What is an OTA and how to take advantage of it for your vacation rental?

It may be that OTA sounds like a regulated parking service to you, but in this case it is not about anything that will make you lose money, but rather gain it. In this article we are going to explain what OTAs are and how you can take advantage of them.

What is an OTA?

It's the acronym for Online Travel Agency, which in Spanish we know as Online Travel Agencies. They are websites that are primarily dedicated to the sale of services related to the travel sector.Tourism OTAs can be very varied. There are some that are exclusively dedicated to presenting information about the opinions of consumers who have already been to a hotel, restaurant, etc. One of the most famous in this sector is TripAdvisor. There are also some specialized in cheap flights, others in hotels, and some that allow you to book plane tickets and accommodation without having to leave their website. The latest OTAs to arrive have been those that are specialized in the rental of tourist properties. But they are already evolving, many of them no longer just offer accommodation, but also allow travelers to find and book different experiences that they can enjoy once at their destination. OTAs are also called channels. Essentially, these channels are the places where your tourist accommodation appears, and from where your guests can find you and book. Some examples of OTA or channels for vacation rentals are Booking, Expedia, or HostelWorld.

What is an OTA used for?

Channels or OTAs can perform multiple functions. Think, for example, of how Airbnb has expanded its product catalog and not only offers accommodations but also experiences. However, the most typical services of an OTA include:

• Possibility of creating ads for your accommodation on their websites.
• Providing your guests with a method to book. This can be done by integrating the payment gateway (Airbnb) or simply with booking confirmations (Booking).
• Notify you that your guests have booked (either via email –the most rustic– or to the channel manager).

How can you take advantage of an OTA in vacation rental?

Going to a travel agency to hire is very outdated. Now what is done is doing an online search, comparing prices and opinions and selecting the most suitable product. This is how your clients are acting, so you must ensure that your vacation rental is right where they are looking. And here lies the importance of online travel agencies. You must have a presence on them to be able to capture more guests.

If you are interested in knowing how you can improve your positioning in a reference OTA, take a look at our post on SEO for Airbnb.

Advantages of OTA

• You manage to increase the occupancy of your property without having to worry about marketing.
• You receive bookings directly online, which makes management easier for you.
• You can adjust the price of the accommodation according to the season. Sometimes even the OTA itself helps you set the most appropriate amount.
• It does not have a fixed cost, you only pay the sales commission if that online travel agency has actually brought you a customer.

Disadvantages of OTA

So far, all this sounds very good, but you will have already imagined that all that glitters is not gold. Using this system also has some drawbacks:

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

"OTA, yes from the start"

This is the question. This system has its advantages and also disadvantages. However, as of today, if you want to be successful with a vacation rental, you have to use all the tools available to you - and that includes being on the main OTAs. However, it is good that before joining this type of agency you are well informed about their conditions and the commissions they will charge you.

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