Hey, I'm Scott, founder of Scott's Cheap Flights.
You know, I am obsessed with cheap flights
and over the years, I would like to think
I've learned a thing or two about booking airfare.
So in this video, I want to explain what OTAs are
and how they can help you get some cheap flights.
So an OTA, which stands for an Online Travel Agency,
is a company that sells you flights online.
They're the middlemen between airlines and consumers.
You've probably heard of some
of the big ones, Priceline, Orbitz, Expedia.
You know, these guys have been in business for decades
and they sell not just flights,
but car rentals and hotels as well.
There's also hundreds if not thousands
of other, smaller OTAs too.
OTAs work by plugging in
to what's called a Global Distribution System,
which is a fancy name for the marketplace
where airlines tell distributors
what they want to charge for their flights.
The OTA then turns around
and shows that price to travelers, like you and me.
So when you buy a ticket from an OTA,
there's usually a little bit of a delay
between when you click purchase
and when that ticket actually shows up in your inbox.
The reason why is because, unlike the airlines,
the OTAs don't actually have the tickets they sell.
Instead, they're acting as the middle man,
connecting the customers with the airlines,
and they take a small commission
from the airlines in the process.
The main benefit of using an OTA is
that the price might be cheaper than booking directly
with an airline.
Unlike most middlemen, OTAs don't actually jack up the price
they tend to offer the same price as the airline,
sometimes even lower than what you'll find directly
with an airline.
How are the OTAs able to offer cheaper fares
than the airlines?
There are a few different reasons why.
They might be passing on the commission as savings
to the consumer, they might be getting a specific discount
from the airlines, they might actually be cutting cost by,
for instance, skimping on customer support or charging
some big fees for changing or canceling your ticket.
Or, sometimes they even actually sell flights at a loss,
hoping that you'll then book maybe a hotel room
or a car rental with them,
items that tend to have big commissions for them.
Some OTAs recoup the money that they pass on to you
in savings by maybe charging some egregious fees
or really skimping on customer support.
So that's something to be mindful of
before you book with an OTA.
This means, you know, if you think
that there might be some changes in your future
or you think you're not 100% sure on taking this flight,
it might be worth it to pay a little more to book directly.
If you book directly with an airline, you're covered
by a Federal Department of Transportation regulation
called the 24-hour rule,
which means that you can cancel your ticket
within 24 hours of booking and not be charged any penalty.
But that's only if you book directly with an airline,
not through an OTA.
So what's best, booking with an OTA or directly
with an airline?
There's a few cut and dry situations.
You know, if the price is the same booking directly
with the airline versus booking through an OTA,
there's almost never a reason to book through the OTA.
But, if the OTA price is like $500 lower than booking
with the airline, of course the OTA's the way to go.
But for more gray area situations,
it mostly comes down to personal comfort.
So here's some things to consider.
How certain are you to take this specific flight?
Are the potential savings of an OTA worth it to you?
Is this a Mistake Fare that's only available through an OTA
or can you book directly with the airline?
So, to wrap up, when the price is the same booking
through an OTA as booking directly with an airline,
there's not much reason to go through the OTA.
If it's a huge price difference, you might want to do it.
And remember, if you book through an OTA you're not covered
under the 24-hour rule, whereas if you book directly
with an airline you have 24 hours after you book
that you can cancel it without any penalty.
You can also check out our other videos,
subscribe to our YouTube channel,
and check out the links below.
And if you wanna save big on airfare,
join Scott's Cheap Flights.
You know, since 2015 we have helped millions of people
be able to travel and take flights
that they never thought they would be able to afford.
Our members, you know,
save an average of like $550 per ticket.
So go ahead and follow the link below,
sign up for Scott's Cheap Flights,
and it would be our honor to be able
to send you some great deals soon.
Thanks everybody for watchin'. Talk to y'all next time!