Online Travel Agents – A Boon Or Profit Eaters For Airlines

It’s no secret that the last few years have been difficult for the tourism industry. But amidst all this pessimism, one segment of the tourism industry that has been driving the downward trend and flourishing is online travel. One third of all online transactions are related to travel, so is the domain of the Internet travel industry. However, the sale of travel products is ideally suited for the online channel given the existence of a large network of global travel providers (eg airlines, hotels and tour operators) and a widely dispersed customer pool; leading to a simple order fulfillment process as there is no physical product to be delivered to the customer.

All popular airline branches have websites of their own that help the customer book their tickets online and also create brand awareness. Travel agents have also developed an internet presence of their own by creating travel sites with detailed information and online booking capabilities. Elites also get detailed travel tips with brochures and travel tips. However, airlines are encouraging consumers to book directly on their websites to reduce distribution costs by eliminating the commission paid to the agent, the emergence of brand and / or product awareness has limited. impact of these unique brand websites. In comparison, the online travel agent has grown in popularity by facilitating the search for the best travel deals among various airline operators offering independence and choice in terms of more brands and a wide range of products. For example, they will provide information not only about flights but the decisions a traveler makes after landing, such as car hire, hotel booking, etc.

The intermediary role of the online travel agent is not much different from the traditional role played by the high street travel agent. The online agent provides the convenience of 24-hour access and current information; but where they are different from a supplier in the airline industry is when they facilitate the choice of many brands and products and of course the promise of the lowest price (which may not be the case many times); but it saves a lot of effort for the search engine and provides a unique portal for all your travel needs.

The current travel system has marked at very important stages in a person’s vacation cycle. It requires you to make a reality assessment of the various important issues and make informed decisions below. Online booking is the first of these. Split traveler tracks offers many options and various options such as lower prices, packaged deals and more.

These airlines, which see the online travel agent as a competitor rather than a strategic partner for expanding their distribution, are however lacking in incremental sales and profit opportunities. This is why travel agents are definitely a snack and not a well for the airline industry.