Theory: Travel Agency Platforms

5. Risks of using these platforms

There are some risks that are good to know before you sign yourself and your business up on these online travel agency platforms. As much as it brings in benefits, it is also important to get to know the risks and evaluate if this is the right option for your company.

Online travel agencies tend to charge commission on every sale you make. This can range between 10-25% of the gross cost. Because of the increased traffic on OTA websites, hoteliers pay OTAs a commission so that their properties can create more visibility and bookings. To achieve the same effects using only direct pathways would be incredibly difficult and expensive.

Just like a contract, you should read the terms and conditions of each travel agency you want to be in business with. While each agency might have a similar structure to their contracts, some might have more restrictive conditions when it comes to cancellations and automatic room reselling policies.

You may need a way to manage your room availability across a range of different      online travel agency platforms     , your own website and your front desk. There are some softwares that allows      you to manage it in one calendar so that it prevents overbooking. However     , that would cost some money and time to set up.