OTA Industry Knowledge: Key Concepts and Booking Flow
An overview of essential OTA (Online Travel Agency) concepts, systems, and booking workflows used in the travel industry.
OTA Industry Knowledge: Key Concepts and Booking Flow
An overview of essential OTA (Online Travel Agency) concepts, systems, and booking workflows used in the travel industry.
Glossary
OTA
Online Travel Agency — platforms where travelers book flights, hotels, car rentals, and travel services online.
LCC
Low-Cost Carrier — budget airlines that offer lower fares by reducing service complexity.
Examples: Ryanair, AirAsia, easyJet.
PNR
Passenger Name Record — a record in an airline reservation system that contains itinerary, passenger details, and ticketing information.
GDS
Global Distribution System — large-scale systems that aggregate travel inventory from airlines, hotels, and car rental companies and distribute it to travel agencies worldwide.
Major GDS providers:
- 1A – Amadeus
- 1B – Sabre / Abacus
- 1E – TravelSky
- 1G – Galileo
CRS
Computer Reservation System — systems used by agents to search availability, create bookings, and manage reservations.
ICS
Inventory Control System — airline-internal systems managing flight schedules, seat inventory, pricing, and revenue management.
DCS
Departure Control System — airport systems handling check-in, boarding, load control, and flight departure operations.
PCC / OID
Pseudo City Code (PCC) / Office ID (OID) — identifiers assigned to agencies or corporate users in GDS systems.
Example: AMSX1234P
IATA
International Air Transport Association — the global trade association for airlines, setting standards and policies.
PTC
Passenger Type Code — codes defining passenger categories:
- ADT – Adult
- CHD – Child
- INF – Infant without a seat
- INS – Infant with a seat
- UNN – Unaccompanied minor
PTL
Payment Time Limit — the deadline by which payment must be completed.
TTL
Ticketing Time Limit — the deadline by which tickets must be issued.
Look-to-Book Ratio (L2B)
The ratio of search requests to completed bookings, commonly used to measure demand efficiency and pricing performance.
TST
Transitional Stored Ticket — a record containing fare, tax, and pricing details associated with a PNR.
ATPCO
Airline Tariff Publishing Company — provides fare and rule data to airlines, GDSs, and travel technology providers.
NDC
New Distribution Capability — an IATA XML-based standard that modernizes airline distribution, enabling richer content and personalized offers.
CSD
Consignment Security Declaration — provides an audit trail of cargo security across the supply chain.
Core Booking Flow
A typical OTA booking funnel follows this sequence:
- Search – user searches flights or travel products
- Pricing – fares and availability are priced in real time
- Selection – user selects itinerary and options
- Booking – PNR is created
- Payment – payment is completed before PTL
- Ticketing – tickets are issued before TTL
- Post-booking – changes, cancellations, ancillaries
This funnel is critical for conversion optimization and system performance tuning.
Summary
Understanding OTA terminology and workflows is essential for building, integrating, or optimizing travel systems.
Key takeaways:
- OTA systems integrate deeply with airline and GDS infrastructure
- Time limits (PTL / TTL) are critical business constraints
- Metrics like L2B directly impact pricing and capacity strategies
This knowledge forms the foundation of any travel technology platform.