For two decades, Online Travel Agencies (OTAs) like Priceline (part of Booking Holdings). And Orbitz (part of Expedia Group) have been the dominant digital storefronts for booking air travel. They offered unparalleled price comparison and convenience, becoming the crucial middleman between the consumer and the airline.
However, the power dynamics are shifting. Airlines, tired of paying hefty commissions, are executing an aggressive strategy. To push passengers to book directly through their own websites and apps. This direct-booking push represents an existential threat to the OTAs’ air segment. Leading to a palpable sense of wariness—and a fierce, ongoing battle for control over the customer.
The Airline’s End Goal: Controlling the Customer Relationship
For legacy carriers and low-cost airlines alike. The motivation to bypass OTAs is rooted in two critical areas: Profitability and Data Ownership.
1. Maximizing Ancillary Revenue
An airline’s profitability increasingly depends on ancillary revenue—the income generated from services … Read more