With the rapid increase in online travel agents (OTAs) and metasearch websites and apps, it’s easier than ever to book a flight, excursion or hotel in another country. While a few years ago the average consumer may have struggled to name a single OTA, the rise of Booking.com, Kayak, Expedia, Skyscanner and a plethora of similar websites have now become household names for online travel bookings.
Let’s explore how, as a travel company, you can compete in the digital age…
An OTA, or online travel agent, is a platform that allows customers to research, compare and book travel products in one place. This can include accommodation, flights, car hire, experiences and travel insurance.
OTAs act as intermediaries between the customer and the travel provider. In return for visibility and bookings, they charge commission on each sale. For many travel companies, OTAs can provide access to a large audience, but they also limit control over pricing, customer data and brand experience.
A metasearch engine does not sell travel products directly. Instead, it aggregates listings from multiple sources, including OTAs and direct supplier websites, and presents them in one comparison view.
Metasearch platforms allow users to compare prices, availability and providers before clicking through to complete their booking elsewhere. Revenue is typically generated through pay-per-click or referral fees charged to travel brands and OTAs.
Although they seem similar, there are a couple of distinctions that separate OTAs and metasearch. For example, an OTA generally allows you to research and book your entire holiday: hotels, flights, car hire, insurance, excursions and more in one place – think Lastminute.com.
A metasearch service doesn’t allow you to book. It will pull together information from a variety of places into one place, and then offer the customer a list of options. They make money from doing this by charging the end-vendor/partner a fee, and they have a big advantage by providing the entire inventory of hotel rooms or flight spaces, instead of just what an OTA has been assigned. Think of Skyscanner and Trivago as great examples of metasearch.
As an independent travel company, you can separate yourself from these large and dominant organisations by:
We totally get that this sounds like a David and Goliath-type scenario, but as an independent business or smaller travel company, there are some things you can leverage:
Search remains one of the most effective ways for travel companies to compete with OTAs, particularly at the inspiration and research stages of the journey. By creating destination-led content, local guides and experience-based pages, travel brands can capture demand before customers are ready to book.
This type of content allows you to showcase local expertise, insider knowledge and unique experiences that OTAs cannot easily replicate, helping you attract high-intent users earlier and guide them towards direct booking.
Many users will compare prices on metasearch platforms or OTAs before visiting your site. Retargeting allows you to stay visible to these users after they leave, reminding them of your brand and encouraging them to book directly.
Messaging can highlight incentives such as flexible cancellation, added value or exclusive benefits that are not available through third-party platforms.
Competing on price alone is rarely sustainable, especially against OTAs. Instead, travel companies should promote direct booking incentives that add value without breaching rate parity agreements.
This could include free upgrades, added experiences, priority check-in or more flexible terms. These incentives help tip the decision in favour of booking directly while protecting margins.
One thing that larger businesses often miss out on is referral schemes. Referral programs encourage your guests to recommend your property. Using your past customers to generate new ones increases your average revenue per customer.
Loyalty programmes and referral schemes can also help to create regular bookings from the customers that you already have, allowing you to acquire your customer once and continue to generate revenue beyond them.
Last of all, if you can’t beat them, join them! There is no harm in working in partnership with metasearch or OTAs as long as your availability and rates are always up-to-date.
The key is to treat these platforms as acquisition channels rather than the core of your business. Maintaining rate parity, keeping availability up to date and ensuring your direct booking experience is competitive helps prevent over-reliance while still benefiting from their reach.
At Verkeer, we understand the struggle that many businesses can have when competing with industry giants. Our in-house experts in paid media and SEO are the perfect addition to your customer acquisition strategy. Send us a message today to get started.