News by Topic
- Search Marketing
- Email Marketing
- Loyalty Marketing
- Mobile Marketing
- Social Marketing
- Viral Marketing
- Trends & Ideas
- Internet Marketing 101
Airlines outselling online travel agents
Times are changing for online travel agents. Once upon a time they had a 4-point lead in the U.S. over the number of travelers booking airline tickets via suppliers but, according to travel consultancy PhoCusWright, that is no more.
For the first time ever, more U.S. fliers are booking flights via airline websites than via online travel agencies (OTAs). A PhoCusWright survey found that, in 2012, 36% of travelers used a supplier website to book flights compared with 33% that went via an OTA.
Just a year earlier, OTAs had the lead, with 37% using them versus 34% buying direct.
Until a few years ago, airlines could steer travelers to their own sites instead of OTAs such as Expedia by offering fee-free bookings. That changed when OTAs also began dropping booking fees.
But, the war is again raging. Policy changes among airlines that reward travelers for booking direct are rearing their heads. Travelers who buy tickets direct from airlines are being lured by financial enticements including add-ons and promotions.
An example of this new environment is FlyFrontier.com who are luring consumers by waiving fees for those who book direct. The airline recently announced policy changes that will see increased carry-on charges ($25 - $100 instead of free) and reduced rewards for miles flown (25% instead of 50%). Those policies, however, will only be in place for those travelers who do not book direct. Travelers who purchase flights via the airline's website will be exempt from the policy changes - they'll pay nothing for carry-on and receive full miles for flights taken.
"It's simple math," says Rick Seaney, chief executive of comparison site Farecompare.com. "If it costs you, the airline, $16 to sell a ticket somewhere else and $2 on your own site, you have some money to play with."
Image via Shutterstock
- Report: Desktops still lead online spending
- Video ad campaigns with subtitles outperform in brand awareness
- Two-thirds of ad execs Google prospective employees
- 61% of brand content on Snapchat is video
- Survey: Trust influences more consumers to share information
- Expert: Travel next up for programmatic direct
- Expert: How to reduce involuntary churn
- New service alerts marketers when competitors air new TV ads
Featured White Papers
- Learn Why 83% of Advertisers Are Reporting Superior Outcomes With People-Based Ads
Traditional digital display advertising doesn't work. The information in this report is based on an online survey of 350 senior...
- 2016 Email Marketing Metrics Benchmark Study
To build a world-class marketing program, it's crucial to compare yourself to the best performers - but competitor data can...
- 10 Ways to Use Customer Lifetime Value to Reinvent Your Marketing Strategy
CLV insights can help you to attract high-margin customers, target clusters of customers with untapped value, and retain high-value customers...
- 16 Innovative Loyalty Programs of 2016
Engaging customers in a loyalty program is no easy feat. Read how 16 brands grabbed headlines in 2016 by launching...