Online Travel Agencies

A recent study commissioned by Amadeus on ‘Understanding Online Travel Agencies’ cost drivers and ways to optimise Business in Europe’ shows the key challenges mid-sized European OTAs are facing and highlights numerous ways on how these could be improved.

Transforming Trends into Revenue

The six-month-independent and in-depth study reveals, based on the studied sample, key drivers for improved profitability:

European OTAs generate 86% of their revenue from air products despite the fact that air tickets deliver only about half the profit margin available on non-air sales.

Evolving business models
The study found that non-air sales and cross selling represent a key area for OTAs to drive profitability over the coming years. All OTAs participating in the study admitted they needed to improve their hotels and packages content.

Finding ways to controlling and converting costs into revenue generator will also be a key focus for most OTAs. With tight margins, concentrating on those channels that provide the highest conversion rate is a must.

Marketing is the main cost driver for an OTA (around 54% of total costs) while personnel is the main cost driver for traditional agencies (around 60%).

Adding value to your business

With a 77.1% market share, Amadeus is Europe’s preferred IT partner and is well positioned to help OTAs make the required revenue shift.

Amadeus technology powers some of the biggest names in the Online channel including Opodo and Expedia.

Amadeus leads investments in travel technology by launching innovative and industry-leading technology, all designed to deliver on-going business success for your business.