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OTA Reservation Handling SOP- Standard Operating Procedure for Online Travel Agency Bookings

  • Writer: admin
    admin
  • 2 hours ago
  • 3 min read
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Online Travel Agencies (OTAs) such as Booking.com, MakeMyTrip, Expedia, Agoda, and Goibibo contribute a significant share of hotel room revenue. A clear OTA Reservation Handling SOP ensures accurate bookings, prevents revenue loss, avoids overbooking, and delivers a smooth guest experience.


This post explains step-by-step OTA reservation handling procedures, roles & responsibilities, and best practices for hotels.


Objective of OTA Reservation Handling SOP

  • Ensure accurate booking confirmation

  • Avoid overbooking and rate errors

  • Improve guest satisfaction

  • Reduce cancellations, no-shows, and disputes

  • Maintain OTA compliance and ratings


Scope

Applicable to:

  • Reservation Department

  • Front Office Team

  • Revenue Manager

  • Accounts & Audit Team


OTA Reservation Handling Workflow

Step 1: OTA Booking Receipt

  • Booking received through OTA Extranet / Channel Manager

  • Auto-sync to PMS (Property Management System)

  • Reservation executive verifies booking details immediately


Checkpoints:

✔ Guest name

✔ Dates & number of nights

✔ Room type & rate plan

✔ Meal plan

✔ Cancellation policy

✔ Payment type (Hotel Collect / OTA Collect)


Step 2: Booking Verification & Validation

  • Verify rate parity with contracted OTA rate

  • Check availability for booked room category

  • Identify non-refundable / advance payment bookings

  • Flag VIP, repeat guest, or special requests


Step 3: Reservation Confirmation Email to Guest

  • Send confirmation email within 30 minutes

  • Mention:

  • Stay details

  • Cancellation policy

  • Check-in / check-out time

  • Hotel contact details

Best Practice: Always reconfirm OTA bookings via email to avoid disputes.

Step 4: Payment Handling & Policy Check

OTA Collect Bookings

  • Payment collected by OTA

  • Hotel invoices OTA post check-out

  • Reconcile commission as per agreement


Hotel Collect Bookings

  • Collect advance payment if policy requires

  • Verify credit card / virtual card details

  • Ensure pre-authorization where applicable


Step 5: Booking Amendments (Date / Room Change)

  • Accept amendment requests only through OTA portal

  • Verify:

  • Availability

  • Rate difference

  • Policy applicability

  • Update PMS and channel manager immediately

  • Send revised confirmation email to guest


Step 6: Booking Cancellation Handling

  • Cancellation must be received via OTA system

  • Verify cancellation timeline as per policy

  • Apply charges for:

  • Late cancellation

  • No-show

  • Non-refundable bookings

  • Update PMS and OTA extranet promptly


Step 7: Pre-Arrival Checks (Day -1)

  • Reconfirm:

  • Arrival time

  • Payment status

  • Special requests

  • Block rooms in PMS

  • Inform Front Office and Housekeeping


Step 8: Check-in Handling (OTA Guest)

  • Verify guest ID as per local law

  • Confirm payment mode (OTA / Hotel Collect)

  • Upsell room upgrades, meals, and services

  • Capture guest feedback preferences


Step 9: Check-out & Billing

  • Close folio correctly

  • Post OTA commission

  • Share invoice with OTA if required

  • Update PMS status


Step 10: OTA Reconciliation & Audit

  • Monthly reconciliation of:

  • OTA invoices

  • Commission

  • Taxes

  • No-show charges

  • Identify revenue leakages

  • Share report with GM & Accounts


Roles & Responsibilities

Reservation Executive

  • Booking accuracy

  • Guest communication

  • PMS updates


Front Office Manager

  • Rate & availability compliance

  • Overbooking management


Revenue Manager

  • OTA pricing & inventory control

  • Rate parity monitoring


Accounts Team

  • Commission reconciliation

  • Invoice settlement


Key SOP Controls & Checklists

✔ Rate parity compliance

✔ No manual rate override

✔ Channel manager sync audit

✔ Non-refundable policy acknowledgment

✔ OTA review response monitoring


Common OTA Errors to Avoid

  • Not updating inventory

  • Ignoring amendment deadlines

  • Wrong payment mode selection

  • Delayed guest communication

  • Incorrect commission posting


OTA Best Practices for Hotels

  • Limit OTA dependency (target <40%)

  • Push direct bookings

  • Close low-rated OTAs during peak demand

  • Track OTA cost per booking

  • Respond to reviews within 24 hours


Key OTA KPIs for Management

  • OTA Contribution %

  • ADR by OTA

  • Cancellation Ratio

  • Commission Cost %

  • Review Score


An effective OTA Reservation Handling SOP protects hotel revenue, improves guest satisfaction, and ensures smooth coordination between reservations, front office, and accounts.

Discipline in OTA handling = higher profits & better ratings.

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