If I Was an OTA. And I Lost My Filter

The relationship between OTAs and operators is one of the most frequently debated topics in the tours and activities sector. OTA executives, constrained by corporate diplomacy, often struggle to defend their position effectively. This leaves many operators with a negative impression and a tendency to minimize their OTA participation -- which may be a significant strategic mistake.

Here is what a hypothetical OTA leader might say, without PR department oversight, in response to the top 10 toughest questions from operators.

1. You take too much commission -- I can't afford to lose 25% of my revenue.

The reframe matters: the OTA gives you 75%, rather than takes 25%. A 25% marketing cost for customer acquisition is reasonable by industry standards. Amazon averages 19%, retail runs at 50%, and Apple charges 30%. If 25% commission is unsustainable, the issue likely lies with pricing strategy rather than commission rates.

2. This OTA model is out of control. It's not a sustainable model.

The focus should be on increasing yield, whether through direct or indirect channels. Marketplaces like Google, Facebook, Apple, and Amazon are highly efficient -- nearly everything consumers buy passes through a third party. This model is not going away.

Travel distribution is especially well-suited to marketplaces because customers almost always live in a different location from the product. There are large audiences that individual operators simply cannot reach on their own. Apple, worth trillions, sells phones through BestBuy, Walmart, and Target alongside its direct channels because partnered distribution generates more revenue.

3. Why won't you display my brand on my listing?

Testing showed that displaying operator brands generally does not improve conversion. Like every platform, OTAs want customers to remain on-site. With few exceptions, most operators lack globally recognizable brands -- even OTAs spending hundreds of millions on marketing struggle to build global brand recognition.

The hotel sector comparison is misleading -- most tour operators are not Hilton or Marriott. And frankly, many operator websites are substandard, meaning the OTA listing may actually improve the operator's image.

4. You don't add any value -- you are just re-listing other people's products and competing against me on things like Google Ads

Marketplaces aggregate choices so consumers can shop in one place. Whether a specific product is listed or not, the OTA will still be selling everything else in the same market.

On Google Ads bidding, most of the time OTAs are bidding on general terms rather than specific operator keywords. Google's optimization tools also push ads into more placements and increase spend. Because OTAs sell a wide selection, they can afford higher keyword bids -- that is their structural advantage.

5. It's my customer, not yours, and you don't give me customer data.

The customer belongs to whoever earns the relationship. When travelers arrive, operators can collect information directly by offering good reasons to share it. OTAs restrict data sharing because some operators send unauthorized marketing emails or communicate in ways that reflect poorly on the OTA brand.

6. My marketing agency told me to focus on direct business to keep the commission.

Marketing agencies naturally advocate for what they sell. Focusing on direct business is not wrong, but diversification is essential. The only metric that truly matters is yield.

7. Your customers always create the most customer service problems.

If product information is kept up to date, this argument lacks merit. Some deep-discount sites may attract different customer segments, but for 90% of OTAs, the customer profile is consistent.

8. You don't understand or care about the industry -- it's only about making money.

OTA staff and leadership are overwhelmingly passionate about travel, and many are former operators. Recommendations like shorter cut-off times stem from data: most customers book on mobile with short booking windows. Unavailable products frustrate customers and waste valuable shelf space.

9. Why would I work with you when you might take my competitor, brand it as your own tour, and feature it over my products?

This one is tricky. Let's move on.

10. We are your customer, not the other way around. You should treat us with more respect.

Operators are suppliers, not customers. The traveler spends money with the OTA; the OTA spends money with the operator. That said, treating suppliers with respect is fundamental to good business. The right balance of priorities between customers, employees, suppliers, and shareholders varies by company, but mutual respect should be a given.