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Distribution
OTAOnline Travel Agency
An Online Travel Agency is a third-party platform that markets accommodation and takes bookings on the host's behalf in exchange for commission. Airbnb, Booking.com, Vrbo and Expedia are the largest in the short-term rental category.
Why OTA matters for your revenue
OTAs supply reach no individual listing can buy on its own, but each takes a share of revenue and controls the guest relationship. The balance between OTA volume and direct bookings determines the net yield of the property.
Related terms
- Channel mixChannel mix is the distribution of a property's bookings across the platforms that produced them, usually expressed as a percentage share of nights or revenue per channel, including direct bookings.
- Direct bookingA direct booking is a reservation made through the owner's or manager's own website or channels, without an intermediary platform. No platform commission is charged, and the guest's contact details belong to the operator.
- Channel managerA channel manager is software that synchronises availability, rates and bookings across multiple booking platforms from one place. When a night sells on one channel, it is closed on the others automatically, which prevents the same night being sold twice.
- Search rankingSearch ranking is where a listing appears in a booking platform's results for a given set of guest filters. Platforms rank on a mix of relevance, price competitiveness, reviews, response behaviour, cancellation history and recent booking performance.
Channel Management at Pinnacle Path
OTA sits inside our channel management work. See how we apply it market by market.