They not only dominate digital bookings, but they also lead the industry’s most aggressive and sophisticated marketing strategies. One figure is particularly striking: between 30% and 50% of OTAs’ total revenue is reinvested directly into digital marketing.
This statistic is no coincidence. It is the consequence of a business model highly dependent on digital visibility, attracting qualified traffic, and constantly converting users into buyers. In this article, we explore why these platforms are heavily invested in digital marketing and what lessons any tourist destination, hotel, or tour operator can learn from them to compete in the new era of tourism.
What are OTAs and why are they so influential?
OTAs (Online Travel Agencies) are digital travel booking platforms that allow travelers to compare and purchase flights, hotels, tour packages, activities, and more, in a simple and personalized way. Some global examples include Booking.com, Expedia, Agoda, eDreams, Despegar, and Civitatis.
These platforms have radically transformed the way travelers choose and book their experiences. Their power lies in three key elements:
Global accessibility: They are available in multiple languages and currencies.
Intelligent search engine: They offer fast and personalized results.
Strong investment in marketing: They capture millions of users every day thanks to their digital omnipresence.
Why do they invest so much in digital marketing?
The reason is simple: without digital marketing, OTAs wouldn’t exist. They don’t own hotels, they don’t operate tours, and they don’t sell flights directly. Their value lies in their ability to connect supply and demand… and to do it first, better, and cheaper than their competitors.
These agencies compete in a fiercely competitive environment, where every click counts and every lead costs. Digital marketing is not an expense, but the backbone of their business.
In which channels do they primarily invest?
Google Ads (SEM): OTAs are among the world’s largest advertisers. Booking, for example, spends hundreds of millions annually on Google alone.
SEO (Search Engine Optimization): Constant optimization of their pages to appear organically in the top search results. Meta Ads: Hyper-targeted campaigns on Facebook and Instagram segmented by country, interest, purchasing behavior, etc.
Affiliate marketing: Programs that allow you to scale traffic through thousands of partner websites.
Email marketing and remarketing: Automated campaigns based on user behavior to recover lost sales.
Influencer marketing and user-generated content: Reviews, photos, videos, and opinions from travelers that boost conversions.
Marketing as a competitive advantage (and barrier to entry)
When an OTA like Expedia invests nearly 40% of its revenue in marketing, it’s not just to sell more: it’s to prevent anyone else from capturing its customers. Being at the top of Google search results or appearing at the exact moment a traveler searches for “hotel in Dubai” can make the difference between generating millions in revenue or remaining completely invisible.
In this sense, digital marketing acts as a competitive advantage, but also as a barrier to entry for smaller players who lack the resources and technology to compete for global visibility.
What can destinations, hotels, and operators learn?
While OTAs allocate up to 50% of their revenue to digital marketing, many tourism offices, hotel chains, or DMCs invest barely 5%… or nothing at all. This disproportion creates a growing gap in terms of positioning, conversion, and ability to attract customers.
Here are some key lessons:
- Organic visibility is no longer enough
Being on Instagram or having an attractive website is no longer sufficient. If you’re not investing in paid campaigns, search engine optimization, and content automation, you’re out of the game.
- You can’t compete with OTAs on budget, but you can on focus
Even if you don’t have millions, you can compete on creativity, segmentation, relevant content, and personalization. A DMC with a powerful video and a good Meta Ads campaign can attract agencies in key markets more efficiently than many OTAs.
- You have to measure what you do
OTAs don’t launch campaigns blindly. Every action is backed by data, analytics, and results. If you’re not measuring conversions, click-through rate, CPA, or ROI, you’re not doing marketing; you’re shooting in the dark.
- Your direct channel should be a priority
Relying exclusively on intermediaries makes you vulnerable. OTAs are useful, but your website, your campaigns, your database, and your narrative should be your most important asset.
What if destinations invested like OTAs?
Let’s imagine for a moment that a tourist destination decided to invest 30% of its international tourism revenue in strategic digital marketing. Most likely, it would:
Attract more qualified travelers interested in experiences aligned with its offerings.
Strengthen the direct channel with agencies and travelers.
Develop digital communities that act as brand ambassadors.
Have autonomy from intermediary platforms.
Be able to scale campaigns in real time and adapt to demand.
This doesn’t mean stopping collaboration with OTAs, but rather balancing the scales. Becoming the protagonist of your own digital narrative. Nomad Club: A Digital Vision for Tourist Destinations and Brands
At Nomad Club, we understand that the digitalization of tourism is not a trend, it’s a necessity. That’s why we support destinations, DMCs, and tourism providers with strategies that combine creativity, technology, and a commercial focus.
We don’t just generate visibility: we generate results.
We implement lead generation systems, intelligent automation, country-specific segmented campaigns, and communication funnels designed to convert operators and agencies into active ambassadors for your brand.
While OTAs allocate between 30% and 50% of their revenue to digital marketing, many tourism businesses still think of marketing as an expense… not an investment. That gap determines who grows and who falls behind. The question is no longer whether you should invest in digital marketing, but how and with whom to do it to maximize results. And if you want to compete in the real world of tourism, you need to play on the digital playing field.
