OTA stands for Online Travel Agent, referring to travel agencies that conduct business exclusively on the internet.The main characteristics of OTAs are as follows:
- Internet-only: They operate without physical stores, providing services only online.
- Products offered: They typically handle hotel reservations, flight bookings, dynamic packages (combining accommodation and flights), travel insurance, etc.
- Convenience: Consumers appreciate the ability to browse and search numerous products 24/7.
- Notable OTAs: Examples include Jalan, Rakuten Travel, Booking.com, etc.
- Market scale: In Japan, the online booking rate for accommodations is high, with about 44% of reservations made online as of 2018.
- Benefits: OTAs offer opportunities to approach new customer segments and increase brand awareness.
Unlike traditional travel agencies, OTAs primarily invest in systems, which allows for entry from industries outside of travel. Meanwhile, conventional travel agencies are focusing on cross-channel sales, combining their own websites with physical stores and telephone sales.As the use of OTAs continues to increase, it’s becoming increasingly important for accommodation providers to effectively utilize these platforms.OTAs differ from traditional travel agencies in that their main investment is in systems, leading to many entries from non-travel industries. On the other hand, conventional travel agencies are focusing on cross-channel sales, combining their own websites with physical stores and telephone sales.With the growing trend of OTA usage, it’s becoming increasingly important for accommodation providers to effectively utilize OTAs.]
