notitur.com August 24, 2026

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OTA

An online travel agency is a channel that sells accommodation and travel online in exchange for a commission. Booking.com and Expedia are the biggest. They bring volume and visibility, but charge commissions that eat into the hotel's margin.

Example A hotel may pay 15 to 25 percent commission on every booking that comes through an OTA.

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Direct booking

A direct booking is one the guest makes through the hotel's own channels, with no middleman. It saves the OTA...

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GDS

A global distribution system is a network that connects travel agents with hotels, airlines and car rentals....

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Rate parity

Rate parity is the commitment to offer the same public price across all channels. Many OTAs require it by...

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FAQ

What does OTA mean and what is its main function?
OTA stands for Online Travel Agency, a digital platform that sells accommodation, flights, and other travel services on behalf of hotels and airlines in exchange for a commission. Booking.com and Expedia are the largest examples, charging commissions typically between 15% and 25% per booking.
How does an OTA work and what commission does it charge the hotel?
The OTA acts as an intermediary: the hotel lists its rooms and rates on the platform, and when a guest books, the OTA deducts its commission from the total price before paying the hotel. For example, major OTAs like Booking.com often take 15% to 25% of the booking value, which directly cuts into the hotel's profit margin.
How is an OTA different from booking directly with the hotel?
The main difference is that a direct booking gives the hotel 100% of the revenue with no commission, while an OTA booking reduces that revenue by the commission fee in exchange for broader exposure and higher booking volume. Additionally, the OTA handles payment and cancellations, but the hotel loses direct contact and control over the guest relationship.

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