Recently we saw EaseMyTrip, ClearTrip (airline ticketing agents), MakeMyTrip, SOTC, ixigo, Thomas Cook (wholesome trip providers) offering 50-60% discounts. These deals were possible only because all the key partners across the industry like carriers, hotels etc., who were also badly bitten by the pandemic induced slump were offering big discounts to survive.
Though these offers had some positive impact mostly it was never more than 65% use of inventory.
In airline ticket booking where 20% of the margin is linked with volumes there was not much to feel happy about especially when there were hardly any margin earlier too, as India is a low cost driven market.
Hotel bookings are running at one third of the last year's, as guests are waiting to confirm the booking using the flexible booking option.
Though the reliable McKinsey report on OTA says their structure and the variable costs involved help them to absorb the fluctuation it should not be forgotten travel industry, in general, is margin and volume driven without both they cannot offer the key partners a contract or commission for the services.
With the changing situation let us hope a service provider will also find it convenient to stick to an OTA brand than a one sided chase by the OTAs to find and keep a service provider.
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