary from region to region. 

Expedia is a leading online travel agency known for its global reach and comprehensive travel offerings. This one-stop shop caters to travelers searching for accommodations, flights, car rentals, and vacation packages across the globe. 

Business owners benefit from Expedia's tools like the Partner Central platform, which aids in managing bookings, optimizing rates, and enhancing visibility. Expedia's loyalty program, Expedia Rewards, encourages repeat bookings which is why it is one of the best online travel agencies for hoteliers. However, depending on the region your business is in, Expedia charges 10% to 30% commission. 

Airbnb is a unique online travel agency that connects travelers with a wide range of accommodations, from cozy private rooms to entire homes. While it first gained fame for its home-sharing platform, it has expanded to include boutique hotels and traditional accommodations. As such, it ranks toward the top of our list of the best online travel agencies. 

Accommodation providers can tap into Airbnb's extensive network, reaching guests from around the world. While there are a few different options, most hosts on Airbnb are charged a 3% commission. Meanwhile, Airbnb charges a 14% service fee to guests on top of the nightly rate you set. 

Trivago is one of the best online travel agencies, but getting your property on the site isn’t as straightforward as the other options on this list. Trivago is a metasearch engine that scours the Internet to find the best hotel deals for travelers. It collects hotel listings and prices from various online travel agencies, hotel chains, and booking sites. 

Owners can leverage Trivago by ensuring their listings are well-optimized on other OTAs. Since it doesn't handle bookings directly, Trivago doesn’t charge business owners any commission and instead gets its revenue from other sites that advertise there. 

Despegar is one of the best online travel agencies for the Latin American market. It offers a wide range of travel-related services, including hotel bookings, flights, and car rentals. With a strong presence in Spanish and Portuguese-speaking countries, Despegar gives travelers a convenient platform to plan and book their trips.

Business owners looking to tap into the Latin American market can benefit from listing their properties on Despegar. It allows them to access a diverse and growing customer base while also providing travelers with options tailored to their preferences and language. Hoteliers can expect to pay 10% to 15% in commission on bookings from this site. 

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As one of the largest online travel agencies globally, Trip.com offers a variety of services to travelers. Formerly known as Ctrip, it has a strong presence in the Asian market but has expanded its reach to cater to a diverse international audience. Travelers can use Trip.com to book hotels, flights, trains, car rentals, and other travel-related services. 

Accommodation providers aiming to attract travelers from Asia and beyond can benefit from partnering with Trip.com. As one of the best online travel agencies, it provides access to a vast customer base seeking a variety of accommodation options. By listing on Trip.com, you can expect to pay anywhere between 10% to 25% in commission. 

eDreams Odigeo is a leading European online travel agency that serves as an umbrella for several well-known brands, including eDreams, Opodo, GO Voyages, and Travellink. It caters to travelers seeking a wide range of travel products and services. By partnering with eDreams Odigeo, accommodation providers can tap into the European market and beyond. 

Whether you run a boutique hotel or manage a large resort, listing your property on one of the  eDreams Odigeo sites allows you to reach travelers from various European countries. Depending on the exact site you list your business on, you may pay commission or your guests may pay service fees. 

As a prominent online travel agency in India, MakeMyTrip has a strong foothold in the South Asian market. It offers a range of travel services, including flights, hotels, and holiday packages. By listing your property on MakeMyTrip, you can tap into the growing Indian travel market and attract travelers looking for both domestic and international accommodation options. 

MakeMyTrip's user-friendly interface and extensive marketing efforts make it a valuable platform for reaching travelers across India and the Indian diaspora. After some controversy over excessive rates in 2019, MakeMyTrip pledged to cap its commission at 22% . However, your guests will also be charged a booking fee when making reservations on this site. 

If you're targeting spontaneous travelers or those seeking last-minute deals, Lastminute.com is the best online travel agency to consider. As the name suggests, it specializes in providing travelers with a wide array of last-minute options, from flights and hotels to car rentals and activities. 

On Lastminute.com, you can attract travelers looking for instant bookings, making it an excellent choice for filling short-notice vacancies. This is great for offering discounts during off-peak periods or showcasing special promotions. To learn more about the commission rates Lastminute charges, it's best to reach out to the company directly. 

Tripadvisor is renowned for its comprehensive database of traveler reviews. But it's also a powerful online travel agency, offering an extensive platform for accommodations, restaurants, and attractions. 

By delivering exceptional experiences to your guests, you can earn positive reviews that attract more travelers to your property. Tripadvisor offers various tools for property owners to manage their listings, showcase their amenities, and respond to reviews, ensuring your property's reputation remains stellar. Plus, Tripadvisor only charges owners a 3% commission fee. 

What Are the Benefits of Using an Online Travel Agency?

Online travel agencies have revolutionized the way the hospitality industry operates. They offer a wide array of benefits that cater to both travelers and accommodation providers. In this section, we'll explore the key advantages of collaborating with some of the best online travel agencies.

Your business. Your Bookings. Your way.

Higher Booking Volume.   Of course, the main goal of listing your property on an online travel agency is getting more bookings. These sites have large audiences, which can lead to a substantial increase in bookings. 

Market insights. The best online travel agencies provide valuable data and market insights that can help you understand traveler preferences, booking patterns, and trends. In turn, this can inform your pricing, marketing, and property management strategies.

Build an Online Reputation. Many OTAs offer a review system that allows previous guests to share their experiences. Positive reviews and ratings can build trust and credibility, encouraging potential guests to choose your property.

Easier international reach. If you have international guests in mind, the top online travel agencies can help you reach travelers worldwide. They also often support various languages and currencies, making it easier for international guests to book.

Billboard effect. The Billboard Effect describes the phenomenon in which accommodation providers gain more direct bookings on their own websites after listing their property on OTAs. It illustrates that these platforms serve as powerful marketing and distribution channels.

How to Find the Best Online Travel Agencies for Your Business 

While listing your business on all of the best online travel agencies is a smart move, you can go a step further with OTAs. If you want to find the absolute best online travel agencies for your business, you’ll need to identify sites that fit your niche. 

Many OTAs cater to specific audiences, such as Thermal for surf trips and Bookatrekking.com for trekking adventures. There are also great online travel agencies for other niches, including luxury accommodations, yoga retreats, family hotels, and more. Take some time to explore various platforms’ user base and commission rates to determine which OTAs would be best for your business. 

How Can I Manage Multiple OTAs?

While having a presence on multiple OTAs can offer big rewards, having to log into and manage several different platforms is extremely time consuming. Not to mention, you risk double-books and other errors. Thankfully, you can use a channel manager to help streamline your bookings across multiple online travel agencies. 

At Bookinglayer, we offer Channels ; a fully integrated, user-friendly channel manager that allows our clients to maximize their revenue without spending extra time on administration. Channels allows business owners to integrate with up to 35 different platforms while conveniently managing everything from one simple dashboard. 

Want to Learn More About How Bookinglayer Helps Business Owners?

Bookinglayer is an all-in-one software suite designed specifically for adventure travel businesses that have complex booking scenarios. If you want to offer accommodation and activities, Bookinglayer is the most comprehensive platform on the market.

Whether is optimizing your booking flow, automating your payment processing, or streamlining your daily reports, we can help you save time, reduce errors, and increase conversions. You can sign up for a free demo to discover if you are the right fit for our software suite. 

Best Online Travel Agencies FAQ

What is an online travel agency.

An online travel agency is a web-based platform that allows users to research and book a range of travel-related services. Also known as OTAs, these marketplaces display services from various providers. They often include accommodation, flights, rental cars, tours and activities, and more. 

How do online travel agencies work?

Online travel agencies are third-party services that offer users a convenient and easy way to plan and book travel experiences. They aggregate travel services, facilitate bookings, collect payments, and publish reviews. In return, they oftentimes earn a commission from the bookings they sell.  

How do OTAs make money?

OTAs typically make money by charging business owners a commission on the bookings they sell. These commission rates can range from 10% to 30%, depending on the platform you choose and the region you operate in. In addition, some OTAs may also charge customers a service fee to help cover the costs of running the platform. 

What is the downside of using OTAs?

The downside of using an OTA is that you will likely need to pay a commission to the platform. As such, many business owners prefer to collect direct bookings. Nonetheless, the best online travel agencies serve as a great way to advertise your property and can help you increase your revenue despite the commission charges. 

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Best Online Travel Agencies

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

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

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

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

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

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

Kind Traveler

I Like Local

• See More (4)

Final Verdict

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

 Booking.com

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

Lots of options to choose from

Interface is easy to use

Numerous filters to customize your search

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

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

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

Best Budget : Skyscanner

 Skyscanner

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

Simple interface

Option to toggle searches between specific dates or by monthly calendars

Search Everywhere button is great for spontaneous planners

Extra clicks are required to make a final purchase

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

Ads on the sidebar can be distracting

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

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

Best Price Predictor : Hopper

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

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

App is easy to use

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

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

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

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

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

Most Innovative : Kiwi.com

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

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

Kiwi Guarantee offers rebooking or cancellation protections

Nomad option appeals to travelers with a lot of flexibility

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

Kiwi Guarantee has an additional fee

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

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

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

Best for Eco-Conscious : Kind Traveler

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

All participating hotels include a local give-back component

Exclusive savings and perks

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

Inventory is much smaller compared to other booking platforms

Some of the amenities mentioned are based on availability only

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

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

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

Best for Social Impact : I Like Local

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

Social impact mission woven into organization’s business model

Immersive experiences led by local guides

Range of experiences offered

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

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

No experiences outside of Africa and Asia

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

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

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

Best for Design-Forward Homestays : Plum Guide

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

Highly curated inventory of vacation rentals across the world

Design-forward

Thorough vetting process

Does not publish guest reviews

Other platforms have homes available across more destinations

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

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

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

What Is the Biggest Travel Agency?

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

Are Online Travel Agencies Worth It?

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

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

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

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

Catherine Falls Commercial / Getty Images

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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.

How far in advance should I book my flight? ✈️ 19 Best Website To Book Flights For Cheap Airfare

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

13 Things Not to Forget When Traveling Internationally: Essential Tips for International Travel

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 Pros and Cons of Booking Through Online Travel Agencies

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

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

Pros of booking through online travel agencies

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

✅ It may be cheaper

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

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

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

✅ It can earn you more rewards

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

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

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

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

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

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

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

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

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

Cons of booking through online travel agencies

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

❌ It can be harder to change a booking

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

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

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

❌ You may not receive elite benefits

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

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

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

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

❌ It may be more expensive

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

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

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

Online travel agencies can be hit or miss

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

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

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are some of the best travel credit cards of 2024 :

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.

75,000 Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.

1.5%-5% 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.

Up to $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.

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Top online travel agencies

Based on Cloudbeds’ data gathered from thousands of customer properties between 2021 (the benchmark used in our last report) and 2023, we’ve seen a remarkable pace of recovery for OTAs. While top OTAs like Booking.com, Expedia, and Airbnb have held onto their spots as the highest-revenue generating OTAs, we saw China’s Trip.com rise two spots, indicating the return of Asian travelers to the market. Here are the highest revenue-generating OTAs of 2023.

Highest revenue-generating OTAs

1. booking.com.

Booking.com is one of the largest and most popular travel websites in the world, with over 1.5 million nights booked every day. Its website and mobile apps are accessible in 43 languages and feature over 50 million verified guest reviews of properties in 200+ countries. Its parent company, Booking Holdings, includes OTA brands and metasearch engines such as Priceline.com, KAYAK, Agoda, Rentalcars.com, OpenTable and more.

Expedia.com is the flagship brand of Expedia Group, which includes 200 travel booking websites, including Hotwire, Orbitz, Trivago, and Travelocity, serving 75 countries in 35 languages with over 600 million monthly visits. The website includes searches for all types of accommodations, as well as booking flights, car rentals, cruises, and vacation packages. By activating the Expedia connection, properties will broadcast their inventory on Hotels.com, Wotif, and many other channels.

Airbnb is known for providing access to unique accommodations around the world, with the vast majority of properties located outside of main hotel districts. While the company continues to expand into hotel room inventory following its acquisition of HotelTonight (known for booking last-minute lodging), its community expects a certain type of experience. Namely, something that is less cookie-cutter and more oriented to the local vibe.

4. Hostelworld

HostelWorld is a leading OTA for hostel-focused accommodations worldwide, with 12+ million guest reviews. Their inventory also includes hotels, B&Bs, and other budget accommodation types. Hostelworld aims to be a leader in social travel via its online booking options and mobile app, addressing the needs of guests who want to make connections with others as they experience the world around them. Their app and website operate in 20 different languages.

Agoda was founded in 1998 and later acquired by the Priceline Group (now called Booking Holdings) in 2007. Agoda’s website is available in 38 languages and focuses on listing all types of properties. It’s currently one of the leading online travel booking sites for the Asian market but is pushing into the US, India, and European markets.

6. Trip.com

Trip.com is China’s leading provider of travel services including reservations for accommodation, transportation, tours, and corporate travel. Founded in 1999, the company owns and operates several other OTAs and aggregators, including Trip.com, Skyscanner, Qunar, and Ctrip. 

7. Hotelbeds

By connecting to Hotelbeds, will gain unrivaled exposure to the travel industry’s largest network of B2B buyers, including more than 71,000 tour operators, travel agents, airlines, and loyalty & points schemes which can be great for business travel. 

With over 2 million bookable vacation rentals, Vrbo caters to a diverse range of needs and preferences, offering everything from cozy, intimate cabins for romantic getaways to spacious, well-appointed villas suitable for large family reunions or group vacations.

9. Traveloka

Based in Indonesia, Traveloka is one of Asia’s largest online travel agents. Traveloka lists hundreds of thousands of properties across Southeast Asia, Australia, and around the globe. The company also provides lifestyle products and services, such as tickets to attractions, activities, car rentals, and restaurant vouchers.

10. Despegar/Decolar

Despegar/Decolar is a leading online travel company in Latin America, with Despegar functioning as the global brand and Decolar representing the brand in the Brazilian market. Their marketplace operates across 20 markets and offers a broad suite of travel products in the region, including airfare, hotel bookings, travel packages, and other travel products to a large customer base.

Highest revenue-generating OTAs by country

Based on Cloudbeds data, we’ve highlighted the OTAs that are generating the most revenue for our customers in North America, South America, Europe, and Asia.

Hostelworld has moved up on the list across multiple countries, demonstrating that demand for hostels (jumping 5 spots in Thailand and the Philippines), shared accommodations, and experiences is back. In addition, we can see the return of Asian travelers as Agoda and Trip.com rise in North America and make their first appearance on Latin American lists. 

Top 10 OTAs in the U.S

• Booking.com
• Hostelworld 
• Agoda 
• HotelTonight 
• Hotelbeds 

Top 10 OTAs in Canada 

• Booking.com 
• Expedia 
• Dorms.com 
• Mrs & Mrs Smith
• Tripadvisor

Top 10 OTAs in Mexico

• Hostelworld
• Despegar/Decolar 
• PriceTravel
• Mr & Mrs. Smith

Top 10 OTAs in Spain

• Keytel 
• Mr & Mrs Smith

Top 10 OTAs in other countries 

Learn more about the top revenue-generating OTAs around the world in our Big Book of OTAs, including:

• Philippines

Highest niche revenue-generating OTAs

What are niche otas.

Niche OTAs are online travel agencies catering to specific audiences and travel needs. Many niches exist today, including OTAs for skiers, campers or glampers, adventure travelers, luxury travelers, and more.

Niche platforms can be the best online travel agencies as they are built to target more specific guest segments. Once you identify what guest segments make sense for your property, you can look into local partnerships to expand your offerings to provide a more tailored experience that complements your guests’ travel plans. For example, if you have a property close to the beach, you can find local surf instructors to partner with and offer lessons through your booking engine to attract surfers. When the guests check in, you can show them where the best surf is in town to improve the guest experience.

After a guest’s first trip is booked through a niche OTA, the guest will likely forego OTAs for their next trip in favor of booking directly on the hotel website. Niche OTAs are an essential part of any property’s online distribution strategy as they build loyalty and encourage direct bookings, helping hotels make money.

In the niche OTA market, many new channels have emerged over the past few years, especially surf & sport OTAs and luxury OTAs.

Highlighted niche OTAs surf & sports 

The global surfing tourism market is predicted to grow at a compound annual growth rate of 6%, from 9.5 billion USD in 2022 to 17.1 billion USD by 2032. Travelers are increasingly looking for unique experiences, many tailored to specific activities like surfing, and seek out properties that cater to their needs. Today, the top revenue-generating Surf & Sport OTAs include:

Thermal offers a handpicked collection of the best surf trips in the world, with a focus on amazing guides who create one-of-a-kind, authentic experiences.

Good Story has an inventory of surf hotels and internationally recognized surf schools and camps for both novice and experienced surfers. 

Surf Holidays provides unique places to stay with quality local surf instruction to deliver the surf holiday of a lifetime on some of the best breaks in the world. 

Luex Surf & Snow Travel connects travelers with operators/ suppliers of once-in-a-lifetime sports travel experiences and products.

KiteSurfHolidays.com specializes in kitesurfing holidays, including accommodations and kitesurfing schools.

Highlighted niche OTAs luxury

In May 2023, Deloitte reported that the luxury travel industry had rebounded to pre-pandemic levels and is currently thriving, with a global market value of 1.2 trillion USD. Bookings at five-star hotels rose 19% over the first three quarters of 2021, and luxury travelers are more keen than ever to experience “Instagram-worthy” experiences in unique and remote locations. 

The following OTAs cater to travelers looking for luxury accommodations:

Mr & Mrs Smith includes a collection of carefully curated hotels that are first anonymously evaluated and visited by staff. This exclusive OTA works on an invitation-only basis. 

Prestigia is made up of hand-selected quality and unique hotels from all over the world. This OTA offers the best price guarantees, promotions, and exclusive offers. 

icastelli.net luxurious, historical, and unique high-level hotels are the property types found on this OTA. Collections include exclusive boutique hotels, golf hotels, spa hotels, and more.

i-escape provides unforgettable travel experiences, including eco-retreats, safari lodges, and boutique hotels. Also included is an award-winning booking system with a direct dialogue between guests and property and free advice from travel consultants. 

Tablet Hotels the official hotel selection of the MICHELIN Guide. This OTA showcases hotels that provide meaningful experiences to guests, regardless of budget. 

Spotlight – LGBTQIA+ OTAS

The global LGBTQIA+ travel market is valued at over $568.5 billion USD annually . While many countries have become increasingly welcoming to the queer community, discrimination is still prevalent today. A Booking.com study revealed that 58% of LGBTQ+ travelers face discrimination while traveling, and 41% canceled a trip within the past year after seeing their destination wasn’t LGBTQ+ friendly. 

 OTAs like ebab have emerged to offer safe and friendly accommodations to the LGBTQIA+ community.

Top OTAs by property type

Our data shows that while the top global OTAs dominate across almost all property types, some OTAs offer more opportunities for specific property types.

Channels such as Hostelworld have traditionally been popular for searching for hostels, while channels such as Vrbo and Airbnb have catered to vacation rentals. However, we’ve seen that our hotel customers are increasingly adopting Airbnb as part of their channel mix. Airbnb welcomes hotels that have a unique, independent environment and style.

Download our Big Book of OTAs to see the list of the five most popular channel connections by property type, including:

• Most popular channel connections for Hotels & Boutiques
• Most popular channel connections for Hostels
• Most popular channel connections for Vacation Rentals
• Most popular channel connections for Bed & Breakfasts

The Big Book of OTAs

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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.

Photo by Rawpixel.com/Shutterstock

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

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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• Market cap of leading online travel companies worldwide 2023

As of September 2023, Booking Holdings was the online travel company with the highest market cap worldwide. As of that month, Booking Holdings - the leading online travel agency (OTA) worldwide by revenue - recorded a market cap of roughly 112.8 billion U.S. dollars. Airbnb and the Trip.com Group followed in the ranking, with a market cap of around 91.1 and 23.2 billion U.S. dollars, respectively.

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

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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

Book with Fora

Tell us more about yourself to get matched with a Fora Advisor and start planning your dream trip today.

How Can You Compete with the Bigger Brands in Travel?

For any tour and travel company with an online presence, competition – especially with some of the largest organizations out there – is part of business. Naturally, bigger companies have more resources at their disposal, which can make it seem impossible for smaller ones to keep up.

Fortunately, that is not always the case. Travelers’ booking habits show that, with a winning strategy and the right tools at their disposal, companies of any size can still thrive in the world of online travel booking.

What Are Small Tour Companies up Against?

Crafting an optimized website is rapidly becoming a more exact science instead of a delicate art – layout, design and other crucial elements can now be determined with the assistance of thoroughly analyzed user-experience data.

This is one of the main areas being studied at Expedia’s Usability Lab – a department established at the company’s Washington-based headquarters to study how consumers navigate the holiday-purchasing process, according to a Tnooz report.

One of the lab’s main goals is to track customer preference patterns and regional trends – and use that information to help present potential clients with the most relevant, customized information that is more likely to lead to a purchase.

In other Expedia labs, this study is being taken a step further with an even deeper level of analysis of the shopping experience. While potential travelers acting as research subjects simulate booking a holiday, sensors applied to their cheeks and foreheads are able to detect facial expressions and a computer-mounted camera can track their eye movement – noting what they look at on the screen and their reaction to it.

Researchers can follow along in real time on an identical screen that shows what the subject is looking at, while readouts show his or her emotional response based on facial muscle movements – such as a smile or a furrowed brow.

As Tnooz reports, Expedia plans on opening these labs in Singapore and London in the summer of 2016, meaning that this data can be collected from customers on a global scale.

Data-Driven Design Isn’t Everything

While such an operation may seem daunting, owners of smaller organizations don’t need to worry; there are several reasons why they are still in the game.

Fortunately, research indicates that shoppers are not too keen on sticking with only one provider when researching their options for travel. As potential holiday goers check out different destinations, hotels, and flights, they often get far enough in the process to see the online shopping cart at each site they view. Of course, they don’t complete the purchase with every company – only one tour provider will see a profit from that customer. The rest of the shopping carts will just sit there, inactive, until the system clears them.

Research from Boxever shows that the value of these abandoned travel plans is astronomical – not to mention significantly higher than the actual amount tour and travel companies make. In 2014, the online travel industry took in US$446 billion, but the amount travel planners left unbooked in shopping carts was almost US$1.78 trillion – three times higher.

So, since travelers are still open to checking out different providers before choosing one, how can your tour company stand out from the rest? There are a few different ways.

Making Yourself Stand Out

Put simply, the best way to remain competitive as a smaller organization is to make sure customers find your company and to provide them with a level of service that keeps them coming back and spreading the word. Explaining this strategy is easy, though carrying it out isn’t much more difficult.

The first step is making sure that customers know what your company is and – most importantly – what it offers that they won’t find elsewhere. This is an area where marketing your brand can truly pay dividends.

Part of a strong marketing strategy lies in the effective use of landing pages. These areas of your website – more specialized than your home page – provide customers with a platter of useful and targeted information that will let them get down to business right away. Unbounce found that an optimized and tested landing page can result in a higher conversion rate and a lower cost of acquisition – without an increase in marketing costs.

Once customers are drawn to your website, it’s crucial to provide them with a memorable experience. This is where personalization and a killer sales team can really pay off. According to Econsultancy, 74 percent of marketers agree that a personalized experience is key to increasing customer engagement.

One of the most effective ways to improve this area of business is through giving your sales team the time they need to nurture customer relationships and deliver a more attentive level of service than other, larger companies. By optimizing back-end processes and reducing backlog, Tourwriter can help. L earn more about the benefits of travel agency software for your business.

How does the travel industry actually work?

Who are the key players in the industry, where do they all fit together and how does the industry actually work?! There’s no doubt that the travel industry is a confusing space to wrap your head around so we’ve broken it down for you in this easy new resource.

Travel designers- meet the influencers you should work with.

Understand the role travel influencers play in the industry and why tour operators should be following, interacting and collaborating with them. Explore eight global travel influencers who are inspiring travellers daily.

Tourism news websites you can trust

In the tourism industry it can be hard to differentiate the reliable travel news sources from the not-so-trustworthy ones. In this blog we summarise the top travel news websites that tour operators, travel agencies and DMC’s should pay attention to.

How to set your team up for success when introducing new software

Making changes happen is hard. Especially when it is something that will create a significant impact on the way you work, like new software. We discover what change management is and how it can assist you, your leaders and your team in creating new processes that will make you more successful in the long run. Is it time for a change?

Ranking the best online travel agency rewards programs

When I was in graduate school, I would book conference lodging for other students. In doing so, I collected thousands of dollars of rewards through online travel agency (OTA) programs. But, even if you're only booking for yourself, you may find value in booking through OTAs .

Many travelers use OTAs to compare prices and book travel and although OTAs are easy to use, you won't always get the best price. You may not even get elite night credits and perks at hotels when you book through OTAs. So, it's best to compare what you find through an OTA against booking directly with the travel provider.

However, not all OTAs offer rewards programs and some programs provide only minimal value. So, today I'll describe and rank the best OTA rewards programs.

Get the latest points, miles and travel news by signing up for TPG's free daily newsletter .

What to know before booking through an OTA

First off, know that booking through an OTA may not be the best option. You won't find some travel providers, such as Southwest Airlines , on most OTAs. And, you may find a lower price when you book directly.

Besides, you usually won't earn hotel points and perks when you book through an OTA . Instead, you usually must book directly with the hotel loyalty program to get elite earnings and perks. On the other hand, you'll usually earn airline miles when you buy your ticket through an OTA . But, the airline might classify your ticket as bulk or consolidated. And, this may yield fewer miles.

Finally, if things go wrong, you might find yourself caught in the middle of a finger-pointing match. Specifically, the OTA and travel provider may blame each other if your flight is canceled or your hotel is overbooked . So, both parties may claim the other needs to rebook you or provide compensation. Unfortunately, some travelers have learned this the hard way when trying to cancel travel during the coronavirus pandemic .

So, it's important to realize the potential pitfalls and consider the benefits of booking directly with the airline or hotel . But, if you decide to book through an OTA, you might as well choose one that earns plenty of rewards.

Related: Online travel agency vs. booking direct: Your guide to the best way to book your next hotel

Ranking the top OTA rewards programs

• Hotels.com Rewards : Best return on hotel bookings
• Orbitz Rewards : Best perks for frequent users
• Booking.com Genius : Best for easy to earn status that can provide confirmed upgrades and breakfast
• Expedia Rewards : Best for redeeming for a wide variety of travel
• Trip.com Rewards : Best for onsite perks when you need them

Now, let's take a closer look at each of the programs and options for maximizing your bookings.

Hotels.com Rewards

Hotels.com's loyalty program is called Hotels.com Rewards . And, in addition to being one of the most straightforward OTA rewards programs, it offers substantial value. Plus, you can book many top hotels through Hotels.com , including hotels perfect for a summer vacation or family vacation .

Earning and redeeming

The Hotels.com Rewards program offers you a reward night for every ten nights you stay. The value of your reward night is equal to the average rate you paid across the ten nights. However, this calculation doesn't include any taxes and fees. So, let's assume you:

• Stay seven nights in a hotel with a nightly rate of $100 before taxes and fees
• Stay three nights in a different hotel with a nightly rate of $200 before taxes and fees

In this case, you'd earn a reward night worth $130. However, you'll still need to pay taxes, fees and other incidental costs on your reward night. And, there's a $5 redemption fee if you redeem your reward night using the desktop or mobile web site. But, you can avoid paying the $5 redemption fee if you use the mobile app when you redeem.

Some strategy is helpful when using your reward night. If you use your reward night for a stay that costs more than the value of the reward night, you must pay the difference. But, if you use the reward night for a stay that costs less than the reward night, you'll forfeit the difference. So, you'll want to use your reward night on a stay with a nightly rate just slightly higher than the reward night. When you do, you'll get an almost 10% return on hotel spending through this program.

Related: 7 of the most interesting Hotels.com properties

Elite status

Hotels.com Rewards offers basic status and two tiers of elite status. Specifically, the base level status is called Rewards. And, Rewards status provides the following perks:

• Secret prices
• Earn and redeem as described in the previous section

You can earn Silver status by staying ten or more nights within a membership year, which is based on the date you created your account. Silver perks include the following:

• Priority customer service
• Hassle-free guarantee: Hotels.com will help minimize property charges or cancellation fees if you need to change or cancel a reservation.
• Price Guarantee Plus : If you find a better price on exactly the same stay, Hotels.com will match it and refund the difference.
• Guaranteed Wi-Fi at VIP access properties
• Extra perks at select properties

Once you reach 30 nights in a membership year, you'll earn Gold status in the Hotels.com Rewards program . Gold elites enjoy all the same perks as Silver elites, along with complimentary room upgrade, early check-in and late checkout subject to availability at VIP Access properties.

As you can see, Hotels.com Rewards elite status has few tangible benefits. So, the main reason to use this program is earning and redeeming. After all, getting a reward night after every ten nights is pretty sweet.

Related: Can you earn elite status and benefits when booking through Hotels.com?

Orbitz Rewards

Orbitz launched its Orbitz Rewards loyalty program in October 2013. And, like Hotels.com Rewards , Orbitz Rewards aims to be simpler than the average OTA rewards program.

Whenever you book travel through Orbitz, you'll earn Orbucks based on the kind of purchase you make:

• 1x on flights and packages (1% return)
• 3x on hotels, vacation rentals and activities (3% return)
• 5x on hotels and vacation rentals booked on the Orbitz app (5% return)

Orbitz deposits Orbucks into your account when you book. Then, you can cash in Orbucks toward hotel stays at more than 385,000 hotels worldwide. When you do, one Orbuck equals $1 off your hotel stay.

You can use Orbucks to pay for part or all of a stay. If you use Orbucks, the Orbucks you redeem will be subtracted from the total amount due. Unfortunately, you can't redeem Orbucks for anything besides hotel stays and vacation rentals.

Related: How do you cancel airline tickets issued by a travel agency?

Orbitz Rewards offers elite status to frequent bookers. You'll get Silver status just for signing up, which gets you the following perks:

• Access member-only prices
• Earn Orbucks when you book flights, hotels and packages
• Access to Rewards customer service line

You'll earn Gold status by staying four nights in a calendar year. On top of the perks provided to Silver elites, Gold elites also get unique amenities at VIP Access properties.

And, you'll get Platinum status after staying 12 nights in a calendar year. In addition to the perks available to Gold elites, Platinum status unlocks the following perks:

• Up to $50 Orbucks in reimbursement for travel expenses each calendar year
• Seat assignments and upgrades, bag fees , in-cabin pet fees and inflight Wi-Fi all count
• Apply for TSA PreCheck for free every five years
• Get free room upgrades and early check-in when available at VIP Access properties

Earning Platinum status could be worth it if you can use the $50 Orbucks credit for eligible travel expenses. This is especially true if you don't already have one of the top credit cards for TSA PreCheck .

Related: 5 reasons to get TSA PreCheck now

Credit card

If you're looking to boost your earnings with Orbitz, you could open the Orbitz Rewards Visa Credit Card. This no annual fee card earns Orbucks at the following rates:

• 10x on Pay Now properties booked on the Orbitz app (10% return)
• 8x on Pay Now properties booked on Orbitz.com (8% return)
• 6x on all flights booked on Orbitz.com (6% return)
• 5x on all other Orbitz.com purchases (5% return)
• 2x on all other purchases (2% return)

However, remember that you can only redeem Orbucks for hotel stays and vacation rentals booked through Orbitz. But, if you use Orbitz frequently, this card may be a good choice. The card also comes with lost and stolen baggage coverage . Plus, as a cardholder, you'll get a 6-month CLEAR trial membership and $60 off automatic renewal.

Related: Should you get TSA PreCheck or CLEAR — or both?

Booking.com Genius

The Booking.com Genius loyalty program is a bit different than most of the other programs described in this guide. Specifically, there aren't any chances to earn or redeem rewards within this program. And, there's no cobranded credit card for this program. But, you can earn elite status. And, best of all, it's easy to do so and lasts for life.

The Booking.com Genius loyalty program has two elevated Genius levels. And, once you earn these levels, you'll keep your status for life.

To earn the first level, Genius Level 1, you must stay twice within two years. But, this level only provides one perk: a 10% discount at select hotels.

But, Genius Level 2 isn't much more difficult to earn. To earn Genius Level 2, you must stay five times within two years. And, Genius Level 2 provides the following perks:

• 10% and 15% discounts at select hotels
• Free breakfast at select hotels
• Complimentary room upgrade at select hotels

You can see which hotels offer discounts, free breakfast and room upgrades when you search.

So, as a Genius Level 2, you can ensure an upgrade. After all, you can book into an upgraded room at select hotels for no extra cost. And, this gives much more value than a space-available upgrade.

You won't earn any rewards within the Booking.com Genius program . But, if you're looking for a deal or upgraded room , you may find it sorting by hotels with Genius perks.

Related: Booking.com makes a big move against resort fees

Expedia Rewards

Expedia's rewards program, named Expedia Rewards , provides a loyalty program that's similar to Orbitz Rewards . However, with the Expedia Rewards program, you can redeem for a wider variety of travel.

When you make travel purchases through Expedia, you'll earn points based on the kind of travel purchased:

• 2 points per $1 spent on hotels, cars, packages, things to do and cruises (1.4% return)
• 1 point per $5 spent on full-service airlines (0.14% return)

Also, you'll earn double points on all bookings made through the Expedia app. Plus, as we'll discuss in the next section, elite members can earn points faster.

When you're ready to redeem, simply sign in to your account and start the booking process. Once you get to the checkout page, select "Use my points" under the payment section. If you don't want to use all your points on this booking, enter the amount you wish to use.

However, if you are booking a hotel, you'll need to "Pay now" if you're using points. And, if you're booking airfare, you'll need enough points to cover the entire cost. For every 140 Expedia Rewards points you redeem, you'll save $1. So, each point is worth about 0.7 cents. But, points are worth double when you book a VIP Access hotel.

Related: The complete guide to the Expedia Rewards loyalty program

There are three membership tiers in the Expedia Rewards program . You'll earn Blue tier status simply for joining Expedia Rewards. And, at the Blue tier, you'll get the following perks:

• Save an extra 10% or more on select hotels with member prices
• Earn Expedia points
• Hotel price guarantee (Expedia will match any lower price you find until midnight before your stay)
• Early access to sales and other exclusive member offers

You'll move to Silver status if you spend $5,000 on eligible bookings or stay seven nights within a calendar year. In addition to the perks available at the Blue tier, Silver elites get the following perks:

• 10% more points when you book
• Extra perks at VIP Access hotels , including 250 bonus points just for booking
• 24/7 expedited customer service via the Silver member number

And, you'll earn Gold status if you spend $10,000 on eligible bookings or stay 15 nights within a calendar year. On top of the perks available at the Silver tier, Gold elites get the following perks:

• 30% more points when you book
• Free room upgrades when available at VIP Access hotels
• 24/7 expedited customer service with specialized Gold agents via the Gold member number

The perks provided by the Expedia Rewards program aren't all that impressive, nor is the earning. I'd recommend giving this program a pass unless you have a compelling reason to book through Expedia.

Related: Why points and miles are a terrible long-term investment

Credit cards

If you are all-in on the Expedia Rewards program, you may want to consider one of the following cards:

Expedia® Rewards Card from Citi

• 3x points on eligible Expedia purchases and 1x points on everything else
• Automatic Silver status
• Earn one elite-qualifying hotel night toward Gold status for every $2,500 in purchases on your card each calendar year
• No foreign transaction fees
• No annual fee

Expedia® Rewards Voyager Card from Citi

• 4x points on eligible Expedia purchases, 2x points at restaurants and on entertainment and 1x points on everything else
• Automatic Gold status
• $100 annual air travel fee credit
• 5,000 bonus points if you spent $10,000 in the prior cardmember year
• $95 annual fee

The information for the Expedia Rewards Voyager and Expedia Rewards Card from Citi has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Related: Battle of the mid-tier hotel cards: Which card outshines the others?

Trip.com Rewards

Trip.com's rewards program, named Trip.com Rewards, is similar to Expedia Rewards and Orbitz Rewards . In particular, you can earn and redeem rewards on flights and hotels. And, you can earn elite status based on your activity within the program.

When you make travel purchases through Trip.com, you can earn points in three ways:

• 25 Trip Coins per $100 spent on flights
• 80 Trip Coins per $100 spent on hotels
• Up to 140 Trip Coins per hotel review

But, as I'll discuss in the next section, members with elite status can earn 10% or 30% bonus Trip Coins.

When you're ready to redeem your Trip Coins, you have options. You can exchange Trip Coins for flight and hotel promo codes, instant savings on hotels and hotel perks. But, if you redeem for instant savings, 100 Trip Coins are worth $1. To use Trip Coins for instant savings, simply select "Save with Trip Coins" during the booking process. However, some bookings may not have this option.

It's unclear how much value can be obtained from Trip Coins when you redeem for promo codes and hotel perks. But, based on the instant savings redemption rate, I wouldn't place too much value in Trip Coins.

Related: Why you might not get housekeeping service during your next hotel stay

There are four membership tiers in the Trip.com Rewards program. And, to advance to higher levels, you must earn tier points by booking flights and hotels. Specifically, you'll earn tier points as follows:

• Flights : Earn 25 tier points for every $100 spent
• Hotels : Earn 80 tier points for every $100 spent

Now, here's what you need to know each membership tier.

Interestingly, membership tiers are adjusted each month based on the tier points you've earned in the last 12 months. As such, it requires a fair bit of spending to reach the Platinum and Diamond tiers in this program.

Additionally, members at higher tiers in the program get additional perks. You can exchange zero Trip Coins for these perks when booking hotels marked with "Trip Coin Benefits":

• Gold members : One free breakfast, room upgrade, late checkout and free cancellation
• Platinum members : Two free breakfasts, room upgrades, late checkouts and free cancellations
• Diamond members : Four free breakfasts, room upgrades, late checkouts and free cancellations

However, you must select perks at the time of booking. Perks are provided on a limited, first-come-first-served basis depending on hotel availability. Especially since the high membership tiers require a lot of spending to reach, I wouldn't put too much value in these perks.

Related: The best credit cards to jumpstart elite status

Earn airline miles with OTAs

Finally, some OTAs allow you to earn airline miles for hotel bookings. Three of these OTAs are Agoda (through its PointsMAX program), Points Hound and RocketMiles .

Some of these programs advertise up to 10,000 airline miles per night in earnings. But, in practice, I've yet to find a good enough value to use any of these programs. However, these OTAs can be a good option if you want to earn more miles in a program you already use. Likewise, you may be able to use these OTAs to generate account activity in little-used programs. And, this activity may allow you to keep your points and miles from expiring .

Related: Using Rocketmiles to earn points and miles on hotel stays

Maximize your OTA booking

When booking through an OTA , you may be able to quadruple-dip on rewards. Specifically, you may be able to earn all of the following:

• OTA rewards
• Online shopping portal rewards
• Credit card rewards on the purchase amount
• Travel provider rewards

However, there are some caveats. You can still earn airline miles when you book through an OTA . But, most hotel loyalty programs won't offer elite earning or benefits on OTA bookings . And, some OTA rewards programs may not provide rewards when you click through an online shopping portal. So, be sure to read the fine print for your OTA and travel provider.

Related: TPG reader question: Which credit card should I use in shopping portals?

Bottom line

Although I regularly used OTAs when I traveled less frequently, now I usually book directly with major airlines and hotels . After all, elite earning and perks matter at hotels now that I live on the road as a digital nomad . And, it's often easier to deal with flight cancellations or changes when you book directly with the airline.

But, I do still use OTAs in some cases. I'll book through an OTA when I stay at a hotel that isn't part of a major hotel loyalty program . And, I'll book flights through an OTA if it offers a much lower price. Plus, I often book through Priceline when I use AutoSlash for cheap car rentals .

Several OTAs offer strong rewards programs. Hotels.com Rewards earns the top spot on my list, but Orbitz Rewards and Booking.com Genius also offer solid value propositions. So, if you decide to book through an OTA, it may be worth using one that provides rewards and perks.

Additional reporting by Nick Ewen.

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Online Travel Agency Market

• Information Technology
• online travel agency market

Global Online Travel Agency Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2031

Table of Content

Methodology, request a free sample copy.

Online Travel Agency Market is anticipated to reach USD 911.45 Million by 2031 up from USD 463.29 Million in 2022. The market is growing at a CAGR of 16.98% from 2023-2031.

The online travel agency market has huge potential to grow in the upcoming years with a substantial growth rate. The market growth is supported by various factors such as rising internet penetration in the tourism sector, availability of secure transactions by OTA’s, rising disposable income, increasing promotional activities for tourism. Over the past few years, online travel bookings have gone through several changes owing to technological advancement.

Rising internet usage in tourism and user-friendly applications for smartphones has made the booking process easier. This is estimated to drive the market at a considerable rate in the forecast period. Major online travel agencies are spending a huge amount to promote travel. For instance, Booking.com and Expedia Inc. spent around US$5 billion each in the year 2020 to promote tourism and to gain customer attraction. Rising promotional activities have influenced customers to travel more and thus propelling the market significantly. OTA is also providing customized plans according to customer interest in travel and accommodation for a better travel experience. 

Tourism is one of the major industries affected by COVID-19 due to global lockdown and home quarantine. The COVID-19 pandemic has put the tourism industry under tremendous pressure. However, government initiatives to promote the tourism sector after COVID -19 have played a major role to support the online travel agency market globally. For instance, In the 2020-2021 budget, the Government of India has allotted US$ 171 Million and US$ 30 Million under Swadesh Darshan Scheme and Prashad Scheme respectively to promote tourism in India. Europe commission has also adopted comprehensive packages in May 2020 to resume transportation and tourism safely. 

Segmentation Overview of Online Travel Agency Market (OTA)

The online travel agency market has been segmented based on the business model, platform, product type, customer segment, and region. These major segments are further categorized into sub-segments to study the market in detail.

• Mega Online Travel Retailers
• Digital Tour Operators
• Mobile Travel Retailers
• Travel Marketplaces
• Packages (End-to-end)
• Documentation
• Personal (Individuals, groups, families)
• Students/ Professionals
• North America
• Asia Pacific
• Middle East and Africa
• Rest of the world

Regional Analysis

Geographically, The online travel agency market has been divided into North America, Asia Pacific, Europe, Middle East and Africa, and the rest of the world. As per the studies, Europe is accounted for the highest market share owing to various reasons such as high disposable income and the growing tourism sector. Tourism is the major economic growth sector in Europe which is propelling the online travel agency market in Europe region significantly. North America is the second-largest market shareholder for the online travel agency (OTA) market. However, Asia Pacific region is expected to grow with the highest CAGR of 15.8% in the forecast period owing to the rising use of online travel service applications for mobiles/smartphones. 

Key Players

The major players in the market are Expedia Inc., Booking Holdings Inc., Ctrip.com International Ltd, Trivago, Tripadvisor, Makemytrip Pvt. Ltd, Thomas Cook Group PLC among others. To sustain the competitive environment, various online travel agencies are collaborating with hotel groups and transportation companies to provide affordable services to the customers. For instance, in 2018, Cleartrip acquired Flyin to gain a competitive edge and increase its customer base in the Middle East and Africa region. 

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The 5 best Corporate Traveler alternatives in 2024

1. travelperk, travelperk noteworthy features.

• An intuitive, user-friendly online booking platform -- all traveler data, preferences, and loyalty points can be stored to use whenever needed.
• Integrated travel policy and approval flows to streamline the booking process.
• A simplified travel expense process with real-time expense reports.
• 24/7 business travel assistance with a target 15-second response time from the 7* customer care team.
• TravelCare , a complete and modern travel safety and alerts system that provides business travelers with peace of mind.
• Centralized and single invoicing for all business travel, removing the need to send invoice requests and reminders.
• A huge catalog of integrations with third-party software .

How customers rate TravelPerk

• G2 rating : 4.6/5  (as of February 2024)
• Capterra rating : 4.7/5 (as of February 2024)

TravelPerk pricing

• Starter: The first 5 bookings each month are completely free, with a 5% booking fee thereafter. Users have access to consolidated invoicing, unlimited cost centers, one policy and approval workflow, and travel restrictions information and alerts.
• Premium: Priced at $99/month with a 3% booking fee, this plan offers concierge services for special requests, savings of up to 25% with VAT-ready invoices, and secure traveler sign-in and automated user setup.
• Pro: This plan costs $299/month with a 3% booking fee and provides unlimited policy and approval workflows, unlimited budgets by cost center, custom reports and insights, and access to negotiated rates.
• Enterprise: This tier is designed for enterprise businesses that want to customize their requirements. To find out more about this plan, get in touch with an expert .

Languages supported by TravelPerk

Corporate traveler vs. travelperk.

• TravelPerk offers an outstanding worldwide inventory
• TravelPerk offers top-notch customer support
• TravelPerk’s booking platform
• Lack of online reviews

Egencia noteworthy features

• Industry-first NDCs for all clients
• Sustainable travel program: use of cutting-edge business travel technology and practices to help travelers reduce their carbon footprint
• Specialist knowledge in B2B and SMB corporate travel
• Smart booking tools to ensure compliance with company travel policy
• Egencia Preferred Rates: exclusive discounts, air credit tracking and increased visibility into travel spend
• Multilingual platform: Egencia is available in over six languages, making it accessible to a wide variety of users

How customers rate Egencia

Egencia pricing, languages supported by egencia, 3. amex gbt, amex gbt noteworthy features.

• A unified travel platform for managing bookings and expenses.
• Mobile app for on-the-go travel management and updates.
• Data and analytics with Amex GBT’s Premier Insights™ to compare your program to industry peers and identify opportunities to improve your program.
• Monitor rate drops and easily rebook tickets to save money with re-shop tools .
• Airline credit reporting : a holistic view of total refund amounts and any unused tickets available is visible in the easy-to-use reporting tool.
• Risk alerts provide you with direct communication during disruptions.
• Navigate business travel challenges while traveling with personal assistants ready to assist.

How customers rate AMEX GBT

• G2 rating : 4.1/5 (as of February 2024)
• Capterra rating : AMEX GBT has no Capterra ratings (as of February 2024)

AMEX GBT pricing

Languages supported by amex gbt, ctm noteworthy features.

• A self-serve online booking tool , Lightning, for making travel bookings
• An intuitive mobile app , from which travelers can plan, book, and change travels on the go.
• Visa and passport support to ensure seamless business travel.
• CTM SMART Data platform for insights to drive savings and efficiencies.
• CTM Climate+ to help travelers understand and optimize the impact of business travel.
• Traveler wellbeing insights to identify potential wellbeing issues and stress triggers in your corporate travel program.
• Solutions designed specifically for small and growing businesses .

How customers rate CTM

• G2 rating : 1.8/5 (as of February 2024)
• Capterra rating : CTM has no Capterra ratings (as of February 2024)

CTM pricing

Languages supported by ctm, 5. bcd travel, bcd travel noteworthy features.

• BCD Pay provides T&E spend management features to travelers and finance managers
• Real-time alerts in BCD’s mobile app to make sure all travelers are safe
• Data reporting within 90 minutes of making a booking
• TripSource® , a tool allowing admin staff and travelers to manage trips in one place
• 24/7 customer service
• Access to Connect by BCD platform to network with industry peers and develop travel management skills
• BCD Developer Hub provides APIs and developer tools to power the next generation of corporate travel

How customers rate BCD Travel

• G2 rating : BCD Travel has no G2 ratings (as of February 2023)
• Capterra rating : BCD Travel has no Capterra ratings (as of February 2023)

BCD Travel pricing

Languages supported by bcd travel, wrapping up.

See how TravelPerk can help you save money today

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.
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• 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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November 30, 2015

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Travel Agent vs. Booking Online: Why Travel Agents are Still Important

As technology continues to change our lives, specifically the way we travel , travel agents are pit against travel sites, such as Travelocity, Expedia and Orbitz, in a battle of better travel. This travel agent vs. booking online struggle may seem like an impossible victory for travel agents—since many people attempt to plan their trips themselves—but the opposite is actually true.

Even though it appears cheaper and simpler to book travel on your own, it just isn’t the case. In fact, planning a trip is much more difficult than ever before because the people trying to do it all on their own don’t reallymuch about the travel industry. However, some travelers are recognizing their past mistakes and turning to the experts for guidance once again. As reported in 2014 by MMGY Global —a travel-marketing agency that researches travel patterns—wealthy and millennial travelers are starting to rely less on travel sites and more on travel agents.

Using a travel agent is the smarter option. It’s the best way to make sure that every trip you go on will run smoothly. Besides having someone else to bear the brunt of the travel planning process besides you, travel agents have access to inside information regular consumers just aren’t privy to.

Here are 9 reasons why using a travel agent vs. booking online isn’t much of a competition:

1. It saves you time

All you have to do is communicate to a travel agent what type of trip you want to go on and then sit back to hear what location, resort or cruise line would work best for you. There’s no need to sit on a computer for hours and visit countless travel sites when travel agents are paid to know everything about travel and arrange the best trips for their clients.

2. They love what they do

Travel agents are passionate about travel and helping customers bring out their inner travel enthusiast too. They’re not planning trips because no one else in their group of friends wanted to take the time to arrange everything, so they got stuck doing it. They love going to new places themselves and want all of their clients to feel the way they do when they travel.

3. They have first-hand experience

Most travel agents go to many destinations on their own, not only because they enjoy it, but because it allows them to get first-hand experience. They can take their newfound knowledge about a certain location, hotel, resort or cruise line, and relay that information back to their clients. For instance, InteleTravel is a host agency that allows people to become independent travel agents. We offer our agents education resources in which they can go to different locations and learn as much as they can about travel in order to become experts.

Though you can read customer reviews, the credibility of those reviews are always in question. It’s better to hear from a travel expert and his or her take on a travel destination than a stranger on the internet. Having access to this knowledge helps you get a good idea of what to expect, which allows you to avoid any surprises on a trip.

4. They know what they're doing

Although you might think you know what you’re doing when it comes to travel planning, you are most likely unaware of certain travel industry secrets. For example, most travel sites are actually owned by one or two companies. This means all that time you spent comparing prices wasn’t worth it because there’s a good chance you were comparing two sites that are owned by the same company. Using a travel agent allows you to skip over this obstacle.

Travel agents offer their clients valuable advice as well. They can recommend the best cruise lines for families or solo travelers. They know the best time of year to go somewhere and the most popular resorts that offer great amenities and that have must-see attractions. If you need a car rental on your trip, they’ve got you covered. If you’re not sure if travel insurance is necessary, they can point you in the right direction. If you’re required to bring any travel documents, they will inform you. Travel agents can even help you plan an itinerary for your trip and book any activities that you are interested in doing.

5. It's a real relationship

When you work with a travel agent, both of you get to know each other. You’re not conversing with a faceless website that doesn’t really care about your travel preferences, any further accommodations you need or what your budget is. Travel agents really care about their clients and the last thing they want to do is arrange a trip for someone who ends up unhappy with the end result. Think of it this way: If you knew someone who was a travel agent, or if you yourself were a travel agent, friends and family would rely on this person to book their trips rather than a stranger. Booking engines are strangers. There's no real relationship. Interacting with a travel agent—an actual person—who knows you and has your best interest at heart is a real relationship.

6. They have connections

7. It's like having your own travel encyclopedia

What if you know that you want to go on vacation with your family, but you have no idea where? Having a lot of personalities and preferences in a travel group can be overwhelming for anyone, especially when you know that if someone is unhappy with the destination or hotel, for instance, you’re going to have to hear about it for the rest of the trip—and probably afterwards.

A travel agent can listen to specific requests or ideas. If one person wants to go someplace tropical in order to relax on the beach every day while someone else wants to go someplace that has extreme sports, a travel agent can find a location that offers both. You may be set on going to the Bermuda, but realize you’re more interested in activities offered in the Bahamas. If you’re traveling with your children or grandchildren, finding a location that has kid-friendly activities will be high on your priority list as well. They know what locations, resorts, hotels and cruise lines can best suit your needs and make everyone happy. Sometimes you need more than generic advice from a website to guide you. That’s where travel agents come in.

8. You spend less money

You might assume that an agent is paid out of your pocket.The truth is that their payment comes from the supplier, never from the client. How does that benefit you? Suppliers offer discounts to travel agents to entice them to book their clients at their venues, so agents have access to steep savings that just aren't available to consumers who book themselves. For this reason, you save much more money on travel thanks to their help. So not only will you get to go on an incredible trip without having to do the work, but you’ll be able to go at a fraction of the cost. And as an InteleTravel agent, you actually earn a commission for booking that upcoming winter vacation, and basically get paid to travel .

9.You're never alone

A travel agent is just a phone call away, so if a problem arises at any point during a trip, you have someone to turn to. Providing customer support is what continues to set apart travel agents from booking engines. There will always be a real person on the other end of the phone. Booking all your travel arrangements online means that you’re on your own if you have any questions during your trip. For instance, let’s say there’s an issue regarding your hotel reservation. Having worked with a travel agent rather than a website, you just have to make a phone call and he or she will find out what is going on and fix the problem for you.

Thinking about how to become a travel agent , but don’t know where to start? Learn more about InteleTravel.

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Major Challenges Faced By Online Travel Agencies

• Travel Industry Information
• General Information
• Posted By: SRDV Team

Online travel agencies (OTAs) operating in the travel industry face several unique challenges that are specific to the nature of their business.

Some of the main challenges faced by Online Travel Agency include:

• Price Competition : Price sensitivity is a significant factor in the travel industry. Customers often prioritize finding the best deals, which can lead to price wars among Online Travel Agencies. This puts pressure on profit margins and makes it challenging to build brand loyalty.
• Supplier Relations : OTAs rely on partnerships with airlines, hotels, car rental companies, and other travel suppliers. Negotiating and maintaining these relationships can be challenging, as suppliers may demand lower commissions or exclusive deals with competitors.
• Dynamic Pricing : The travel industry often uses dynamic pricing, where prices fluctuate based on demand, seasonality, and other factors. Online Travel Agency must constantly update their pricing information to provide accurate and competitive rates to customers.
• Customer Trust and Data Security : OTAs handle sensitive customer information, including payment details and passport information. Ensuring data security and gaining the trust of customers is a constant challenge, particularly in the face of data theft and cyber-attacks.
• Competing with Suppliers : Many travel suppliers, such as airlines and hotels, also sell directly to customers through their websites. OTAs must compete with these suppliers while offering added value to customers in terms of convenience and comparison.
• Distribution Costs : Acquiring customers and driving traffic to their platforms can be costly for OTAs. They often spend significant amounts on marketing and advertising to remain visible in a crowded market.
• User Experience : Providing an intuitive and user-friendly booking experience is crucial. Customers expect a seamless process from search to payment. Any friction in the booking process can lead to abandoned bookings and lost revenue.
• Mobile Optimization : With the increasing use of smartphones for travel booking, Online Travel Agency must ensure that their websites and apps are optimized for mobile devices to capture a growing segment of the market.
• Customer Reviews and Reputation Management : Negative customer reviews and public relations issues can significantly impact an OTA's reputation and deter potential customers.
• Emerging Technologies : OTAs must keep up with emerging technologies, such as artificial intelligence, augmented reality, and blockchain, to provide innovative solutions and stay competitive.

To thrive in the travel industry, OTAs need to continuously adapt to changing market conditions, invest in technology, provide exceptional customer experiences, and differentiate themselves from competitors through unique value propositions.

To succeed in this competitive landscape, online travel agencies must continually adapt, innovate, and find ways to differentiate themselves, whether through personalized offerings, exceptional customer service, or unique partnerships with travel suppliers. Additionally, they must stay attuned to industry trends and evolving customer preferences to remain relevant and profitable.

We need strategic approaches and solutions to ensure the long-term success of Best Online Travel Agency .

Here are some possible solutions to the major challenges mentioned :

• Intense Competition :   By offering unique travel experiences, specialized services, or exclusive deals Online Travel Agencies can differentiate themselves. This also helps in building a strong brand image and gaining customer loyalty and trust.
• Price Differences :   An Online Travel Agency can provide the best deal to its customer, after negotiating with travel providers to ensure rate parity and align pricing strategies.
• High Marketing Costs :   Implement loyalty programs to retain customers and reduce the need for costly acquisition campaigns.
• Technology and Security Challenges :   Consistently update and secure their platforms to protect customer data.
• Regulatory and Compliance Issues :   Establish dedicated teams to monitor and ensure compliance with various regulations across different regions.
• Customer Trust and Service Quality :   Offer 24/7 customer support to address traveler concerns and issues promptly.Be transparent about policies and fees, and resolve customer complaints swiftly and fairly.
• Economic and Environmental Factors :   Offer eco-friendly and sustainable travel options to cater to environmentally conscious travelers.
• User Experience and Mobile Optimization :   Ensure the website and mobile app has a responsive design for a seamless user experience.
• Dependency on Search Engines :   Continually invest in search engine optimization to maintain strong search engine visibility.
• Rate Parity Issues :   Negotiate with suppliers for more favorable rate parity clauses; OTAs can emphasize value-added services like free cancellation, additional benefits, or loyalty rewards.
• Market Volatility :   By implementing dynamic pricing strategies Online Travel Agency can minimize the impact of market volatility such as price fluctuation and customer behavior.

In an industry as dynamic as online travel, the ability to adapt to these challenges is essential for OTAs. Continuous innovation, adaptation to evolving customer preferences, and a commitment to improving customer experience and service quality are key factors in overcoming these challenges. OTAs that successfully address these issues will be better positioned for long-term success.

The challenges that you have to face in an Online Travel Agency can be easier to handle if you choose the right technology partner. You can easily overcome all the above challenges by finding a reliable and experienced Travel Technology Solution partner like SRDV .

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Online vs offline travel agent, which is better?

• Post author By
• Post date December 7, 2021

In the competition between online vs offline travel agents, technology continues to define the rules of the travel game while the human interface is witnessing an upsurge like never before. Is this the era of interdependent co-existence?

Riding the internet waves

The travel and tourism industry is among the early adopters of digital transformation, and the writing is on the wall. Travelers have been quick on the uptake. The percentage of travel bookings made online via a mobile app or website has risen sharply over the last decade.

Market research by Statistica shows that in 2020, 65% of worldwide sales in tourism and travel were made online. Further, the Statista Mobility Market Outlook estimates that online sales would rise to 72% by 2025. The tech-powered travel landscape is expected to evolve even more with the onset of Virtual Reality, AI-powered applications, and ChatBots.

Hooked to online

The need to click-and-go governs every aspect of our personal, professional, and social lives. Travel is no different. The control and convenience of online booking have dramatically altered the way we make our travel decisions. The freedom and ease of trip research, booking flights, and reserving accommodation are a breeze thanks to the digital experience.

All one needs is a smartphone or a desktop. Tracking prices, shopping for discounts, deals, and Internet-only offers have transferred the power into our hands. We can decide on destinations, pick ‘fly and stay’ combos and accommodation to suit various preferences.

Making, changing, or canceling reservations at the last minute is a cakewalk. But even the best of system offers partial solutions. We spend hours and days doing travel research, fine-tuning itineraries and finding experiences or tours to carve out a dream holiday. This is the gap that intelligent, dynamic packaging aims to fill.

Airlines, train operators, and hotels have started selling vacations. Holiday planners are helping customers book travel, accommodation, car rental, luggage services, and even museum tickets with a single transaction. Industry gurus foresee a more ‘democratized’ future, where allied businesses, say a winery, would be able to use big data and Application Programming Interface (API) to add a travel booking function on a website. Dynamic packages will help OTAs and online tour operators achieve consistently high margins and the traveler to reduce effort. It will be a win-win for all.

Seeking a safety net

Online travel aggregators and travel supplier web portals have changed our approach to travel in the internet era. The trusted travel agency of the past does not command the chunk of the market as far as ticketing and reservations for leisure and business is concerned, but the importance of travel advisory is going through a revival post-Covid.

Travelers are looking for a safety net, a fallback to deal with unforeseen emergencies, impart destination expertise, fulfill special requests and build in value-added benefits out of the reach of self-service. A research study conducted by the American Society of Travel Advisors (ASTA) and Sandals Resorts reveals that 44% of U.S.A travelers who rarely or sometimes used travel advisors said they were now more likely to use one post-pandemic.

Further, 55% of those who have never used advisors said they would use one if it meant access to the advisor’s personal relationships and insider perks.

With ongoing uncertainty and quarantine rules changing frequently, travel advisors are becoming irreplaceable sources of information. Travel inspiration on secluded locations, insider deals, updates on latest health and safety standards, news on health policies or re-bookings, they have everything covered. Tour companies and hotels are revisiting collaborations with travel advisors to influence travelers. Because now, more than ever before, travel choices are being thought through on parameters of safety, quality, and exclusivity, not just the lowest price tag. 

Convenience? Comfort? Both

In a recent Tripadvisor study, 74% of travelers surveyed globally said they will spend more time choosing a destination this year. 63% of travelers in the U.S.A said they will spend more time selecting their accommodation, and 70% will spend more time finding things to do. While digital self-service will retain its allure, the new age traveler will get increasingly discerning, both in terms of conveniences and comforts. 

Personalization will play a crucial role in the travel industry as delivering relevant news and content for bettering user experience becomes a focal point of the digital transformation strategy. A good example is micro travels focused on a particular interest like camping holidays or culinary journeys. Offerings are being customized for better impact by using big data of traveler habits, like favorite destinations or airline preferences. 

Sending personalized emails to engage travelers and keep them informed about trends is another example. Travel agencies that move away from a cookie-cutter mode to make a difference for the traveler will have a distinct edge. 

The need of the hour is to blend the convenience of technology with the comfort of the human touch.

Recommended Read:

• 20 Powerful Marketing Ideas For Your Travel Agency
• How To Become A Travel Agent From Home in 7 Steps
• Guided Steps on How to Create a Travel Website
• https://www.statista.com/forecasts/1239068/sales-channels-travel-tourism-worldwide
• https://skift.com/2021/05/05/nearly-half-of-u-s-travelers-plan-to-use-travel-advisors-post-pandemic-survey-shows/
• https://www.tripadvisor.com/InfoCenter-a_ctr.2021TravelTrends
• Tags Digital Travel , operating system , Travel Advisor , Travel agent , Travel Planning , Whitelabel

Michael O’Leary scores victory in Ryanair’s battle with ‘pirate’ travel agent eDreams

R yanair has won a victory in a long-running battle with online travel agent eDreams, whose bid to force it to open up ticket sales was blocked by competition authorities.

Italian regulator AGCM has refused a request for an injunction against Ryanair, which would have forced the Irish carrier to sell tickets to its flights through online travel agents. The injunction request was brought by eDreams and 11 other platforms and tourist bodies.

Michael O’Leary, Ryanair’s chief, said the watchdog had seen through eDreams’s “false claims” that the airline’s policy of selling flights direct to customers posed a danger to competition.

The Irish company has fought for years to block what it calls “pirate” agents from selling tickets on its flights at what it contends are vastly inflated prices. Ryanair claims platforms have duped customers who could book cheaper tickets through its own website. It claims online agents have added hidden markups on fares, baggage and seats.

eDreams has in the past said it is “fundamentally incorrect to make like-for-like comparisons” between ticket prices charged by airlines and online travel agents. It has defended its prices, saying it offers “a gateway to the entire global travel market, granting customers access to a significantly broader range of options and price points”.

Ryanair has signed distribution pacts with five online firms plus tour operator TUI since the start of 2024. The Irish company claimed the spate of deals came after a boycott of its flights by agents at the end of last year ended up hurting them more.

The agreements mean agents can charge a fee but must make Ryanair’s prices fully visible. In turn, customers will no longer need to navigate a verification process and will have direct access to their booking and updates, rather than having to go through the agent .

eDreams, Booking.com and Opodo are the last major holdouts against Ryanair.

The AGCM ruling is part of a broader examination of Ryanair’s ticketing policy in Italy. It came after the Milan Court of Appeal ruled in January that the airline’s direct sales policy helps keep down costs and lower fares.

Having dismissed the injunction, Mr O’Leary said the regulator should now take action to protect Italian consumers against overcharging by remaining agents.

Ryanair is keen to expand in Italy, which was once largely closed to competition as Rome sought to protect failed national carrier Alitalia. It may get a chance to do so: Alitalia’s successor ITA is preparing to give up airport slots in the country as the EU’s price for allowing investment from Germany’s Lufthansa.

An eDreams spokesman said: “This procedural decision leaves the main course of the antitrust proceedings unaffected, and they continue to advance. This case has been put forward and is supported by the whole Italian travel industry and consumer associations.

“The AGCM will continue its main investigation on the abuse of dominance of Ryanair in Italy.

“We will continue contributing to the investigation to ensure that every abuse by Ryanair, including smear campaigns, comes to an end. This is to benefit all European consumers and supports an open and fair travel ecosystem.”

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Draft market study notice: competition in canada’s airline industry.

The Competition Bureau is calling for comments on this draft market study notice. Comments can be submitted through our feedback form or by emailing [email protected] until June 17, 2024.

After considering the comments received, the Bureau will publish final terms of reference in a market study notice. The final terms of reference will include further details about providing submissions in response to the final market study scope.

On this page:

Notice of study, purpose of the study, public interest reasons for the study, scope of the study, outcomes of the study, process and study milestones, get involved, confidentiality.

• The Competition Bureau believes that it is in the public interest to conduct a market study into the state of competition in the airline industry, in particular with respect to domestic air passenger services. Footnote 1
• As an initial step, we are calling for comments on the terms of reference in this draft market study notice. Footnote 2 Comments can be submitted through our feedback form or by emailing [email protected] until June 17, 2024.
• Market studies allow the Bureau to assess a sector from a competition perspective to identify relevant laws, regulations, policies or other factors that may affect competition. Through market studies, the Bureau makes findings and provides evidence-based recommendations on ways to enhance competition in a particular sector.

Terms of reference

• The purpose of this study is to examine the state of competition in the airline industry and how governments across Canada can improve competition for the benefit of domestic air passengers as well as the workers and entrepreneurs who enable these services.
• In undertaking this study, the Bureau is not examining any specific allegations of wrongdoing. However, should the Bureau uncover any evidence during the study that the Competition Act has been contravened, it will investigate and take appropriate action.
• The airline industry is important to Canadians and the Canadian economy. It provides an essential mode of transportation for both business and leisure purposes. In 2022, the industry served 72 million passengers on domestic services. Footnote 3 Since the Canadian population is spread out over vast distances, other modes of transportation are often not feasible replacements for air travel. And for some remote areas, air transportation services may be the only available option. This is why Canadians need affordable and accessible air transportation.
• The industry has faced challenges associated with the COVID-19 pandemic, including labour shortages. Footnote 4 However, there are also reasons to ask whether competition could work better in this market. The domestic air travel market is concentrated with only two major airlines, Air Canada and WestJet, who together are estimated to account for close to 95 per cent of industry revenue. Footnote 5 There are also signs that domestic airfares in Canada may be relatively high. Footnote 6 Additionally, average airfares remain above pre-pandemic levels. Footnote 7
• Recent travel experience has included congestion, flight delays, cancellations and baggage issues during busy travel seasons in 2022. Footnote 8 In addition, Canadians are filing an increasing number of complaints with the Canadian Transportation Agency about air travel services in recent years. Footnote 9
• Commentators have noted that WestJet and Air Canada have scaled back their operations into Western and Eastern Canada, respectively, leading to increased fares for flights in those regions. Conversely, new and growing airlines serve busy domestic routes and winter sun destinations, leading to reduced fares on those routes. Footnote 10
• Despite the promising entry and expansion by some airlines, the Canadian market appears challenging for many carriers. This includes low-cost and ultra low-cost carriers, which seem to face more difficulties in Canada compared to other countries. For example, Lynx Air recently ceased operations. Footnote 11
• These initial market observations suggest that a study of competition in the airline industry will be informative for the Bureau and policymakers.
• In addition to recent events, there is a long history of competition enforcement in the sector by the Bureau and other global competition agencies. Footnote 12 The Bureau has previously called for more competition in the airline sector, including advocating for changes to the foreign ownership rules, and allowing foreign carriers to operate within Canada’s domestic borders, also known as cabotage rules. Footnote 13 Since then, the Government of Canada increased international ownership limits from 25 to 49 per cent of voting interests for Canadian air carriers. Footnote 14 This history further underscores the importance of studying the state of competition in the airline industry.
• Greater competition can complement other policies aimed at improving air travel. The Government of Canada is taking steps to better protect air passengers, enhance accountability and accessibility of airports, and support investments in airport facilities. Footnote 15 This includes measures aimed at fees for optional airline services such as seat selection and baggage. Insights from our study may help policymakers better achieve their goals.
• Supporting competition in this industry will help reduce prices for consumers, improve quality of service and working conditions, increase productivity, and boost innovation.
• the state of competition in Canada’s airline industry;
• barriers to entry and expansion; and
• impediments to informed customer choice.
• What is the state of competition in the Canadian airline industry, how can we achieve greater airline competition, and what are the benefits for Canadians?
• How is the industry evolving in terms of consumer preferences and airline operations, e.g. demand for direct flights, demand for domestic vs international flights, passengers’ willingness to use secondary or more distant airports, and business models?
• What can we learn from recent market events, including the entry of ultra low-cost carriers, Porter Airlines’ expansion, and the reduction in regional service by WestJet and Air Canada?
• What are the major barriers to entry and expansion and how can policymakers lower them to stimulate competition?
• How can airport operations and other air travel services support air carrier entry and growth?
• How can government procurement or other initiatives support airline competition in remote regions, including the North?
• Should policymakers open domestic routes to more international competition? If so, how?
• What difficulties do consumers face when shopping for airfares?
• Do consumers have the information they need to make informed purchasing decisions, particularly when it comes to service quality and pricing of ancillary services, such as seat selection and checked baggage?
• How can policymakers help consumers benefit more from existing competitive options?
• Issues pertaining to air cargo services or international air passenger services, except to the extent that they relate to competition in domestic air passenger services.
• Issues pertaining to airport governance, except to the extent that they relate to competition in domestic air passenger services.
• Issues pertaining to specific passenger complaints under the Air Passenger Protection Regulations and recently held consultation on strengthening these regulations. Passenger complaints should be addressed through the Canadian Transportation Agency’s air travel complaints resolution process . More information on the recent consultation is available through the Canadian Transportation Agency's consultation webpage .
• Specific complaints that may raise concerns under the enforcement provisions of the Competition Act . These complaints should be directed to the relevant enforcement directorate or the Bureau’s Complaint Form or Information Centre .
• As the study progresses, the Bureau may advise stakeholders of any updates through the market study webpage .
• The Bureau will publish the results of the study in a public report, which may include recommendations to relevant government authorities on steps they can take to improve competition for the benefit of passengers, workers, and entrepreneurs.
• Increase its knowledge and understanding of the competitive dynamics within the airline sector to inform its future work.
• Provide informed advice regarding steps that policymakers could take to further support competition in the airline sector.
• Over the course of the study, the Bureau intends to engage with a wide range of stakeholders including industry players and government decision-makers, and will gather and analyze information from various other sources. The Bureau welcomes submissions from interested stakeholders, as detailed below under ‘ Get Involved ’. The Bureau may also consult with industry, economic, and other experts and consider the experience of other jurisdictions. While the Bureau continues to welcome stakeholders providing relevant information voluntarily, we may use a new legislative tool to ask the Courts to order companies to provide relevant information to the Bureau.
• June/July 2024: Publish final terms of reference for market study
• August 2024: Deadline for written submissions from the public
• Summer/fall 2024: Stakeholder engagement and research
• Winter/spring 2025: Analysis of potential solutions and recommendations
• June/July 2025: Publish final report
• The Bureau may modify the schedule as needed. Should there be any material change to this schedule, the Bureau will update the notice and advise stakeholders of the changes through the market study webpage . Footnote 16
• As an initial step, we are calling for comments on the terms of reference in this draft market study notice. Comments can be submitted through our feedback form or by emailing [email protected] until June 17, 2024. All comments will be made public and posted on the Bureau’s website in the language provided unless it is specifically requested that they be kept confidential.
• After considering the comments received, the Bureau will publish final terms of reference. The final terms of reference will include further details about providing submissions in response to the final market study scope.
• The Bureau conducts its advocacy and enforcement activities under the authority of the Competition Act . Section 29 of the Competition Act protects information obtained by or provided to the Bureau, including the identities of the persons who provided the information, and any information that could reveal their identities. However, when information has been made public or where persons providing information authorize its communication to other parties, subsection 29(2) permits the disclosure of such information.
• Additionally, subsection 29(1) provides exceptions for the communication of information to a Canadian law enforcement agency or for the purposes of the administration or enforcement of the Competition Act .
• The Bureau encourages stakeholders to consult its Information Bulletin on the Communication of Confidential Information under the Competition Act or direct specific questions to the market study team by emailing [email protected] .
• Any reports or other products published in relation to the study may contain analysis that is based on confidential or commercially sensitive information. We encourage stakeholders to identify any confidential or commercially sensitive information in their submissions or discussions with Bureau officials. The Bureau will endeavour to anonymize sensitive information.
• The Bureau will conduct its analysis in confidence. For greater clarity, the Bureau will send an advance copy of relevant portions of the report to every person who supplied information in response to a section 11 production order so that they may, within three working days, share any concerns regarding factual inaccuracies or confidential information that should not be disclosed in the final report.

Annex A: Previous Bureau advocacy in the airline sector

Submission to the canada transportation act review panel: rail, air and marine transportation.

In this 2015 submission on the Canadian Transportation Act (CTA), the Bureau reiterated its position that higher foreign ownership levels would provide Canadian carriers with greater access to international capital, which in turn, may lower the barrier to entry that results from limited accessibility to capital. In 2015, the Bureau made recommendations to the Government of Canada including:

• negotiating unrestricted cabotage rights on a reciprocal basis;
• creating a new class of licensee under the CTA to allow one hundred percent foreign ownership of carriers that can fly only within Canada;
• making legislative changes to the CTA to allow modified sixth freedoms, either on a unilateral or reciprocal basis;
• permitting up to forty nine percent of the voting shares of a Canadian carrier to be held by foreigners; and
• seeking the elimination of all foreign ownership restrictions with our trading partners, either on a bilateral or multilateral basis.

The Bureau also recommended that the Government of Canada, in examining issues of airport governance, emphasize the importance of equitable and non-discriminatory allocation of airport fees among carriers, and access to slots, counters and services for all carriers in accordance with best international norms.