Like most markets, the travel industry has developed exponentially in the past few decades. The days of having to book a trip through a travel agent? Long gone thanks to the explosion of online travel agencies (OTAs).
But with so many travel websites and booking platforms to choose from, how do you decide which are the best online travel agencies for your property?
In this guide, we’ll break down the essentials of OTAs, including:
- How OTAs work for vacation rental managers and hoteliers
- Key factors to consider when comparing OTAs
- The three most popular OTAs (Airbnb, Vrbo, Booking.com)
- Hostfully and OTAs
- Tips for maximizing bookings
What are online travel agencies (OTAs)?
Although OTAs first began in the 1990s with Priceline, Expedia, and Vrbo, it wasn’t until the 2007, with the advent of Airbnb as a home-sharing site, that online travel agencies truly took off, completely transforming the travel industry.
Today, OTAs serve as a powerful distribution channel, helping vacation rental managers and hoteliers maximize their visibility to millions of travelers on a global scale, increase bookings, and streamline the booking process.
How do online travel agencies work?
OTAs are third-party platforms that facilitate travel bookings for accommodations. In other words, online travel agencies serve as aggregators, offering a range of travel services in one place, making it easy for travelers to compare options and book their next trip.
For vacation rental managers and hoteliers, OTAs are essential for attracting potential guests, offering global reach, and providing an easy-to-navigate booking engine. When using a property management system like Hostfully, you can sync channels to drive visibility and improve the travel experience for guests.
It’s also important to note that metasearch engines such as TripAdvisor and Kayak also play an important role in the travel booking ecosystem by comparing prices across multiple online travel websites.
Vacation rentals and OTAs
For vacation rental managers, listing on an OTA involves creating a property profile complete with spaces, amenities, property descriptions, high-quality photos, detailed guest experiences, and pricing.
The OTA then uses algorithms to match the property with relevant searches from travelers. Once a traveler books, the OTA handles the booking process—including payment collection—and forwards the details to the property management system (PMS) or directly to the host.
Online travel agencies often offer additional features to vacation rental managers, such as guest messaging systems, automated check-in processes, and integration with channel managers to sync availability across multiple platforms, reducing the risk of double bookings while boosting visibility.
Hotels and OTAs
OTAs can be as essential for hoteliers as they are for vacation rental managers because they serve as a primary distribution channel to reach travelers worldwide. Through mobile apps and user-friendly websites, OTAs offer travelers the ability to easily book hotels and other travel services in one place—even (and especially!) when those guests might not automatically consider hotel accommodations. This opens the booking process to a wider audience.
This is particularly important for attracting business travel bookings, as OTAs make it easy for professionals to plan travel plans quickly and efficiently. When paired with a property management system (PMS) like Hostfully, multi-unit distribution (that is, using a booking platform and PMS to list and coordinate similar units) is possible.
How reservations get transferred to you
When a traveler books through an OTA, the reservation details—such as guest contact info, check-in/out dates, and any special requests—are transferred to the property manager. This can happen through email, the OTA’s mobile app, or integration with a PMS or channel manager.
Channel managers are particularly useful for property managers listing on multiple OTAs, as they automatically sync availability across platforms like Booking.com, Airbnb, and Vrbo in real-time. This reduces the risk of overlapping bookings and ensures a smooth user experience for both the guest and property manager.
Factors to consider when selecting online travel agencies
When choosing the right OTA(s) for your property/properties, several factors come into play. Here are some important considerations, each of which we’ll break down by OTA after:
- Cancellation policies vary across OTAs and can impact both the guest and host experience. There are benefits to different policies, but knowing your options is key.
- Target guest audiences range across each OTA, attracting different types of travelers so it’s important to understand and target your target audience and find the OTAs that align with you property’s offerings.
- Commission rates also fluctuate between OTAs (and even within an online travel agency depending on the model) which directly impacts your bottom line. Understanding each OTA’s commission structure will help you plan your pricing strategy accordingly. And when you’re ready to begin working with an OTA, it doesn’t hurt to try to negotiate your rate.
- Reputation and customer support are key factors to consider. OTAs with strong customer service, like Airbnb and Expedia Group, offer better support in resolving issues between guests and hosts. Additionally, reading reviews from other property managers can provide insight into how well the OTA handles disputes, payouts, and guest complaints.
The big 3 top online travel agencies
Here’s a breakdown of the features and benefits of some of the best online travel agencies for vacation rental and hotel listings:
- Airbnb
- Vrbo (owned by Expedia Group, along with HomeAway, Kayak, Orbitz, Travelocity, and Hotels.com)
- Booking.com
These OTAs are optimized for search engines, ensuring those listings get in front of travelers looking to book travel.
Let’s look at little bit closer at these popular OTAs, all of which are well-oiled booking platforms, prioritizing the user experience. Note: policies may differ internationally in European countries such as Italy, in Asian locations like in South Korea, and even within American markets like California. Be sure to do your own research on your locale.
Airbnb
With an estimated 265 million users, Airbnb continues to dominate the OTA scene. In 2023, Airbnb’s revenue came in just under $10 billion with 448 million bookings. Airbnb’s user-friendly platform offers property managers flexible listing options and attracts travelers looking for unique, experience-driven stays and unique accommodations.
Airbnb also attracts business travelers with its “Airbnb for Work” feature. And Airbnb integrates with PMS systems, offers automated guest messaging, and provides a host guarantee to cover property damages. And currently, the OTA offers “Experiences” beyond just vacation rental stays.
Target audience: Airbnb is popular among experience-seeking travelers and younger audiences and continues to offer both entire home stays as well as shared properties and rooms.
Commission fees: Airbnb offers several models including split-fees (usually around 3%-5% for hosts), host only fees and guest only fees (each around 14%). Additionally, Airbnb charges guests a service fee.
Cancellation policies:Airbnb has a variety of cancellation policy options, ranging from flexible to super strict. We’ll focus on their short-term stay policy (27 or fewer consecutive nights), but you can explore their monthly/longer-term cancellation policies here and read how to change your cancellation policy here.
- Flexible: 100% refund up until 24 hours before check-in
- Moderate: 100% refund 5 days before check-in
- Firm: 100% refund 30 days before check-in; 50% refund 7-30 days before check-in; no refund less than 7 days
- Strict: 100% refund 14 days before check-in; 50% refund 7-14 days before check-in; no refund for cancellations under 7 days
- Super strict 30 days: 50% refund 30 days before check-in; no refund under 30 days
- Super strict 60 days: 50% refund 60 days before check-in; no refund under 30 daysMid-term policies (28+ nights/monthly stays)
- No refund policy: Non-refundable after booking (usually paired with a discount in price)
Vrbo
Vrbo, part of the Expedia Group, is a trusted name in the vacation rental space, particularly for families and groups seeking larger accommodations. Vrbo offers tools for pricing, availability management, and guest communication, making it easy for property managers to list and manage multiple rentals.
Target audience: Vrbo largely competes with Airbnb, but a main difference between the two is the booking options Vrbo doesn’t offer shared homes. Because of this, each listing is for a private home, and therefore tends to attract families looking for vacation homes.
Commission fees:Vrbo has two commission rate options. For pay-per-bookings their rate is 8% (3% payment processing fee; 5% commission fee) for every booking. Alternatively, you can pay a one-time subscription flat fee of $499.
Cancellation policies: The OTA offers hosts a number of cancellation policies:
- Relaxed: 100% refund 14 days before check-in; 50% refund 7-14 days before check-in
- Moderate: 100% refund 30 days before check-in; 50% refund 14-30 days before check-in
- Firm: 100% refund 60 days before check-in; 50% refund 30-60 days before check-in
- Strict: 100% refund 60 days before check-in; no refund after 60 days
- No refund policy: Non-refundable after booking
- Custom policy: Hosts set their own cancellation terms
Read about Vrbo’s cancellation policies here.
Booking.com
Booking.com caters to both vacation rentals and traditional hotel bookings. Known for its extensive reach, Booking.com provides property managers with a robust platform for attracting a global audience.
Target audience: Booking.com attracts a diverse range of travelers, including both leisure travelers and business travel customers. Unlike Vrbo and Airbnb, which are known primarily for vacation rentals, Booking.com offers a wide variety of accommodations and vacation packages, including homes, hotels, car rentals, cruises, experiences, and flights. This broad appeal makes it a strong platform for hosts who want to reach a more varied audience, from solo travelers to large groups.
Commission fees: The online travel agency operates on a commission-based model, typically charging 10-15% per booking.
Cancellation policies: Booking.com’s policies are a bit more complicated (and includes no show policies as well) but can be broken down into these major categories:
- No pre-payment required: 100% refund
- Day of: varying refunds ranging from 100% to 50% to one night penalty for cancellations made the day of check-in
- 100% refunds (1-90 days): 100% refund ranging from 1-90 days before check-in
- 50% refunds (1-45 days): 50% refund ranging from 1-45 days before check-in
- One night penalty: Refund minus one night penalty ranging from 1-45 days before check-in
- No refund policy: Non-refundable after booking
This flexibility gives hosts the ability to choose policies that best align with their property management strategy and risk tolerance. Booking.com uses a system of codes which can be a little complex for initial set-up. Learn more about the OTA’s cancellation policies here.
Of course these are just the three (arguably) most popular OTAs. Agoda, Priceline, Tripadvisor, and Hotels.com are worth considering, as well as local and/or niche online booking platforms. Each has its own policies and target audiences.
Who manages taxes, fees, and payouts?
Each OTA handles taxes and fees differently. Most OTAs, such as Airbnb and Booking.com, collect occupancy taxes at the time of booking and remit them to local authorities on behalf of the host. Hosts are responsible for understanding and paying additional taxes, such as income taxes, based on their jurisdiction.
Payouts are typically processed after the guest check-in, with funds being sent to the host’s bank account or payment processor. Most OTAs offer detailed reports on taxes, fees, and payouts to simplify the management of your finances.
Hostfully and OTA automation
When you list your properties on multiple platforms, it’s called multi-channel distribution. Such a distribution strategy can be advantageous as you widen your reach.
But one of the biggest challenges for property managers listing across multiple OTAs is syncing listings and avoiding double bookings. To prevent this, many hosts use channel managers that sync their calendars in real-time across platforms.
Certain property management systems like Hostfully have built in channel managers, allowing easy integration with multiple OTAs. These software automations ensure availability and rates are updated seamlessly and across different OTAs.
Hostfully integrates seamlessly with over 50 online travel channels ranging from Airbnb and Vrbo to smaller, more niche providers. With Hostfully, you can:
- Sync your listings across multiple OTAs in real-time to prevent double bookings and ensure consistent availability. Hostfully’s channel manager ensures any booking on one platform is automatically blocked off from others. These bookings are then reflected on Hostfully’s central calendar for easy viewing and access.
- Centralize guest communications by managing inquiries, bookings, and reviews from all platforms in one dashboard.
- Use dynamic pricing tools to adjust rates based on demand, seasonality, and market trends, ensuring you’re always competitive on every OTA. Hostfully’s many partnerships allow for seamless automation and optimization.
- Automate guest messaging and streamline the check-in process, enhancing the guest experience and boosting your rankings on OTAs. Hostfully’s InboxAI feature pulls info from your listings and your past guest communications, saving hosts invaluable time and effort.
- Manage and aggregate reviews and respond to guest feedback in one central platform.
- Stay on top of your operations with Hostfully’s mobile app.
By using Hostfully, you can manage your properties more efficiently, saving time and reducing the risks associated with managing multiple listings across different platforms.
Tips for maximizing your bookings across online travel agencies
Here are some key strategies to ensure you get the most from listing on OTAs:
- Listing your vacation rentals on multiple online travel agencies: Maximizing your bookings often involves listing your property on several OTAs. By doing so, you can reach a broader audience and tap into different traveler segments.
- Accurately manage your inventory: Keep your property’s availability up-to-date by using a PMS or channel manager to sync calendars across multiple OTAs. This will ensure accurate bookings and prevent the risk of double bookings.
- Cleverly manage your rates and promotions: Offering special promotions and dynamic pricing can help you stand out in OTA search results. Consider offering last-minute discounts, seasonal promotions, or length-of-stay discounts to attract more bookings.
- Carefully and quickly respond to reviews: Responding to guest reviews is crucial for maintaining your reputation and ranking on OTAs. Address feedback professionally and quickly to show potential guests that you’re committed to providing an excellent guest experience.
- Take advantage of OTA’s marketing and advertising tools: Many OTAs offer additional marketing tools, such as paid promotions, featured listings, or social media campaigns. These tools can increase your visibility, especially during slow seasons or when launching a new property.
- Optimize your vacation rental listing for maximum visibility and bookings: To improve your ranking on OTAs, ensure your listing is fully optimized with high-quality photos, detailed descriptions, and accurate availability. OTAs use algorithms that prioritize complete, well-maintained listings, so updating your profile regularly will help keep your property visible to potential guests.
Conclusion
Choosing the right OTAs for your vacation rental business or boutique hotel is key to driving more bookings, improving visibility, and managing your property effectively. By evaluating factors such as commission fees, cancellation policies, and audience demographics, you can make informed decisions about which OTAs are best suited for your property.
By implementing technology tools like Hostfully, you can sync calendars (prevent those double bookings at all costs!), manage communications easily, and optimize your listings across multiple platforms for maximum impact.
FAQs
Which OTAs are best for vacation rentals?
The top OTAs for vacation rentals include Airbnb, Vrbo, and Booking.com, each catering to different traveler types.
How do I avoid double bookings on multiple OTAs?
Using a channel manager or PMS will sync your availability across OTAs in real-time to prevent double bookings.
What are typical OTA commission fees?
Airbnb charges around 3-5%, while Booking.com and Expedia may charge between 10-20% in commission fees.
Can I list on multiple OTAs at the same time?
Yes, listing on multiple OTAs can increase your visibility and attract more potential guests.
How can I optimize my OTA listing for better rankings?
Use high-quality photos, detailed property descriptions, and dynamic pricing to enhance your listing’s visibility on OTAs.
Are there alternatives to using OTAs?
Absolutely. Many vacation rental managers and homeowners establish direct booking sites which offer many benefits (the largest of which is no commission fees), but can be more work for hosts. Here are some direct booking site examples. You can read about how to build a direct booking site here.
