July 21, 2009

Hotel reservations keep OTAs alive, for now

Expedia, Travelocity, Priceline and Orbitz rely heavily on the hotel industry for the bulk of their revenues. In fact, according to this article, the hospitality industry contributes to more than 60% of OTAs commissions/booking fees.

By Max Starkov

Online Travel Agencies (OTAs) have traditionally charged airline ticket booking fees ($5-$7 per ticket). Recently the top 3 U.S. OTAs (Expedia-43% market share, Orbitz-26%, Travelocity-22%) followed Priceline