importance of online travel agency

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The Pros and Cons of Booking Through Online Travel Agencies

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You’re likely already familiar with online travel agencies, even if you don’t travel often. These companies — such as Priceline , Expedia and Orbitz — act as intermediaries between you and a travel provider.

Booking your travel through an OTA can be a good idea in some circumstances, but you’ll want to be wary of its pitfalls. Let’s take a look at the pros and cons of online travel agencies, so you’ll know what to use to book your next vacation.

Pros of booking through online travel agencies

There are certainly advantages booking through online travel agencies, though you’ll find different experiences whether you’re using public OTAs — such as Kayak — or private ones like those offered by your card issuer, such as the Chase's travel portal .

✅ It may be cheaper

When searching for flights online, you may see different prices for the same routes that vary across websites. Although it may be a result of fare type — for example, some search results may not clarify that a fare is basic economy rather than main cabin or economy — other times, the difference comes down to competition for your business.

Online travel services will often offer slightly lower prices on flights in an effort to entice you as a customer. This is true for both hotels and airlines.

» Learn more: Best credit cards for online travel-booking websites

✅ It can earn you more rewards

Have you ever heard of shopping portals ? By logging into a shopping portal, you can earn rewards for purchases made with many online merchants. Some hotel chains, such as Hilton , Marriott and IHG , can be accessed through shopping portals while still booking directly on the hotel website. In this way, you can earn rewards with the hotel directly as well as with the shopping portal.

The same isn’t true for shopping portals and most airline sites. However, many public online travel agencies are accessible through shopping portals, which can then earn you rewards for airfare bookings. By opting to book in this way, you’ll be able to earn points or cash-back rewards through the shopping portal that you’d otherwise miss.

Some card issuers will also reward you heavily when using their online travel services. Clear examples of this can be seen with Capital One and Chase. With the Capital One Venture X Rewards Credit Card , for example, you’ll get 10 miles per dollar spent on hotels and rental cars booked through Capital One Travel .

The Chase Sapphire Reserve® is similar. With this card, you can get 10 Ultimate Rewards® points per dollar spent on hotels and rental cars booked through Chase's portal.

While these numbers are high, it’s important to remember that there are trade-offs when booking through an OTA rather than directly with a hotel or airline. We’ll get into that a little later.

Online travel agencies offered by your card issuer may not feature the same prices as booking directly; you’ll want to compare these before committing to a purchase.

Some card issuers will go so far as to give your points more value when redeeming through their online travel agencies.

This is true with the Chase Sapphire Preferred® Card . When redeeming points on Chase's travel portal, you’ll get 1.25 cents in value per point rather than 1 cent elsewhere.

» Learn more: How much are your airline miles and hotel points worth this year?

Cons of booking through online travel agencies

There are several downsides when it comes to using online travel services for booking travel. It mainly comes down to the fact that travel providers prefer that you book directly with them — and offer more perks to woo your business.

❌ It can be harder to change a booking

Ever needed to change a flight after it's booked? No matter the reason, attempting to alter or otherwise cancel a flight can be a hassle — especially if you’ve booked through a third party.

Generally speaking, rather than offering you direct assistance, both hotels and airlines will recommend you contact the online travel agency you’ve booked with in order to make any changes.

While you may be able to make changes or get refunds with the travel agency, airlines and hotels can — and will — offer much more flexibility when you’ve booked with them directly. You may also be subject to additional fees charged by the online travel agency, which can erase any savings you’ve received.

❌ You may not receive elite benefits

This is the real kicker for anyone wanting elite status. Although airlines will almost always recognize your elite status and allow you to earn miles even for bookings made through an online travel agency, hotels and rental car companies will not.

This is especially important for hotel chains. Earning elite status with hotels generally relies on elite night credits. Although these can be earned in a variety of ways — including having complimentary status by holding certain credit cards — the main method of acquiring elite night credits is by spending nights in hotels. Rooms booked through an online travel agency do not count toward elite status as elite night credits.

Additionally, you will not receive any of the benefits of your existing elite status if your booking is through a third party. This can mean the loss of perks such as room upgrades, complimentary breakfast and even free Wi-Fi.

» Learn more: The best airline and hotel rewards loyalty programs this year

❌ It may be more expensive

Did you know that many hotel chains have best price guarantees? Hyatt, Hilton, Marriott and IHG all have a guarantee that’ll give you either points or a discount if you find a better rate elsewhere.

These guarantees are generous; Hilton, for example, will match the rate and then discount it by a further 25%.

Although you’ll need to file claims for these guarantees and they face limitations — such as a 24-hour window from when you made the booking — you can save a lot of money on your stay if your request is approved.

Online travel agencies can be hit or miss

There are two sides to every coin and this is no different, as there are several benefits and limitations of online travel services. Depending on your needs and loyalty program status, you’ll want to choose whether to book directly with a travel provider or rely on OTAs to do the job for you.

Booking travel through credit card portals from issuers like Chase and Capital One can earn you big rewards. But if you anticipate altering your travel plans or aim to earn elite status instead, booking directly is the way to go.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are some of the best travel credit cards of 2024 :

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Chase's website

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

75,000 Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.

1.5%-5% Enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Up to $300 Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!

on Capital One's website

2x-5x Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options.

75,000 Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel.

The Complete Guide to Booking Travel Online

What is an online travel agency, and what are the best sites and apps to use to search for hotels and flights we break it all down for you..

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There’s a lot to navigate when researching and booking travel online.

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My first travel adventure was to Venezuela. I booked the ticket with a travel agent over a pay phone. The agent searched a dozen flight itineraries over a few days, all so I could save $15.

Times have changed. Today, flight searches start online , often on your mobile device. Passengers book either directly with the airline or hotel or with online travel agencies. Rarely do we get on the phone. In fact, American Airlines and United Airlines charge $25 to make a domestic flight booking by phone. And pay phones hardly exist anymore.

So, what is the best way to book online? Here is our complete guide to online travel agencies, search tools, and the variety of booking options available on both mobile devices and desktops.

What is an OTA?

An online travel agency, or OTA, is a website or mobile app that allows users to search for and book travel services such as flights, hotels, car rentals, cruises, and activities. The booking is made directly with the online travel agency but confirmed by the service provider, such as an airline or a hotel. As a customer, your relationship is with the OTA.

What are the main OTAs?

Many online travel agencies nowadays are owned by two main companies: Expedia and Priceline. The Expedia Group is the largest online travel agency in the United States with 70 percent market share, according to travel data firm Phocuswright. Expedia Group operates Expedia.com , Orbitz, Hotels.com , Trivago, CheapTickets , Hotwire , Vrbo , and Travelocity .

Priceline is a major competitor to Expedia, with global revenues larger than the Expedia Group. The company owns Priceline.com, Booking.com, Cheapflights, Momondo, and Kayak—the latter two being metasearch engines (more on that below).

There are also independent newcomers such as Hopper (a mobile-only booking tool) and Kiwi.com (which allows you to book flights on air carriers that don’t normally have a commercial relationship).

Are OTA fares lower than booking directly?

Generally, no. The fares that are displayed by an OTA will be similar if not slightly more expensive when compared to an airline’s website. They’re usually only a few dollars higher or lower. The OTAs charge a booking fee to the airlines, and often that fee is passed directly to consumers. For example, Lufthansa tacks on an additional $18 to any booking made through an OTA for Lufthansa flights. The same flights are exactly $18 cheaper on the airline’s website.

Where you can score a good travel deal through an OTA is when booking a last-minute hotel and flight package. Many OTAs have cut agreements with airlines allowing last-minute travelers to access lower rates than are typically available when passengers book a flight alone.

Are all airlines available to be booked through OTAs?

No. Many OTAs do not display flights from some of the low-fare leaders. For example, Southwest and Allegiant flights are not available through OTAs; the same goes for Ryanair in Europe. And, earlier this year United Airlines threatened to pull out of Expedia altogether, only recently signing a multi-year agreement to stay in. The airlines would rather not lose any margin to online travel agencies in an already low-margin industry and would rather maintain a direct relationship with the customer.

Are smaller OTAs safe to use?

Expedia and Priceline are the two largest players in the online booking space, but there are dozens of independent OTAs, such as CheapOAir, OneTravel, JustFly, and SmartFares. Confusingly, you might actually stumble on ads for these OTAs while using Expedia or Priceline sites. That’s because the larger OTAs earn revenue through advertising, sending passengers to smaller OTAs and charging those OTAs for the favor.

Buyer beware: some of these lesser-known OTAs are masters at hidden fees. For example, a flight search on JetBlue allows for free seat selection in many instances. If you perform the same search on FlightNetwork, an independent OTA, and select a seat, you will be charged an additional $25—despite the fact that JetBlue doesn’t charge a seat selection fee if you book directly.

What if you need to change your itinerary?

Itinerary changes are often a pain. If your plans change, it won’t matter whether you’ve booked directly with an airline or with an OTA—you’re going to pay fees for the privilege, if you can even change your ticket at all.

For example, CheapTickets.com, which is part of the Expedia Group, charges $25 to change or cancel a ticket if that change is requested after 24 hours of making the booking—it is free if you do so within 24 hours of booking. However, the fees go up from there. JustFly, an independent OTA, charges a $75 fee for changes to domestic flights in addition to airline change fees, plus the difference in fare, for tickets that can be changed. For an international trip, the fee rises to $200. That means to change an international flight with Delta (which charges a $100 change fee) booked through JustFly, you’ll be assessed $300 in fees, plus the difference in fare. At that rate, you may as well book a new flight. FlightNetwork indicates in its terms of service that changes may incur a change fee but doesn’t specify what those fees are. That hardly makes the few dollars you saved by booking with the OTA in the first place worth it.

What is an OTA price match policy?

To assure travelers that they are getting the lowest fare possible, many OTAs have a price match policy. The rules vary and so do the benefits.

For example, if you book with Orbitz and find a less expensive flight, car rental, or activity on any U.S.-based website within 24 hours of your booking, Orbitz will refund you the difference you paid. And it works: I have personally found a flight in the same class, on the same airline, for the same origin and destination cities, and requested Orbitz to refund the difference of around $35. Within a few weeks, I received a check in the mail. A similar program applies for CheapOAir, but there’s a catch—the price difference must be found on a major OTA such as Expedia or Travelocity.

Expedia has a particularly good price match policy, but you have to pay extra for it at the time of booking. Expedia offers the price match option as an add-on that costs between $5 and $30 when you book. With the price match applied, if the airfare on Expedia drops between 120 days of the flight and up to six hours before the flight, Expedia will automatically refund you the difference in fare. Unfortunately, fares generally do not drop substantially as the travel date approaches, so while this might give you peace of mind, it’s probably not worth the expense.

How do Google Flights and other travel metasearch engines work?

Frequent fliers are likely familiar with websites such as Google Flights, Kayak, Momondo, or Skyscanner. On these websites, passengers search on the site but are redirected to the service provider to complete the booking, such as an airline, rental car company, or hotel.

Metasearch started with a product called ITA Matrix, which is a tool for searching airfares online but not for actually booking online. ITA Matrix allows for multi-city searching, such as setting two different departure or arrival airports, and for offering a calendar view of fares for easier comparison. That company was acquired by Google in 2011, and savvy travelers swear by it to help find the least expensive fares online. Most consumers are more familiar with Google Flights, which has gained traction more recently not least because it has the benefit of being displayed first in search results on Google.

Metasearch engines receive distribution fees from the airlines for sending traffic to the supplier websites. There are no additional hidden fees for using a metasearch engine because you’re booking directly with the airline or hotel.

A major benefit of the metasearch engines is their price tracking tool, which lets users know whether the displayed fares are low, average, or high for the flight, allowing travelers to make a more informed decision on whether to book a flight or not . Google Flights and Kayak, for instance, both have price tracking tools.

Why not just book directly?

The airlines would definitely much rather you book directly with them. Over the past five years, they have gotten much better at marketing and selling their product directly to consumers online and through mobile sites and apps. But in the past, they weren’t so good at it. In fact, Delta, Northwest, United, American, and Continental got together to invest $145 million to launch Orbitz in 1999 to counter the threat from Expedia. Now Orbitz is owned by Expedia.

The airlines also try to encourage customers to book directly so that they can maintain a closer relationship with them. It allows carriers to connect bookings with loyalty programs and create special offers and discounts catered to individual passengers.

There is another benefit to booking directly. The U.S. Department of Transportation requires carriers to hold a reservation at the quoted fare for 24 hours without payment or allow a reservation to be cancelled within 24 hours without penalty, so long as the booking is made at least seven days before travel. The law applies, however, only to U.S. and foreign air carriers that have websites marketed to U.S. consumers. This means that, in theory, an online travel agency does not have to offer such a policy, although most OTAs do.

What are the options for booking on your mobile device?

Airlines and the major OTAs all have apps to help you book and manage your trip on your mobile device, but their functionality is lacking compared to these websites’ desktop editions. For example, Expedia’s app doesn’t allow you to view flights on a month-view calendar. Kayak has an app with more bells and whistles and a better user interface, including a month-view calendar with color-coded pricing. It also has a handy “augmented reality” function to help you see if your carry-on bag will fit in the overhead bin (a feature originally developed by KLM). Point your phone’s camera at the luggage, and it’ll give you the dimensions.

While apps are improving and gaining in popularity, you still might find it easier to locate the best deals on flights and hotels by using your desktop, where you can have multiple tabs open and have all the available search tools at your disposal. Apps are fine for booking directly with an airline once you know which flights you want to book.

If you’re determined to use your mobile device, you may want to look into Hopper. Hopper is a mobile-first flight booking tool that has a solid price prediction tool. You can research travel options and book directly on the app. Another benefit of Hopper: Of its team of 300 employees, nearly half are dedicated to customer support and are based in Canada versus some OTAs and airlines that outsource much of their customer service further afield.

The bottom line?

Like many travelers, I enjoy a flight deal as much as the next person, but I also don’t like any added hassle. I typically start my travel searches using the ITA Matrix or Google Flights to get a general sense of the fares. It helps to know what is a good deal and what is expensive for a particular route. I do my research, typically on a desktop computer. When I’m ready to book, I’ll book directly with the airline. I’ve found that customer service is better when booking directly with the service provider. But I’ve also saved money by using OTAs and have booked with them, too. Whichever way you choose to book, you can be safe in the knowledge that finding and purchasing travel online is a lot easier today than searching for a deal with a travel agent on a pay phone.

>> Next: How to Get the Best Last-Minute Travel Deals

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5 benefits of using online travel agencies

Online travel agencies (OTAs) can be one of the greatest allies that lodging operators have. They help open up new markets and secure a stream of steady bookings when used in parallel with a strong direct booking strategy. Travelers gravitate towards OTAs due to their strong presence, which results in trust and credibility.

Here, we look at some of the benefits OTAs bring to travelers.

1. Convenience

With so much information online today, travelers use OTAs to easily browse and book their accommodations using a trustworthy website. OTAs provide the convenience of price, location, and property-type comparisons. The ability to filter down thousands of properties to one that fits their trip goals is an invaluable tool that saves hours of time. 

2. Loyalty programs

Larger OTAs have loyalty programs that reward travelers for booking multiple trips through their site, including rooms (or beds), car rentals, plane tickets, and activities. For example, the new One Key reward program gives travelers the flexibility to earn and use rewards across Expedia Group using OneKeyCash.

3. Price-driven decisions.

Online travel agencies are often considered the cheapest place to book and the best place to find package deals. Though many hotel brands have tried to change this perception by pushing direct booking campaigns and strategies, OTAs still benefit from being thought of as low-cost leaders.

For example, Agoda has a ‘ Coupons & Deals ’ section of its website offering daily deals and spontaneous savings. Every day, these offers change and include incentives such as percentage off coupons and special rates on select hotels. Offers like this are hard for consumers to pass up and help increase the likelihood of generating a booking. 

4. Extensive advertising & marketing budgets

Discount and deal-centric advertising campaigns help shape consumer notions that OTAs are the best place to book. In Q1 2024 alone, Airbnb, Expedia Group, Booking Holdings, and Trip.com Group spent a combined $4.08 billion USD on sales and marketing, up 10.6% from Q1 2023.

How are they spending these enormous budgets? Skift reports the going rate for a 30-second Superbowl slot during the 2024 game was $7 million USD, with Booking.com making an appearance with its Booking.yeah ad. 

Airbnb, on the other hand, partnered with Mattel to deliver the “Malibu Barbie DreamHouse” listing on Airbnb. Airbnb CEO Brian Chesky said this campaign “became a phenomenon on social media and got more press, more articles than our IPO.” 

Online travel agencies have one job: to get their inventory, including yours, in front of the right person at the right time. They’re constantly creating new and innovative ways to get rooms and rates in front of travelers. Of course, the cost of this innovation is how they justify their fees and commissions to the properties that list on their platforms. 

5. Secure global payments & traveler protection

OTAs give travelers the ability to complete safe and secure payment transactions in their preferred currency. They support multiple payment methods depending on location, providing travelers the flexibility that independent properties are often unable to accommodate unless they use secure, integrated payment processing (which the Cloudbeds Hospitality Platform offers) that’s equipped to send hospitality-enriched data to banks and also supports multiple payment methods and currencies. 

In addition, OTAs often offer traveler protection to provide peace of mind while booking. Last year, Airbnb introduced Aircover, a free protection for travelers included for every guest. Its purpose is to help provide refunds or new accommodations if you experience an issue such as a host cancellation, trouble checking in, or a key missing amenity. 

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Category: Travel

Date: May 31, 2024

Online Travel Agencies – A Brief Introduction

The role of an online travel agency (OTA) is becoming increasingly important in the accommodation industry as they provide a convenient way for travelers to arrange their stay. From the comfort of their home, travelers can compare hotel prices and book them over the internet. 

In this blog, we are going to discuss what an OTA is, the best OTA platforms, travel website development and how to do it right, and more.

Ready? Let’s go.

What Are Online Travel Agencies?

An online travel agency (OTA) arranges and sells accommodations, tours, transportation and trips on an online platform for travelers. They are third parties who sell services on behalf of other companies.

Usually, these OTAs offer many benefits with added convenience with more of a self-service approach. They also include a built-in booking system which allows instant bookings.

How Do Online Travel Agencies Work?

OTAs generally work on two models. They are,

1. Merchant Model

In this model, hotels sell rooms to OTAs at a discounted or wholesale price. Then, the OTA sells them to the customer at a markup price

2. Agency Model

This is a commission-based model where OTAs acts as a distribution partner. OTAs receive full commission after the stay has taken place. The hotel directly receives the payment from the end customer and does not wait for the payment transfer from third-party distributors.

What Are the Benefits of Partnering with Online Travel Agencies?

In one word – exposure! Online travel agents get thousands of website visitors from all over the world. Plus, they have positioned themselves as an authority on everything related to travel. So, people trust the recommendation they receive from OTAs.

By listing in OTAs, accommodation businesses like hotels not only reach a vast set of audience but will also find their service among many other reputable sources of information.

In addition, hotels that are listed on OTAs can also benefit from what is referred to as the ‘billboard effect’. This means that OTAs provide a form of advertising for service providers such as hotels on their platforms. Once the user gains this awareness, they may even go to the website of that particular hotel to make a direct booking.

What Are the Advantages and Disadvantages of Selling Through Online Travel Agents?

Accommodation businesses like hotels and B&Bs have pros and cons of getting listed in OTAs. Let’s take a look at them.

Advantages Of Online Travel Agents

• Low-cost method of selling accommodation services
• Reduced online marketing spend as OTAs invest in advertising to attract potential customers
• Impartial reviews give customers the confidence to book
• Users can easily compare various accommodation costs at one place

Disadvantages Of Online Travel Agents

• Commission rates are charged on every sale. It can range between 10-15% of the gross cost
• Restrictive cancellation terms
• Even if accommodation businesses use OTAs, the need for their own website and booking engine does not go away
• Investment in a balanced multi-channel strategy may be needed to boost sales

Even though OTAs can help to fill your rooms, accommodation businesses must try to maximize revenue through their own website. Consistent work on search engine optimization tactics and other digital marketing techniques is a must. Accommodation businesses must focus on customer retention techniques and directly target their existing customers through emails and direct marketing.

How To Start An Online Travel Agency?

Travel agencies no longer inform customers about the availability of flights and rooms. They issue rooms and get a commission from the respective accommodation businesses. That is why most of the new travel businesses follow the OTA model.

If you plan to enter the OTA arena, you can specialize in pilgrimages, leisure travel, business travel or any niche. But, focusing on how effectively you offer things is the key to success.

Here Are Some Points You Have To Consider When Starting An Online Travel Agency.

• Register the name of your agency and if applicable, take a license as per your local laws
• Try to get a membership in IATA or any other reputed travel organization
• Gain more knowledge about the travel industry and particularly the nice you want to concentrate
• Get your travel website designed by a professional company like ColorWhistle
• Offer deals that focus on a specific geography. Focusing on a particular niche will also bring more success
• Publicize your business in the online space
• Utilize the power of blogging
• Create a good social media presence

Why Do People Use Online Travel Agencies?

 here are some of the main reasons they prefer ota’s..

• Few OTAs offer reward programs which can be used for future travel needs
• Special rates which cannot be found elsewhere
• Some OTAs may have generous cancellation policies. For example, Priceline does not offer any penalty if the user cancels the ticket until the end of the next business day
• Most users may not have an idea on where to book other than an OTA
• OTAs make it easy to compare different rates

Which Are the Best OTA Platforms?

1. booking.com.

Booking.com is one of the largest accommodations websites which has now expanded to smaller markets such as family-operated bed and breakfast, vacation rentals and self-catering apartments.

Interesting statistics

• Every day, 1,550,000 nights are booked
• 68% of nights booked came from families and couples
• 42% of nights booked came from unique places such as homes and apartments
• 38% of reviews are given by guests which are useful for other travelers
• 75% of nights booked come from guests who booked more than 5 times

2. Expedia’s Hotels.com

Expedia’s Hotels.com is a popular brand which has a global audience and attracts diverse travelers. The company gained more power in the industry by acquiring Travelocity.

• Gets over 675 million monthly site visits
• Operates in 70+ countries and 40+ languages
• Attracts 75 million monthly flight shoppers

Airbnb revolutionized the travel accommodation industry by introducing home-sharing. The website has diverse listings and travelers get a sense of safety as they can know their guest’s identity.

• 2.9 million hosts are present on Airbnb
• Average of 800k stays each night
• 14k new hosts join every month

Apart from these major OTAs, there are many small ones such as OneTravel, Vayama, Tripsta, TravelMerry, ExploreTrip, Kiss&Fly, Webjet, GoToGate, Travelgenio, Bookairfare, Fareboom, Skybooker, Travel2be, OneTwoTrip!, and eBookers.

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What the future holds for online travel agencies.

It is clear that, in the near future, accommodation businesses are not about to back down from OTAs. They are enjoying the billboard effect and trying their best to retain website visitors and convert them into direct booking. 

Sure, there is a cost involved. The upside of this is that accommodation businesses are working hard to create a loyal customer base that will continue to seek direct bookings.

The chances of OTAs suffering in the long run are pretty slim. Smaller accommodation businesses have a lot to gain from the exposure they receive through OTAs. Plus, a large portion of the younger generation prefers OTAs. So their market will continue to grow.

If you need any help to design, develop or market an OTA website, contact our travel web design and development experts at ColorWhistle . 

We can create an amazing website with beautiful designs combined with dynamic content such as live rates and special offers. Contact us today for your free business analysis and consultation.

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About the Author - Anjana

Anjana is a full-time Copywriter at ColorWhistle managing content-related projects. She writes about website technologies, digital marketing, and industries such as travel. Plus, she has an unhealthy addiction towards online marketing, watching crime shows, and chocolates.

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7 Amazing Benefits of Using A Travel Agent

This post may contain affiliate links, view our disclosure policy .

Planning a vacation is a complicated and time-consuming process. In this article, we’ll explore the benefits of using a travel agent to help plan and book your family travel!

Having a professional help with the planning and logistics of your travel plans can have a big impact on how much you spend on — and how much you enjoy — your family vacation.

As travel becomes more and more complicated, and your vacation time more valuable, let’s take a look at the 7 reasons to use a travel agent to book your travel in 2022 and beyond!

This post contains affiliate links, which means that we may receive a small commission, at no cost to you, if you make a purchase through a link.   For more info, see disclosure.

Table of Contents

What is a Travel Agent?

A travel agent is an individual who both provides and arranges travel or tourism-related services to the general public. This is done so on behalf of the travel agent’s accommodation or travel suppliers.

Travel agents simplify the travel planning process by booking flights, cruises, rental cars and hotels, as well as resort stays and events.

They offer vacation and accommodation suggestions based on their experience and research as well as work within a set monetary budget if desired.

Most importantly, travel agents are invested in their clients’ happiness and satisfaction.

They work to make sure that each and every detail of your trip is accounted for in order to help ensure that you have a memorable, hassle-free family vacation!

Benefits of Using A Travel Agent

In order to help explain the undeniable benefits of using a travel agent to book your future travel, I’ve partnered with Sandy Haddick, owner of Dreams are Forever Travel .

Sandy is a passionate travel agent based out of Rochester, Minnesota who consistently goes above and beyond to meet the travel needs of her clients both near and far.

Together, we’ll explain several travel agent benefits, as well as review reasons why to use a travel agent instead of booking online.

1. Travel is their expertise. 

The #1 benefit of using a travel agent when it comes to booking your family travel is because travel is their expertise .

Much like you would hire an electrician to handle a wiring issue, or a financial planner to help manage your money, you should turn to a travel professional when you’re in need of assistance with your travels.

Travel agents are trained to know, understand, and adapt to all different forms of travel.

They research information on their client’s travel plans and relay important details including travel advisories, recent news, weather conditions, and required documents for your destination.

We discuss your travel desires and craft the perfect vacation just for you! Likewise, we listen, suggest, adjust, and understand.  We also give you valuable tips before you leave on your vacation that you may not have thought of on your own! Sandy

2. Destination knowledge. 

Travel agents uncover new destinations and are constantly on the lookout for the best trips and travel recommendations.

Likewise, they are the best resources to contact when looking to book unique places to stay in the USA and beyond!

Not only do travel agents travel the world to serve as a resource for their clients, but they have an abundance of other travel-related resources to answer your questions quickly and correctly.

Their recommendations cater to various travel purposes, whether it be family, group, or multi-generational leisure or business-related travel.

I often use the hashtag #WeKnowBecauseWeGo because it’s true!  We travel so we can see destinations, resorts, and excursions first hand in order to help our clients make informed decisions on what they can expect. Sandy

3. Convenience.

Travel agents offer the convenience of having every aspect of your vacation or trip pulled together in one comprehensive plan.

This includes researching and suggesting destinations , as well as arranging for flights, accommodations, airport transportation, and excursions.

By doing so, all of the guesswork is taken out of these selections and your final details will be available in one hub of information provided to you by your travel agent.

We know your time is valuable, so we seek out all of the answers to your questions so that you don’t have to waste your precious time researching. Sandy

*For additional travel convenience, click the following image to get your FREE family vacation packing list that is both customizable and printable!

4. Cost savings.

Many people might be hesitant to work with a travel agent because they think it will cost them extra money.

They may also assume that they’ll spend more money working with a travel agent than when booking vacations on their own.

The fact is that travelers do not pay more for vacations when working with a travel agent and instead, often save more money than they would if booking online.

Not only do travel agents have access to exclusive deals, but they keep track of current vacation promotions, can advise you on the best time to book, as well as calculate the value of what you will receive.

We have relationships with tour operators and resorts that can gain our clients better travel perks. Likewise, we can actually save you money as we are privy to discounts you may not know about. Last, there is no fee to use Dreams are Forever Travel. We get paid by the tour operators, hoteliers, rental car companies, etc., and not from our individual clients. Sandy

5. Relationships.

The relationship you’ll form with your travel agent, as well as their relationships with other agents, are two of the benefits of using a travel agent.

Through getting to know you, a travel agent will honor your personal vacation requests and hand-pick its details to tailor to your needs.

The relationships that travel agents have with properties and other travel professionals will get you into incredible experiences and save you from unknowns.

Often times, room preferences, dietary needs, and other special requests can be seamlessly accommodated by the benefits of using a travel agent and their connections.

Travel agents are not a search engine or an anonymous voice from a call center. Instead, we are professionals who happen to love travel and who truly care. We want you to have an experience, not just a trip! Sandy

Additional recommended reading: 9 Tips For Keeping Your Family Healthy While Traveling

6. Travel assistance.

One of the best benefits of using a travel agent is the travel assistance that you will get in working with an actual person, versus the Internet.

During our recent family vacation to Mexico , our travel agent was able to help our large group deal with last-minute flight changes and staggered arrival times.

The personalized attention that we received was an essential component to the success and overall enjoyment of the trip.

Quite simply, when working with a travel agent, they take care of everything.

From the moment you set foot in the destination to the moment you touch the ground back home, dedicated travel assistance is an undeniable benefit of using a travel agent.

The Internet doesn’t call you back, but we do!  During times of crisis (hurricanes, Covid-19, etc.), you make one call, text or email and we handle the rest. We are there for you 24/7 while traveling.  I’ve had clients call at 2 am because they couldn’t get into the vacation condo and I was able to pick up the phone and solve their issue. Sandy

7. Decreased stress.

Another one of the top benefits of using a travel agent is that they always have your back!

Travel agents exist to assist their clients in making travel as smooth and as stress-free as possible. In the rare case that something on a trip doesn’t go as planned, travel agents are there to resolve the problem, so that you can continue to relax and enjoy.

Not only that, but self-directed internet searches provide overwhelming amounts of information.

To make a trip extra special it’s best to have someone who knows how to connect all that information and turn it into an itinerary that is seamless and stress-free.

You can start your vacation with peace of mind knowing every detail has been accounted for. Once there, you can focus on the fun knowing that your agent has handled everything for you! Sandy

Benefits of Using A Travel Agent – About Our Guest

“Hi! I’m Sandy Haddick, owner of Dreams are Forever Travel!

I have been planning travel from a young age. 

My first memory as a Travel Planner is when I was 8 years old. I asked my mom if I could map out our route to South Dakota from the west coast. 

After that, I was hooked! 

As I grew up, I became the “go-to” person for friends and family when it came to travel.

At Dreams are Forever Travel , I specialize in leisure travel for families, couples, groups, and solo travelers.  I help my clients by crafting the perfect vacation to suit their needs & desires at no additional cost to them.

When I’m not making travel dreams come true, I love to travel with my own family.

I enjoy visiting different destinations to gain valuable first-hand knowledge for my clients.

Please, visit my website or contact me to plan your next adventure!”

If you liked reading our Top 7 Benefits of Using a Travel Agent, click here to check out our  Related Posts:

• Top 10 Tips for Planning a Family Road Trip (And Enjoying it Too!)
• How to Plan and Choose the Perfect Family All-Inclusive Vacation
• Top 16 Tips for Flying With Kids & Ways to Keep them Calm
• The Ultimate Guide for International Travel with Kids
• 8 (Unexpected) Benefits of Traveling With Kids

*Before leaving, be sure to check our  Travel Resources Page  to find our exclusive travel discounts and to book hotels, rental cars, and guided tours.*

Jen Brommer is a family travel expert. She has been featured as an authority on several notable travel websites and is a member of the Family Travel Association (FTA), Midwest Travel Network, and TravMedia global media network.

A prominent content creator and influencer on Instagram, Jen has over 150K unique monthly blog readers from countries all over the world. She has spent the last 16 years planning fun, and hassle-free family vacations for her family of 5.

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10 Comments

Great tips to hire a travel agent!

Thank you so much! They are oh so important now in this season of cancellations and changes 🙂

#7 really speaks to me here! I always get into so much analysis paralysis and decision fatigue I just wish someone would make the choices for me and have it be perfect! Thanks for all this insight 🙂

Dayla, thanks for reading! I like your term ‘analysis paralysis’. So true!!

I couldn’t agree more with using a travel agent, maybe a bit biased because I’m a travel agent too. Ha Ha! Honestly, Travel Agents are skilled, experienced and active travellers. I think the biggest misconception people have about Travel Agents is thinking they are expensive however this is not the case, Travel Agents have access to suppliers that provides pecks like hotel upgrades, complimentary spa sessions and lots more.

Awesome! I did not know that you were a travel agent! Thanks for sharing…and good luck with your travel endeavors. You rock!

Interesting perspective. I’m often hesitant to use a travel agent when booking a holiday from home, but I’ll happily use tour companies on the ground while on holiday!

Thanks for reading! I think that travel agents are an especially great option for people that don’t particularly like spending the time researching a particular destination or itinerary.

We’ve used travel agents a few times randomly but these are all great tips on why you’ll benefit from them!! Thanks for debunking some of the myths!

You’re welcome! I love to use travel agents when traveling with big groups or several different families as they do such a great job of coordinating flights, arrivals, etc.

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Online travel market - statistics & facts

How big is the online travel market, what are the leading online travel agencies (otas), what travel products do consumers book online, key insights.

Detailed statistics

Online travel market size worldwide 2017-2028

Distribution of sales channels in the travel and tourism market worldwide 2018-2028

Most popular travel and tourism websites worldwide 2024

Editor’s Picks Current statistics on this topic

Online Travel Market

Market cap of leading online travel companies worldwide 2023

Further recommended statistics

Industry overview.

• Premium Statistic Market size of the tourism sector worldwide 2011-2024
• Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
• Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
• Premium Statistic Online travel market size worldwide 2017-2028
• Premium Statistic Revenue of the travel apps industry worldwide 2017-2027
• Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
• Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Market size of the tourism sector worldwide 2011-2024

Market size of the tourism sector worldwide from 2011 to 2023, with a forecast for 2024 (in trillion U.S. dollars)

Travel and tourism revenue worldwide 2019-2028, by segment

Revenue of the global travel and tourism market from 2019 to 2028, by segment (in billion U.S. dollars)

Revenue share of sales channels of the travel and tourism market worldwide from 2018 to 2028

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Revenue of the travel apps industry worldwide 2017-2027

Revenue of the travel apps market worldwide from 2017 to 2027 (in billion U.S. dollars)

Estimated EV/Revenue ratio in the online travel market 2024, by segment

Estimated enterprise value to revenue (EV/Revenue) ratio in the online travel market worldwide as of April 2024, by segment

Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Estimated enterprise value to EBITDA (EV/EBITDA) ratio in the online travel market worldwide as of April 2024, by segment

Online bookings

• Premium Statistic Travel product online bookings in the U.S. 2024
• Premium Statistic Travel product online bookings in Canada 2024
• Premium Statistic Travel product online bookings in the UK 2024
• Premium Statistic Travel product online bookings in China 2024
• Premium Statistic Travel product online bookings in India 2024
• Premium Statistic Importance to book a trip fully online among travelers worldwide 2023, by generation

Travel product online bookings in the U.S. 2024

Travel product online bookings in the U.S. as of March 2024

Travel product online bookings in Canada 2024

Travel product online bookings in Canada as of March 2024

Travel product online bookings in the UK 2024

Travel product online bookings in the UK as of March 2024

Travel product online bookings in China 2024

Travel product online bookings in China as of March 2024

Travel product online bookings in India 2024

Travel product online bookings in India as of March 2024

Importance to book a trip fully online among travelers worldwide 2023, by generation

Share of travelers who think it is important to be able to book their trip entirely online worldwide as of July 2023, by generation

Market leaders

• Premium Statistic Revenue of leading OTAs worldwide 2019-2023
• Premium Statistic Marketing expenses of leading OTAs worldwide 2019-2023
• Premium Statistic Marketing/revenue ratio of leading OTAs worldwide 2019-2023
• Premium Statistic Number of employees at leading travel companies worldwide 2022
• Basic Statistic Market cap of leading online travel companies worldwide 2023
• Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
• Premium Statistic Most popular travel and tourism websites worldwide 2024

Revenue of leading OTAs worldwide 2019-2023

Leading online travel agencies (OTAs) worldwide from 2019 to 2023, by revenue (in million U.S. dollars)

Marketing expenses of leading OTAs worldwide 2019-2023

Marketing expenses of leading online travel agencies (OTAs) worldwide from 2019 to 2023 (in million U.S. dollars)

Marketing/revenue ratio of leading OTAs worldwide 2019-2023

Marketing to revenue ratio of leading online travel agencies (OTAs) worldwide from 2019 to 2023

Number of employees at leading travel companies worldwide 2022

Number of employees at selected leading travel companies worldwide in 2022

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Most visited travel and tourism websites worldwide as of April 2024 (in million visits)

Booking Holdings

• Basic Statistic Revenue of Booking Holdings worldwide 2007-2023
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• Premium Statistic Operating income of Booking Holdings worldwide 2007-2023
• Premium Statistic Net income of Booking Holdings worldwide 2007-2023

Revenue of Booking Holdings worldwide 2007-2023

Revenue of Booking Holdings worldwide from 2007 to 2023 (in billion U.S. dollars)

Number of bookings through Booking Holdings worldwide 2010-2023, by segment

Number of bookings through Booking Holdings worldwide from 2010 to 2023, by business segment (in millions)

Operating income of Booking Holdings worldwide 2007-2023

Operating income of Booking Holdings worldwide from 2007 to 2023 (in billion U.S. dollars)

Net income of Booking Holdings worldwide 2007-2023

Net income of Booking Holdings worldwide from 2007 to 2023 (in billion U.S. dollars)

Expedia Group

• Premium Statistic Revenue of Expedia Group, Inc. worldwide 2007-2023
• Premium Statistic Revenue of Expedia Group, Inc. worldwide 2017-2023, by business model
• Premium Statistic Operating income of Expedia Group, Inc. worldwide 2007-2023
• Premium Statistic Net income of Expedia Group, Inc. worldwide 2007-2023

Revenue of Expedia Group, Inc. worldwide 2007-2023

Revenue of Expedia Group, Inc. worldwide from 2007 to 2023 (in billion U.S. dollars)

Revenue of Expedia Group, Inc. worldwide 2017-2023, by business model

Revenue of Expedia Group, Inc. worldwide from 2017 to 2023, by business model (in million U.S. dollars)

Operating income of Expedia Group, Inc. worldwide 2007-2023

Operating income of Expedia Group, Inc. worldwide from 2007 to 2023 (in million U.S. dollars)

Net income of Expedia Group, Inc. worldwide 2007-2023

Net income of Expedia Group, Inc. worldwide from 2007 to 2023 (in million U.S. dollars)

• Premium Statistic Airbnb revenue worldwide 2017-2023
• Premium Statistic Airbnb revenue worldwide 2019-2023, by region
• Premium Statistic Airbnb operations income worldwide 2017-2023
• Premium Statistic Airbnb net income worldwide 2017-2023

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Airbnb revenue worldwide 2019-2023, by region

Revenue of Airbnb worldwide from 2019 to 2023, by region (in billion U.S. dollars)

Airbnb operations income worldwide 2017-2023

Income from operations of Airbnb worldwide from 2017 to 2023 (in million U.S. dollars)

Airbnb net income worldwide 2017-2023

Net income of Airbnb worldwide from 2017 to 2023 (in million U.S. dollars)

Trip.com Group

• Premium Statistic Total revenue of Trip.com Group 2013-2023
• Premium Statistic Revenue of Trip.com 2013-2023, by product
• Premium Statistic Revenue of Trip.com 2017-2023, by region
• Premium Statistic Net income of Trip.com 2013-2023

Total revenue of Trip.com Group 2013-2023

Total revenue of Trip.com Group Ltd. in China from 2013 to 2023 (in billion yuan)

Revenue of Trip.com 2013-2023, by product

Revenue of Trip.com Group Ltd. from 2013 to 2023, by product (in million yuan)

Revenue of Trip.com 2017-2023, by region

Revenue of Trip.com Group Ltd. from 2017 to 2023, by region (in million yuan)

Net income of Trip.com 2013-2023

Net profit of Trip.com Group Ltd. from 2013 to 2023 (in million yuan)

Tripadvisor

• Premium Statistic Revenue of Tripadvisor worldwide 2008-2023
• Premium Statistic Revenue of Tripadvisor worldwide 2017-2023, by business segment
• Premium Statistic Revenue of Tripadvisor worldwide 2012-2023, by region
• Premium Statistic Operating income of Tripadvisor worldwide 2008-2023
• Premium Statistic Net income of Tripadvisor worldwide 2008-2023

Revenue of Tripadvisor worldwide 2008-2023

Revenue of Tripadvisor, Inc. worldwide from 2008 to 2023 (in million U.S. dollars)

Revenue of Tripadvisor worldwide 2017-2023, by business segment

Revenue of Tripadvisor, Inc. worldwide from 2017 to 2023, by business segment (in million U.S. dollars)

Revenue of Tripadvisor worldwide 2012-2023, by region

Revenue of Tripadvisor, Inc. worldwide from 2012 to 2023, by region (in million U.S. dollars)

Operating income of Tripadvisor worldwide 2008-2023

Operating income of Tripadvisor, Inc. worldwide from 2008 to 2023 (in million U.S. dollars)

Net income of Tripadvisor worldwide 2008-2023

Net income of Tripadvisor, Inc. worldwide from 2008 to 2023 (in million U.S. dollars)

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Advantages and Disadvantages of Online Travel Agencies (OTAs)

Table of Contents

For many travelers, Online Travel Agencies (OTAs) are the preferred way to search for and book package deals, accommodation, flights, tours, and other travel. Online travel agents like Expedia, Hotels.com and Booking.com are among some of the most popular websites in the world.

For business-savvy tour operators who recognize that organic search engine traffic alone may not generate enough revenue, OTAs are an important component of a successful distribution channel strategy. They can help you reach many more travelers and generate more bookings. However, the advantages of OTAs need to be balanced with the disadvantages, like having to pay a commission on every booking.

To help you figure out the best plan of action, here’s a rundown of the pros and cons of online travel agents, and how you can use them to benefit your business.

What is an Online Travel Agency (OTA)?

An OTA is a one-stop online travel marketplace where travelers can search for, compare, and book everything from flights and hotels, to tours and car rentals.

Think of an OTA as an Amazon.com for travel. OTAs like GetYourGuide and Expedia attract millions of visitors every day because of their convenience, price and product comparison capabilities, and their huge range of hotels, tours, and other travel.

From an OTA’s perspective, the typical business model involves making money by taking a commission from each booking. Many also offer display advertising or charge companies a “pay-per-click” fee to ensure their listing appears at the top of relevant search results. 

Advantages of Online Travel Agencies (OTAs)

Expand your reach.

The main advantage of OTAs is their huge popularity, which enables tour operators to reach more travelers. It’s no secret why OTAs attract so many people:

• Breadth of choice: Just as consumers use Amazon for buyer research and price comparison purposes, OTAs offer a huge range of experiences and price points for travelers who are shopping for something specific or looking for ideas. 
• Price comparison and deals: OTAs are also popular among price-conscious travelers and bargain hunters. They let people search for travel within a set budget, and weigh their options in one place—comparing different options side by side. 
• Convenience and ease of use: Like other online retailers, OTAs are simply an easy and convenient way to shop compared to the offline equivalent. The ability to use filters to narrow down their selection according to their preferences makes OTAs an invaluable time-saving tool when researching travel.

Create marketing efficiencies

OTAs spend enormous amounts of money promoting their websites. If you have a limited marketing budget, it’s a cost-effective way to reach a much larger audience. Listing your tours on an OTA could also increase sales through your own website—a phenomenon known as the “billboard effect” . 

Many savvy buyers use OTAs as a type of meta search engine (a search engine within a website that surfaces results from lots of different search engines).  For example, a traveler searches for “things to do Waikiki” on Expedia. To explore their options and narrow down their preferences, they’ll skim through activities, read reviews, and compare pricing before switching over to Google. Now they have a better idea of what’s out there and what they’re interested in, so their search keywords will be very specific. For example, “Atlantis Submarines Waikiki.”

So how do you benefit from this buyer behavior and make sure your business takes advantage of the billboard effect on OTA websites?

• Have a strong direct pricing strategy. Consider all of your costs, including digital marketing, resellers commission, etc. to come up with a price that works for your audience, market, and business.
• Build a strong SEO and paid-search strategy so you show up prominently in search results.
• Protect your brand name with selective organic and paid keyword combinations.
• Thoroughly read through an OTA’s terms before signing on. Make sure you own your brand name in paid search.

Generate more low season bookings

If you experience a downturn in sales during the low season , listing your tours on an OTA lets you piggyback their marketing efforts—at a time when you may need to reduce your costs—to sell tours more quickly, easily, and cost-effectively (even factoring in commissions) than you might be able to do yourself. 

Gain invaluable insights

When you list your tours on an OTA, you may receive access to the analytics and data insights generated by the platform. Carefully consider how to measure your customers’ buying patterns. You can test different pricing strategies and use the platform’s analytics to spot potential new trends and opportunities, or use these insights to make better-informed business decisions.

Done correctly, all of these things allow business-savvy tour operators to use OTAs as a valuable tool for direct business.

Disadvantages of Online Travel Agencies (OTAs)

Having to pay a commission.

While listing on an OTA is free, OTAs make their money by charging a commission on every booking. This can be as much as 20% of the cost of the sale or even higher. Of course, this cost may be offset by selling more tours, faster. 

Customer service issues and cancellation rules

One reason some travelers don’t like using OTAs is the customer service, or lack thereof. Post-sale, OTAs typically become the main contact for cancellation, booking changes, or issue resolution. If something goes wrong, such as a cancellation due to an unforeseen event, travelers can be left dealing with a large company and the impersonal and unsatisfying customer service that often goes along with that. This may also affect their impression of your business.

Risk of overbooking

Overbookings can be a common problem even if you don’t currently list on an OTA. You might already be taking bookings over the phone, at your office, on your website, and through resellers. Adding multiple online travel agents to the mix can create more work to manage overbooking your tours and activities. Doing it manually or using a number of different systems and processes can be unproductive, reducing the many benefits of selling through OTAs. The best solution for overbooking is a centralized booking system with a channel manager that lets you keep track of all your bookings.

Potential loss of business

It is actually possible to hurt revenues by using an OTA due to common OTA marketing strategies. For example, an OTA might favor some tour companies over others due to them receiving a higher commission. That means your business finds it more difficult to appear in searches, while a competitor appears prominently.

Loss of complete control

The moment you start using an OTA, you face limitations around how you can market your business on their site. This includes restrictions on how tour descriptions are presented, a limited ability to edit and update listings, and so on. The good news is that you can offset this potential disadvantage by connecting to an OTA via a centralized booking system that allows you full control over your content.

Examples of Online Travel Agencies (OTAs)

Ready to get started with OTAs? Here’s an online travel agency list to check out—from huge global brands selling everything from flights to vacation rentals and experiences, to smaller, more niche OTAs. 

A leading booking site for the Asian market in particular, offering all types of travel bookings, especially accommodation. 

Part of the Expedia Group, which owns multiple OTAs, also including Orbitz and Travelocity.

One of the largest OTAs for tours and activities in the world.

GetYourGuide

A growing OTA specializing in unique experiences, especially for millennial travelers.

A growing OTA focused on selling tickets to museums and other attractions, but that does list other local experiences.

All of these websites have a section explaining how they work with tour companies, what their commission is, and how to get started.

Already selling through OTAs? Integrate Rezgo with Expedia, Viator, and GetYourGuide to manage your availability and revenues in one place and ensure a smooth customer experience.

Editor’s Note – July 2022: Updated to reflect the current percentages charged by OTAs.

Written By | Rob Mathison

Rob Mathison is a Vancouver-based freelance writer focusing on tech, travel, digital marketing, and education. He is a co-author of The Complete Resident’s Guide to Vancouver.

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Maximizing your business potential: The benefits of Online Travel Agents

Working with different selling techniques and channels is necessary for most tour and activities operators.

There are many ways to promote your tours. You can advertise your website on Google My Business, Social Media, and OTAs. Websites like TripAdvisor and Viator are key distribution channels; Tripadvisor, for example,  has over 1 billion reviews and opinions of nearly 8 million businesses . Travelers are reaching out to OTAs for information, comparison, and bookings.

To help you make the best of working with Online Travel Agents (OTAs), in this blog, you'll learn about how they work, their benefits, and how they can increase your bookings.

What are Online Travel Agents (OTAs), and how they work

Let's start from the beginning; after all, what are OTAs? Online Travel Agents are websites or platforms that allow travelers to book travel-related services; this includes flights, rental cars, tours, activities, hotel rooms, and vacation packages. Some popular OTAs include Expedia, Booking.com, Travelocity, and Kayak.

OTAs offer many benefits for travelers; here  are some:

• Travelers can compare their preferences, budget, and travel dates with different operators in a user-friendly way and choose the most suitable tour.
• They can book and pay all in one place - e.g., the flight, hotel, and activities. According to  research by Travelport , 45% of travelers prefer booking the entire travel experience - flights, accommodation, car rental, and extras - on a single website.
• OTAs usually offer great customer support, helping travelers with any queries, changes, or cancellations to their bookings.
• Find the best option through genuine and reliable reviews that previous customers left.

In general, the intention of OTAs it's to make it easier for travelers to find, compare, and book travel services from different suppliers in one place.

Benefits of working with OTAs for tour operators

While we learned the perks of booking through OTAs for travelers, tour operators can also take advantage of the websites and platforms.

Here are some benefits of working with online travel agents (OTAs) for tour and activity operators:

• Increase your visibility.  One of the best benefits for tour operators when working with an OTA is the increased visibility to a broader audience of potential customers. Keep in mind that OTAs often have large marketing budgets and established online platforms that attract more travelers when compared with your website, for example.
• Find new partners to work with.  OTAs can offer tour operators access to their extensive network of other travel industry partners, which can help reach new travelers and grow the business.
• For those who don't have a booking solution, OTAs offer a simplified booking. Online agents often offer easy-to-use booking systems that streamline the booking process for tour operators and their customers.
• Improve your customer experience.  As we mention, many OTAs offer customer service support, which can help tour operators provide a better overall customer experience. This is particularly useful for small tour operators who may need more resources to offer extensive customer support on their own.
• Stay competitive in the travel industry. OTAs often provide competitive pricing, which can help operators attract customers who are looking for the best deals.

While working with online agents has many perks, remember that OTAs earn a commission or a fee for each booking made through their platform. This means that only some of the booking price will come directly to you.

To know more about getting bookings from your website, read  OTA vs Direct Booking: what is the best option in 2022 .

Top travel agencies in the world: OTAs you can work with

Before working with any OTAs, keep in mind that you need to research the best option for your business and read the agreements, such as policies for refund and cancellation, terms and conditions, and all the relevant information, so you don't experience any unpleasant surprises.

You can learn more by reading the article  10 tips to make more money with OTAs .

They provide travelers with flights, hotels, vacation packages, vacation rentals, cruises, activities, attractions, and services. For activities providers, they offer to show your experience through " Expedia Local Expert " to visitors who want to explore your location.

The Expedia Group, Inc, 2022, had a global revenue of 11.7 billion U.S. dollars. The group subsidiaries many websites, such as Expedia.com, Vrbo, Hotels.com, CarRentals.com, CheapTickets, Hotwire.com, Orbitz, Travelocity, and trivago.

This OTA focuses its services on tours and activities, and they offer to reach over 455 million visitors. According to the website, " Viator  is a platform that lets you create experiences that travelers worldwide can book, whether it's guided tours or surfing lessons.".

To create a profile in Viator, you must have a Tripadvisor profile.

GetYourGuide

A platform that offers travel experiences. They offer tour and activities providers to reach a global audience, and according to  GetYourGuide  "gain access to 50 million visitors per month from 190+ countries with your products optimized in 14 languages".

TripAdvisor

According to them, "travelers go to  Tripadvisor  to find deals on accommodations, book experiences, reserve tables at delicious restaurants and discover great places nearby. "

How a channel manager works and helps boost your bookings

Increasing bookings and managing a business can be challenging. Updating relevant information, such as prices and availability on multiple platforms in real-time, can take too much time, and it's an operator prone to human error. You can work with a channel manager to avoid all the work and disturbing your business.

With a  channel manager, such as TrekkSfot's , you experience many benefits, such as:

• Increase bookings. Sell over different OTAs such as Viator, Expedia, GetYourGuide, and many others simultaneously.
• Manage your bookings on one dashboard. Have your inventory updated in real-time and manage availability and pricing in one place.
• Track your sales and make data-driven decisions. Check which channels are selling more and adjust capacities across the channels you're working with.

If you want to know more about the ultimate booking solution that can help you manage your sales with OTAs and much more, get a demo!

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The Impact of Online Travel Agencies Web Service Quality on Customer Satisfaction and Purchase Intentions

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• Cite this conference paper

• Anna Kourtesopoulou 3 ,
• Sofia-Danai Theodorou 3 ,
• Athanasios Kriemadis 3 &
• Alkistis Papaioannou 3  

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

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Background: Recent technological innovations which adapted from tourism sector have a decisive impact on the traveler experience. The rapid growth of the Internet usage, confirms that websites consist a critical competitive resource for tourism firms. In this dynamic environment, it is important for online travel agencies to fully understand what aspects of the website affect the perceived quality and to provide web services that fulfil online consumers’ needs. The main goal of the study was to investigate the effect of perceived quality on customers’ overall satisfaction, and purchase intentions of online travel agency services. Methods: The sample consisted of 346 internet users who had visited an online travel agency in less than one year, 192 of whom were women (55.5%) and 154 men (44.5%), and their age ranged from 18 to 62, with the majority of participants belong to the age category of 18–25 years old (26.6%). Data collection was performed through an electronic questionnaire, which was based on WebQual of Loiacono et al. ( 2007 ). The results: Results indicated that among all the quality factors, the ease of understanding, response time, and the website intuitive operation (ease to use and navigation) emerged as the most important. Quality perception was significantly different in terms of gender, age and educational level. Also, the perceived quality needs and purchase intentions were different for browsers and purchasers. With regard to the Internet user profile, the annual amount spending on online booking, the reasons of booking and the reason of visiting the website, seemed to influence the perceived quality. Correspondingly, purchase intentions were found to be affected by the reasons of booking and the reason of visiting the website. Finally, a positive correlation was found between the overall perceived quality and purchase intentions. Conclusions: The results of this study are considered important for practitioners in the online travel sector, by identifying significant factors that affect online consumers’ willingness to purchase and will also contribute to building the concept of online travel agency quality performance.

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Kourtesopoulou, A., Theodorou, SD., Kriemadis, A., Papaioannou, A. (2019). The Impact of Online Travel Agencies Web Service Quality on Customer Satisfaction and Purchase Intentions. In: Katsoni, V., Segarra-Oña, M. (eds) Smart Tourism as a Driver for Culture and Sustainability. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-03910-3_24

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Value of Online Travel Agencies (OTAs) to Travel Recovery and MSME’s

The Asia Travel Technology Industry Association (ATTIA) represents companies operating in the Travel and Tourism Sectors in Asia-Pacific, with technology and innovation at their core. Our members include Agoda, Airbnb, Amadeus, Booking.com, Expedia Group and Travelport. 

The continuous innovation of travel and technology delivers significant benefits for economies, communities, businesses, and travellers across the Asia-Pacific Region that positively impacts livelihoods, living standards, workplace opportunities and quality of life for citizens in the Region.

ATTIA seeks to promote a deeper understanding of the policy issues that stand at the intersection of travel and technology. ATTIA serves as a resource and a catalyst for closer collaboration and information-sharing for the development of aligned industry/government priorities and vision for Travel and Tourism in the Asia-Pacific region.

THE VALUE OF OTAs TO TRAVEL RECOVERY AND MSMEs

Prior to the COVID-19 pandemic, global travel was already undergoing dramatic changes, as more and more consumers opt to book their own travel online and seek a wider set of choices that suit their needs. Faced with a dizzying array of travel options, online travel agencies (OTAs) are increasingly popular with travellers seeking a convenient and user-friendly one-stop shop to access, research and book their travel. OTAs are online companies whose websites and/or mobile apps allow consumers to book various travel related services directly via the Internet. In that sense, COVID-19 has merely accelerated the trend towards digitalisation of travel. 

ATTIA is a strong believer in the value that OTAs bring to the Travel and Tourism Industry, especially in supporting the recovery of the industry by helping Micro, Small & Medium Sized (MSMEs) to increase their visibility to travellers who would otherwise not have access to such small enterprises. OTAs drum up interest in destinations, drive significant volumes of bookings, are more efficient in converting researching consumers into travellers and drive increased spending and longer stays by travellers. To explain the value of OTAs:

OTAs ARE CRITICAL TO TRAVEL RECOVERY

Drive traveller volumes to support recovery of inbound tourism. OTAs, both domestic and international travel, have already captured 40% of the global travel market (inclusive of accommodation, airlines, packaged tours, cruises), including three quarters of gross online hotel bookings in Asia Pacific. In Asia Pacific, online travel grew by 17% annually from 2016-18, three times faster than the global market.  

Help destinations stand out. With powerful digital marketing and technology tools and expertise, OTAs have more extensive digital and social media reach, access to data and digital tools to support tourism recovery through collaboration with National Tourism Organisations and other stakeholders to conduct destination marketing. As travellers increasingly going online – a trend sped up by COVID-19 – online destination marketing, as an area of expertise of OTAs, will grow in importance. 

Distribute to MSMEs the gains of travel recovery. By providing a platform in which MSMEs are able to be listed alongside larger tourism operators, MSMEs are able to increase the visibility of their business to a larger market. This allows travellers to have greater awareness of smaller enterprises would otherwise remain under the radar of travellers. Two-thirds of hotel bookings on OTAs are with small, privately-owned, independent hotels, thus spreading the benefits of travel recovery across more tourism operators.  

Attract travellers who stay longer and spend more. Through personalised advert targeting and by offering travellers with the diversity of travel options for travellers to choose and create their own customised travel experience tailored to their needs, OTAs are able to entice travellers to stay longer and spend more. A study of international and domestic travellers in Australia has shown that travellers who uses OTAs (even if only to research destinations and not for booking) stay longer and spend more, thus helping the country to net more revenue per traveller. On average, OTA hotel travellers stayed 22% longer than non-OTA hotel travellers. Bringing further value to the Travel and Tourism Industry, OTA hotel travellers spend 26% more on total hotel spend than non-OTA hotel travellers, and international OTA travellers spend 34% more on in-trip experiences and activities, and 42% more on meals compared to international non-OTA travellers.  

OTAs ARE KEY TO MSMEs’ PARTICIPATION IN TRAVEL RECOVERY

Access to powerful digital marketing tools. With limited resources and marketing know-how, MSMEs lack access to effective marketing tools and the knowledge of how to harness marketing tools to increase their brand awareness. The lack of brand awareness limits the reach of MSMEs to potential customers. OTAs can help MSMEs increase their brand awareness by providing them with powerful digital marketing tools to reach a large captive global audience of would-be travellers on OTAs’ platforms as part of MSMEs’ collaboration with OTAs. 

Guest ratings and reviews as a crucial driver of travellers’ decision-making . As one of the few one-stop shop providers of transparent reviews for accommodation with instant book functionality, OTAs are an important source of reliable peer reviews that drive travelers’ decision-making. Travelers are willing to pay a price premium for accommodations with a higher guest rating, more so than the price premium for branded hotels, enabling MSMEs to reap the rewards for doing what they do best – to provide a positive traveler experience. In the US, travelers are 72% more likely to value guest ratings than brands and this has shown in the prices of accommodation. While branded hotels command a 11-12% price premium relative to accommodation in the vicinity, accommodation with a guest rating of 4.4 (out of a total of 5) commands 26% price premium while accommodation with a guest rating of 4.9 commands 38% price premium relative to accommodation in the vicinity. Travelers are willing to pay 35% more for accommodation with a guest rating of 4.4 compared to accommodation with guest ratings of 3.9.  

Harness big data and market insights to drive business decisions. Having captured 40% of the global travel market, OTAs are sitting on a rich trove of data. MSMEs typically do not have access to big data analytic tools, but through collaboration with OTAs, MSMEs have access to data and trends that can help MSMEs make data-driven decisions on crisis monitoring, creating recovery strategies and identify target markets and position themselves accordingly.

Access to a large market of travellers. OTAs, both domestic and international travel, have already captured 40% of the global travel market (inclusive of accommodation, airlines, packaged tours, cruises), including three quarters of gross online hotel bookings in Asia Pacific. In Asia Pacific, online travel grew by 17% annually from 2016-18, three times faster than the global market.

Diversify peak seasons and source markets to build resilience. MSMEs are able to tap onto OTA’s global reach and innovative digital marketing tools to diversify peak seasons through broadening seasonal digital marketing in source markets and to tap new source markets. This helps create a steady flow of travellers throughout the year and reduce MSMEs’ reliance on traditional peak tourist seasons and diversify their source markets. 

Deploy multiple levers in managing inventory and demand. Other than marketing tools to increase traveller demand during off-peak periods, MSMEs can utilise data analytics and pricing tools provided through their partnership with OTAs to manage demand and inventory to ensure the most efficient use of inventory for maximum revenue. 

ATTIA believes that OTAs are key to restoring travel in a way that distributes the fruits of travel recovery with the backbone of the economy – MSMEs. ATTIA is keen to engage to collaborate on ways to help governments to support travel recovery in an inclusive manner to ensure that MSMEs benefit from the recovery.

  Source: 1 Rauch, Maggie and and Jain, Deepak. “Asian Pacific Online Travel Overview 2019” Phocuswright, April 2019. 2 “Online Travel Agencies in Asia: A Major Opportunity in E-Services.” Asian Trade Centre, 2017, 3 “ Online Travel Agent (OTA) Impact Report I: A global study into how OTAs bridge Australia to the world.” BVA BDRC, 2019. 4 Abhijit Pal. “The Big Decision: How travelers choose where to stay”. Expedia Group, 2019 5  Rauch, Maggie and and Jain, Deepak. “Asian Pacific Online Travel Overview 2019” Phocuswright, April 2019. 6 Rauch, Maggie and and Jain, Deepak. “Asian Pacific Online Travel Overview 2019” Phocuswright, April 2019. 

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Marta studied Political Science and Media & Journalism at the Catholic University of Portugal (UCP) and has developed her journalistic career working for the Portuguese newspapers Diário de Notícias, Correio da Manhā and media outlets in Brussels. She is a reporter for Travel Tomorrow, and is also engaged in delivering communications services and EU policy research for different consultancies in Brussels. A former Blue Book trainee of the European Commission, Marta has a keen interest in EU and global affairs, and experience in reporting and interpreting information. Whenever she can, Marta loves traveling, exploring nature and learning about regenerative agriculture. She is also quite enthusiastic about space ventures and the cosmos.

While the traditional travel agency became obsolete with the establishment of the digital world, online travel agencies (OTAs) in Europe are playing an important function in the accommodation market, providing greater choice to travelers and benefits to the economy, a recent study suggests.

1. Choice and transparency

OTA’s relevance was highlighted in an Oxford Economics’ study which analysed the economic impact of online travel agencies in Europe between 2019 and 2021. In short, the study found that OTAs help to increase choice and transparency within the market, making it easier for consumers to compare the costs and quality of the accommodation facilities and services offered by providers. For example, of the 1.2 billion nights booked through OTAs in 2019, 11% would not have taken place without the benefits OTAs provide, the study states. Additionally, 134 million additional nights were generated through the increase in choice, transparency, and trust provided by OTAs.

2. Global visibility

Online travel agencies also make it easier for customers to search and book online, a particularly important feature for booking travel in unfamiliar destinations. As a result, OTAs generate more bookings from international travelers than the market average. Moreover, OTAs particularly benefit small independent properties by providing them with global visibility. Over 60% of international overnight stays in the EU booked through OTAs were arranged by individuals from countries within Western Europe. For all international overnight stays within the EU, arrivals from Western Europe accounted for a similar share.

Which hotel booking sites have the best deals?

3. Benefiting rural areas and employment

Offering more choice also spreads out tourism away from the urban centers of economic and touristic activity towards rural destinations, giving rural areas benefits from an increase in economic opportunities and job creation. In 2019, around 40% of nights booked via OTAs were in rural areas, compared to 16% across the whole market.

OTAs have generated large volumes of additional tourism nights and supported GDP growth and job creation across a wide range of destinations. If OTAs did not exist, the study found, there would be fewer overnight stays in Europe and the contribution of tourism to GDP and employment would also be lower.

According to the study, 566,000 additional jobs were created in Europe in 2019, up from the 243,000 created in 2021. In 2019, OTAs generated an additional €33.7 billion in GDP in Europe, falling to €11.8 billion in 2021. In each year from 2019 to 2021 OTAs increased the number of overnight stays in alternative accommodations in Europe. In 2021, bookings of alternative accommodations via OTAs generated 20.9 million additional nights.

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Virtual Travel Agencies: Developing a Roadmap for Competitiveness

March 10, 2010 • 11 min read.

While information technology has revolutionized the business of travel, virtual travel agencies are facing intense competition and are working harder than ever to woo consumers to their sites. Against this backdrop, three marketing professors at the University of Oviedo in Spain have researched the world of virtual agencies to get a better understanding of the quality of their services and what it takes to stay ahead of the competition. In a recent interview with Universia Knowledge at Wharton, the professors discussed how top virtual travel agencies are learning how to make their sites both useful and fun in order to keep their hard-won customers happy.

Information technology has revolutionized the business of travel in Spain. Booking 5.8 billion euros (US$7.9 billion) in online reservation in 2008, virtual travel agencies accounted for roughly one-third of the overall travel sector’s revenues. And rather than losing ground during the economic downturn, online agencies managed to maintain revenue growth, albeit at a modest 2.7%, according to PhoCusWright, a travel-sector consulting firm.

Against this backdrop, three marketing professors at the University of Oviedo in Spain — Rodolfo Vázquez Casielles, Ana Belén del Río Lanza and Leticia Suárez Álvarez — have researched the world of virtual agencies to get a better understanding of the quality of their sites and what it takes to stay ahead of the competition. As they write in their paper titled, “Virtual Travel Agencies: Analyzing the Quality of E-Service and Its Effects on Customer Satisfaction” (published in the Universia Business Review ): “The competitiveness of virtual agencies is becoming more intense, so it is critical to understand the way their customers perceive the quality of the online services they receive.” In a recent interview with Universia Knowledge at Wharton, the professors discussed how top virtual travel agencies are learning how to make their sites both useful and fun in order to keep their hard-won customers happy.

An edited transcript of the conversation follows:

Universia Knowledge at Wharton: How has the virtual travel agency sector evolved in recent years?

Ana Belén del Río Lanza: The data for virtual travel agencies in Spain are very positive: More than half of the money spent on travel and hotel reservations is via Internet transactions, according to a 2008 report by DBK, a consulting firm. And 53% of people buying online reserve their travel, lodging and tickets for special events. Direct distribution by tourism-service providers (especially traditional airlines and low-cost carriers) has created a favorable climate, which helps customers overcome their concerns about making commercial transactions over the Internet. This has fueled the growth of virtual travel agencies. When things started out, airline tickets were the products most commonly offered by these sites. However, thanks to increasingly sophisticated technology, the agencies are able to provide every sort of tourism product.

According to rankings published by Hosteltur , a [Spanish] tourism industry magazine, the virtual travel agency with the [country’s] highest revenue is eDreams, which is fighting for the top spot with Rumbo (owned by Spanish telecom company Telefónica and Amadeus, a provider of travel industry technology); and Lastminute (a British agency that has a Barcelona subsidiary and merged with Travelocity and Travelprice). The Spanish market has also attracted such low-cost travel agencies as Mundoviaje and Expedia, the world’s leading seller of online travel, which arrived in Spain a couple of years ago. In June 2007, ETHI, a Swedish company, set up shop in Madrid and began operating through its Supersaver brand, which focuses on low-cost vacation products.

The development of online services for travel and hotel reservations in Spain has also awakened interest in tourist destinations as well as traditional travel agencies. These retailers, which at first thought their businesses were threatened by online travel agencies, are reinventing themselves so they don’t get left behind. They are developing online versions [of what they do] that complement their principal [brick-and-mortar] businesses.

Clearly, the number of web pages about travel has grown rapidly in recent years, and competition is more intense. So we need to analyze the quality of the online services from the perspective of their usual customers. We also need to investigate how the quality of these services influences customer satisfaction and identify the strengths and weaknesses of the various strategies undertaken by virtual travel agencies.

Universia Knowledge at Wharton: Your study draws up a scale to measure service levels, so that virtual travel agencies can differentiate between the two dimensions: "utilitarian quality" and "hedonistic quality." Why do you differentiate between the two?

Rodolfo V á zquez Casielles : We focus on the two dimensions of e-service quality that virtual agencies must keep in mind, not only to create a favorable first impression for the customer (one stage in the selection process), but also to facilitate the customer’s online search for product offerings and his or her ability to learn from the website (one stage in the decision-making process).

We differentiated between the two types of quality of the offerings of virtual travel agencies. Utilitarian quality is functional and extrinsic. It refers to the added value (or utility) that people derive from completing a search for information and/or making a purchase. The second is hedonistic and intrinsic. This refers to the pleasure that people derive from the search for information and/or purchase of products on a site.

Utilitarian quality is composed of four sub-dimensions: Web design and functionality (including the design of the website, its efficiency and the ease of navigation); the quality of the information (its relevance and degree to which it is complete, detailed and up to date); reliability (the fulfillment of promises, speed, privacy and security); and responsiveness (the variety of services and degree to which they are adapted to each customer’s needs). This includes individualized attention; prices targeted at the needs of various customer segments; how easy it is to contact the company through alternative communication channels; and the online agency’s commitment to making changes and offering compensation to customers [if plans are changed or cancelled].

Hedonistic and intrinsic quality involves various things related to entertainment and pleasure. They have an emotional content, such as customers’ perception that they are spending a pleasant amount of time online, undertaking an adventure and forgetting their problems. The site offers them the chance to communicate their experiences. These attributes have the potential to awaken emotional responses in customers because the Internet provides customers with interactivity.

Universia Knowledge at Wharton: Who is the typical customer of a virtual travel agency and what kinds of decisions does he or she take when going to such an agency?

Leticia Suárez Álvarez: To collect information, the researchers conducted face-to-face interviews and using a questionnaire given to respondents living in various cities in northern Spain. They obtained 480 valid responses.

Of the respondents, 48% were men and 52% were women, and 47% were between the ages of 18 and 34, 39% between 35 and 54, and 14% older than 54. As for the way that the travel sites are used, 30% said they log on to them to obtain information, while 70% said they obtained information and bought products and services. The most popular products bought were airline tickets, hotel reservations and vacation packages. The average customer had been using such sites for 2.4 years and had spent an average of 734 euros on each trip.

Universia Knowledge at Wharton: Your study talks about the importance of making a first impression on customers. Why is that important? What recommendations about strengthening the first impression can you provide?

Del Río Lanza: Some customers who have a favorable first impression about the website they select are more likely to remain on it and proceed to search for detailed information; thus, [it requires] learning about how to navigate the website to find the services supplied by the agency. When making a decision, a customer can use the website as a source of information and/or to make an online reservation or purchase. The goal of the company is to attract a lot of visits to the website and, of course, generate sales. Virtual travel agencies must manage their strategies for online service quality not only to create a favorable first impression during the selection stage, but also to facilitate the search for products offerings and the learning process [about travel options] during the decision-making stage.

Universia Knowledge at Wharton: What are the strengths and weaknesses of the virtual travel agencies you analyzed?

Vázquez Casielles : One way of identifying the strengths and weaknesses of virtual travel agencies is to use a technique known as Importance-Perception Analysis. [It starts with a ranking of] the perception that customers have of the importance of a particular service and its quality. Four different situations can be obtained:

1. Competitive Vulnerability: When customers provide a relatively low rating regarding aspects of the site they consider important. A virtual travel agency may be vulnerable to competition if it doesn’t improve the quality of those services.

2. Competitive Strength: When customers provide a high rating to a site regarding aspects of the site they consider important. A virtual travel agency must make every effort to maintain its high rating.

3. Irrelevant Superiority: When customers give relatively high ratings to aspects of the site they consider relatively unimportant. In this case, if an online travel agency does not increase customers’ perception of the importance of such dimensions, it may be misallocating resources.

4. Relative Indifference: When customers’ low ratings of aspects of a site do not lead to major problems for the agency because the customers consider these dimensions to be relatively unimportant. Nevertheless, it is worthwhile to monitor the importance of these dimensions regularly.

The results of the research permit virtual travel agencies to analyze their competitive strengths and weaknesses in terms of the quality of their services.

Top virtual travel agencies are well positioned when it comes to trustworthiness. That is, they provide immediate reservations and confirmation of orders; they provide reliable information about those services; and they offer privacy and security. These attributes are the source of their competitive strength because their customers, who consider these factors important, rate them highly.

The second-tier agencies are highly rated by customers for the quality of their information, site designs and functionality, but their customers are not demanding about these factors when it comes to rating a travel site for customer satisfaction. Their superiority in areas that their customers consider unimportant suggests that they may want to re-channel some of their resources into other activities that have greater customer importance and/or try to increase the importance of the factors considered less important, especially the quality of the information they provide.

The final group comprises virtual travel agencies that must improve the responsiveness and pleasurable aspects of their sites. This involves changing some aspects of their sites that their customers consider important.

Universia Knowledge at Wharton: What are the implications of the study?

Del Rio Lanza: Strategic management of service quality has important implications for improving the competitive position of an agency. The first implication of the study is that it makes sense to consider the two main dimensions of quality — utilitarian quality and hedonistic quality. From this perspective, virtual travel agencies must have a differentiated product that is highly valued by customers because it is both useful and provides pleasure. With this goal in mind, online travel agencies must stress four factors to improve quality: the design and functionality of their website, the quality of the information a site provides, trustworthiness and the responsiveness of the site. In each aspect, it is extremely important to improve the perception of visitors.

The study found that virtual agencies are vulnerable to competition because they have to invest heavily to offer more individualized treatment to their customers, such as personalized trips; promotional deals; programs for boosting customer loyalty; access to other activities that may take place in a tourism destination and including local guides and practical advice; travel insurance; and facilitating changes if reservations need to be modified or canceled.

Virtual agencies must also make a greater effort to develop strategies that create the perception that their site is pleasurable for customers looking for information and customers making reservations. They can facilitate visits to the site through blogs, chat rooms, online forums and virtual communities (which experts call Tourism 2.0) as well as games, technical integration (downloads to cell phones, MP3 players and GPS navigational systems), and giving visitors a way to share photos and videos and make virtual trips to a tourist destination, and making it easier for customers to share recommendations with one another. The goal should be to intensify the emotional attractiveness and social relevance of their sites, which are factors that influence satisfaction.

Another major conclusion of the study is the importance of strengthening users’ awareness of the quality of the information online. More and more people are surfing the Internet before going on a trip, and many not only search for rates and conventional information about destinations, but also want to enjoy the information they read and learn about the experiences of other travelers. Supplying travel information on the Internet has grown so much, and the sites capable of managing that information have a critical role to play. The professionals who run virtual travel agencies can find the tools in Tourism 2.0 that enable them to design a quality product. By using these tools, they can provide their customers with travel information that is much more comprehensive, current, reliable and interactive than ever before.

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If you cannot submit one of these documents, go to our  Citizenship Evidence page  for more information.

Paper only : You cannot submit digital evidence of U.S. citizenship such as a mobile or electronic birth certificate. You must submit physical evidence of U.S. citizenship and a photocopy of the document. 

Returning your child's document : We will return your child's document in a separate mailing up to 8 weeks after you receive the new passport.

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If you do not submit a photocopy, you must submit a second copy of your citizenship evidence. We will keep this copy for our records.

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Some documents, like a U.S. birth certificate, show  both  U.S. citizenship and parental relationship. These documents must be originals or certified copies (not photocopies).

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You may receive your passport and supporting documents in separate mailings. If you are renewing a passport card, we will send it to you via First Class Mail. We do not use 1-2 day delivery services if you only applied for a passport card.

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In certain countries, a DS-3053 must be notarized at a  U.S. embassy or consulate  and cannot be notarized by a local notary public. Currently, these countries include:

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Europe’s air quality status 2024, key messages.

• Despite ongoing overall improvements in air quality, current EU standards are still not met across Europe.   
• 96% of the EU’s urban population is exposed to unsafe concentrations of fine particulate matter (PM 2.5 ).
• The new EU air quality standards introduced in the revised ambient air quality directive — proposed to come into force in 2030 — are more ambitious than the current ones.

This briefing is one in a series to be published by the EEA as part of the Air quality in Europe 2024 package.

It assesses concentrations of air pollutants in ambient air across Europe, comparing them against current EU standards and the 2021 WHO global air quality guidelines . The EU standards were set out in the 2004 and 2008 ambient air quality directives .

Under the European Green Deal (EGD)’s zero pollution action plan , the European Commission set the interim 2030 goal of reducing the number of premature deaths caused by fine particulate matter (PM 2.5 , a key air pollutant) by at least 55% compared with 2005 levels. The ultimate objective is for air pollution to have no significant impact on health by 2050. To this end, the Commission published a proposal to review the ambient air quality directives in 2022. Among other things, it aimed to align the air quality standards more closely with WHO recommendations.

Co-legislators agreed to more ambitious EU air quality standards in February 2024. However, they are still less strict for all pollutants than what the WHO outlines in their air quality guideline levels .

In 2022, despite ongoing reductions in emissions , most of the EU’s urban population continued to be exposed to levels of key air pollutants that are damaging to health (see Figure 1). In particular, almost all of the urban population was exposed to concentrations of PM 2.5 above the 2021 WHO annual guideline level of 5µg/m 3 and to concentrations of ozone (O 3 ) above the short-term guideline level of 100µg/m 3 .

Figure 1. Share of the EU urban population exposed to air pollutant concentrations above certain EU standards and WHO guidelines in 2022

Notes : Exposure above EU standards: the EU urban population is exposed to PM 2.5 annual concentrations above 25µg/m 3 ; PM 10 daily concentrations above 50µg/m 3 for more than 35 days per year; O 3 maximum daily 8-hour mean concentrations above 120µg/m 3 for more than 25 days per year; NO 2 annual concentrations above 40µg/m 3 ; Benzo[a]pyrene (BaP) annual concentrations above 1ng/m 3 ; and sulphur dioxide (SO 2 ) daily concentrations above 125µg/m 3 for more than three days per year. Exposure above WHO guidelines: the EU urban population is exposed to PM 2.5 annual concentrations above 5µg/m 3 ; PM 10 annual concentrations above 15µg/m 3 ; O 3 maximum daily 8-hour mean concentrations exceeding 100µg/m 3 for more than 3-4 days per year; NO 2 annual concentrations above 10µg/m 3 ; BaP annual concentrations above 0.12ng/m 3 ; and SO 2 daily concentrations above 40µg/m 3 for more than three or four days per year. Source : EEA, 2024 .

Methodology

This analysis highlights pollutants deemed most harmful to human health and those that most frequently exceed the current EU air quality standards and WHO guideline levels.

The concentrations are obtained from monitoring station measurements and are officially reported to the EEA by its members and other collaborating countries [1] . The classification of the monitoring stations and the criteria used to determine their inclusion in the analysis are described here . The number of countries that submitted data and the number of monitoring stations with the minimum data coverage required vary for each pollutant. This is summarised in Table 1 for 2022 and Table 2 for 2023. When referring to countries reporting data above certain levels, it means that they reported at least one station with concentrations that surpassed them.

Data for 2022 and 2023 were extracted from the EEA’s reporting system on 5 March 2024.

The analysis for 2022 is based on officially validated data reported by countries. The analysis for 2023 is based on provisional up-to-date (UTD) data. It may change once fully validated data is received by the EEA and more countries are considered. Validated data for 2023 will only be available later in 2024 and will be presented in the 2025 briefing.

Additional information and further analysis are available in the Eionet status reports ETC/HE 2024/3 (Targa et al., 2024a) and ETC/HE 2024/5 (Targa et al., 2024b), prepared by the European Topic Centre on Human Health and the Environment (ETC HE) .

Further information on the concentrations of air pollutants, including those for previous years, can be found at the EEA’s statistics viewer . Data can be downloaded here .

Apart from the measurements from monitoring stations, some countries also reported 2022 official data from modelling applications, which are available from the Air Quality Modelling Viewer . The results from these modelling applications have been included in this analysis where they implied concentrations above the EU standards.

Navigate the tabs for information on each pollutant: 

• Other pollutants

PM 10 stands for particulate matter with a diameter of 10µm or less. PM 10 is emitted mainly by the combustion of solid fuels for domestic heating, although industrial activities, agriculture and road transport are also important sources. Some also come from natural sources such as sea salt, Saharan dust or volcanoes, and some (secondary PM) form in the atmosphere as a combination of different gases (for instance, ammonia and nitrogen dioxide). Member States can discount the contribution of natural sources to the total concentrations for compliance assessments as these sources are out of their control, but we do not exclude these sources in this status analysis.

Concentrations above the EU daily limit value for PM 10 are seen mainly in Italy and some eastern European countries (Map 1 and Figure 3). In most central and eastern European countries, solid fuels such as coal and wood are widely used for heating households and in some industrial facilities and power plants. The Po Valley in northern Italy is a densely populated and industrialised area with specific meteorological and geographical conditions that favour the accumulation of air pollutants in the atmosphere. Some concentrations are also above the EU daily limit value in southern Spain and the Canary Islands, mainly due to the natural contributions of Saharan dust ( MITECO, 2023 ).

Map 1. Concentrations of PM 10 in 2022 and 2023 in relation to the EU daily limit value

Note: The map shows the 90.4th percentile of the PM 10 daily mean concentrations, representing the 36th-highest value in a complete series. It is related to the PM 10 daily limit value, allowing 35 exceedances of the 50µg/m 3 threshold over one year. Source: EEA’s AQ e-reporting database.

Table 3. Country status for PM 10 in 2022 and 2023

Note: ( a ) all the reporting countries; ( b ) all the reporting countries except Estonia and Iceland; ( c ) all the reporting countries except Luxembourg. Source: EEA’s AQ e-reporting database.

Figure 2. Percentage of reporting monitoring stations registering PM 10 concentrations above the EU limit values and the WHO guideline levels in 2022 and 2023

In 2022, 16% of monitoring stations measured concentrations of PM 10  above the EU daily limit value (Figure 2), 84% of which were urban and 12% suburban.

Furthermore, Italy and Poland reported 2022 exceedances of the PM 10  daily limit value based on  assessment models  for 7 and 13 air quality zones, respectively.

Figure 3.  PM 10  concentrations in 2022 by country in relation to the EU daily limit value

Note:  The figure shows, per country, the concentrations of each reported station; the minimum and maximum concentrations; the median and the 25th and 75th percentiles of all the measurements (90.4th percentile of the PM 10  daily mean concentrations).

PM 2.5 stands for particulate matter with a diameter of 2.5µm or less. These particles are emitted mainly from the combustion of solid fuels for domestic heating, industrial activities and road transport. As with PM 10 , they can also come from natural sources and can form in the atmosphere. For compliance assessments, Member States can discount the contribution of natural sources to the total concentrations as these sources are out of their control, but in this status analysis, we do not exclude them. Agricultural emissions of ammonia significantly contribute to forming fine particulate matter in the atmosphere.

PM 2.5 concentrations above the EU annual limit value were seen in Italy and some eastern European countries (Map 2 and Figure 5). As for PM 10 , solid fuel use is the main reason for the situation in central and eastern Europe, together with an older vehicle fleet. In northern Italy, the high concentrations are due to the combination of a high density of anthropogenic emissions and also meteorological and geographical conditions that favour the accumulation of air pollutants in the atmosphere and the formation of secondary particles.

Map 2. Concentrations of PM 2.5 in 2022 and 2023 in relation to the EU annual limit value and the WHO annual guideline level

Source: EEA’s AQ e-reporting database .

Table 4. Country status for PM 2.5 in 2022 and 2023

Notes : ( a ) all the reporting countries, except Iceland; ( b ) all the reporting countries. Source: EEA’s AQ e-reporting database .

Figure 4. Percentage of reporting monitoring stations registering PM 2.5  concentrations above the EU annual limit value and the WHO guideline levels in 2022 and 2023

In 2022, 2% of monitoring stations registered concentrations of PM 2.5  above the EU annual limit value (Figure 4), 78% of which were urban and 15% suburban. In contrast, 95% of the PM 2.5 reporting stations registered concentrations above the WHO annual guideline level, 76% of which were urban and 20% suburban.

Furthermore, Italy and Poland reported exceedances of the PM 2.5  annual limit value based on  assessment models  for three and one air quality zones, respectively.

Regarding the EU standards related to the Average Exposure Indicator [2] for PM 2.5 , which assesses the general population’s long-term exposure in urban areas, all EU Member States continued to meet the exposure concentration obligation of 20µg/m 3 in 2022, set as a 2015 target under the  ambient air quality directive [3] . Furthermore, for the first time, all Member States [4] met the national exposure reduction target set for 2020.

Figure 5. PM 2.5  concentrations in 2022 by country in relation to the EU annual limit value and the WHO annual guideline level

Note:  The figure shows, per country, the concentrations of each reported station, the minimum and maximum concentrations, the median and the 25th and 75th percentiles of all the measurements (annual mean PM 2.5. concentrations).

Ozone (O 3 ) is a pollutant formed in the atmosphere when heat and light cause chemical reactions between nitrogen oxides and volatile organic compounds (VOCs), including methane (which is also a powerful greenhouse gas ). Emissions of these gases occur from anthropogenic sources and, in the case of VOCs, also biogenic. Ozone is also transported to Europe from other parts of the northern hemisphere and the upper atmosphere. Meteorology plays an important role in forming and dispersing air pollution, and interannual variations in concentrations. This effect is especially significant for ozone.

Map 3. Concentrations of O 3  in 2022 and 2023 in relation to the EU target value

Notes:  The map shows the 93.2nd percentile of the O 3  maximum daily eight−hour mean, representing the 26th-highest value in a complete series. It is related to the O 3  target value. Data are presented here for one year only instead of the average over a three-year period, as stated in the definition of the EU target value for O 3 . Source : EEA’s AQ e-reporting database .

The highest concentrations in 2022 were found in some Mediterranean and central European countries (Map 3 and Figure 7).

Table 5. Country status for O 3  in 2022 and 2023  

Notes : ( a ) all the reporting countries.  The stations in Kosovo, although reported, did not get the minimum data coverage to estimate the relevant ozone statistics. Source : EEA’s AQ e-reporting database .

Figure 6. Percentage of reporting monitoring stations registering O 3  concentrations above the EU target value and the WHO guideline levels in 2022 and 2023

The long-term EU objective for ozone of 120µg/m 3  was met at 16% of monitoring stations in 2022.

Italy reported exceedances of the O 3  target value for the protection of health based on  assessment models  for three air quality zones. Italy and Poland reported exceedances of the O 3  long-term objective for the protection of health in 9 and 46 air quality zones, respectively.

Figure 7. O 3  concentrations in 2022 by country in relation to the EU target value

Note:  The figure shows, per country, the concentrations of each reported station, the minimum and maximum concentrations, the median and the 25th and 75th percentiles of all the measurements (93.2nd percentile of O 3 maximum daily eight-hour mean). Data are presented here for one year only, not the average over a three-year period as stated in the definition of the EU target value for O 3 .

In 2023, the long-term EU objective for ozone was met at 14% of monitoring stations.

The leading source of nitrogen dioxide (NO 2 ) is road transport, which emits NO 2 close to the ground, mostly in densely populated areas, contributing to population exposure. Other important sources are combustion processes in industry and energy supply.

Concentrations above the annual limit value were found in many Turkish cities and some big cities with a high volume of traffic (Map 4 and Figure 9).

Map 4. Concentrations of NO 2  in 2022 and 2023 in relation to the EU annual limit value and the WHO annual guideline level

Source :   EEA´s AQ e-reporting database .

Table 6. Country status for NO 2  in 2022 and 2023

Notes : ( a ) all the reporting countries; ( b ) all the reporting countries, except Kosovo; ( c ): all the reporting countries. The stations from Kosovo, although reported, did not get the minimum data coverage to estimate the NO 2 statistics related to the WHO air quality daily guideline level. Source : EEA’s AQ e-reporting database .

Figure 8. Percentage of reporting monitoring stations registering NO 2  concentrations above the EU limit values and the WHO guideline levels in 2022 and 2023

In 2022, 2% of monitoring stations registered concentrations of NO 2  above the EU annual limit value (Figure 8), 76% of which were traffic stations. Concentrations above the NO 2 WHO annual guideline level were registered at 74% of all monitoring stations, 45% of which were traffic stations.

Belgium, Italy and Poland reported exceedances of the NO 2  annual limit value based on  assessment models  for three, two and four air quality zones, respectively.

Figure 9. NO 2  concentrations in 2022 by country and in relation to the EU annual limit value and the WHO annual guideline level

Note:  The figure shows, per country, the concentrations of each reported station, the minimum and maximum concentrations, the median and the 25th and 75 th percentiles of all the measurements (annual mean NO 2 concentrations).

In 2023, 1% of monitoring stations registered concentrations of NO 2  above the annual limit value, all of which were traffic stations. 68% of monitoring stations registered concentrations above the WHO annual guideline level, 46% of which were traffic stations.

Benzo(a)pyrene (BaP)  is a carcinogenic pollutant emitted mainly from the combustion of coal and wood for heating and, to a lesser extent, from industrial installations and the combustion of agricultural waste.

The highest concentrations  were found in Italy and eastern Europe (Map 5 and Figure 10), where the use of coal and other solid fuels for residential heating is widespread.

Map 5. Concentrations of BaP in 2022

Source: EEA’s AQ e-reporting database

Country status for BaP in 2022: 12 out of 27 reporting countries, all of which were EU Member States, registered values above 1.0 ng/m 3 . Concentrations above 1.0 ng/m 3  were registered at 25% of the reported monitoring stations, the majority of which were urban (78%) or suburban (18%). Greece and Poland reported exceedances of the BaP target value based on  assessment models  for one and 32 air quality zones, respectively.

Figure 10. BaP concentrations in 2022 by country

Note:  The figure shows, per country, the concentrations of each reported station, the minimum and maximum concentrations, the median and the 25th and 75th percentiles of all the measurements (annual mean BaP concentrations).

Country status for  sulphur dioxide (SO 2 )  in 2022:

• 4 out of 37 reporting countries (Bosnia and Herzegovina, Türkiye, North Macedonia and Serbia) — none of them EU Member States — registered levels above the EU daily limit value of 125µg/m 3 ;
• 17 countries, including nine EU Member States, registered values above the WHO daily guideline level of 40µg/m 3 [5] .

In 2022, 1% of reporting monitoring stations registered concentrations above the EU daily limit value and 6% of stations registered concentrations above the WHO daily guideline level.

In 2023, 11 reporting stations outside the EU (nine in Bosnia and Herzegovina and two in North Macedonia) registered concentrations of SO 2  above the EU daily limit value. In the same year, concentrations above the WHO daily guideline level were registered in 13 countries (including 10 EU Member States) out of 33 reporting countries.

Concentrations above the corresponding EU limit or target values were also registered in 2022 for the following pollutants:

• carbon monoxide (CO) at one station, located in the non-EU Member State of Serbia, out of 35 reporting countries;
• for benzene and lead, no stations reported concentrations above EU annual limit values in the 28 and 30 reporting countries, respectively. Italy reported exceedances of the benzene annual limit value based on  assessment models  for one air quality zone;
• arsenic in six stations across three EU Member States (Belgium, Finland and Poland, with two stations each) out of 29 reporting countries. Poland reported exceedances of the arsenic annual target value based on  assessment models  for two air quality zones;
• cadmium at one station, located in the EU Member State of Bulgaria, out of 30 reporting countries;
• nickel in four stations located in four EU Member States (Finland, France, Germany and Italy) out of 29 reporting countries.

[1]  The 27 European Union Member States, plus Iceland, Liechtenstein, Norway, Switzerland and Türkiye. The six West Balkan countries are cooperating countries. These include Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia and Kosovo (the designation is without prejudice to position on status, and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo Declaration of Independence). Andorra reports data on a voluntary basis.

[2]  The Average Exposure Indicator (AEI) is based on a three-year average measured at urban background stations. The AEI for 2022 is based on 2020-2022. It assesses the general population’s long-term exposure in urban areas.

[3]  As well as the EU-27, Iceland and Norway also reported an AEI2022 below the exposure concentration obligation. The AEI2022 estimated for Switzerland, Andorra, Kosovo, Türkiye and Montenegro was also below the exposure concentration obligation. On the contrary, the estimated AEI2022 for Serbia, North Macedonia, and Bosnia and Herzegovina was above the exposure concentration obligation.

[4]  Plus Iceland and Norway.

[5]  The 99.18th percentile of the daily values has been considered, meaning three days of exceedance per year.

EEA, 2024. Indicator AIR003 'Exceedance of air quality standards in Europe'

Targa, J., Colina, M., Banyuls, L., González Ortiz, A., Soares, J. (2024a). Status report of air quality in Europe for year 2022, using validated data (ETC-HE Report 2024/3)

Targa, J., Colina, M., Banyuls, L., González Ortiz, A., Soares, J. (2024b). Status report of air quality in Europe for year 2023, using validated and up-to-date data (ETC-HE Report 2024/5).

MITECO, 2023. Evaluación de la Calidad del Aire en España 2022, Ministerio para la Transición Ecológica y el Reto Demográfico Secretaría General Técnica. Centro de Publicaciones., NIPO: 665-21-045-X

Identifiers

Briefing no. 06/2024 Title: Europe’s air quality status 2024 EN HTML: TH-AM-24-009-EN-Q - ISBN: 978-92-9480-650-5 - ISSN: 2467-3196 - doi: 10.2800/5970

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The country assessments are the sole responsibility of the EEA member and cooperating countries supported by the EEA through guidance, translation and editing.

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For references , please go to https://www.eea.europa.eu/publications/europes-air-quality-status-2024/europes-air-quality-status-2024 or scan the QR code.

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