Online Travel Intermediaries For Smooth Conduction of Tourism
Online Travel Intermediaries For Smooth Conduction of Tourism
Online Travel Intermediaries For Smooth Conduction of Tourism
INTERMEDIARIES FOR
SMOOTH CONDUCTION
OF TOURISM
E-TOURISM
ONLINE TRAVEL INTERMEDIARIES
The role of an online travel agency is becoming increasingly important in the
accommodation industry as they provide a convenient way for travelers to arrange
their
stay. From the comfort of their home, travelers can compare hotel price and book
them
over the internet .
An online travel agency (OTA) is a website that acts as a search engine for travel. They
connect providers across the travel industry to help travelers easily plan their trips. On
OTA sites, travelers can often access package deals with accommodations, airfare,
cruises, car rentals, and more.
Over the years, online travel agencies (OTAs) have evolved into sophisticated marketing
channels for properties of all sizes and types. Never before have consumers been able to
so easily compare different travel options side-by-side in terms of price, travel dates, and
location. A Cornell study found that 93% of consumers switch between different OTAs
before making a final decision, making it essential for properties to be active on as many
channels as possible to increase brand awareness and drive bookings — even more
direct bookings (more on this later).
HOW DO ONLINE TRAVEL AGENCIES WORK ?
OTAs generally work on two models . They are:-
▪ MERCHANT MODEL
▪ AGENCY MODEL
1. MERCHANT MODEL : In this model ,hotels sell rooms to OTAs at a discounted or wholesale
price. Then , the OTA sells them to the customer at a markup price .
2. AGENCY MODEL : This is a commission – based model where OTAs acts as a distribution
partner . OTAs receive full commission after the stay has taken place . The hotel directly
receives the payment from the end customer and does mot wait for the payment transfer
from
third –party distrubutors.
ADVANTAGES DISADVANTAGES
It's a low cost way to list your property Online travel agents can charge commission on
and its rooms. every sale. This can range between 10-25% of the
gross cost.
Reductions in your online marketing
spend. ... There may be restrictive terms and conditions
imposed by OTAs such as guest cancellation and
A reduction in your website costs. .
automatic room reselling policies.
Online travel websites are popular
You may need to find a way of managing room
with customers who like to compare
availability across a range of OTAs, your own
accommodation costs and the
website, front desk and telephone sales. This can
services offered by individual
be time consuming and labour intensive. There
providers.
are software options to help you manage this.
TOP ONLINE TRAVEL AGENCIES IN INDIA