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Airline merchandising takes off as OTAs line-up on ancillaries runway

Gianni Pisanello

VP, NDC-X program, Amadeus

We've been going through exciting times at Amadeus over the past few weeks, with several high profile announcements regarding the evolving relationship between online travel agencies (OTAs), airlines and travellers. eDreams ODIGEO and Fareportal are the latest in the growing list of OTAs adopting Amadeus technology to offer airline ancillary services to travellers across their regional brands and sites.

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OTAs are jumping on the merchandising opportunity and this is already generating additional revenues for early adopters. This is great news for airlines: as the pie expands, new possibilities for travel customisation, collaboration and, of course, revenue generation open up.

Traveller's benefits

So what about the traveller? Ultimately, this is about creating value by meeting the needs of the traveller. In this new landscape, travellers benefit from more choice, transparency when booking via their OTA, and shopping consistency between the airline and OTA channels. Purchasing ancillaries directly from the OTA enables consumers to customise their travel experience as they shop, without the inconvenience, clutter and uncertainty of having to book flights on one site and additional services on another.

On top of delivering one stop shop service to their customers, OTAs diversify and increase revenues on air related bookings through the sale of airline ancillaries. Given their tech know-how and agility, OTAs can test multiple merchandising tactics in parallel to learn from consumer shopping behaviour what works best so they can adapt their retailing strategies accordingly. This also opens the door to new opportunities for innovation as well as pushing targeted offers to consumers throughout the travel purchasing lifecycle.

For airlines, all this means that OTAs will become even more important partners. As critical mass builds momentum, OTAs will drive ancillary reach and volumes that generate more revenues and higher yield. Full, end-to-end, integration of Amadeus Ancillary Services with airline and OTA mid- and back-office systems also means that this automation lowers traveller servicing costs during the booking, customer service and reporting processes.

Amadeus is proud to provide the technology that adds value to travellers by meeting their needs through an enhanced online travel shopping experience. In so doing, new partnership and revenue opportunities arise for airlines and OTAs alike. We will be announcing more exciting news on this shortly and look forward to seeing how this trend evolves as the industry jumps on the merchandising opportunity!


Tags

Merchandizing, Travel Platform