online travel agencies explained

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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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 our picks for the best travel credit cards of 2024 , including those best for:

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.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1.5%-6.5% Enjoy 6.5% cash back on travel purchased through Chase Travel; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, 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.

$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.

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What are online travel agencies? The ultimate guide to OTAs

Love them or not, online travel agencies (OTAs) play a critical role in every property’s distribution strategy. According to Expedia Group’s 2023 Path to Purchase report, OTAs captured 51% of online hotel & lodging bookings and possess the visibility and marketing power that most individual properties cannot achieve on their own. 

Working with OTAs isn’t just a matter of signing up and hoping for the best. To take advantage of the opportunities and avoid the pitfalls, you need to actively manage your listings, pricing, and inventory and take a strategic approach to online distribution. 

If done correctly, adopting the right OTAs as part of your distribution strategy can actually help drive direct bookings through the “billboard effect.” Building a comprehensive channel mix incorporating different types of OTAs will ensure you reach your target audience and secure a steady stream of reservations. 

See which OTAs dominate globally, regionally, and across property types based on Cloudbeds customer data and how properties like yours use OTAs as part of their distribution strategy. 

At Cloudbeds, we know the world of OTAs and distribution channels can be complex. We’ve created the Big Book of OTAs to help demystify this process and explain how to create a recipe for success when working with third-party distribution channels.  

What is an online travel agency (OTA)?

An online travel agency (OTA) is a website that acts as a search engine for travel. They connect providers across the travel industry to help travelers easily plan their trips. On OTA sites, travelers can often access package deals with accommodations, airfare, cruises, rental cars, and more .

On average, travelers view 141 pages of travel content in the 45 days before booking a trip, with OTAs making up 67 of those pages. Therefore, properties must be active on as many channels as possible to increase brand awareness and drive bookings — both OTA bookings and direct bookings (more on this later). With the increased popularity of OTAs around the world, hoteliers now have access to markets once unattainable.

How do OTAs work?

Online travel agencies emerged in the 1990s, using the internet’s extensive reach to aggregate global travel supply into a single place so consumers could book their own travel online. These self-service tools reshaped the hotel industry and the way travel was researched and booked, as the general public could now easily plan their trips and reserve their airfare, accommodations, and tours on their own rather than rely on a physical travel agent.

Sites such as Expedia.com, Booking.com, Airbnb, Orbitz, Hotels.com, and TripAdvisor are often consumers’ first stop when researching and booking their next trip. These sites offer a seamless user experience at all stages of the buying process: problem/need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Properties of all types and sizes can connect to multiple OTAs through an integrated channel manager . A distribution system, like a channel manager, shares room inventory and rates from your property management system (PMS) to your booking engine and OTAs. Properties that use a channel manager can streamline hotel operations, increase hotel revenue via revenue management best practices , and increase occupancy across channels (all without the fear of overbookings). 

OTA business models

Hotels form partnerships with OTAs by basically outsourcing marketing to OTAs, who then make money through two business models: the merchant model (guest pays the OTA  in advance) and the commission model (guest pays the hotel at check-in or check-out). Most OTAs offer a blended model so that hotels can let guests choose which option they’d prefer. 

The merchant model

In this model, the online travel agency acts as the merchant of record and collects payments from guests at the time of booking. Once the guest has checked out, the OTA pays the hotel. Contracts exist between hotels and OTAs to provide a set number of rooms to the OTA at a favorable rate. The OTA then makes a profit off each room sold but must meet its contractual thresholds.

The agency (commission) model

In this model, the consumer books via the OTA but pays the hotel directly at the time of checkout. The hotel then pays the OTA a commission on the total value of the booking after checkout. There are no contracts, and rates are set by hotel management. 

The advertising model

This model has increased in popularity and exists on metasearch sites such as Google Hotel Ads, Tripadvisor, Trivago, and KAYAK. Metasearch engines work primarily on a cost-per-click basis where hotels can promote their rooms with links to their direct booking engine, and pay a fee based on the number of clicks they receive. Some of these sites, such as Google, also offer a cost-per-acquisition model (also known as “pay per stay”) where the property pays a percentage of the total reservation cost upon completion of the stay.

For hotels, it can be frustrating to watch distribution costs rise without getting more in return, but there are costs associated with direct bookings too. Demand doesn’t appear without at least some sort of distribution or marketing strategy in place, and those marketing campaigns, loyalty offers, special deals, and direct booking tools have a cost to the hotel. That’s why it’s important to use OTAs wisely and in conjunction with your own direct marketing strategy. 

Online travel agencies vs. online travel agents

Before the rise of OTAs, it was the role of a travel agent to book leisure and business travel. This is because travelers back then did not have access to hotel availability and rates the way we do today. While the internet has made it easier for travelers to book their own trips online, some segments like luxury, corporate, and group travelers still prefer to utilize a person, or online travel agent, to help plan and book a trip.

Travel agents are beneficial when planning complex trips such as a destination wedding, honeymoon, or corporate trip. They have the expertise and connections to find unique accommodations at better rates than most people can find themselves.

Travel agents such as Kuoni have a team of destination experts who work behind the scenes to curate tailor-made accommodations, experiences, and itineraries. Their in-person stores allow travelers to enjoy a glass of champagne while meeting with a travel expert to plan their dream vacation.

Travel agents usually have a portfolio of properties they recommend to travelers and take a commission fee, similar to OTAs. Strong relationships with travel agents can help properties drive more bookings in alternative segments than the OTA market.

Difference between OTAs and metasearch

With so many online booking channels available today, it can be challenging to understand the difference between certain channels.

Metasearch websites like Skyscanner act as aggregators and display hotel information and room rates from a variety of online channels, including OTAs like Agoda, Trip.com, Travelocity, or Priceline.com and a hotel’s website. It enables travelers to compare all of their hotel booking options in real time across the web so that they can book the best deal.

OTAs provide room rates and booking capabilities for only one channel — their own. Meanwhile, metasearch sites can display up to twenty or more results.

Properties can invest in hotel marketing efforts through metasearch engines. Metasearch sites rank listings and it pays off to be near the top. Paying to have your listing higher in the ranks to drive more direct bookings can drive serious results. 

Is Google an OTA?

Google is often a traveler’s first stop when looking for a hotel room. In recent years, Google has changed the hospitality industry with its products. Google offers Google Hotel Search, which acts as a hotel metasearch platform. When a traveler enters a property’s name into Google, it will show all of the rates and listing information from across the web.

Google also has free booking links , a game-changer for independent hotels as they can list their direct rates and links to their own website within the Google Hotel Search box. This option encourages potential guests to book direct.

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Best Online Travel Agencies

Booking.com is our top choice for making your trip arrangements

Ligaya Malones is an editor, blogger, and freelance writer specializing in food and travel. Ligaya's work has appeared in publications including Lonely Planet and BRIDES.

We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more .

Planning a trip can be easier through an online travel agency than if you handle each aspect of the planning separately. You can book hotels, air travel, rental cars, and more through a single site, and booking everything together sometimes results in discounts. By inputting a destination, a range of dates, and other preferences, you will see a list of options for each aspect of travel.

The best online travel agencies offer options from the largest number of airlines, hotels, car rental agencies, and more. Look for sites that offer discounts for combining reservations for different aspects of your trip. For example, the best sites will have lower rates if you book both plane tickets and a hotel through their services. The best sites also provide reviews from customers who actually have booked through the service. These are our top picks.

• Best Overall: Booking.com
• Best Budget: Skyscanner
• Best Price Predictor: Hopper
• Most Innovative: Kiwi.com
• Best for Eco-Conscious: Kind Traveler
• Best for Social Impact: I Like Local
• Best for Design-Forward Homestays: Plum Guide
• Our Top Picks
• Booking.com

Kind Traveler

I Like Local

• See More (4)

Final Verdict

Frequently asked questions, methodology, best overall : booking.com.

 Booking.com

This industry leader offers one of the most comprehensive trip planning platforms on the Internet.

Lots of options to choose from

Interface is easy to use

Numerous filters to customize your search

Tricky to tell whether changes/cancellations can be made with Booking.com or the vendor directly

Booking.com was founded in 1996 and has grown into an industry leader that stands out for being one of the most comprehensive trip planning platforms out there. From one website, you can compare and book accommodations, flights (including one-way and multi-city flights), sightseeing activities, and even airport taxis. The website lists more than 28 million accommodation options, from hotels, hostels, and B&Bs to vacation homes and luxury resorts—you can browse more choices per destination on Booking.com than other online travel agencies. The website also performs well on cost and typically returns lower-than-average prices for flights and hotels. 

Booking.com's interface is also easy to use. On the home page, search for a hotel by entering your chosen destination and dates. Then, use the extensive list of filters—such as price range and distance from the city center—to narrow the results down and find the best fit. You can also search for a specific hotel, or seek inspiration by clicking through options grouped by destination or property type or by topic such as the country’s best Michelin-starred hotel restaurants or the top cities for vegan travelers. The flights, car rental, and other tabs are just as intuitive. 

Best Budget : Skyscanner

 Skyscanner

You can compare prices across airlines, hotels, and car rentals.

Simple interface

Option to toggle searches between specific dates or by monthly calendars

Search Everywhere button is great for spontaneous planners

Extra clicks are required to make a final purchase

Must read fine print for changes/cancellations—may need to deal directly with the vendor

Ads on the sidebar can be distracting

Find deals on airfare, hotels, and car rentals with an aggregator site like Skyscanner , which uses a metasearch engine to compare prices from all online travel agencies and the airline, hotel, or car rental company in question. Run searches with fixed dates, opt to compare airfare prices month to month, or click “Cheapest Month.” Searches also include options for nearby airports or non-stop flights only. With hotel searches, you can choose to select only from properties with free cancellation, a cleanliness rating of 4.5/5 or higher, or 3- or 4-starred hotels only. Car rental searches include an option to select “return car to different location.”

Once you’ve found the best rate, click on the link to be redirected to the third-party site to make your booking. Feeling spontaneous? The Search Everywhere button on the homepage offers a list of the cheapest flight deals for destinations both locally and across the world—just plug in your departure airport first.

Best Price Predictor : Hopper

The company claims a 95 percent accuracy rate at predicting when flights and hotel rates will be cheapest.

Color-coded system makes it easy to determine cheapest days to buy

App is easy to use

Option to track flights and receive alerts when the best time to buy arises

Some have mentioned the app functions better as a research tool than a booking tool

Unclear whether Hopper will price match if you find a cheaper flight elsewhere

Hopper is a travel app available on iOS and Android that aims to help travelers save on airfare by usng historical data and their own algorithm to predict when flights will be cheapest. Just type in where and when you’d like to fly and Hopper will present you with a color-coded pricing calendar indicating how much tickets are likely to cost. (Green is the least expensive, then yellow, orange, and red for most expensive.) Hopper will also recommend you either buy now or wait, or you can choose to watch a trip and receive notifications on the best time to buy. In addition, the app has expanded to offer hotel and car rental price predictions, too.

Some newer features since the app’s inception in 2009 include an option to freeze a price for a limited time—for an extra fee—as well as exclusive app-only discounts. Hopper is free to download, and you can choose to book directly through the app, though some users mentioned they use Hopper as more of a research tool before booking directly with the airline or hotel. The company claims a 95 percent accuracy rate at predicting flight rates up to a year ahead.

Most Innovative : Kiwi.com

This metasearch engine scours the web to piece together the ideal itinerary using planes, trains, buses, and more.

Creative itineraries get you where you need to go, especially if you’ve got a multi-stop trip

Kiwi Guarantee offers rebooking or cancellation protections

Nomad option appeals to travelers with a lot of flexibility

Creative itineraries mean you may not fly out of the same airport you flew into

Kiwi Guarantee has an additional fee

Charges all-in-one fee for booking flights, trains, buses (though you can always purchase a la carte)

Travelers planning multi-city destinations and seeking a bargain, as well as those looking to take planes, trains, and automobiles to get there, might consider Kiwi . Kiwi is a metasearch engine that scours and pieces together itineraries from various airlines (even if they don’t have a codeshare agreement), considers multiple airports (even if your arrival airport is different from departure), and offers booking options, whether you’re looking at very specific dates or more general ones (up to 60 nights).

Some will find the ability to make multiple bookings for a particular trip more convenient than going at it manually several different times, though note that you must opt into the Kiwi Guarantee program to access rebooking and refund protections should your reservation change or be canceled. Kiwi’s Nomad option allows you to plug in a bunch of destinations you’d like to visit and the length of your intended stay, and the website will churn out the most affordable itineraries for review.

Best for Eco-Conscious : Kind Traveler

A give-and-get business model means booking accommodations with exclusive perks, a donation to environmental organizations, and more.

All participating hotels include a local give-back component

Exclusive savings and perks

Participating hotels are located in some of the most beautiful places in the world

Inventory is much smaller compared to other booking platforms

Some of the amenities mentioned are based on availability only

In 2022, Kind Traveler (an online trave agency focused on hotel bookings) announced an increase in environmentally and socially conscious hotels, charity donations, voluntourism opportunities, and additional perks like waived resort fees or a welcome amenity.

Unlock exclusive hotel rates and perks from participating Kind Traveler hotels with a minimum $10/night minimum donation to a local charity. For example, stay at the Six Senses Laamu in the Maldives and receive up to $33 off the nightly rate and perks such as a food and beverage credit and an Earth Lab or Alchemy Bar workshop when you make a donation to Manta Trust. The organization funds coastal research to protect the island nation’s large yet fragile population of reef mantas.

Select from more than 140 participating hotels from the Hawaiian Islands to Bozeman, Montana, and the Maldives. Charities include wildlife, human rights, arts, education, and environmental preservation organizations.

Best for Social Impact : I Like Local

Choose from a host of travel experiences with the peace of mind that 100 percent of the cost goes directly to local partners.

Social impact mission woven into organization’s business model

Immersive experiences led by local guides

Range of experiences offered

May not be best fit for those seeking upscale, luxury experiences and stays

Can’t sort experiences by a list of countries (though an interactive map is available)

No experiences outside of Africa and Asia

For an online travel agency with a booking platform designed to route dollars spent directly to the communities travelers intend to visit, consider I Like Local . Visit the website to browse a host of travel experiences in countries including Indonesia, Kenya, and Cambodia. Experiences include homestays and farmstays as well as wellness and culturally oriented experiences—from cooking and cycling tours to weaving classes.

To search for an experience, select from drop-down items like travel dates and experience categories, or view a global map and click on a country to view experiences that way.

The platform got its start in 2014 and has grown to 4,000 local hosts across nearly 20 countries. As a social impact organization, 100 percent of each booking fee goes to local hosts. To date, 16,000 travelers have booked with I Like Local.

Best for Design-Forward Homestays : Plum Guide

Browse and book seriously vetted, design-forward vacation homes.

Highly curated inventory of vacation rentals across the world

Design-forward

Thorough vetting process

Does not publish guest reviews

Other platforms have homes available across more destinations

When it comes to booking a vacation home, serviced apartment, or condo, travelers are spoiled for choice. Plum Guide is an online travel agency that specializes in accommodations—though not just any home makes its directory. The company claims that each potential home listed on its site must jump through 150 hoops to be included, from internet speed and mattress and pillow quality to the showers’ water pressure and the home’s proximity to dining, shopping, and attractions.

Search by a featured collection on the website such as “ pet-friendly homes ” or “one-of-a-kind homes in Palm Springs.” Scroll to the bottom of its homepage to view its top destinations, as well as a list of all destinations where Plum Guide homes are available, including Barbados, Mexico, Portugal, Switzerland, the U.S., and Turkey. Note: From the top right-hand corner of the site, use the dropdown menu to select currency of choice.

As long as you know what you value most out of your travel experience—such as affordability, social impact, or luxe accommodations—there’s an online travel agency to help plan your next trip. Be sure to read the fine print, as some agencies are third-party websites and not direct vendors. If you're not sure where to start, Booking.com is your best bet for a smooth user experience and hard-to-beat offers on flights, hotels, and other travel arrangements.

What Is the Biggest Travel Agency?

Our choice for best overall, Booking.com, is known as an industry leader with listings for all major hotels, airlines, car rental companies, and more. It boasts more choices for accommodations per destination than any other site, and we found its interface to be user-friendly.

Are Online Travel Agencies Worth It?

This depends on your needs and priorities. The best online travel agencies certainly can save time by booking everything all at once. However, if you're someone who is good at haggling and enjoys the details of planning a trip, you might be able to find better deals by reaching out to hotels or other destinations and speaking to someone personally.

Is It Cheaper to Book Online Than With a Travel Agent?

Not always. A travel agent you know and trust should have the experience and connections to find deals that can match or surpass what you'll find online. Additionally, if something goes wrong, travel agents provide you with an actual person you can use as an advocate to correct the problem . But if you don't have access to a good travel agent, online sites still provide plenty of ways to streamline planning and save money .

We considered dozens of online travel agencies and narrowed down the options based on user experience, volume and quality of inventory, unique offerings and specials, and customer reviews. We also assessed travel companies’ environmentally and socially conscious policies.

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Online Travel Agencies (OTAs) And Their Business Models

Table of Contents

Google (Google Travel)

Tripadvisor

Key highlights of the business models from travel and accommodation platforms:

• Platform business model charging guests a service fee (5% to 15%) and hosts a commission (generally 3%) on reservations.
• Competes with other vacation rental platforms like Booking.com, VRBO, and FlipKey, as well as potential competition from Google Travel.
• Operates under Booking Holdings, controlling six main brands like Booking.com, priceline.com, KAYAK, agoda.com, Rentalcars.com, and OpenTable.
• Generates revenues primarily through travel reservations commissions, travel insurance fees, and advertising via KAYAK.
• Expedia (including Trivago):
• Trivago, part of Expedia Group, is a hotel comparison service monetized through a cost-per-click (CPC) model from advertiser listings.
• Expedia also owns other online travel agencies like Hotels.com, Vrbo, Orbits, CheapTickets, Travelocity, among others.
• Google (Google Travel):
• Originally part of Microsoft and later spun off, Google Travel provides travel-related information and services.
• Google Travel’s exact revenue model is not mentioned, but it likely generates income through advertising and possibly affiliate marketing .
• Online travel agency and search engine, acquired by Booking Holdings in 2013.
• Earns revenue through an advertising model based on cost per click, cost per acquisition, and advertising placements.
• An online restaurant reservation system acquired by Booking Holding in 2014.
• Generates income through subscription plans, referral fees, and potentially in-dining revenue .
• Utilizes a mixed business model , starting as a home aggregator in India and expanding into other verticals like leisure, co-working, and corporate travel.
• TripAdvisor:
• Matches travel demand with supply from partners, earning commission on a cost per click (CPC) and cost per thousand impressions (CPM) basis.
• Non-hotel revenue includes experiences, restaurants, and rentals.
• Part of Expedia Group, Trivago operates as a hotel comparison service, earning revenue through a cost-per-click (CPC) model from advertiser listings and also offers a Business Studio subscription for hoteliers to track data.

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Category: Travel

Date: October 20, 2023

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

Who Are the Top Online Travel Agents?

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.

Drive Conversions and Boost your Business with Expert Travel Website Development.

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.

In quest of the Perfect Travel Tech Solutions Buddy?

Be unrestricted to click the other trendy writes under this title that suits your needs the best!

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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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The 10 best online travel agencies in 2024

The top 10 online travel agencies.

• Booking.com
• Lastminute.com

Best online travel agencies for business travel

1. travelperk.

Main offerings and features:

• Industry-leading travel inventory
• Flexible booking with FlexiPerk
• Safety alerts with TravelCare
• Integrated travel policy & approval flows
• Centralized invoicing
• Easy & real-time expense reports
• Carbon offsetting with GreenPerk
• 24/7 fast customer support in target 15s
• VAT reclaim
• Integration with 3rd party tools , such as expense management or HR software like Expensify and BambooHR

Save time and money on your business travel with TravelPerk

2. sap concur.

• Works with some of the biggest brands
• Easy tracking and reporting of expenses for expense reports
• Many connected apps, such as Uber and Airbnb for cars and hotels
• One solution for a variety of business travel spending

Click below to compare both platforms’ features and benefits

• Ample integrations
• Award-winning mobile app
• Employee-centric travel management

Click below for a more detailed comparison between both platforms:

Best online travel agencies for leisure travel, 1. booking.com.

• Intuitive booking tool and website
• Flight + Hotel booking for easily planning trips with no cross-referencing travel websites
• Simple car rental options and taxi hire
• Available in over 40 different languages and offers over half a million properties across 207 countries
• You can book experiences in your destination city to entertain you on your travels
• Genius rewards program

• Simple interface and booking tool
• Deals when making more than one booking
• 38 different languages and offers a 24-hour, multilingual customer support service
• Free cancellation within 24 hours of booking
• Millions of reviews to help make your decision

3. Lastminute.com

• Filter hotels according to budgets, star ratings, guest ratings, board types, and more
• ATOL protection on flight + hotel bundles
• Flash sales for last-minute deals
• Payment plans to spread out the cost of travel
• Extra entertainment booking for your trips, like theatrical productions and day trips
• Gift cards for gifting travel

• Expedia rewards for hotels, cars, and more
• Experienced support
• Compare cruise lines
• Big savings when booking flights, hotels, and car rentals
• Operates in nearly 70 countries and in over 35 different languages
• Luxury travel options

• Book hotels, flights, cars, and bundles
• 24/7 support
• Lower prices on the app
• Great last-minute deals for spontaneous travel

6. Bookmundi

Best online travel agencies for flights

1. skyscanner.

• Super flexible booking filters
• Cheaper flights and hotels than other OTAs
• Price alerts for travel routes of interest
• Easy-to-use booking tool and UI
• Hundreds of location and currency options
• One-way, return, and multi-city travel options

2. Kiwi.com

• Simple flight booking tool
• Partnerships with Booking.com and Rentalcars.com
• Discover deals anywhere with the option to open up your search
• Easy-to-use app

How do online travel agencies work?

What are the advantages of booking through an online travel agency.

• Access to comparison tools
• Peer reviews to help you with your decisions
• Flexible cancellation policies
• All your travel in one place
• Local flights and deals

Rewards programs

Comparison tools, peer reviews, flexible cancellation.

Flexiperk: Cancel anytime, anywhere. Get a minimum of 80% of your money back.

One account for all of your travel needs, a local approach to global travel, wrapping up.

Make business travel simpler. Forever.

• See our platform in action . Trusted by thousands of companies worldwide, TravelPerk makes business travel simpler to manage with more flexibility, full control of spending with easy reporting, and options to offset your carbon footprint.
• Find hundreds of resources on all things business travel, from tips on traveling more sustainably, to advice on setting up a business travel policy, and managing your expenses. Our latest e-books and blog posts have you covered.
• Never miss another update. Stay in touch with us on social for the latest product releases, upcoming events, and articles fresh off the press.

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Every One of Expedia Group’s 23 Brands, Explained

Sean O'Neill, Skift

July 23rd, 2018 at 2:30 AM EDT

Check out our Skift Takes on Expedia Group's brands for consumers and businesses. Time for some #realtalk.

Showing that names mean something, in March  Expedia Inc. became Expedia Group . The switch came a month after the Priceline Group rebranded to Booking Holdings .

Expedia Group is the number two global online travel player, behind Booking Holdings, and booked $10 billion in revenue in 2017. Below, Skift presents an explainer about Expedia Group’s brand portfolio.

We show how Expedia Group has positioned each of its brands based on edited company statements. Then we share our Skift Take on how these brands truly operate and fit into the online universe.

Most of the brands — which number 23 or so, depending on how you count them — are consumer brands. We include business-to-business brands, too, but leave out joint ventures.

Online Travel Agencies

Expedia.com Expedia Group Take: “Expedia.com is one of the world’s largest full-service travel brands. It aims to provide the widest selection of vacation destinations, affordable airfares, hotel deals, car rentals, cruise deals, and in-destination activities, attractions, and services.”

Skift Take: It has been a while since Expedia ran TV ads with the equally memorable and irritating “dot coooom” jingle. However, its pitch has remained the same, namely, to be a generic full-service travel agency. Expedia.com woos the average consumer who wants to build the blocks of their trip in one place and wants a single company to call if something goes wrong. A caveat, though: While Expedia.com may be available in 33 countries, too much of its revenue and gross bookings continue to be U.S. domestic, as the company would admit.

Hotels.com Expedia Group Take: “With hundreds of thousands of places to stay around the world and 90 local websites in 41 languages, Hotels.com has it all.”

Skift Take: We strongly suspect that Captain Obvious , the star of Hotels.com TV ads, hasn’t effectively made Hotels.com a household name the way the Trivago Guy and associates have helped Trivago. The brand has instead thrived on the word-of-mouth popularity of its rewards program, which has an admirably simple message of “book-10-nights-get-one-free.” As for its mobile app, we’re still waiting for broad availability of promised features, such as keyless entry at many hotel chains.

Vacation Rentals and Hotel Price-Comparison Engines

HomeAway, VRBO, Bedandbreakfast.com , VacationRentals.com , Abritel , and FeWo-direkt Expedia Group Take: “From beach houses, to cabins, to condos, HomeAway is a world-leader in the vacation rental industry, with sites offering more than two million unique places to stay in 190 countries.”

Skift Take: It doesn’t make sense for Expedia Group to maintain separate brands when a competitor like Airbnb throws all its marketing dollars at amplifying just one brand. Despite Expedia Group’s talk to the contrary, we suspect it will unify its rental brands — or at least all of its English-language rental brands — under HomeAway. But first the division must finish  standardizing its fee model , making all of its listings instantly bookable, and closing its geographic gaps by buying regional brands like Turkey’s HemenKiralik and Canada’s CanadaStays .

Trivago Expedia Group Take: “Trivago is a search platform for comparing a deep supply of hotels and alternative accommodations. The Düsseldorf, Germany-based company allows travelers worldwide to make informed decisions by personalizing their lodging search. As of March 31, 2018, Trivago has established 55 localized platforms connected to more than two million hotels and alternative accommodation in more than 190 countries.”

Skift Take: You have seen the TV ads with the creepy Trivago Guy — or else other Trivago characters . In the past year, you have also seen the company’s share price dive from a peak of $23 to about $4.50 at publication time due to missteps . Expedia Group may want to take advantage of the discounted share price and nab the remaining 40 percent of the company. It could retool the brand to fight hotel search company HotelsCombined , which earlier this month was acquired by rival Booking Holdings  — possibly to build a “Trivago killer” company.

Smaller Online Travel Brands

Travelocity Expedia Group Take: “Travelocity focuses on exceptional service, expert advice, and guaranteed value for every trip. It encourages travelers to ‘Wander Wisely’ and is dedicated to being the champion of the customer.”

Skift Take: Expedia Group has what is internally called a “comet” team, which aims to retain the distinctiveness of six brands — Travelocity, Orbitz, CheapTickets, Ebookers, Wotif, and Lastminute.au — while synching up and coordinating their marketing and technology practices. To the credit of General Manager Krista McDougal and her predecessor Brad Wilson, Travelocity is the most-differentiated brand of the bunch. Travelocity has memorable roaming gnome TV ads and a stand-out promise of round-the-clock customer support that fit together to appeal to a particular customer segment.

Orbitz Expedia Group Take: “Orbitz is a leading travel website. Its loyalty program is the only one where customers can earn rewards immediately on flights, hotels, and packages, and redeem instantly on tens of thousands of hotels worldwide.”

Skift Take: Officially, everything’s fine. However, we suspect Expedia Group is reducing marketing oxygen to Orbitz. It spent nothing on TV ads for Orbitz in 2018 so far, according to estimates by analytics firm iSpot.tv . That figure contrasts with $15 million spent on TV ads for comparably sized Travelocity so far this year. The mothership seems to be spending relatively little on Orbitz in Google ad auctions this year, too. When we asked, Expedia Group said these worries are silly and that different brands call for different marketing schedules and mediums. For example, Orbitz released a new marketing campaign just a few months ago: “ Orbitz – Rewarding Travel Just Like That .” We hope a campaign like this will hit the airwaves before too much time passes.

Hotwire Expedia Group Take: “By simply hiding the brand name, Hotwire can offer customers deep savings on hotel rooms, rental cars, flights and vacation packages.”

Skift Take: Unofficially, Hotwire is supposed to be a brand that’s like the risk-free bond in an investment portfolio otherwise filled with risky stocks. Hotwire only tends to only be wildly profitable during recessions — when airlines, hotels, and car-rental companies use it to sell travel at deep discounts while slightly disguising the offers through semi-opaque and members-only deals to avoid broader price transparency. Surprisingly, despite this economic boom, Expedia Group has invested in marketing for Hotwire, giving its site and TV ads a fresher look. Maybe the brand consistently pulls in a set of deal-seeking customers who came of age in the era of deal brands like Groupon and Secret Escapes and who otherwise wouldn’t be wooed by other Expedia Group brands.

Wotif Expedia Group Take: “Wotif is a leading online travel site dedicated to Australian and New Zealand travelers. Since it launched in 2000, one in two Aussies and one in four Kiwis have traveled with Wotif. This year the company will have marketing campaigns celebrating distinctively Australian initiatives and hold the inaugural Australia Day Wotif Town Of The Year Awards as part of the brand’s focus on local community engagement.”

Skift Take: Pronounced “What if”, Wotif was a homegrown Australian travel brand that Expedia acquired in 2014 and moved onto its technology platform. Along the way, Wotif appears not to have gained share against its larger homegrown rival Webjet and foreign players like Agoda . Wotif’s only plan seems to be to add more local marketing efforts. Sometimes Australians must think about the acquisition and how it might have gone differently and ask themselves, “What if?”

Lastminute.com.au Expedia Group Take: “Lastminute.com.au is an Australian’s ultimate travel companion when it comes to booking last minute accommodation, flights, packages, car hire, and experiences.”

Skift Take: Lastminute.com.au is a white-label shell for Expedia content, though it has cheeky touches aimed at Australians. For example, there is a button one can push to disguise the travel search screen and instead display what looks like a work-related project when the boss passes by. That said, most last-minute planning takes place on mobile devices these days, according to data from marketing firm Sojern . Lastminute’s mobile-first presence and branding may not be as effective as last-minute rivals’ like Hopper , HotelTonight , HolidayPirates , and Secret Escapes . If nothing else, it could do more on Instagram. It has only 2,800 followers , compared to private membership club Soho House, which has more than 360,000 followers .

Ebookers Expedia Group Take: “Ebookers believes travel is personal. No two travelers are the same, so no two trips should be either. With online travel agencies in seven European countries, ebookers gives travelers flexibility.”

Skift Take: Ebookers is just reselling Exepdia.com inventory on an Expedia.com technology platform. It may disappear like Venere — a brand the conglomerate bought in 2008 and killed in late 2016 — unless it innovates more than merely adding sophisticated packaging tools. Ebookers is being blown out of the water on the innovation and revenue growth front by European online travel agencies MisterFly,  which offers an innovative price-comparison search results, and lets consumers pay for their trips in quarterly installments, and Kiwi.com , which cleverly lets shoppers mix-and-match flights from non-partner airlines into single itineraries.

CheapTickets Expedia Group Take: “In addition to cheap flights, CheapTickets’ discounted travel products include cheap hotels, cheap cruises, cheap rental cars, cheap vacation packages, vacation rentals, last-minute trips, and event tickets.”

Skift Take: The branding opportunity for a name like CheapTickets is to offer uniquely discounted plane tickets from, say, wholesalers or ethnic travel agencies and make them available, either through a members-only site or a similar model. Instead, this is just the same old Expedia.com inventory. Expedia Group ought to buy expertise at deeply discounted tickets, like either Mondee , OnVoya , Vayama , Getaroom , or even Fareportal given its CheapOair brand, and reconfigure CheapTickets. But expect Expedia Group to cheap out and do little except maybe tinker some more with the brand’s loyalty program.

CarRentals.com and Cardelmar Expedia Group Take: “Part of the Hotwire Group, CarRentals.com is the premier car rental booking brand online. It offers advanced, easy-to-use technologies to consumers and select vendor partners alike via localized sites in four countries.”

Skift Take: While rival Booking Holdings has been pouring money into its consumer-facing Rentalcars brand, its related Rentalcars Connect business-to-business unit, and its affiliate or reseller business, Expedia has been letting CarRentals.com drive on autopilot, comparatively speaking, by relying on the popularity of its German and Dutch sister brand Cardelmar .

AirAsiaGo Expedia Group Take: “AirAsiaGo is one of the fastest-growing online travel portals in Asia, offering travelers an extensive selection of hotels, activities, and travel services. The AirAsiaGo brand is managed by AirAsiaExpedia, a joint venture company that Expedia Group owns 75 percent of.”

Skift Take: Think of this as Expedia white-labeled for the airline AirAsia. You would think Expedia Group would want to tout a collaboration like this with a supplier. Doesn’t it want to encourage more airlines and hotel chains to outsource their technology needs to it?

Agent-Heavy Businesses

Egencia Expedia Group Take: “Relying on timely, data-driven insights from travel management company Egencia, businesses stay one step ahead by making business travel choices that align with traveler preference and corporate policy. Egencias consultants are ready to assist with every step small, mid-cap and multi-national companies in more than 65 countries.”

Skift Take: An under-appreciated star brand in the Expedia Group constellation is its business travel division, Egencia. The unit became the world’s fourth-largest travel management company by being more sophisticated than legacy players at wringing inefficiencies out of processes. But Egencia’s brand suffers, in the eyes of some corporate travel managers, for not being seen as sufficiently high-touch. Adding money and sophistication to its niche business-to-business marketing effort could yield outsized returns in helping Egencia to secure more global corporate accounts. Expect acquisitions, too .

Expedia CruiseShipCenters Expedia Group Take: “Founded in 1987, Expedia CruiseShipCenters is North America’s leading cruise specialist, providing a full range of travel products through its network of 250 independently owned, retail travel franchises and 5,000 vacation consultants. The brand has been recognized as a top seller in North America with every major cruise line.”

Skift Take: We’re not all that impressed with the Expedia CruiseShipCenters website. There’s no mobile app. Consumers don’t book instantly but they request a quote instead. That may be fairly typical for cruise bookings online but is hardly in keeping with the larger Expedia brand and is hardly competitive with smaller players Dreamlines  and CruiseCompete . The name recognition helps, but overall it feels a little uninspiring.

Expedia Local Expert Expedia Group Take: “A leading provider of activities and destination experiences, Expedia Local Expert offers expertise and assistance in booking events, activities, tours, attractions, ground transportation, and other services.”

Skift Take: If you visit many popular vacation destinations, such as Hawaii’s main cities, it’s hard to miss the kiosks and concierge stands where Expedia Local Expert staff sell tours and activities in more than 100 hotels and other retail locations — plus online bookings in more than 1,000 locales worldwide. Yet startups like Klook and GetYourGuide and competitors like TripAdvisor and Booking Holdings are investing heavily in online bookings. Expedia Group is overdue to buy a company with content or operator connections to help speed things up.

Classic Vacations Expedia Group Take: “A premier provider of vacations for discerning travelers, Classic Vacations offers a full line of luxury accommodations, ground transportation, car rentals, unique tours and excursions, and all classes of air service to top destinations and experiences. Classic Vacations is the number-one-rated luxury vacation company by travel advisors.”

Skift Take: Classic Vacations, a tour operator, sells travel in partnership with agencies. There may be no sector that is as much of a relationship business as the one Classic Vacations plays in, but its long-standing leaders may need to consider a refresh for the 40-year-old brand.

Industry Services

Expedia Group Media Solutions Expedia Group Take: “Expedia Group Media Solutions the advertising arm of Expedia Group, offers industry expertise and digital marketing solutions that allow brands to reach, engage and influence its qualified audience of travelers around the world. The unit provides data-driven insights about traveler behaviors, along with dynamic advertising solutions, to deliver strategic campaigns and measurable results.”

Skift Take: An often-overlooked gem is Expedia’s compact but zippily growing ad agency arm. We estimate the unit generated more than $300 million in revenue for the company in 2017, though the division doesn’t break out its numbers. Expedia Group Media Solutions has the ingredients that could turn it into a superstar brand. It leads the market by a wide margin in being a travel-focused ad agency that can help clients — such as hotels, tourism boards, and credit card issuers — create and test ad campaigns by analyzing volume changes at Expedia-owned brands.

Expedia Affiliate Network (EAN) Expedia Group Take: “Expedia Affiliate Network (EAN) powers the hotel business of hundreds of leading airlines, travel agencies, loyalty, and corporate travel companies plus several top consumer brands.”

Skift Take: Of the handful of travel affiliate , or commission-based reseller programs out there, the Expedia Affiliate Network is the most pervasive brand. We suspect it’s the among the world’s fastest-growing private label travel affiliate networks. Props to its marketers, who are successfully signing up airlines, travel agencies, and other companies. The company has cleverly led with content marketing that tries to educate resellers on how to build their brands rather than only talk up its technological investment , breadth of inventory, and customer-focused flexibility in commercial arrangements — which are also impressive.

Traveldoo Expedia Group Take: “Traveldoo solutions simplify travel booking and expense reporting, help optimize travel spend and expense management processes, and improve risk and crisis management for more than 4,500 customers worldwide in 65 countries.”

Skift Take:  At careers portal LifeAtExpedia.com , Traveldoo is one of five brands that were shortlisted on the main page at publication time, when the brand had a half-dozen positions open. Expect to see more growth here.

SilverRail Technologies Expedia Group Take: “SilverRail Technology is built for rail, uniting the ecosystem of rail carriers and travel distributors around the world’s most comprehensive search and booking platform for rail content. It helps with journey planning, inventory management, scheduling, pricing, booking, payment, ticketing, reporting, and administration.”

Skift Take: Looking for help with their sales and distribution services, European rail companies have turned to outside vendors , such as Amadeus, IBM, Siemens, HaCon, Accesrail, Sqills, and Expedia Group’s SilverRail. While the sector’s sales cycle is an extended one, SilverRail has an opportunity to build a high-margin business and become one of the world’s most-used global sales and distribution systems for rail. A big marketing challenge has been for SilverRail to make itself an appealing place for star technical talent to work. It appears to gone some way toward doing this , having recently been ranked by employee review site GlassDoor as a best place to work.

Alice Expedia Group Take: “Alice is a hotel operations platform that improves staff communication, task management, and guest satisfaction.”

Skift Take: Two years ago, this 110-employee services company settled on a marketing message that has since clicked with brands like Viceroy and Nordic Choice Hotels. Rather than being a grab bag of software to replace old-school tools like walkie-talkies and pagers, it now presents itself as a suite of tools that promise to play nicely with a hotel’s other software and processes and that can be purchased a la carte or as a bundle. Smartly done, and its business-to-business marketing skill should be a lesson to other Expedia Group units.

Expedia Group Lodging Partner Services Expedia Group Take: “Expedia Group Lodging Partner Services helps drive incremental demand and direct bookings to lodging suppliers by providing the opportunity to reach a highly valuable audience of travel consumers.”

Skift Take: They should just rename this Expedia for Properties.

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Tags: brands explained , egencia , expedia , homeaway , hotels.com , hotwire

Photo credit: We show how Expedia Group has positioned each of its brands based on edited company statements. Then we share our Skift Take on how these brands truly operate and fit into the online universe. Expedia Group

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• Small Business

Online Travel Agencies Face a Virtual World of Tax Obligations

In the United States alone, there are thousands of locally administered accommodations taxes. According to the State Tax Research Institute, “state and local accommodations taxes exhibit even greater diversity.” 

Jul. 26, 2023

By  Gail Cole  

If you’re old enough to have secured lodging without the help of the internet, you understand how online travel agencies have revolutionized the hospitality industry. Online travel agencies give consumers greater choice and more control over bookings, and they help businesses connect with customers to fill vacancies. But for the online travel agencies themselves, this service comes at a cost: a virtual world of tax obligations. 

This post will answer the following five questions to help you navigate tax compliance for online travel agency transactions:

What is an online travel agency? And what isn’t?

How do online marketplace facilitator laws affect online travel agencies?

Who’s responsible for collecting sales tax for online travel agency transactions?

How does tax work for online travel agencies and marketplaces like Airbnb, Priceline, and Vrbo?

What are the tax compliance challenges for online travel agencies?

An online travel agency (OTA) is a web-based marketplace where consumers can research and book a variety of travel services, including, but not limited to, lodging. An online travel agency is  not  a metasite or similar platform that merely advertises for businesses without engaging directly or indirectly in transmitting communications and payments. Rather, an online travel agency provides a platform that allows multiple businesses to distribute accommodations and facilitate bookings.

Airbnb and Vrbo are also marketplaces but aren’t technically online travel agencies because they don’t provide the breadth of services offered by travel agencies online: cruises, flights, motor vehicles, etc. Nevertheless, we’re including them in this article because our focus is online lodging intermediaries and the tax challenges they face.

The relationship between an online travel agency and merchant can work in a couple of different ways: The online travel agency can be the merchant, or the hotel (or other lodging provider) can be the merchant. If the OTA is the merchant, consumers pay when they book; the rate type in this scenario is known as the prepay rate or merchant hotel rate. If the hotel is the merchant, consumers pay when they check in and the rate is known as the post-pay rate, agency rate, or hotel-collect rate. 

Identifying the merchant of record is a key factor because it determines who’s liable for what taxes. 

It’s also critical to determine whether an online travel agency or lodging platform is a “marketplace” for tax purposes. If you’re classified as a marketplace facilitator, you may be subject to marketplace facilitator laws and so may need to pay tax on the net rate as well as on your markup (or margin). If you’re not classified as a marketplace, for tax purposes, you may only need to pay taxes on your markup.

Lodging intermediaries are constantly evolving in response to changing consumer demand:  Couchsurfing  is a place to find “friends you haven’t met yet” who’ll let you crash at their place;

Hipcamp  is an online marketplace for “tent camping, RV parks, cabins, glamping, and more;” and the list goes on and on. “As the industry grows and evolves,” notes a 2022 State Tax Research Institute report, “ the tax issues become more prevalent. ” 

Some  marketplace facilitator laws  apply to certain online travel agencies or other lodging intermediaries. Some don’t. To understand why, it’s helpful to know the marketplace facilitator law origin story.

Marketplace facilitator laws were created to close a loophole. When states first required Amazon to collect and remit sales tax, Amazon dutifully did so. (Eventually.) But at first the online mega marketplace didn’t collect and remit sales tax on behalf of its third-party sellers, and it argued that it didn’t have to.  It wasn’t the merchant in third-party transactions , it reasoned; it was merely the facilitator. 

Amazon had a point, frustrating though that was for states. So, states developed marketplace facilitator laws that make online platforms the merchant for all transactions made through the platform. As the deemed seller the marketplace is responsible for collecting and remitting sales tax for third-party transactions as well as direct sales.

Because the initial focus of most marketplace facilitator laws was Amazon and similar marketplaces hawking things, most state marketplace facilitator laws didn’t reference online travel agencies. Gradually, that’s changing. 

Marketplace facilitator laws in some states now specify “marketplace” includes a lodging marketplace or online travel agency, and the lodging marketplace or online travel agency is responsible for collecting and remitting sales and/or lodging taxes on behalf of the lodging providers using the platform. As of October 1, 2022, for example,  Virginia requires online travel agencies to collect and remit applicable state and local taxes on room charges  and fees. In other words, the online travel agencies generally must withhold tax on the net as well as their margin. 

Conversely, marketplace facilitator laws in some states specify that online accommodations or lodging platforms are not marketplace facilitators and therefore aren’t liable for collecting and remitting taxes on the net amount. That’s the case in  Washington state . However, online travel agencies are usually still liable for tax on their markup. 

Regrettably, marketplace facilitator laws in some states don’t say one way or another. And sometimes tax requirements differ under different circumstances. 

In  Michigan , for example, an online travel agency generally isn’t required to collect and remit applicable accommodations taxes on the net rate so long as the accommodations provider itself is registered for Michigan sales tax. If the accommodations provider is not registered for sales and use tax in Michigan, as some short-term rental hosts are not, the  online travel agency that facilitates the sale generally is required to collect and remit the tax due  on the net rate. At a minimum, the OTA would generally need to pay the tax on their markup. 

In Kansas,  marketplace facilitators must collect and remit tax on third-party lodging  (on the net rate), but not the net rate for hotel accommodations. Again, such marketplace facilitators are typically liable for the tax on their markup.

It depends on the taxing jurisdiction, the law, and the tax itself as well as who is the merchant of record and whether a markup is added. 

Whenever multiple parties are involved in the sale or rental of accommodations, it can be difficult to determine which party is responsible for collecting and remitting the applicable taxes. “The online travel company or short-term rental marketplace is probably responsible for some of the taxes due,” explains Oliver Hoare, General Manager of Lodging and Beverage Alcohol at Avalara, “it just depends on how much. The margin only? Or the margin and the net?” 

The lack of clarity can lead to the undercollection or overcollection of tax.  

Marketplace facilitator laws may help, as noted above, but laws and tax obligations vary from state to state.  Indiana requires online travel agencies and other marketplace facilitators to collect and remit sales tax  and applicable county innkeeper’s tax on behalf of sellers (on the net and the margin). But in Washington, a  business providing online travel agency services for short-term lodging is not a marketplace facilitator  and therefore generally isn’t required to collect and remit lodging taxes on the net — only on the margin.

Marketplace facilitator laws aside, the most critical factor for tax liability purposes is identifying the merchant of record and whether they add a markup. “This is a vital point,” explains Hoare. 

Who’s the merchant of record? What’s the markup got to do with it?

The merchant of record is the entity responsible for processing payments and collecting, remitting, or paying some or all of the taxes due on a transaction. Depending on the nature of the agreement, this description could refer to the online travel agency, a third-party supplier, or the lodging provider itself.

For example, an OTA could pay a wholesale rate for supply obtained from  WebBeds  (or a similar wholesaler) and then add a markup to the final consumer price. In this case, the online travel agency is the merchant of record. At a minimum, it would have to collect and remit tax on the markup, as no one else knows how much the markup is. If the online travel agency is classified as a marketplace facilitator for tax purposes and processes payments on behalf of the lodging provider, it would also be responsible for withholding and remitting the tax due on the net rate.

(Some lodging providers want the online travel agency to process payments; others prefer customers to pay at check-in.)

In short, an online travel company considered a marketplace for tax purposes would likely be responsible for taxes on both the net rate (or wholesale rate) and its markup. If there’s no markup and the platform doesn’t process payments or meet the definition of a marketplace, it may not be liable for any transaction tax at all.

So, you see, it depends.

How do local occupancy taxes complicate compliance?

There’s another complicating factor, as well. Even if an online travel agency is responsible for some taxes, it may not be responsible for collecting and remitting  all  the taxes due on the accommodations they facilitate. 

Some states require online travel agencies to collect and remit state-level taxes on accommodations as well as any local taxes administered by the state taxing authority. However, online lodging marketplaces often aren’t required to collect and remit the local lodging taxes administered by city and/or county tax officials. In such situations, the lodging provider, host, or property manager is liable for the tax.

According to a 2022 survey by the National League of Cities, 82% of  cities surveyed require short-term rental hosts to remit taxes directly to the city . Only 5% of the survey respondents require the online platform to collect and remit local taxes on behalf of the hosts. 

As explained above, some states require online travel agencies and marketplaces like Airbnb, Expedia, and Vrbo to collect and remit at least a portion of the tax due (e.g., state-administered taxes), provided they meet the definition of a marketplace facilitator. Other states don’t — though OTAs and marketplaces are generally liable for any tax owed on their markup.

To simplify tax compliance for lodging providers that use the platform, a short-term rental marketplace not required to collect may agree to  voluntarily  collect certain lodging taxes for hosts through a voluntary collection agreement (VCA). 

For example, a short-term rental marketplace like Airbnb or Vrbo may agree to voluntarily collect and remit applicable state taxes but not applicable county or city taxes. Or the marketplace may agree to collect state and county taxes but not city taxes. It depends on the marketplace and the agreement made.

Short-term rental marketplaces usually let hosts know they collect a portion of the tax due on their behalf and that the hosts could have additional tax obligations. However, they ordinarily don’t specify what those tax obligations are (e.g., city tax or county tax or both), and it would be unwise for them to do so. After all, they’re not tax advisors.

So, what do they say?

Airbnb calculates, collects, and remits taxes  in areas where it has “made agreements with governments or is required by law to collect and remit local taxes on behalf of hosts.” But it doesn’t necessarily collect all taxes and so cautions, “As a host, depending on your location,  you may be required to collect local tax … from your guests .”

Vrbo collects and remits lodging tax  on behalf of hosts  where required  and notifies hosts when it starts to collect and remit lodging tax in their area. “ Property owners and managers are responsible for understanding and complying with the laws and regulations  applicable to their property listing,” Vrbo reminds. “You’re also responsible for collecting and remitting lodging taxes when we’re not liable to do so.”   

Unfortunately, hosts that don’t read the fine print may think they’re off the hook for all taxes. 

To summarize, an online travel agency or short-term rental marketplace may be required to collect some or all lodging taxes in one jurisdiction but have no obligation to collect and remit taxes in another jurisdiction. It may opt to collect some occupancy taxes voluntarily, or not. If it does collect some taxes for hotels or hosts, voluntarily or because it must, it may not collect all applicable taxes. 

Tax tends to be a true pain point for online travel agencies and short-term rental marketplaces, which typically have a large footprint. As they facilitate bookings for hotels or hosts across the country, continent, or whole wide world, they must navigate a world of tax requirements.

In the United States alone,  there are thousands of locally administered accommodations taxes . According to the State Tax Research Institute, “state and local accommodations taxes exhibit even greater diversity.” 

States typically take one of five different approaches to taxing accommodations , ranging from a single statewide rate (with no additional local taxes) to three separate taxes: state sales tax, state accommodations tax, and local accommodations tax.  

Given that, tax pain points for online travel agencies include:

• Finding all relevant tax information (it’s often harder than it should be)
• Registering for all required taxes with all required entities
• Interacting with each individual locality 
• Navigating a lack of uniformity among locally administered taxes within one state
• Correctly sourcing the transaction to ensure the proper taxes are applied at the proper rates (and ensuring transactions that should be exempt are exempt)
• Correctly identifying when tax applies to fees 
• Filing a massive number of local returns and remitting local taxes (on top of filing state returns and remitting state-administered taxes) 
• Dealing with compliance and enforcement

“Basically, you have to pay the right people in the right way at the right cadence in the right format,” says Hoare. Fortunately, you can  automate the calculation, collection, and remittance of hospitality-related taxes .

The risks of noncompliance are real. In 2015, the Hawaii Supreme Court ruled that nine  online travel companies owed up to tens of millions of dollars in back taxes  to the state for selling Hawaii hotel rooms over the internet. The same year,  online travel agencies had to pay the District of Columbia more than  $60 million in unpaid sales tax. The laws in both cases predated the existence of online travel agencies, but the courts determined they fit the definition of a vendor responsible for collecting and remitting the tax due.

State and local governments are gradually clarifying the tax requirements of online travel agencies, but they’re not necessarily making it easier for the online marketplaces to comply with them.  

Gail Cole is a Senior Writer at Avalara . She’s on a mission to uncover unusual tax facts and make complex laws and legislation more digestible for accounting and business professionals.

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Biden-Harris Administration Announces Final Rule Requiring Automatic Refunds of Airline Tickets and Ancillary Service Fees

Rule makes it easy to get money back for cancelled or significantly changed flights, significantly delayed checked bags, and additional services not provided  

WASHINGTON – The Biden-Harris Administration today announced that the U.S. Department of Transportation (DOT) has issued a final rule that requires airlines to promptly provide passengers with automatic cash refunds when owed. The new rule makes it easy for passengers to obtain refunds when airlines cancel or significantly change their flights, significantly delay their checked bags, or fail to provide the extra services they purchased.

“Passengers deserve to get their money back when an airline owes them - without headaches or haggling,” said U.S. Transportation Secretary Pete Buttigieg . “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”  

The final rule creates certainty for consumers by defining the specific circumstances in which airlines must provide refunds. Prior to this rule, airlines were permitted to set their own standards for what kind of flight changes warranted a refund. As a result, refund policies differed from airline to airline, which made it difficult for passengers to know or assert their refund rights. DOT also received complaints of some airlines revising and applying less consumer-friendly refund policies during spikes in flight cancellations and changes. 

Under the rule, passengers are entitled to a refund for:

• Canceled or significantly changed flights: Passengers will be entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered. For the first time, the rule defines “significant change.” Significant changes to a flight include departure or arrival times that are more than 3 hours domestically and 6 hours internationally; departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.  
• Significantly delayed baggage return: Passengers who file a mishandled baggage report will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.  
• Extra services not provided: Passengers will be entitled to a refund for the fee they paid for an extra service — such as Wi-Fi, seat selection, or inflight entertainment — if an airline fails to provide this service.

DOT’s final rule also makes it simple and straightforward for passengers to receive the money they are owed. Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund — searching through airline websites to figure out how make the request, filling out extra “digital paperwork,” or at times waiting for hours on the phone. In addition, passengers would receive a travel credit or voucher by default from some airlines instead of getting their money back, so they could not use their refund to rebook on another airline when their flight was changed or cancelled without navigating a cumbersome request process.  

The final rule improves the passenger experience by requiring refunds to be:

• Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.   
• Prompt: Airlines and ticket agents must issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.  
• Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.    
• Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.

The final rule also requires airlines to provide prompt notifications to consumers affected by a cancelled or significantly changed flight of their right to a refund of the ticket and extra service fees, as well as any related policies.

In addition, in instances where consumers are restricted by a government or advised by a medical professional not to travel to, from, or within the United States due to a serious communicable disease, the final rule requires that airlines must provide travel credits or vouchers. Consumers may be required to provide documentary evidence to support their request. Travel vouchers or credits provided by airlines must be transferrable and valid for at least five years from the date of issuance.

The Department received a significant number of complaints against airlines and ticket agents for refusing to provide a refund or for delaying processing of refunds during and after the COVID-19 pandemic. At the height of the pandemic in 2020, refund complaints peaked at 87 percent of all air travel service complaints received by DOT. Refund problems continue to make up a substantial share of the complaints that DOT receives.

DOT’s Historic Record of Consumer Protection Under the Biden-Harris Administration

Under the Biden-Harris Administration and Secretary Buttigieg, DOT has advanced the largest expansion of airline passenger rights, issued the biggest fines against airlines for failing consumers, and returned more money to passengers in refunds and reimbursements than ever before in the Department’s history.

• Thanks to pressure from Secretary Buttigieg and DOT’s flightrights.gov dashboard, all 10 major U.S. airlines guarantee free rebooking and meals, and nine guarantee hotel accommodations when an airline issue causes a significant delay or cancellation. These are new commitments the airlines added to their customer service plans that DOT can legally ensure they adhere to and are displayed on flightrights.gov .  
• Since President Biden took office, DOT has helped return more than $3 billion in refunds and reimbursements owed to airline passengers – including over $600 million to passengers affected by the Southwest Airlines holiday meltdown in 2022.   
• Under Secretary Buttigieg, DOT has issued over $164 million in penalties against airlines for consumer protection violations. Between 1996 and 2020, DOT collectively issued less than $71 million in penalties against airlines for consumer protection violations.  
• DOT recently launched a new partnership with a bipartisan group of state attorneys general to fast-track the review of consumer complaints, hold airlines accountable, and protect the rights of the traveling public.  
• In 2023, the flight cancellation rate in the U.S. was a record low at under 1.2% — the lowest rate of flight cancellations in over 10 years despite a record amount of air travel.  
• DOT is undertaking its first ever industry-wide review of airline privacy practices and its first review of airline loyalty programs.

In addition to finalizing the rules to require automatic refunds and protect against surprise fees, DOT is also pursuing rulemakings that would:

• Propose to ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. Before President Biden and Secretary Buttigieg pressed airlines last year, no airline committed to guaranteeing fee-free family seating. Now, four airlines guarantee fee-free family seating, and the Department is working on its family seating junk fee ban proposal.  
• Propose to make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations.   
• Expand the rights for passengers who use wheelchairs and ensure that they can travel safely and with dignity . The comment period on this proposed rule closes on May 13, 2024.

The final rule on refunds can be found at https://www.transportation.gov/airconsumer/latest-news and at regulations.gov , docket number DOT-OST-2022-0089. There are different implementation periods in this final rule ranging from six months for airlines to provide automatic refunds when owed to 12 months for airlines to provide transferable travel vouchers or credits when consumers are unable to travel for reasons related to a serious communicable disease. 

Information about airline passenger rights, as well as DOT’s rules, guidance and orders, can be found at   https://www.transportation.gov/airconsumer .

Travel | Travel Troubleshooter: Expedia said it would…

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Travel | orange deputies arrest ‘potential serial killer’ in slayings of two women, things to do, travel | travel troubleshooter: expedia said it would refund my tickets four years ago. help.

DEAR TRAVEL TROUBLESHOOTER: I need help getting a refund from Expedia. I booked two round-trip Air Transat tickets from Toronto to Paris through Expedia back in 2020. I had to cancel the flights, and under the refund rules during the pandemic, Expedia said I could get my money back. Expedia said it would process the refund in a matter of weeks.

I waited a few months, but the refund never showed up on my credit card. I contacted Expedia in early 2022, and they told me to contact Air Transat for my refund. I did, and an Air Transat representative said the airline had already sent my refund to Expedia.

I’ve contacted both Expedia and Air Transat on numerous occasions since then, and I’ve also asked my credit card company for help. It says that there’s no record of a refund from Expedia or Air Transat.I would love to get my refund. Can you help me?

— Keith Dawe, Toronto

ANSWER: Expedia should have refunded your money four years ago. I believe this is a new record for the longest airline refund case. (Congratulations, Expedia!)

Air Transat is a relatively small charter airline, so that might explain the initial delay. But at some point, Expedia should have taken ownership of this problem and helped you get a refund. Instead, it looks as if you bounced between Expedia, Air Transat and your credit card company for years. Literally, years. You must be exhausted.

What happened? It looks as if Air Transat refunded part of your purchase with a check, which appears to only cover taxes and fees. This left an outstanding balance of about $1,002. Air Transat claims it sent the money to Expedia, but Expedia said it never received the money.

Here’s the thing: When you buy an airline ticket through an online travel agency, it is responsible for the refund. It doesn’t matter if the airline refunds it or not. So, if Expedia says that you’re entitled to a refund, and it promises to process a refund in a few weeks, it’s on Expedia.

You were way too patient with your airline and online agency. You should have received the promised refund promptly, and if you didn’t, you should have filed a credit card dispute to recover your funds.

I list the names, numbers and email addresses of the Expedia executives on my consumer advocacy site, Elliott.org . A brief but firm email to one of them might have motivated Expedia to find your missing money.

I contacted Expedia on your behalf. In response, the company apologized and admitted that there was “an error with the refund.””The refund has been processed,” a representative said. Expedia also added $200 worth of points to your loyalty account as an apology for the delay.

Christopher Elliott is the founder of Elliott Advocacy , a nonprofit organization that helps consumers solve their problems. Email him at [email protected] or get help by contacting him at elliottadvocacy.org/help/ . (c) 2024 Christopher Elliott Distributed by King Features Syndicate, Inc.

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NASA’s Voyager 1 Resumes Sending Engineering Updates to Earth

NASA’s Voyager 1 spacecraft is depicted in this artist’s concept traveling through interstellar space, or the space between stars, which it entered in 2012.

After some inventive sleuthing, the mission team can — for the first time in five months — check the health and status of the most distant human-made object in existence.

For the first time since November , NASA’s Voyager 1 spacecraft is returning usable data about the health and status of its onboard engineering systems. The next step is to enable the spacecraft to begin returning science data again. The probe and its twin, Voyager 2, are the only spacecraft to ever fly in interstellar space (the space between stars).

Voyager 1 stopped sending readable science and engineering data back to Earth on Nov. 14, 2023, even though mission controllers could tell the spacecraft was still receiving their commands and otherwise operating normally. In March, the Voyager engineering team at NASA’s Jet Propulsion Laboratory in Southern California confirmed that the issue was tied to one of the spacecraft’s three onboard computers, called the flight data subsystem (FDS). The FDS is responsible for packaging the science and engineering data before it’s sent to Earth.

After receiving data about the health and status of Voyager 1 for the first time in five months, members of the Voyager flight team celebrate in a conference room at NASA’s Jet Propulsion Laboratory on April 20.

The team discovered that a single chip responsible for storing a portion of the FDS memory — including some of the FDS computer’s software code — isn’t working. The loss of that code rendered the science and engineering data unusable. Unable to repair the chip, the team decided to place the affected code elsewhere in the FDS memory. But no single location is large enough to hold the section of code in its entirety.

So they devised a plan to divide the affected code into sections and store those sections in different places in the FDS. To make this plan work, they also needed to adjust those code sections to ensure, for example, that they all still function as a whole. Any references to the location of that code in other parts of the FDS memory needed to be updated as well.

The team started by singling out the code responsible for packaging the spacecraft’s engineering data. They sent it to its new location in the FDS memory on April 18. A radio signal takes about 22 ½ hours to reach Voyager 1, which is over 15 billion miles (24 billion kilometers) from Earth, and another 22 ½ hours for a signal to come back to Earth. When the mission flight team heard back from the spacecraft on April 20, they saw that the modification worked: For the first time in five months, they have been able to check the health and status of the spacecraft.

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During the coming weeks, the team will relocate and adjust the other affected portions of the FDS software. These include the portions that will start returning science data.

Voyager 2 continues to operate normally. Launched over 46 years ago , the twin Voyager spacecraft are the longest-running and most distant spacecraft in history. Before the start of their interstellar exploration, both probes flew by Saturn and Jupiter, and Voyager 2 flew by Uranus and Neptune.

Caltech in Pasadena, California, manages JPL for NASA.

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Calla Cofield

Jet Propulsion Laboratory, Pasadena, Calif.

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