Online travel agencies (OTAs) can be one of the greatest allies that lodging operators have.
They help open up new markets and secure a stream of steady bookings when used in parallel with a strong direct booking strategy. Travelers gravitate towards OTAs due to their strong presence, which results in trust and credibility.
Here, we look at some of the benefits OTAs bring to travelers.
1. Convenience
With so much information online today, travelers use OTAs to easily browse and make hotel bookings using a trustworthy website. OTAs provide the convenience of price, location, and property-type comparisons in the travel planning process. The ability to filter down thousands of properties to one that fits their trip goals is an invaluable tool that saves hours of time.
OTA sites can be thought of as a search engine for travel experiences – facilitating a streamlined online booking experience.
2. Loyalty programs
Larger OTAs offer loyalty programs that reward travelers for booking multiple trips through their site, including hotel rooms (or beds), car rentals, cruises, plane tickets, and activities.
For example, the One Key reward program gives travelers the flexibility to earn and use rewards across Expedia Group using OneKeyCash. Booking.com’s Genius loyalty program offers lifetime access to discounts, free breakfasts, and free room upgrades depending on your level.
3. Price-driven decisions
Online travel agencies are often considered a cost-effective way to book travel and the best place to find package deals. Though many hotel brands have tried to change this perception by pushing direct booking campaigns and strategies, OTAs still benefit from being thought of as low-cost leaders.
For example, Agoda has a ‘Coupons & Deals’ section of its website offering daily deals and spontaneous savings. Every day, these offers change and include incentives such as percentage off coupons and special rates on select hotels. Offers like this are hard for consumers to pass up and help increase the likelihood of generating a booking.
4. Extensive advertising & marketing budgets
Discount and deal-centric marketing efforts help shape consumer notions that OTAs are the best place to book. In Q1 2024 alone, popular OTAs including Airbnb, Expedia Group, Booking Holdings, and Trip.com Group spent a combined $4.08 billion USD on sales and marketing, up 10.6% from Q1 2023.
$4.08B
was spent by top OTAs in sales & marketing in Q1 2024
How are they spending these enormous budgets? Skift reports the going rate for a 30-second Superbowl slot during the 2025 game was $7.5 – $8 million USD, with Booking.com making an appearance this year.
Airbnb, on the other hand, partnered with Mattel to deliver the “Malibu Barbie DreamHouse” listing on Airbnb. Airbnb CEO Brian Chesky said this campaign “became a phenomenon on social media and got more press, more articles than our IPO.”
Booking platforms have one job: to get their inventory, including yours, in front of the right person at the right time. They’re constantly creating new and innovative ways to get rooms and rates in front of travelers during the booking process. Of course, the cost of this innovation is how they justify their commission fees to the properties that list on their platforms.
5. Secure global payments & traveler protection
OTAs give potential customers the ability to complete safe and secure payment transactions in their preferred currency.
They support multiple payment methods depending on location, providing travelers the flexibility that independent properties are often unable to accommodate unless they use secure, integrated payment processing on their hotel’s website (which Cloudbeds offers) that’s equipped to send hospitality-enriched data to banks and also supports multiple payment methods and currencies.
In addition, online travel agents often offer traveler protection and customer support to provide peace of mind during the booking experience. Airbnb’s Aircover, for example, offers free protection for travelers included for every guest. Its purpose is to help provide refunds or new accommodations if you experience an issue, such as a host cancellation, trouble checking in, or a key missing amenity.
