Each of us is looking for a business opportunity which is fun, which is rewarding…and which is growing. Travel is currently a $7 trillion business annually and with the ever expanding group of leisure travelers, is expected to grow at a rate significantly greater than the economy. TraVerus’ goal is to become the largest seller of leisure travel—and we will accomplish this goal with You—by building the largest and most successful sales force in the industry through training, support and opportunity.Online Travel Agencies (OTAs) have traditionally charged airline ticket booking fees ($5-$7 per ticket). Recently the top 3 U.S. OTAs (Expedia-43% market share, Orbitz-26%, Travelocity-22%) followed Priceline's example and removed these booking fees permanently. When Priceline removed these fees back in 2008, they quickly gained market share: from 7% in 2007 to 9% in 2008 (PhoCusWright).
Online Packaging (Dynamic Packaging):
The Online Travel Agencies (OTAs) love packaging as it helps them generate fees from airline tickets-as mentioned, if sold alone, an airline ticket provides zero commissions/fees for the OTAs.
Car Rental:
Traditionally, the Online Travel Agents have charged similar booking fees for car rental reservations, since many car rental companies do not pay any commissions to the Online Travel Agents. So this segment still generates revenues for the Online Travel Agents, but unfortunately car rentals account for only 7% of U.S. domestic OTAs booking volume.
Cruise Segment:
The Online Travel Agents are generating hefty commissions from the cruise lines. 90% of Online Travel Agents specailize in Cruises.
The question is: will the Online Travel Agencies survive now that they have removed the airline booking fees?
Sure they will. Online Travel Agencies will still make money the way they always have by adding $10.00 to the price of tickets sold online. Airlines stopped paying commissions sometime ago so Online Agencies compensated by raising their prices.
We do not add prices to our airline tickets and we receive no compensation for Airlines. That is of course it is packaged with a hotel or a cruise. To get access to airline prices agents pay, click here!
Arthur Williams, " Start Your Own Online Travel Business And Work From Home. "
Click Here For More Information
No comments:
Post a Comment