Power of OTAs in Enhancing Sales and Visibility of Budget Hotels

Abstract

For budget hotels, an important way of distributing travel content is through the use of Online Travel Agencies (OTAs). Typically, budget hotels have weak brand identity, limited marketing budgets, and have less ability to convert direct bookings. OTAs increase customer trust by creating reviews and ratings, extend the range of potential bookings, and enhance visibility, allowing these hotels to expand their customer base and boost sales. Meanwhile sources of problems with OTA use include commission costs, competition over pricing, platform dependency, and losing control of customer relationships. This paper explains how to promote OTA's in budget hotels and their visibility in the light of the recent scholarly studies as well as tourism related documents published by the Government of India. The paper is summarizing that when used as an element of a comprehensive distribution strategy that relies on service, review management, and direct booking was strong; the paper also seems to conclude that OTAs are no longer a great asset for budget hotels.