By Peter Allen
Online travel agencies, or OTAs, have transformed travel. They offer major advantages for customers, property owners or managers, and even national economies, because they boost tourism, a major driver of the economy.
For customers, OTAs and smartphones are an unbeatable combination: customers now have the world at their fingertips. Within minutes, travelers can find and book places to stay almost anywhere.
OTAs deliver five clear benefits to travelers: choice, service, convenience, security, and trust. OTAs give consumers choices they have never had before. They can find a place to stay, small or large, from no-star to five-star, at traditional hotels or private homes, at virtually any destination in any country, sorting by cost, location, star rating, or trusted customer reviews. Customers can book on the spot, with confidence that global OTAs adhere to the highest standards for payment and data security.
Travelers around the world value good prices. Korean travelers are no exception: in a recent Gallup survey commissioned by Agoda, 89 percent of Korean consumers considered price discounts important when choosing accommodation online.
Worldwide, variable rates based on booking cancellation flexibility ensures travelers with fixed plans will benefit from the lowest prices. The survey also found more experienced Korean travelers were open to non-refundable bookings to secure better prices, valuing price and choice just like travelers around the world do.
Local hotels and home hosts also benefit from the OTA marketplace, helping to reach customers coming from anywhere, price to benefit from or stimulate demand, market their properties in dozens of languages, and accept payments in ways previously unimaginable.
With good ratings, even owners of minbak (small family-run establishments) in the Korean countryside can attract international customers just as successfully as big five-star hotels because OTAs support them with information, multi-language support, and secure, international payment options.
Countries and cities benefit too. Most destinations are looking for new visitors, especially smaller cities and places off the well-beaten path. These destinations typically have not been on the itineraries for large group travel and may not accommodate tour buses, but are ideal for independent travelers seeking unique local experiences. OTAs help these destinations find the travelers who are looking for them, matching supply with demand and marketing to everybody, anywhere.
Communities also gain because travel is one of the world's great economic growth engines. There were more than 1.2 billion international travelers in 2016, and this number will reach 1.8 billion by 2030 (World Economic Forum). The travel industry contributed $7.6 trillion to the global economy in 2016.
As billions of people travel internationally, the money they spend contributes to a vibrant chain of economic activity that supports local businesses and creates millions of jobs.
The World Economic Forum calls Asia "the future of travel." Six of the world's top ten cities for international visitors are Asian, and the Asian travel market has more total gross bookings than either Europe or the U.S.
In South Korea, tourism contributed to creating 1.53 million jobs (5.8 percent of the total labor force) in 2016. By 2027, this will grow by 6.5 percent to 1.71 million jobs, according to the World Travel and Tourism Council. These numbers show that partners, regulators, and OTAs must work together to promote pro-growth travel policies to strengthen tourism and related industries.
OTAs are a critical force in this rapidly expanding market. They are highly effective marketers that help economies thrive by bringing tourists from around the world.
As technology companies, OTAs stimulate entrepreneurship, talent development, and employment, bring high levels of tourism revenue, and create millions of jobs. In short, they are engines of growth that provide consumers with the power of choice as they travel the world.
Peter L. Allen (peter.allen@agoda.com) is the managing director of Agoda Outside, the public affairs division of Agoda, an Asia-based subsidiary of Booking Holdings, the world's leader in online travel.
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For customers, OTAs and smartphones are an unbeatable combination: customers now have the world at their fingertips. Within minutes, travelers can find and book places to stay almost anywhere.
OTAs deliver five clear benefits to travelers: choice, service, convenience, security, and trust. OTAs give consumers choices they have never had before. They can find a place to stay, small or large, from no-star to five-star, at traditional hotels or private homes, at virtually any destination in any country, sorting by cost, location, star rating, or trusted customer reviews. Customers can book on the spot, with confidence that global OTAs adhere to the highest standards for payment and data security.
Travelers around the world value good prices. Korean travelers are no exception: in a recent Gallup survey commissioned by Agoda, 89 percent of Korean consumers considered price discounts important when choosing accommodation online.
Worldwide, variable rates based on booking cancellation flexibility ensures travelers with fixed plans will benefit from the lowest prices. The survey also found more experienced Korean travelers were open to non-refundable bookings to secure better prices, valuing price and choice just like travelers around the world do.
Local hotels and home hosts also benefit from the OTA marketplace, helping to reach customers coming from anywhere, price to benefit from or stimulate demand, market their properties in dozens of languages, and accept payments in ways previously unimaginable.
With good ratings, even owners of minbak (small family-run establishments) in the Korean countryside can attract international customers just as successfully as big five-star hotels because OTAs support them with information, multi-language support, and secure, international payment options.
Countries and cities benefit too. Most destinations are looking for new visitors, especially smaller cities and places off the well-beaten path. These destinations typically have not been on the itineraries for large group travel and may not accommodate tour buses, but are ideal for independent travelers seeking unique local experiences. OTAs help these destinations find the travelers who are looking for them, matching supply with demand and marketing to everybody, anywhere.
Communities also gain because travel is one of the world's great economic growth engines. There were more than 1.2 billion international travelers in 2016, and this number will reach 1.8 billion by 2030 (World Economic Forum). The travel industry contributed $7.6 trillion to the global economy in 2016.
As billions of people travel internationally, the money they spend contributes to a vibrant chain of economic activity that supports local businesses and creates millions of jobs.
The World Economic Forum calls Asia "the future of travel." Six of the world's top ten cities for international visitors are Asian, and the Asian travel market has more total gross bookings than either Europe or the U.S.
In South Korea, tourism contributed to creating 1.53 million jobs (5.8 percent of the total labor force) in 2016. By 2027, this will grow by 6.5 percent to 1.71 million jobs, according to the World Travel and Tourism Council. These numbers show that partners, regulators, and OTAs must work together to promote pro-growth travel policies to strengthen tourism and related industries.
OTAs are a critical force in this rapidly expanding market. They are highly effective marketers that help economies thrive by bringing tourists from around the world.
As technology companies, OTAs stimulate entrepreneurship, talent development, and employment, bring high levels of tourism revenue, and create millions of jobs. In short, they are engines of growth that provide consumers with the power of choice as they travel the world.
Peter L. Allen (peter.allen@agoda.com) is the managing director of Agoda Outside, the public affairs division of Agoda, an Asia-based subsidiary of Booking Holdings, the world's leader in online travel.
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