What it means
An OTA is an online travel agency where travelers search for and book accommodation. Teams also use the broader term sales channel for different distribution models. The channel, PMS and payment processor have different roles even when they exchange data.
Why it matters
Each relationship can have its own commission, collection, cancellation and messaging rules. Understanding these helps the team answer guests correctly and compare booking outcomes. Gross booking value alone does not explain how much cash arrives or how much work a booking requires.
An example in practice
Two channels each generate a COP 1,000,000 reservation. In a simplified example, one deducts COP 150,000 and the other COP 100,000 before transferring funds. The resulting amounts differ despite equal accommodation sales. These are illustrative amounts, not a provider fee schedule.
A mistake to avoid
Comparing channels only by booking volume misses stay length, cancellations, discounts, costs and payment timing. Promising a refund without checking who collected payment and which policy applies is another common mistake.
Put it into practice
- Document who collects, who invoices each charge and who transfers funds.
- Retain the channel reference alongside the internal reservation ID.
- Compare revenue, costs and behavior for equivalent bookings.
A common question
Is a direct booking an OTA booking?
No. A direct booking comes through your own routes, such as your website or a conversation. It can still involve advertising, booking-engine, processing and service costs. Direct does not mean cost-free.