The History of OTAs in The UK

Booking.com

What is Booking.com?

Booking.com is one of the world’s leading OTAs, offering a platform where users can book accommodation, flights, car rentals, airport taxis, and travel experiences. Best known for its wide range of hotel listings, Booking.com has become a go-to for both leisure and business travellers looking to compare options and book with total flexibility.

When was Booking.com created?

Booking.com was founded in the Netherlands in 1996. It began as a small Dutch startup and quickly grew into a dominant player in the online travel market, particularly after being acquired by the U.S.-based Priceline Group (now Booking Holdings) in 2005.

When did Booking.com come to the UK?

Booking.com entered the UK market in the early 2000s, ramping up its presence significantly after the Priceline acquisition. Its growth was driven by aggressive expansion, a strong digital marketing strategy, and a user-friendly interface tailored for multiple languages and currencies, including GBP.

How did Booking.com gain popularity in the UK?

Booking.com became popular in the UK by focusing on several key areas:

• Massive inventory: It offered a large and growing number of UK hotels, B&Bs, and alternative accommodations.
• Free cancellation policies: This flexibility was attractive to British travellers.
• Heavy advertising: Both online and offline campaigns made Booking.com a household name.
• SEO and PPC dominance: The platform invested early in Google Ads and organic search optimisation, capturing a huge share of online travel queries in the UK, which has benefited them in the long term.

What percentage of market share do Booking.com have?

Booking.com is estimated to hold 45-50% of the OTA market share in the UK, making it the dominant player in the British market. Their visibility and brand recognition continue to outpace competitors across both leisure and business travel sectors.

What commission do Booking.com charge hotels in the UK on average?

Commission rates typically range from 15% to 18% for UK hotels, depending on the property’s location, agreement type, and whether they opt into additional visibility-boosting programs such as Preferred Partner or Genius. Some properties may pay even higher rates if they participate in these schemes.

Hotels.com

What is Hotels.com?

Hotels.com is an online accommodation booking platform that allows users to search and reserve a wide range of lodging options, from hotels and resorts to serviced apartments and boutique stays. It is known for its Hotels.com Rewards loyalty programme, which offers users a free night for every 10 nights booked through the site.

When was Hotels.com created?

Hotels.com was originally established in 1991 under the name Hotel Reservations Network (HRN) in the United States. It was later rebranded to Hotels.com in 2002 after being acquired by the Expedia Group.

When did Hotels.com come to the UK?

Hotels.com entered the UK market in the early 2000s, following its rebranding and global expansion push under Expedia Group. The brand quickly developed localised websites, pricing in GBP, and customer service tailored for the UK audience.

How did Hotels.com gain popularity in the UK?

Hotels.com gained traction in the UK through a combination of factors:

• Strong brand recognition under the Expedia umbrella.
• Aggressive advertising, especially TV and digital ads, promotes their loyalty programme.
• User-friendly interface and clear pricing, appealing to UK consumers.
• The Hotels.com Rewards scheme was a major selling point, particularly for frequent travellers who appreciated the simplicity of earning free nights rather than other convoluted benefits.

What percentage of market share do Hotels.com have?

Hotels.com is estimated to hold around 10-15% of the UK OTA market share. While smaller than Booking.com, it remains a significant player, particularly for customers seeking loyalty rewards and frequent discounts.

What commission do Hotels.com charge hotels in the UK on average?

On average, Hotels.com charges 15% to 18% commission on bookings made through the platform. Rates can vary based on property type, location, and whether hotels participate in additional promotional programmes within the Expedia Group ecosystem.

Expedia

What is Expedia?

Expedia is a major global online travel agency (OTA) offering booking services for flights, hotels, holiday packages, car rentals, cruises, and experiences. It operates under the Expedia Group, which also owns other travel brands including Hotels.com, Vrbo, and Orbitz. Expedia is particularly popular among both leisure and business travellers for its package deals and wide travel inventory.

When was Expedia created?

Expedia was founded in 1996 as a division of Microsoft before being spun off and eventually becoming one of the largest travel companies in the world. It became publicly traded in 1999 and later grew through a series of acquisitions.

When did Expedia come to the UK?

Expedia entered the UK market in the early 2000s, expanding its operations globally with a strong European presence. It launched a dedicated UK website, priced in GBP, and built relationships with local hotel partners.

How did Expedia gain popularity in the UK?

Expedia gained momentum in the UK through:

• Offering competitive package deals that bundle flights and hotels, often at discounted rates.
• A trusted brand presence driven by global advertising and partnerships.
• Wide selection of travel services on one platform.
• Integration with loyalty schemes like Expedia Rewards, which attracted repeat travellers.

What percentage of market share do Expedia have?

Expedia holds approximately 10-15% of the UK OTA market share, placing it behind Booking.com but still firmly among the top players. Its broader network and cross-brand loyalty programme certainly add to its influence in the UK.

What commission do Expedia charge hotels in the UK on average?

Expedia typically charges UK hotels 15% to 20% commission, depending on the property type, location, and participation in promotional programmes such as Expedia TravelAds or visibility boosters. Rates can be negotiated for larger or high-volume hotel partners.

Agoda

What is Agoda?

Agoda is a global OTA that specialises in hotel and accommodation bookings, with additional offerings in flights and airport transfers. Known for its strong presence in Asia, Agoda is a subsidiary of Booking Holdings, the same parent company as Booking.com. The platform is particularly popular for its "secret deals", discounted rates, and multi-currency support.

When was Agoda created?

Agoda was founded in 2005 in Thailand and Singapore, focusing primarily on the Asian market before expanding globally. It was acquired by Booking Holdings in 2007, fuelling its international growth.

When did Agoda come to the UK?

Agoda began targeting the UK market in the mid-2010s, expanding its marketing efforts, introducing GBP pricing, and increasing its European accommodation offerings. Its UK presence has steadily grown, particularly among price-sensitive travellers and those booking international trips.

How did Agoda gain popularity in the UK?

Agoda gained popularity in the UK by:

• Offering competitive prices, especially for international and long-haul travel.
• Promoting "insider deals" and flash sales not found on other platforms.
• Appealing to tech-savvy and budget-conscious travellers through its mobile app.
• Expanding inventory to include a wide range of European and UK properties, often at lower prices than competitors.

What percentage of market share do Agoda have?

Agoda holds an estimated 5-7% of the UK OTA market, with a larger share in outbound international bookings than domestic stays. While still behind giants like Booking.com and Expedia, its presence is growing, particularly among younger and price-driven travellers.

What commission do Agoda charge hotels in the UK on average?

Agoda typically charges 15% to 20% commission for hotels in the UK, although rates can vary depending on property size, volume of bookings, and whether the hotel participates in additional promotions or marketing programmes through Agoda’s partner tools.

TripAdvisor

What is TripAdvisor?

TripAdvisor is a globally recognised travel platform that provides user-generated reviews, photos, and ratings for hotels, restaurants, attractions, and travel experiences. While it started as a review site, it has evolved into a meta-search and booking platform, allowing users to compare prices and book hotels, tours, and other services directly or via partners.

When was TripAdvisor created?

TripAdvisor was founded in 2000 in the United States as a travel advice and review platform. It has since grown into one of the most influential platforms in the travel industry.

When did TripAdvisor come to the UK?

TripAdvisor entered the UK market in the early 2000s, expanding rapidly thanks to the global growth of internet travel research and its partnerships with major OTAs. It launched UK-specific versions of its site, complete with GBP pricing and regional content.

How did TripAdvisor gain popularity in the UK?

TripAdvisor became popular in the UK by:

• Becoming the go-to source for travel reviews, helping users make informed decisions based on other travellers’ experiences.
• Offering meta-search tools that allowed travellers to compare hotel prices across platforms like Booking.com, Expedia, and Hotels.com.
• Ranking highly in Google search results for hotel and destination-related queries.
• Launching the Travellers’ Choice Awards, which gained strong media coverage and increased consumer trust.

What percentage of market share do TripAdvisor have?

While TripAdvisor is not a traditional OTA, it plays a key role in the travel discovery and decision making process, influencing a significant portion of bookings that occur on partner OTAs. It’s estimated to influence over 10% of hotel bookings in the UK through its referral and meta-search system, although it holds a smaller direct booking share.

What commission do TripAdvisor charge hotels in the UK on average?

TripAdvisor offers TripConnect and Sponsored Placements for hotels to increase visibility. Commission varies:

• For bookings made through Instant Booking (a programme being phased out), commission ranged from 12% to 15%.
• For Sponsored Placements, hotels pay on a cost-per-click (CPC) basis rather than a fixed commission.

Many UK hotels use TripAdvisor as a marketing and reputation tool, rather than a core booking channel, often investing in ad placements to drive traffic to their direct website or OTA listings.

HRS

What is HRS?

HRS is a global hotel solutions provider and online travel agency that focuses primarily on corporate travel and business accommodation. While it operates similarly to traditional OTAs, HRS is best known for helping companies manage hotel procurement, streamline travel policies, and negotiate exclusive corporate rates, in addition to offering a public booking platform for individual travellers.

When was HRS created?

HRS was founded in 1972 in Cologne, Germany. Initially a telephone-based hotel reservation service, it transitioned online in the 1990s and has since grown into a major player in the B2B travel space.

When did HRS come to the UK?

HRS entered the UK market in the mid-2000s, expanding as part of its international growth strategy. It established a London office and began building a network of hotel partnerships across the UK to support global and domestic corporate clients.

How did HRS gain popularity in the UK?

HRS gained traction in the UK through:

• Focusing on corporate travel, appealing to businesses looking for cost-effective and compliant hotel booking solutions.
• Offering negotiated rates and dynamic pricing tools tailored to company needs.
  Integrating with global travel management systems (TMCs) and corporate booking tools.
• Building trust with procurement teams by providing centralised billing, traveller tracking, and analytics.

What percentage of market share do HRS have?

HRS has a relatively small share of the UK leisure OTA market, estimated at less than 5%, but it holds a strong position in the corporate travel sector, particularly among medium to large enterprises. Its influence is more B2B than consumer-focused, making direct comparisons with OTAs like Booking.com or Expedia less straightforward.

What commission do HRS charge hotels in the UK on average?

HRS typically charges commissions of 15% to 20%, though this can vary based on the agreement type and whether hotels participate in preferred programmes or offer dynamic corporate rates. In many B2B cases, hotels may offer net rates or fixed contracted pricing instead of standard commission structures.

Trivago

What is Trivago?

Trivago is a hotel meta-search engine, meaning it doesn’t handle bookings directly. Instead, it aggregates hotel prices from hundreds of booking platforms, including OTAs like Booking.com, Expedia, Agoda, and direct hotel websites, allowing users to compare rates and choose the best deal. When a user selects an offer, Trivago redirects them to the relevant third-party site to complete the booking.

When was Trivago created?

Trivago was founded in 2005 in Düsseldorf, Germany. It began as one of the first search engines dedicated entirely to hotel comparison and quickly expanded its presence across Europe and beyond.

When did Trivago come to the UK?

Trivago entered the UK market in the late 2000s, launching a UK-specific website and marketing campaigns tailored to British travellers. It quickly became a key player in hotel price comparison for UK users.

How did Trivago gain popularity in the UK?

Trivago gained traction in the UK thanks to:

• Aggressive advertising, including high-profile TV ads and digital campaigns that built brand recognition (notably the "Trivago girl" campaign).
• Offering price transparency, enabling users to easily compare rates across dozens of platforms.
• High visibility in Google search results for hotel-related queries.
• Appealing to value-conscious UK consumers looking to secure the best deal without needing to search multiple websites.

What percentage of market share do Trivago have?

Trivago doesn't function like a traditional OTA, so it doesn't hold direct market share in terms of hotel bookings. However, it plays a major role in influencing purchase decisions. It’s estimated that Trivago influences 5-10% of OTA-related hotel bookings in the UK through its referral traffic.

What commission do Trivago charge hotels in the UK on average?

Trivago operates on a cost-per-click (CPC) model. Hotels (or their partnered OTAs) bid for visibility on the platform. For hotels participating in Trivago’s Rate Connect programme (which promotes direct hotel rates), the average marketing spend is roughly 10-15% per booking, depending on competition and bid strategy. There’s no fixed commission, but spend is tied to visibility and clicks.

The Power and Pitfalls of OTAs in the UK Hotel Market

The rise of OTAs like Booking.com, Expedia, Hotels.com, Agoda, and others has completely reshaped the way travellers book accommodation in the UK. These platforms offer users convenience, price transparency, and choice, and with dominant market shares (some commanding up to 50%), they’ve become nearly unavoidable when booking travel, car hire, accommodation and activities. 

However, while OTAs bring visibility and reach, they come with a cost, quite literally. UK hotels are typically charged 15-20% commission per booking, with some rates even higher depending on participation in preferred programmes or advertising boosts. This eats directly into profit margins and makes it increasingly difficult for independent hotels to compete.
Additionally, the dominance of OTAs creates a dependency. Hotels can become invisible online without them, lose control over their customer data, and struggle to build direct guest relationships. With OTAs also often bidding on hotel brand names in search results, even customers looking to book directly can end up redirected.

This is why it is so important for hotels to have a strong direct booking strategy and a clear marketing plan.