Online Travel Agents – Profits or Eaters for Airlines


It is no secret that the last years have been difficult for the tourism industry. But in the midst of all this pessimism, online travel is a declining and thriving segment of the tourism industry. One-third of all online transactions are travel-related, capturing the online travel industry on the Internet. In addition, the sale of tourism products is best suited to an online channel, given the existence of a wide network of global travel suppliers (e.g., airlines, hotels and tour operators) and a large customer pool; Since there is no physical product to be delivered to the customer, it leads to a simple order execution process.

All popular airlines have their own websites, which help customers order tickets online and at the same time create brand awareness. Travel agents have developed their own internet presence by creating travel sites that also provide detailed information and online booking opportunities. Elite also has detailed travel tips with brochures and travel tips. Although airlines encourage consumers to order directly through websites to reduce distribution costs by eliminating the commission paid to the agent, brand and / or product awareness has limited the impact of these single branded websites. For comparison, an online travel agency has gained popularity by facilitating the best travel deals among different airlines, offering independence and choice in terms of many brands and a wide range of products. For example, they are not only about flights, but also about decisions made by the traveler after landing, car rental, hotel reservation, etc.

The role of an online travel agent is not much different from the role traditionally performed by a high street travel agent. The online agent provides 24-hour access and the convenience of up-to-date information; but where airlines differ from one supplier in the industry when it facilitates the selection of several brands and products and, of course, promises the lowest price (which may not be the case many times); but it takes a lot of effort for the seeker and provides a single portal for all travel needs.

In the current travel system, a person has check marks at very important stages of the holiday season. This allows him to assess a reality at various important pit stops and make informed decisions ahead. Online ordering is the first of these. Lowest prices, package deals, etc. It divides the traveler’s path by offering as many options and different options as possible.

Airlines that see online travel agencies as a strategic partner, rather than as a way to expand their distribution capabilities, may be reluctant to take advantage of growing sales and profit opportunities. Therefore, travel agents are not necessarily a stain on the airline industry.