The two most prominent OTAs are Expedia (including brands like HomeAway, Trivago etc.) and Priceline Group (with platforms like Booking.com, Kayak etc.).
Listing sites devote massive budgets to marketing (Search Engine Marketing, TV etc.). In return they charge accomodation providers (vacation rental owners, hotels etc.) commissions (between 15-25 % depending on the channel used).
- Airbnb: More than 3 Mio. listings in 192 countries. Hosts pay 3 % commission. Guest service fee ranges between 6-12 %. Hosts are paid 24 hours after a guest’s check-in. Host protection insurance up to USD 1.000.000,–. Travelers can book unique tours („Experiences“) and will soon be able to book flights and rent cars.
- HomeAway (Vrbo): About 1,2 Mio. listings in 190 countries. Hosts pay up to 8 % per booking or can opt for an annual subscription model. Guests have to pay a service fee. Travelers benefit from a „Confidence Guarantee“ (payment protection in case of listing fraud, premium 27/7 customer service, rebooking assistance etc.).
- TripAdvisor: About 835.000 vacation rental listings. 12 % commission (15 % for increased visibility). Owners can take a security deposit. Payment Protection gives guest peace of mind when booking.
- Booking.com: About 1,1 Mio. properties in 212 countries. Commission starts at 15 % (up to 49 % for improved listing standing). Booking.com touts 0 cancellation fees.
- Expedia: About 510.000 listings (global). Commission starts at 10 %. Travelers can book flight, accomodation and rental car all at once.
- Priceline: About 635.000 properties (global). Travelers can book flight, accomodation and rental car all at once.
Vacation rentals gain traction in marketplaces previously dominated by hotels.
More and more homeowners diversify their distribution as they don’t want to rely on any one channel too much.
Channel managers help accomodation providers to distribute and maintain their listings with less effort.
(Source: via @OneRooftop – Get full details at http://blog.onerooftop.com/beginners-guide-to-online-travel-agencies-and-listing-sites-otas/ )