Amadeus reports 85 percent jump in ancillary revenue through OTAs
Monday, 08 Dec, 2015
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Travel technology solutions company Amadeus has seen a 85% jump in ancillary revenue through online travel agencies during the first three quarters of 2015.
It says OTAs are now a major channel in the merchandising market with up to 40% of all OTA bookings including ancillary products for some airlines.
The exponential growth of ancillary fees through OTA channels is a result of customer demand and the availability of ancillary content available in the GDS, said Pedro Espin, associate director for merchandising and personalisation at Amadeus.
"Online travel agencies constantly need to improve their user experience to stay competitive. If I want to book a window seat or bring one extra bag, and an OTA does not give me that option, I can find another travel vendor in just a few clicks," Espin said.
Amadeus says there are currently 60 airlines already selling ancillaries and Fare Families through the system, with an additional 40 signed and going through the integration process.
"The selling of merchandising is the first step that OTAs are taking in offering travelers great personalisation in their air bookings. This trend will benefit everyone – travelers, OTAs and airlines," Espin added.
Amadeus says by the end of the year, the number of OTAs with integrated ancillaries is set to almost triple compared to a year ago.
OTAs selling ancillaries or fare families include Expedia, eDreams, Logitravel and Tripsta.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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