Aviation OTAs add significant bookings per month: Report

A few weeks back we covered an IAMAI report that said that airline bookings have grown significantly over the past year. Where 1.01 million bookings were recorded in April 2011, the same month this year showed 1.92 million bookings.

And now IAMAI has revealed that much of these bookings are done by OTA’s or what we call Online Travel Agents like Cleartrip.com, Makemytrip.com, Yatra.com etc. About 40,000 – 50,000 tickets per day are done by them.

The OTA segment is growing at around 30% year-on-year with one-fourth of the domestic market handled by them. While 23-25 per cent bookings are done by the OTA’s for network airlines, almost 25-27 per cent bookings are done for low cost carriers.

Channel

Network Airline

Low-cost Carrier

Brick-&-mortar Travel Agent

55-60%

50-55%

On-line Travel Agent (OTA)

23-25%

25-27%

Airline sites

10-12%

15-17%

Airline ticket office/call center

7-8%

8-10%

Internet

35%

40%

Global Distribution Systems (GDS)

80%

0%

“30% of our airlines booking is part of tour packages and that is very substantial. We have to work with airlines because customer wants us to be there, it’s a mutual and beneficial relationship. For OTAs, investing in technology comes at top priority and for airlines top priority is to run the business.” [Vikram Malhi, Country Head – Expedia]