Distribution and booking channels — OTA and channel management
Where do the bookings come from, and what do they cost?
When a guest checks in, the booking often came through one of several channels—directly by phone or website, or through an online travel agency (OTA) like Booking.com or Expedia. As a receptionist, you encounter these differences daily, and it's useful to understand what they mean.
§What is an OTA?
OTA stands for Online Travel Agency — an online platform where guests can compare and book accommodation. Booking.com and Expedia Group dominate the market in Europe and North America respectively, and for many hotels they are an important source of bookings even though they cost a commission.
- 01OTAs typically take a commission of somewhere between 10 and 30 percent of the booking value
- 02Direct bookings via telephone or the hotel's own website do not incur commission
- 03Meta search engines (that compare prices) are a supplement to classic OTAs
- 04Global distribution systems (GDS) are used especially by travel agencies and business travellers
§Channel manager keeps track of everything
With bookings from many channels at the same time there is a risk of double bookings if the systems do not communicate. A channel manager synchronises prices and availability across all connected channels in real time — if a room is sold on one platform it is automatically removed from the others.
| Channel | Characteristic |
|---|---|
| Direct booking | No commission but requires own marketing work |
| OTA (e.g. Booking.com, Expedia) | High visibility, but commission on every booking |
| Channel manager | Synchronises prices and vacancies across channels |
| GDS | Usually used by travel agencies and business customers |
§Why it is relevant for you
If you understand the difference between the channels, you better understand why prices and terms can vary from guest to guest, and why the system sometimes needs to be double-checked at check-in. It also gives you a better background to talk to the guest about future direct bookings.
“Behind Every Single Check-In Lies a System that Has Fought to Ensure That Exactly That Room Was Free for Exactly That Guest.”