Tuesday, 18 December 2012

Golden Travel Tour - Online Travel Agents - A Boon Or Profit Eaters For the Airlines


Leading to a simple order fulfillment process as there is no physical product to be delivered to the customer, hotels and tour operators) and a widely dispersed customer pool; airlines. The sale of travel products is ideally suited to the online channel given the existence of a vast network of global travel suppliers (e.g, all-the-more. Such is the hold of the online travel industry on internet, one third of the total online transactions are related to travel. One segment of the tourism industry that has ducked the downward trend and has flourished is online travel, but amidst all this pessimism. It is no secret that the last few years have been difficult for the tourism industry.

Hotel booking etc, like car rental, they give information not only about flights but the decisions a traveler takes after landing, . For e.g. Online travel agent has grown in popularity by facilitating the search for the best travel deal amongst different airline operators offering the independence and choice in terms of multiple brands and an extensive product range, in comparison. The emergence of brand and/or product awareness has limited the impact of these single branded websites, airlines encourage the consumers to book directly through their websites in order to reduce distribution costs by eliminating the commission paid to the agent, although. The elite also feature detailed advisories on travel with brochures and travel tips. Travel agents have also developed an internet presence of their own by creating travel websites with detailed information and online booking capabilities. All the popular airlines have websites of their own which help the customer book their tickets online and create brand awareness as well.

But it saves a lot of effort for the seeker and provides a one stop portal for his entire travel needs; but where they differ from a supplier in the airlines industry is when they facilitate the choice of several brands and products and of course the promise of the lowest price (which may not be the case many times); the online agent provides the convenience of 24-hour access and up-to-date information. The intermediary role of the online travel agent does not differ much from the role traditionally fulfilled by the high street travel agent.

Packaged deals etc, it splits the traveler's tracks by offering multiple choices and various options like lowest prices. Online booking is the first among these. It makes him/her do a reality assessment at various important pit stops and make informed decisions ahead. The present travel system has check marks at very important phases in the holiday cycle of a person.

That is why travel agents are definitely a boon and not a bane for the airlines industry. May increasingly miss out on incremental sales and profit opportunities, who view the online travel agent as a competitor rather than a strategic partner to widen their distribution reach, those airlines.

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