What is an OTA?
OTA = Online Travel Agency
Websites and apps where travelers search, compare, and book hotels online. OTAs are the biggest source of bookings for most Indian hotels.
How OTAs Work
OTAs act as a marketplace between hotels and travelers. Here's the basic flow:
- Hotel lists rooms on the OTA with rates, photos, and availability
- Traveler searches for hotels by destination, dates, and budget
- Traveler books a room through the OTA platform
- OTA confirms the booking and notifies the hotel
- Guest stays at the hotel
- OTA deducts commission from the payment and settles the balance
Major OTAs in India
| OTA | Strength | Best For |
|---|---|---|
| MakeMyTrip / Goibibo | Largest Indian OTA (same parent company) | Domestic travelers, all hotel types |
| Booking.com | Global leader, strong brand trust | International guests, boutique hotels |
| Agoda | Strong in Asia-Pacific region | Southeast Asian and East Asian travelers |
| Cleartrip | Growing Indian platform (Flipkart-owned) | Domestic leisure and corporate |
| Expedia | Global corporate travel network | International corporate bookings |
| Yatra | Indian corporate travel specialist | Corporate bookings, MICE |
| EaseMyTrip | Budget-friendly Indian OTA | Price-sensitive domestic travelers |
OTA Commission Structures
OTAs charge a percentage commission on each booking. Rates vary by platform and your contract:
| OTA | Typical Commission | Payment Model |
|---|---|---|
| MakeMyTrip / Goibibo | 15-25% | Guest pays OTA, OTA settles to hotel |
| Booking.com | 15-20% | Guest pays at hotel or online |
| Agoda | 15-22% | Guest pays OTA |
| Cleartrip | 15-20% | Guest pays OTA |
| Expedia | 15-25% | Guest pays OTA or at hotel |
Key Insight: A room sold at ₹5,000 on MakeMyTrip with 20% commission nets you ₹4,000. That same room booked directly through your website costs nothing in commission. This is why reducing OTA dependency matters.
OTA vs Direct Bookings
| Factor | OTA Booking | Direct Booking |
|---|---|---|
| Commission | 15-25% | 0% (only payment gateway fees ~2%) |
| Guest Data | Limited (OTA controls the relationship) | Full guest profile and contact |
| Visibility | High (millions of users) | Depends on your marketing |
| Repeat Bookings | Guest may book through OTA again | Can build loyalty directly |
How to Work Effectively with OTAs
- Maintain rate parity: Keep same rates across all OTAs and your website
- Optimize your listing: High-quality photos, detailed descriptions, updated amenities
- Respond to reviews: Both positive and negative reviews need professional responses
- Use a Channel Manager: Sync rates and availability across all OTAs automatically
- Monitor your ranking: OTAs reward hotels with good conversion rates and reviews
- Leverage promotions: Participate in OTA flash sales and visibility boosters strategically
Reducing OTA Dependency
While OTAs bring visibility, over-dependence is risky. Aim for a healthy channel mix:
- Build a booking engine: Let guests book directly on your website
- Collect guest emails: Send offers directly for repeat stays
- Google Business Profile: Optimize for "hotels near me" searches
- Social media presence: Instagram and Facebook drive awareness
- Corporate tie-ups: Direct contracts with companies bypass OTAs entirely
Pro Tip: A healthy OTA dependency ratio for most Indian hotels is 40-50%. If your OTA bookings exceed 70%, you're too dependent. Use our OTA Dependency Calculator to check yours.
OTA Settlement & Payments
Understanding how OTAs pay you is crucial for cash flow:
- MakeMyTrip/Goibibo: Weekly settlement, 7-14 days after checkout
- Booking.com: Monthly invoice or guest pays at hotel directly
- Agoda: Monthly settlement after checkout
- Cleartrip: Weekly to bi-weekly settlement
Remember that TDS (0.1%) and TCS (0.5%) are deducted from OTA settlements. See our TDS & TCS guide for details.