Online Travel Agencies (OTAs) continue to play a central role in hotel distribution, even as direct bookings grow. In fact, the global OTA market is valued at USD 553 billion in 2025 and is projected to reach USD 740 billion by 2030, highlighting just how deeply OTAs are embedded in how travelers discover and book hotels today.
Guest booking behaviour has evolved rapidly — travelers now expect instant confirmations, flexible cancellation policies, rich content, and mobile-first experiences. For hotels, this means OTAs are no longer just “listing platforms,” but powerful demand-generation channels that influence visibility, pricing, and revenue performance.
In this guide, we’ll explain what an Online Travel Agency is, how OTAs have evolved, how hotels can manage them effectively, and how the right distribution tools help hotels stay profitable in 2026 and beyond.
Key Takeaways
- OTAs Are Demand Channels, Not Enemies: When managed well, OTAs act as paid marketing platforms that bring incremental demand, especially from new and international markets.
- Mobile Has Changed Everything: With app-led bookings dominating, hotels must optimise rates, content, and availability for mobile-first travellers.
- Automation Is No Longer Optional: Real-time rate and inventory sync is essential to avoid revenue loss and operational errors.
- Balance Beats Dependence: A healthy mix of OTA and direct bookings delivers both short-term occupancy and long-term brand value.
- Technology Drives Profitability: Channel managers and analytics help hotels focus on net RevPAR, not just bookings.
What Is an Online Travel Agency?
An Online Travel Agency (OTA) is a digital platform that allows travellers to search, compare, and book hotels, flights, and travel services online. OTAs act as intermediaries between hotels and guests, earning a commission on confirmed bookings.
How OTAs Evolved: From Early Portals to AI-Powered Platforms
Online Travel Agencies began as basic listing platforms in the early 2000s, helping travelers compare hotel prices across destinations. Over time, OTAs evolved alongside changing traveler behavior — moving from desktop-only websites to mobile-first platforms that prioritize speed, convenience, and instant confirmations. Today, OTAs are no longer just booking sites; they’re powerful demand-generation engines shaped by data, personalization, and real-time pricing.
This shift is especially visible in the Asia-Pacific region, now the fastest-growing OTA region at an 8.58% CAGR, with mobile bookings accounting for over 70% in several Southeast Asian markets. As travelers increasingly plan and book trips on their phones, OTAs have responded with app-first experiences, flexible cancellation policies, richer content, and smarter recommendations.
How Online Travel Agencies Work
The OTA booking flow is straightforward:
- A hotel lists rooms and rates on an OTA ↓
- The OTA displays live availability and pricing ↓
- A guest searches, compares, and books ↓
- The OTA sends the booking to the hotel ↓
- The hotel pays commission on consumed bookings
Without automation, managing this across multiple OTAs quickly becomes complex.
Popular Online Travel Agencies Hotels Work With
Managing OTA Challenges: Problems Hotels Face & How to Fix Them
OTAs bring visibility and demand, but without the right systems in place, they can also create operational and revenue challenges. The key is not avoiding OTAs — it’s managing them smarter.
Here’s a clear view of the most common OTA challenges hotels face and how they can address them effectively:
This approach helps hotels treat OTAs as controlled distribution channels rather than unpredictable cost centres.
How Hotels Can Manage OTAs Effectively
Successful hotels treat OTAs as part of a broader revenue strategy. Key practices include:
✓ Maintaining real-time rate and inventory sync
✓ Avoiding manual extranet updates that don’t scale
✓ Using dynamic pricing and stay restrictions (LOS, close-outs)
✓ Improving content quality (photos, descriptions, amenities)
✓ Tracking OTA performance beyond occupancy
Direct Bookings vs OTAs: Finding a Healthy Mix
OTAs and direct bookings serve different strategic roles.
Many independent hotels target a balanced mix (for example, ~50% direct, ~40% OTA, ~10% others), adjusting by season and market.
Role of a Channel Manager in OTA Distribution
A channel manager connects OTAs, the PMS, and the booking engine in real time. Its role is to:
- Centralise inventory and rate management
- Push updates instantly across multiple OTAs
- Automate derived rates and packages
- Reduce overbookings and manual work
- Provide reporting and analytics for smarter decisions
Once a hotel works with more than two OTAs, a channel manager becomes essential.
How AxisRooms Helps Hotels Manage OTAs Better
AxisRooms is built for hotels that want control without complexity. It acts as a hotel-first distribution and channel management platform that connects OTAs simply with core hotel operations like the front desk, housekeeping, POS, and PMS, ensuring rates, inventory, and reservations stay accurate in real time.
- OTA integrations with major global and regional platforms
- Real-time rate updates to maintain parity and avoid overbookings
- PMS integrations for smooth reservation flow
- Channel manager for centralised control
- Analytics & reporting to track performance beyond occupancy
- Revenue strategy support for pricing and distribution decisions
AxisRooms helps hotels use OTAs profitably — without losing operational control.
FAQs
Q1-What is an online travel agency with an example?
A-An OTA is a platform like Booking.com or Expedia that allows guests to book hotels online.
Q2-Are OTAs good or bad for hotels?
A-OTAs are neither good nor bad — they’re paid distribution channels that work best when managed strategically.
Q3-How much commission do OTAs charge hotels?
A-Typically between 15–25%, depending on the platform and agreement.
Q4-Can hotels avoid OTAs completely?
A-Most hotels use OTAs alongside direct bookings to maximise reach and demand.
Q5-What is the difference between an OTA and a channel manager?
A-An OTA sells rooms; a channel manager helps hotels manage multiple OTAs efficiently.
Q6-How do hotels manage multiple OTAs efficiently?
A-By using a channel manager with real-time sync and automation.
Final Takeaway
OTAs aren’t the enemy — they’re powerful, paid distribution channels that help hotels reach guests at scale. The real advantage lies in how well hotels manage them. Properties that focus on net RevPAR and cost of acquisition, rather than just occupancy, are the ones that build sustainable growth over time.
The shift to mobile-first booking makes this even more critical. In fact, in 2024, the Expedia app alone contributed 42% of the group’s total revenue, underlining how app-based and mobile OTA channels now dominate traveler behavior. Hotels that combine OTA visibility with real-time automation and data-driven control are far better positioned to stay competitive.
Book a demo with AxisRooms today to see how smarter OTA management and real-time automation can help you grow revenue with confidence.
