How to Use OTAs Smartly to Boost Your Revenue
Online travel agencies, better known as OTAs, have become indispensable players in accommodation sales. Whether you run a small guesthouse or a larger hotel, being present on OTAs is almost essential for visibility, bookings, and maximizing revenue.
But how exactly do these platforms work, what advantages and disadvantages do they bring, and how can you use them strategically to grow your business? Let’s take a closer look.
What is an OTA?
OTAs are online platforms that act as intermediaries between accommodation providers and travelers. The most well-known players include Booking.com, Expedia, Airbnb and HRS. These sites display your property listings, handle bookings, and often manage payments too, offering convenience and global reach for both hosts and guests.
Why is OTA presence important?
- Massive reach: Through an OTA, you can access markets that would otherwise be extremely costly or nearly impossible to reach with your own marketing efforts.
- Trust and branding: Many travelers feel more comfortable booking through a well-known OTA. Even if they later visit your website, their first interaction often happens through these trusted platforms.
Technical infrastructure: Without developing your own booking engine or website, you can still offer a professional appearance and real-time booking functionality.
What disadvantages should you be aware of?
High Commission: OTAs typically charge commissions between 12% and 25%, which can amount to a significant cost.
Rate parity and control: Many platforms expect you not to offer lower prices elsewhere, and in some cases limit communication or data handling.
Competitive environment: On an OTA, you’re not just present—you’re also competing directly with other nearby or similar properties.
How to Maximize Your OTA Revenue?
- Create a Professional Profile: High-quality photos, updated descriptions and accurate amenity listings increase click-through and booking rates.
- Dynamic pricing: The market, demand, and seasonality constantly change, so fixed pricing doesn’t work. Dynamic pricing ensures you’re always positioned competitively.
- Smart channel management: In addition to OTAs, directing guests to your own website is key, especially for repeat bookings.
- Managing guest reviews: Positive feedback improves your ranking and booking potential. Responding, reacting and handling issues are crucial.
OTA or direct booking?
It’s not an “either-or” question, but rather “how to combine the two”. OTAs are excellent for visibility and acquiring new guests. The goal is to turn those guests into long-term, direct-booking regulars. This only works with conscious pricing, proper communication and data management.
Where does RateMate come in?
The real power of OTAs shines when you combine them with a strategic pricing approach. That’s where RateMate helps: it monitors your competitors’ prices in real time, so you always know how to position your property optimally across OTA platforms.
If you use OTAs smartly and pair them with a modern rate-tracking solution, your online presence becomes an opportunity for growth rather than a cost. RateMate is one of your strongest allies in this game. Try the 72-hour free trial now!