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Glossary · Travel distribution

OTA (online travel agency)

An OTA (online travel agency) is a website or app that sells travel from many suppliers — hotel rooms, flights, car hire, packages — and completes the booking itself, either as an agent passing the reservation to the supplier or as a merchant reselling inventory at a price it sets.

Reviewed 30 Oct 2026

Agency model vs merchant model

Agency modelMerchant model
Who charges the travellerUsually the supplier, often at the stayThe OTA, at booking
Who sets the selling priceThe supplierThe OTA, from a net rate
How the OTA earnsCommission from the supplierMargin between net rate and selling price

Large OTAs run both models side by side, which is one reason the same room can appear at two prices on one site.

How regulators have dealt with OTAs

In February 2019 the UK Competition and Markets Authority secured commitments from six hotel booking sites: to say when commission affects search rankings, to include compulsory charges such as taxes and resort fees in the headline price, and to stop misleading claims about availability and popularity. The changes were due by 1 September 2019, and the CMA made no finding that the law had been broken.

In the EU the live issue has been contractual: see rate parity for parity clauses and the Digital Markets Act.

Why OTA prices are worth monitoring

For a hotel, the OTA price is the one most travellers compare against; for a competitor, it is the market rate. Monitoring means logged-out searches per point of sale, with dates and occupancy held constant. Member-only rates behind a login are out of scope. The workflows are on hotel rate shopping and car rental prices; ground rules are in collecting travel data responsibly.

FAQ

Questions

Something not covered? Write to contact@arcproxies.io.

What is the difference between an OTA and a metasearch site?

An OTA sells: it takes the booking and payment and handles changes. A metasearch site only compares prices from many sellers, including OTAs, and sends the traveller to one of them to book.

Do OTAs set hotel prices?

Under the agency model the hotel sets the price and the OTA earns commission. Under the merchant model the OTA buys at a net rate and sets the selling price itself, within whatever its contract with the hotel allows.

Why is a hotel sometimes cheaper on an OTA than direct?

The OTA may be funding a discount from its own commission, selling a merchant or wholesale rate, or showing a rate with different conditions. Comparing like for like — same room, board, cancellation terms and taxes — resolves many apparent gaps.

Can OTA prices be collected responsibly?

Yes, by collecting only public, logged-out search results, at a modest request rate, respecting robots.txt and the site's terms, and never automating anything behind a login or a challenge page.

Sources & review

Last reviewed by the ARC Proxies team. Prices are read from the live catalog at build time.

  1. [1]Competition and Markets Authority: Hotel booking sites to make major changes after CMA probe