OTAs expect increase in business as airlines unbundles airfares

Since most services relating to ancillary revenues or unbundled services need to be conducted online, online travel portals look to make the most of it

Travel News
Travel News

Even though travel agents are upset as unbundling of airfares could further reduce their commission, online travel companies are trying to make the best of the situation.

Travel agents have been worried over falling commissions from full-service carriers, zero commissions from low-cost carriers, and now unbundling of airfarer.

But, other than airlines who stand to gain more revenue from unbundling, online travel agencies (OTAs) like MakeMyTrip have spotted a silver lining —since most services relating to ancillary revenues or unbundled services need to be conducted online, this is likely to benefit companies like MakeMyTrip which could see more visitors to its website as per a report in CNBC-TV18.

Some of online travel portals already works with low-cost carrier Indigo to offer services like early check-in and hopes to offer more services, going forward.

Deep Kalra, founder and CEO, MakeMyTrip says, "I think the online business is going to keep growing. Around four years ago, when we launched our services in India in 2005, we were the first OTA. Today, close to 40-percent of all business is online of which OTAs hold  50-percent of the travel-market share of which our overall market share is about 12.5-percent."

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