In recent years, Online Travel Agencies (OTA) have grown to become an invaluable tool for modern travellers and a powerful marketing channel for the industry. According to the Travel Technology Association, Online Travel Agencies (OTAs) boast more than 515 million visitors on average to their websites every month.
However, this online business is struggling to overcome a number of critical business challenges. Increased competition and slim margins are two factors with major impact on OTAs. However, there are ways to stand out from the crowd and become successful in the online travel agent space. We’ve listed four ways to ensure increased profit and overall well being of the company.
1. Step up ancillary sales
A proven way to boost revenues. Utilising ancillary sales both during and after booking can transform the bottom line of your business while also drawing more visitors to your site. OTAs need to figure out how to generate them as efficiently as possible.
The industry average ancillary revenue €2 euro. However, that number can increase with 50% if you are using Paxshop.
2. Streamline systems
As an OTA there are a number of systems that need to be up and running efficiently. More systems equal increased complexity. One key to a seamless user experience is skipping the hassle of third party systems and white label solutions altogether.
Instead of several third party systems you should focus on a more tailored experience that will keep customers coming back for more.
3. Reduce site response time
If your website takes too long to load, potential customers are more likely to continue their hunt elsewhere. This will also punish you when it comes to SEO and organic ranking on Google and Bing.
Implementing a modern cache solution is a simple way to speed up visitor access to site data, and win more conversions in the long term.
4. Insure payments
The industry is volatile, with a lot of carriers that have ceased trading. Since you are not entitled to the same insurance via the BSP payment option as you would via a payment provider, insuring your payment solution is a vital step to future security.
Steps to become successful
Want to learn more about the OTA challenges and possibilities? In our white paper “Success factors of a thriving OTA business” you can learn more about the new industry landscape and what it takes to become successful.