How online travel companies affect hotel and holiday housing industries


If you have planned and booked some accommodation online, this should be for a holiday or business trip, you must come across some online travel agencies (OT), for example, Agoda, Trip Advisor, Expedia and booking.
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This OTA has increased size, power and popularity in the late 90s and early 2000s and every year, so in today’s online market you can literally unable to avoid them during many bookings.
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Kind of online travel system; You can always see some of that mobile phone on the first page of Google results and dominate Google Adspace locations – cars, bikes and flights from hotels, villas and rooms.
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With the rise of these giant-sized travel agencies, there has been a growing concern that there has been a growing concern among hotel owners, car rental companies and other businesses, that more direct bookings should be kept in order to be fully or almost totally dependent on third party booking portal.
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The reason of concern is due to the reduction in business profits when receiving bookings from direct booking agents from the customers; The rate varies slightly from each organization, although it is not so small that it is the provider’s & # 39; bottom line & # 39; There is no significant impact on.
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For example, 15 %% of the hotel and property owners are required to make any payment at the OTA,% value is usually the property / hotel location and the number of listed rooms on which they depend on the OTA (they are listed in the list of more rooms,% commission they ota pay).
With this big exposure, you can think of yourself, ‘Why do hotels and resorts depend on the third party booking agents when they can earn a lot of profit from capturing direct bookings?
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& # 39; This is an issue that all the accommodation providers are worried about their consideration and discuss their team, and the answer is actually in most of them where they can not live without OTA bookings only.
Unless the hotel or resorts earn so much reputation for themselves and are so popular that they can successfully fill their rooms often, it is a matter of joining an OTA or with some people.
Can survive Indeed, with the notorious and popular hotels and resorts, I also mention that there will be fewer seasons and other times and the number of bookings will be low and room extra / exposure will be required to get the booking of room / villas; So partnership with OTA in reality is now a necessity for all companies that have holiday accommodation business.
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Where does this OTA come from and who owns it?

While speaking about most people of OT, some companies will be featured, who are actually the main & # 39; big players & # 39; Which are highly aggressive marketing activities, ensuring that most travelers often see their brands and promotions online and offline.
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. Four well known Ota Expedia, Trip Advisor, Agoda and; These are room booking platforms that are making the biggest space in the market and it will be in the list of most hotel owners for partnership.
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Among these four organizations, the oldest two Expedia, which was formed in 1996 by a small division in Microsoft, and then booking was raised in Amsterdam in 1996. Trip Advisors came later in 2000.
In Massachusetts, the small office in the United States and finally, but did not arrive at the Agoda, was founded in 2002 and originated from Bangkok in Thailand. In fact, almost all major OTA and online booking platforms are now owned and under the umbrella of two major, giant-sized organizations; Expedia Inc One and the other Priceline Group.
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So to answer the question of this post’s question that OTA holidays are affecting the booking industry; For consumers it truly makes all housing more accessible and the user experience has improved greatly, making it easier and more effective to compare different positions.
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Another positive change that customers can enjoy, apart from being able to verify the reviews of each place before booking, is another advantage. On the other hand, it has some negative impact on housing and some positive.

Commissions and extra costs for well-listed listings among OTA websites can be made by a large number of profit-making owners, but on the other hand, for hotels, resorts and other accommodation providers, they can now book more rooms in the OTA website with exposure to the list, and the same As well as their brand / location on the & # 39; Map & # 39; And as long as they will provide good rooms in the best room. An effective service, then they will be able to increase the time due to the support received from their OTA partners.

After all, I think the OTA is positive for the industry.