competition in online travel services

How Can You Compete with the Bigger Brands in Travel?

For any tour and travel company with an online presence, competition – especially with some of the largest organizations out there – is part of business. Naturally, bigger companies have more resources at their disposal, which can make it seem impossible for smaller ones to keep up.

Fortunately, that is not always the case. Travelers’ booking habits show that, with a winning strategy and the right tools at their disposal, companies of any size can still thrive in the world of online travel booking.

What Are Small Tour Companies up Against?

Crafting an optimized website is rapidly becoming a more exact science instead of a delicate art – layout, design and other crucial elements can now be determined with the assistance of thoroughly analyzed user-experience data.

This is one of the main areas being studied at Expedia’s Usability Lab – a department established at the company’s Washington-based headquarters to study how consumers navigate the holiday-purchasing process, according to a Tnooz report.

One of the lab’s main goals is to track customer preference patterns and regional trends – and use that information to help present potential clients with the most relevant, customized information that is more likely to lead to a purchase.

In other Expedia labs, this study is being taken a step further with an even deeper level of analysis of the shopping experience. While potential travelers acting as research subjects simulate booking a holiday, sensors applied to their cheeks and foreheads are able to detect facial expressions and a computer-mounted camera can track their eye movement – noting what they look at on the screen and their reaction to it.

Researchers can follow along in real time on an identical screen that shows what the subject is looking at, while readouts show his or her emotional response based on facial muscle movements – such as a smile or a furrowed brow.

As Tnooz reports, Expedia plans on opening these labs in Singapore and London in the summer of 2016, meaning that this data can be collected from customers on a global scale.

Data-Driven Design Isn’t Everything

While such an operation may seem daunting, owners of smaller organizations don’t need to worry; there are several reasons why they are still in the game.

Fortunately, research indicates that shoppers are not too keen on sticking with only one provider when researching their options for travel. As potential holiday goers check out different destinations, hotels, and flights, they often get far enough in the process to see the online shopping cart at each site they view. Of course, they don’t complete the purchase with every company – only one tour provider will see a profit from that customer. The rest of the shopping carts will just sit there, inactive, until the system clears them.

Research from Boxever shows that the value of these abandoned travel plans is astronomical – not to mention significantly higher than the actual amount tour and travel companies make. In 2014, the online travel industry took in US$446 billion, but the amount travel planners left unbooked in shopping carts was almost US$1.78 trillion – three times higher.

So, since travelers are still open to checking out different providers before choosing one, how can your tour company stand out from the rest? There are a few different ways.

Making Yourself Stand Out

Put simply, the best way to remain competitive as a smaller organization is to make sure customers find your company and to provide them with a level of service that keeps them coming back and spreading the word. Explaining this strategy is easy, though carrying it out isn’t much more difficult.

The first step is making sure that customers know what your company is and – most importantly – what it offers that they won’t find elsewhere. This is an area where marketing your brand can truly pay dividends.

Part of a strong marketing strategy lies in the effective use of landing pages. These areas of your website – more specialized than your home page – provide customers with a platter of useful and targeted information that will let them get down to business right away. Unbounce found that an optimized and tested landing page can result in a higher conversion rate and a lower cost of acquisition – without an increase in marketing costs.

Once customers are drawn to your website, it’s crucial to provide them with a memorable experience. This is where personalization and a killer sales team can really pay off. According to Econsultancy, 74 percent of marketers agree that a personalized experience is key to increasing customer engagement.

One of the most effective ways to improve this area of business is through giving your sales team the time they need to nurture customer relationships and deliver a more attentive level of service than other, larger companies. By optimizing back-end processes and reducing backlog, Tourwriter can help. L earn more about the benefits of travel agency software for your business.

How does the travel industry actually work?

Who are the key players in the industry, where do they all fit together and how does the industry actually work?! There’s no doubt that the travel industry is a confusing space to wrap your head around so we’ve broken it down for you in this easy new resource.

Travel designers- meet the influencers you should work with.

Understand the role travel influencers play in the industry and why tour operators should be following, interacting and collaborating with them. Explore eight global travel influencers who are inspiring travellers daily.

Tourism news websites you can trust

In the tourism industry it can be hard to differentiate the reliable travel news sources from the not-so-trustworthy ones. In this blog we summarise the top travel news websites that tour operators, travel agencies and DMC’s should pay attention to.

How to set your team up for success when introducing new software

Making changes happen is hard. Especially when it is something that will create a significant impact on the way you work, like new software. We discover what change management is and how it can assist you, your leaders and your team in creating new processes that will make you more successful in the long run. Is it time for a change?

4 Challenges Faced by Online Travel Agents in 2024

The rise of digitalization has disrupted the travel industry. In this modern era, the tech-savvy travelers’ needs are fast evolving, and meeting their expectations is crucial and challenging. Travelport research found that 33% of travelers are more likely to book using OTA. OTAs are the preferred choice for convenience, global access, price transparency, etc., and play a key role in the hotel distribution channel. It’s not just a matter of being able to keep up but staying in front and maintaining a competitive edge over their competitors. 

Read our Infographic to learn more about the challenges faced by Online Travel Agencies.

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Disclaimer: The author is solely responsible for the content in the Infographic and Vervotech does not exert any control or influence over the author's opinions or statements.

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Pratiksha Ghule

Customer Success - Executive

Working here has been a beautiful journey, filled with opportunities for growth, learning, and making meaningful connections.

At Vervotech, I’ve found more than just a workplace – I’ve found a second family. The people here are not only talented professionals but also incredibly kind-hearted individuals who are always willing to lend a helping hand and share their expertise. Together, we’ve tackled challenges, celebrated successes, and created memories I’ll cherish forever.

As I look back on my time at Vervotech, I’m filled with gratitude for the experiences I’ve had and the lessons I’ve learned. I’m proud to be part of a company that values innovation, collaboration, and diversity, and I’m excited to see what the future holds for us.

Vaibhav Shetty

Director – Customer Success

From having deep conversations with customers to understanding the technical intricacies of our products, every step has been a stepping stone.

Fast forward to today, I’m the Director of Customer Success at Vervotech. It’s a testament to the support and opportunities Vervotech offers for personal and professional development. I owe a debt of gratitude to my mentors and leaders, Sanjay Ghare and Dharmendra Ladi, whose wisdom and guidance have guided me through this incredible journey.

My journey at Vervotech goes beyond professional achievements, it’s not just about work here. I’ve made some lifelong friends and learned life lessons that go way beyond the office.

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REFERRAL PARTNER AGREEMENT

THIS REFERRAL FORM EXECUTED BY REFERRAL PARTNER WITH COMPANY AND BETWEEN VERVOTECH SOLUTIONS PRIVATE LIMITED, HAVING ITS REGISTERED OFFICE AT FIRST FLOOR, FLAT NO. 101, E BUILDING, RICH WOODS, PLOT NO. 150, SECTOR 11, PCNTDA, CHIKHALI, PIMPRI CHINCHWAD, PUNE, MAHARASHTRA, 411019, IN, (“THE COMPANY”) AND YOU AS AN INDIVIDUAL REFERRAL PARTNER OR ANY SOLE PROPREITOR, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP, PRIVATE LIMITED COMPANY OR PUBLIC LIMITED COMPANY OR ANY OTHER BUSINESS ENTITY EXECUTING THE REFERRAL FORM (“THE REFERRAL PARTNER”) IS GOVERNED UNDER THE TERMS OF THIS REFERRAL PARTNER AGREEMENT (“AGREEMENT”). PLEASE READ THIS AGREEMENT CAREFULLY. BY CLICKING “ACCEPTED AND AGREED TO” REFERRAL PARTNER AGREES TO THE AGREEMENT APPLICABLE TO THE REFERRAL FORM.

REFERRAL PARTNER ACKNOWLEDGES THAT IT HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS, AND IF THE REFERRAL PARTNER IS A PERSON WHO IS SIGNING ON ITS BEHALF HAS BEEN AUTHORIZED TO DO SO AND THE COMPANY DOES NOT HAVE ANY LIABILITY TOWARDS VERIFYING THE AUTHORITY OF THE PERSON WHO HAS SIGNED THE AGREEMENT ON BEHALF OF THE REFERRAL PARTNER.

APPOINTMENT REFERRALS

Appointment. Company hereby appoints Referral Partner, and Referral Partner hereby accepts such appointment, as Company’s non-exclusive referral partner for the marketing and promotion of Services and the referral of leads for the sale of Services, as further set forth in this Agreement.

Scope of Authority Referral Partner's sole authority shall be to (a) market and promote Services as set forth in this Agreement, and (b) provide sales leads to Company for Company to contact in its sole discretion. The Parties agree that Company will directly enter into agreements with customers for the provision of Services to such customers.

DUTIES AND RESPONSIBILITIES OF THE REFERRAL PARTNER

Prior to undertaking any solicitation efforts of a prospective customer or client ("Prospect”) relating to the services or products or offerings of the Company as set out at https://vervotech.com/vervotech-affiliate-program ("Services”), Referral Partner shall submit a referral form, in a format shared by the Company ("Referral Form”), for written approval of the Company. The Referral Partner agrees to provide the necessary information, data and materials as may be requested by Company in respect of the Prospect. Referral Partner shall fill out a Referral Form and shall provide Company with the names of the Prospect to which Referral Partner intends to refer to the Services). If the Prospect is a large business entity, Referral Partner shall specify the name of division of such large entity in the customer list.

If a Prospect is approved by Company as a potential customer, Company will confirm such acceptance or rejection of such Prospect in writing via email to Referral Partner (“Referral Date”). Notwithstanding anything to the contrary, the Company will be entitled to accept or reject a Prospect at its own discretion, without providing any justifications or reasons in relation to the same. For the avoidance of doubt, Company reserves the right to decline to enter into a transaction with any prospect for lack of creditworthiness or for any other reason. Prospect which are not approved by Company are considered out of scope of Referral Fee. In the event Company does not notify Referral Partner of acceptance of the Prospect, it shall be deemed to be rejected.

In case Company notifies Referral Partner of its approval of a Prospect, the Referral Partner will provide assistance to the Company in establishing contact between the Prospect and the appropriate contact at Company, without any additional costs.

If the foregoing activities result in the Prospect entering into and executing a formal customer agreement with Company (hereinafter, a “Qualifying Transaction”), Referral Partner shall be entitled to a Referral Fee subject to receipt of amount invoiced to the customer for sale of Services through Qualifying Transaction (hereinafter, a “Qualified Sale”) and subject to the other conditions set forth under this Agreement; provided, however, that such Qualifying Transaction is consummated no later than six (6) months following the Referral Date.

A Prospect may not qualify as such, if, as on the Referral Date: (a) it is an existing customer of Company; (b) it has previously been contacted by Company, Company’ s affiliates or any other agent, reseller, vendor who markets Company’ s products and services; (c) it has previously been introduced or referred to Company as a potential prospect by a third party or (d) it is parent, subsidiary or affiliate of Company.

RESPONSIBILITIES OF THE REFERRAL PARTNER

Limited Authority Referral Partner will make no representations, warranties or guarantees on behalf of Company. Referral Partner has no authority to distribute or resell Services, or to make any commitments, agreements, or to incur any liabilities whatsoever on behalf of Company. Company will not be liable for any acts, omissions to act, contracts, commitments, promises or representations made by Referral Partner hereto. Referral Partner's activities under this Agreement shall be at its own cost and risk. Referral Partner shall not, without prior approval from Company, submit proposals, accept orders, negotiate and conclude contracts, and/or alter, vary or modify in any manner any of the terms and conditions of Company' s offer/ proposal / contract.

Assistance. Referral Partner shall make best efforts in performance of its responsibilities under the Agreement and provide reasonable support to Company.

Quarterly Meetings. Referral Partner agrees to meet, either in person or via teleconference, no less frequently than once every calendar quarter to discuss the status of the relationship contemplated herein and emerging opportunities and as directed by Company from time to time.

Training. Company shall have no obligations to provide the Referral Partner any training regarding the Services. Upon request of Referral Partner and in case the Referral Partner is an organization, Company shall make good faith efforts to provide sales training focused on the marketing and promotion of Services to Referral Partner employees, at REFERRAL PARTNER’s own cost.

Subcontracting. Referral Partner shall not subcontract any of its obligations under this Agreement.

Competing Products and Business Practices. During the term of this Agreement, Referral Partner shall promptly inform Company of Referral Partner promotion, marketing, or distribution of any product or service offering similar functionality to Services. Referral Partner (a) shall conduct its business under this Agreement in a manner that reflects favorably upon Company, Services, and Company's goodwill and reputation, (b) shall not engage in illegal, deceptive, misleading, or unethical trade practices, and (c) shall not, and shall not permit any of its subsidiaries or affiliates, or any of its or their respective directors, officers, managers, employees, independent contractors, representatives, or agents to, promise, authorize, or make any payment, or otherwise contribute any item of value, directly or indirectly, to any third party and in each case, in violation of the applicable anti-bribery or anti-corruption law.

Data Protection and Privacy. In the performance of the services set forth herein Referral Partner may receive or have access to personal data of the Company and its personnel. Referral Partner agrees to comply with the terms set forth in this Agreement, in its collection, receipt, transmission, storage, disposal, use and disclosure of such personal data. Referral Partner agrees to ensure compliance with applicable laws, rules and regulations, including but not limited to laws, rules and regulations related to personal data protection and data privacy. To the extent the Referral Partner will share any personal data with the Company, the Referral Partner shall be responsible for obtaining informed consent from such individuals for the processing of their personal data. The Referral Partner agrees to take all necessary steps to ensure compliance, including but not limited to executing appropriate contractual agreements as may be necessary as per applicable laws.

REPRESENTATIONS AND WARRANTIES

Representations and Warranties. Referral Partner represents and warrants that (a) it has the full corporate right, power and authority to enter into this Agreement and to perform its obligations hereunder, (b) the execution of this Agreement and the performance of its obligations hereunder does not and will not conflict with or result in a breach (including with the passage of time) of any other agreement to which it is a party, and (c) this Agreement has been duly executed and delivered by such Party and constitutes the valid and binding agreement of such Party, enforceable against such Party in accordance with its terms. Referral Partner further represents and warrants that it shall comply with all applicable data privacy laws while performing its obligations under the Agreement, and that it has all rights necessary to provide the Referral Form to Company for Company’s use pursuant to this Agreement. Referral Partner specifically represents and warrants that it has procured from all data subjects whose personal information it is disclosing to Company an explicit consent to disclose their personal information to Company for use in contacting them for marketing and/or other business purposes.

GENERAL DISCLAIMERS- EACH OF COMPANY AND REFERRAL PARTNER ACKNOWLEDGES AND AGREES THAT, IN ENTERING INTO THIS AGREEMENT, EXCEPT AS EXPRESSLY SET FORTH HEREIN, IT HAS NOT RELIED UPON ANY WARRANTIES, EXPRESS OR IMPLIED, AND THAT NEITHER PARTY HAS MADE ANY REPRESENTATIONS, ASSURANCES, OR PROMISES THAT COMPANY WILL RECEIVE ANY NEW REFERRED CUSTOMERS OR NEW BUSINESS OR THAT REFERRAL PARTNER WILL RECEIVE ANY REFERRAL FEES AS A RESULT OF THIS AGREEMENT. COMPANY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICES, WHICH ARE PROVIDED AS-IS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, ORAL OR IN WRITING, ARISING UNDER ANY LAWS, INCLUDING WITH RESPECT TO ERROR-FREE OPERATION, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.

In consideration of the Services provided by the Referral Partner in accordance with the Agreement, Company will pay to the Referral Partner as per the Referral Fee specified below, which shall be Company’ s sole payment obligation.

Referral Fee: For any invoices issued pursuant to Qualified Sales received by Company from customer during the referral period, Company shall pay Referral Partner a Referral Fee as per the % (mentioned on the referral Page) of the amount actually collected by Company from customer as a one-time Referral Fee.

Company shall make payment of undisputed invoice raised by Referral Partner within Sixty (60) days of the date of Company' invoice to customer for the Qualified Sales.

Company shall not pay or reimburse Referral Partner for any expenses related to this Agreement, unless expressly agreed to by Company in writing, before such expenses were incurred.

Limitation on Referral Fee:

Company will not pay more than one (1) Referral Fee in connection with any given Qualified Sales.

Referral Partner will receive the Referral Fee only as one-time fee.

Referral Partner will not be entitled to receive any Referral Fees for any subsequent services which are beyond the first transaction.

A renewal of a Qualified Sale shall not be considered a new Qualifying Transaction and shall not entitle Referral Partner to any Referral Fee.

Referral Fee shall be paid only when the actual invoicing amount have been collected from Qualified Sales. Referral Partner shall not be entitled to receive payment of Referral Fees for Qualifying Transactions remaining unpaid.

LICENSES AND OWNERSHIP

Company Marks. Subject to the terms and conditions set forth in this Agreement and solely for the purposes hereof, Company grants to Referral Partner a non-transferable, non-exclusive license, without right of sublicense, to use the Company trademarks, service marks, and logos as approved by Company (the “Company Marks”) to perform its obligations set forth in this Agreement. The use of all Company Marks, including placement and sizing, shall be subject to Company’s then-current trademark use guidelines, if any, provided by the Company. If the Company Marks become, or in Company’s opinion are likely to become, the subject of an infringement claim, Company may at its option modify or replace the Company Marks and require Referral Partner to cease use of the allegedly infringing Company Marks. Referral Partner shall promptly provide Company with samples of all materials that use the Company Marks for Company’s quality control purposes. If, in Company’s discretion, the Referral Partner’s use of the Company Marks does not meet Company’s then-current trademark usage policy, Company may, at its option, require Referral Partner to revise such material and re-submit it under this Section prior to display, or release of further materials bearing or containing such Company Marks. Except for the right to use the Company Marks set forth above, nothing contained in this Agreement shall be construed to grant to Referral Partner any right, title or interest in or to the Company Marks, and all right, title, and interest in and to the Company Marks shall be retained by Company. Referral Partner acknowledges that Company asserts its exclusive ownership of the Company Marks and the renown of the Company Marks worldwide. Referral Partner shall not take any action inconsistent with such ownership and further agrees to take all actions that Company reasonably requests to establish and preserve its exclusive rights in and to the Company Marks. Referral Partner shall not adopt, use, or attempt to register any trademarks or trade names that are confusingly similar to the Company Marks or in such a way as to create combination marks with the Company Marks.

Company Materials. Subject to the terms and conditions set forth in this Agreement and solely for the purposes hereof, Company grants to Referral Partner a non-transferable, non-exclusive license, without right of sublicense, to distribute the Company Materials exactly as provided to Referral Partner by Company to perform Referral Partner’s obligations under this Agreement.

Ownership. As between Referral Partner and Company, Company retains all right, title, and interest to (a) the Company Marks, (b) the Services, any of its products, material or pre-existing intellectual property rights (c) the high-level description of the Company Products and the Company Materials, and (d) all Intellectual Property Rights related to any of the foregoing. There are no implied licenses under this Agreement.

No Intellectual Property Rights. Parties agree that no intellectual property rights are conceived or developed under this Agreement. If any intellectual property rights are conceived or developed, the intellectual property rights will vest with Company, unless otherwise agreed by the parties.

CONFIDENTIALITY

In connection with this Agreement, “Confidential Information” means all data and information of a confidential nature of Company disclosed by Company to the Referral Partner under this Agreement, as well as information that Referral Partner knows or reasonably should know that the Company regards as confidential, including business practices, software, technical information, future product/services plans, programming/design techniques or plans, know-how, trade secrets, prospects, customers, end users suppliers, development plans or projects, and services. Confidential Information may be communicated orally, in writing, or in any other recorded or tangible form.

Confidentiality. Referral Partner shall maintain in confidence all Confidential Information disclosed to it by the Company. Referral Partner shall not use for any purpose outside the scope of this Agreement, or disclose to any third party such Confidential Information except as expressly authorized by this Agreement. To the extent that disclosure is authorized by this Agreement, the Referral Partner shall obtain prior agreement from its employees, contractors, agents, and consultants to whom disclosure is to be made to hold in confidence and not make use of such information for any purpose other than those permitted by this Agreement. Referral Partner shall use at least the same standard of care as it uses to protect its own most confidential information (and in no event less than reasonable care) to ensure that such employees, contractors, agents, and consultants do not disclose or make any unauthorized use of such Confidential Information. Referral Partner shall promptly notify the other upon discovery of any unauthorized use or disclosure of the Confidential Information. Notwithstanding any other provision in this Agreement to the contrary, the obligations set forth in this section 7 shall survive any termination or expiration of this Agreement for perpetuity.

Exceptions. The obligations of confidentiality contained in this section 7 shall not apply to the extent that it can be established by the Referral Partner by competent proof that such Confidential Information:

was already known to the Referral Partner, other than under an obligation of confidentiality, at the time of disclosure by the Company;

was generally available to the public or was otherwise part of the public domain at the time of its disclosure to the Referral Partner;

became generally available to the public or otherwise became part of the public domain after its disclosure, other than through any act or omission of the Referral Partner in breach of this Agreement; or

was disclosed to the receiving Party, other than under an obligation of confidentiality, by a third party who had no obligation not to disclose such information to others.

Authorized Disclosure. Notwithstanding any provision to the contrary, the Referral Partner may disclose Confidential Information (a) to the extent required by law or any governmental authority, or (b) on a “need to know” basis under an obligation of confidentiality to its legal counsel or accountants, provided, that such Referral Partner shall to the extent practicable (and except to the extent it would jeopardize the filing or prosecution of letters patent) use commercially reasonable efforts to assist the Company in securing confidential treatment of such information required to be disclosed. Prior to disclosing any Confidential Information under this section 7 Referral Partner shall take reasonable steps to give the Company sufficient notice of the disclosure request for the Company to contest the disclosure request.

Referral Partner shall indemnify, defend, and hold Company harmless from and against any and all liabilities, losses, damages, costs, fees, and expenses (including reasonable attorneys’ fees) resulting from or arising out of any Claims based on allegations that (a) Referral Partner breached any obligations including with limitation Confidential Information, representation or warranty contained herein, or has breached any applicable laws, rules and regulations, or (b) Referral Partner made a representation or warranty regarding Company or the Services that is inconsistent with the written high-level description of Services provided to Referral Partner by Company, or is otherwise unauthorized by Company.

Indemnification Procedure. An indemnifying party hereunder shall be liable for any costs and damages to third parties incurred by the other party which are attributable to any such Claims, provided that such other party (i) notifies the indemnifying party promptly in writing of the claim, (ii) gives the indemnifying party the sole authority to defend, compromise or settle the claim, with prior approval of the Company and (iii) provides all available information, assistance, and authority at the indemnifying party’s reasonable request and at the indemnifying party’s reasonable expense to enable the indemnifying party to defend, compromise, or settle such claim. Any indemnifying party hereunder shall diligently pursue any defense required to be rendered hereunder, shall keep the indemnified party informed of all significant developments in any action defended by the indemnified party, and shall not enter into any settlement affecting the indemnified party’s interests without the prior consent of the indemnified party.

LIMITATION OF LIABILITY

COMPANY SHALL NOT BE LIABLE TO REFERRAL PARTNER OR ANY THIRD PARTY FOR ANY INDIRECT DAMAGES INCLUDING TOWARDS COSTS OF PROCUREMENT OF SUBSTITUTE GOODS, LOST PROFITS OR ANY OTHER SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES, HOWEVER CAUSED, AND WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCTS LIABILITY OR ANY OTHER THEORY OF LIABILITY, REGARDLESS OF WHETHER COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE MAXIMUM AGGREGATE LIABILITY OF COMPANY FOR DIRECT DAMAGES FOR ANY REASON SHALL BE LIMITED TO AMOUNTS PAID BY COMPANY IN RESPECT OF THE QUALIFYING SALE . THESE LIMITATIONS WILL APPLY NOTWITHSTANDING THE FAILURE OF THE ESSENTIAL PURPOSE OF ANY REMEDY.

NON-SOLICITATION OF PERSONNEL

The Referral Partner shall not engage or hire as an employee or engage as independent contractor, Company’ s employees or independent contractors during the term of this Agreement and for a period of one (1) year following expiration or termination of this Agreement except as may be mutually agreed in writing.

TERM AND TERMINATION:

Term. The term of this Agreement shall be one (1) year from the Effective Date unless terminated earlier in accordance with the provisions of this Section. This Agreement shall renew automatically for additional one-year terms unless one Party provides the other written notice no later than thirty (30) days prior to the expiration of the then-current term of the Agreement of its intention to allow the Agreement to expire at the end of such term.

Termination for Breach. Either Party may terminate this Agreement for cause resulting from the material breach of this Agreement by the other Party by providing the breaching party written notice of such material breach and the intention to terminate for cause. The Party receiving such notice shall have thirty (30) days to cure such material breach. If at the end of such thirty (30) day period, the breach has not been cured to the reasonable satisfaction of the Party seeking to terminate the Agreement, the Agreement shall terminate.

Termination for Convenience. Either Party may terminate this Agreement for convenience upon ninety (90) days’ written notice.

Effect of Termination; Duties of the Parties Upon Termination. Upon any termination or expiration of this Agreement, Referral Partner shall (a) refrain thereafter from representing itself as a promoter or marketer of Company Products, or as a referral partner of Company, (b) immediately cease all use of any Company Marks, and (c) return to Company the Company materials and Confidential Information and all tangible items in Referral Partner’s possession or under its control containing Confidential Information of Company. Upon any termination or expiration of this Agreement, Company shall return to Referral Partner all tangible items in Company’s possession or under its control containing Referral Partner’s Confidential Information. Upon any termination or expiration of this Agreement, all licenses granted under this Agreement shall terminate.

Survival. Any clauses which by their very nature survive termination of the Agreement, will survive.

MISCELLANEOUS:

Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. As used in this Agreement, the singular shall include the plural and vice versa, and the terms “include” and “including” shall be deemed to be immediately followed by the phrase “without limitation.” The captions and headings in this Agreement are inserted for convenience and reference only and in no way define or limit the scope or content of this Agreement and shall not affect the interpretation of its provisions.

Governing Law and Dispute Resolution: This Agreement will be governed by and construed in accordance with the laws of the India, without reference to its conflict-of-laws principles. The Parties shall resolve any difference or dispute arises out of this Agreement by way of negotiations. If such negotiation process fails, then all disputes arising from or related to this Agreement shall be resolved before exclusive jurisdiction of courts in Pune, India.

NOTICES: All notices including hereunder shall be given in writing by hand delivery, courier service or email at the addresses set forth below:

If to Company

If to REFERRAL PARTNER

Attention: Sanjay Ghare

Email: [email protected]

Address: 3rd Floor, Amar Tech Centre, Sakore Nagar, Viman Nagar, Pune, Maharashtra 411014

Non-Waiver: A party's failure or delay in enforcing any provision of the Agreement will not be deemed a waiver of that party's rights with respect to that provision or any other provision of the Agreement. A party's waiver of any of its rights under the Agreement is not a waiver of any of its other rights with respect to a prior, contemporaneous or future occurrence, whether similar in nature or not.

Captions: The captions in the Agreement are not part of the Agreement, but are for the convenience of the parties. References to Sections are to sections of this Agreement.

Counterparts. Any documents signed in connection with the Agreement may be signed in multiple counterparts, which taken together will constitute one original.

Severability: In the event any term of the Agreement is held unenforceable by a court having jurisdiction, the remaining portion of the Agreement will remain in full force and effect, provided that the Agreement without the unenforceable provision(s) is consistent with the material economic incentives of the parties leading to the Agreement.

Relationship between the Parties. The relationship of Referral Partner and Company is that of independent contractors. Regardless of the use of the word "partner" in the title of this Agreement, neither Party is, nor shall be deemed to be, a partner, joint venturer, agent, or legal representative of the other Party for any purpose. Neither Party shall be entitled to enter into any contracts in the name of or on behalf of the other Party, and neither Party shall be entitled to pledge the credit of the other Party in any way or hold itself out as having authority to do so. No Party shall incur any debts or make any commitments for the other, except to the extent, if at all, explicitly provided herein.

Assignment. Referral Partner shall not assign or transfer this Agreement, in whole or in part, whether by operation of law or otherwise, or delegate any of its obligations hereunder, without the express written consent of Company. Subject to the foregoing, this Agreement shall be binding upon the successors and permitted assigns of the Parties. Any assignment in violation of the foregoing shall constitute a material breach of this Agreement and shall be null and void.

Force Majeure. Neither Party shall be liable for any failure or delay in fulfilling the terms of this Agreement due to fire, strike, war, civil unrest, terrorist action, government regulations, acts of nature or other causes which are unavoidable and beyond the reasonable control of the Party claiming force majeure.

Entire Agreement. The Agreement constitutes and contains the complete, final and exclusive understanding and agreement of the Parties and cancels and supersedes any and all prior negotiations, correspondence, understandings, and agreements, whether oral or written, between the Parties respecting the subject matter thereof. Parties agree that, their engagement with each other is on non-exclusive basis and either Party is free to appoint any third party for performance of their respective obligations.

Electronic Record. This Agreement is an electronic record in the form of an electronic contract formed under Information Technology Act, 2000 and rules made thereunder and the amended provisions pertaining to electronic documents / records in various statutes as amended by the Information Technology Act, 2000. This Agreement does not require any physical, electronic or digital signature. This Agreement constitutes a legally binding document between the Subscriber and the Company.

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Referer's Information:

Referral information:, referral details:.

Pravin Mahadik

Chief Financial Officer

Pravin Bandu Mahadik is an ICMAI fellow and accomplished Cost and Management Accountant (CMA) with over a decade of experience in accounts and finance.

As a leader, Pravin has worked across various financial domains, including commercial operations, accounts and finance, auditing, taxation, MIS, transfer pricing, and export management.

He consistently introduces and implements systems to fortify financial control and improve Vervotech’s net organizational efficiency.

Marvel Puri

Chief Revenue Officer

As chief revenue officer (CRO), Marvel is responsible for every process at Vervotech that generates revenue. He has been instrumental in connecting different revenue-related functions, from sales, customer success, pricing, and revenue operations. His focus-driven approach to improving sales performance, and creating great product and pricing strategy, and delivering customer satisfaction has helped Vervotech to acquire 100 clients within a short stint of 2 years.    

With the experience of over 15+ years in sales and business development at SaaS-based organizations, Marvel has flourished throughout his career by creating and leading experienced and diverse teams. To Marvel, growth has not only been to hit quotas but is broad and holistic: open new paths to revenue and build the processes to get there.

Ganesh Pawade

Ganesh is a Problem Solver and a Thought Leader. Throughout his 13 yrs professional journey, he helped businesses to identify their platform areas, define solutions and architecture, and make a more technically-informed decision on their current and future business as well as the technology roadmap.

His passion for good code often results in him being engaged in animated discussions with his team of architects and engineers, pushing them to think beyond what is possible. His specialties include Solution Architecture, Full stack specialist, AWS, Azure and Google cloud.

Dharmendra Ladi

Dharmendra Ladi has been instrumental in positioning Vervotech as the “World’s Best Mapping Provider” and is focused on transforming how the industry presents accommodation data to its customers. With his 14+ years of experience in travel and innovative technologies, he is the principal architect behind designing Vervotech’s AI-driven products that are today helping its clients worldwide do business seamlessly.    

He leads new product development. Under his leadership, Vervotech has is credited with going from 0 to 100 customers within 2 years of business establishment. Dharmendra is also an inspiring thought leader, and regularly speaks at large scale events, webinars and has been interviewed by multiple media houses.

Sanjay Ghare

CEO & MD

Sanjay brings over 16+ years of entrepreneurial, general management, and senior executive experience with proven expertise in business development, corporate strategy, and product & program management. Sanjay, being an Industry veteran, and an influencer, leads and drives Vervotech’s vision of “Organizing World’s Accommodation Data.” Before he founded Vervotech, he was a VP of Tavisca Solutions, where he took the started SaaS division and grown with customers in  more than 15 countries.    

With his business acumen, Sanjay is on the trajectory of revolutionizing the accommodation data segment. He’s also a member of the Forbes Technology Council and often puts actionable growth strategies into perspective in his Forbes column.       

Anurag Mittal

Chief Marketing Officer

Anurag Mittal is a seasoned technology executive who has led multiple marketing teams at SaaS-based organizations. At Vervotech, Anurag is responsible for marketing and strategy formulation and setting up a growth-oriented marketing & prospecting team. Anurag comes with an experience working with Organizations like Deloitte and ACCELQ, where he led the marketing initiatives for their SaaS product lines and has worn many hats including devising marketing strategies for business growth, managing GTM with alliances and partners, conceptualizing and orchestrating marketing campaigns, end-to-end event management, and demand generation activities to deliver a qualified sales pipeline.    

He has been strategic face for the launch of Vervotech’s website and digital presence and have led several winning campaigns that has led to successful brand development and customer acquisition.    

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Rohit Shukla

Chief Product Officer

As Vervotech’s Chief Product Officer, Rohit is responsible for the product strategy and teams working to advance Vevotech’s position as a leading accommodation data company for OTAs, bed banks, DMCs, and Tour operators.

Rohit has been in the technology space for the last 15+ years, working with companies at different stages of growth within Travel, E-commerce, and FinTech Industries. In his previous roles, he drove product strategies for start-ups and SMEs and was instrumental in building platforms and product lines that generated $900 million in revenues and half a million paid customers. The products included flights, hotels, car rentals, activities & vacation packages.

Archana Garg

Financial Advisor

Archana has more than 15 years of experience in finance and operations management. Archana is proven leader in building and scaling companies as a result of her focus on financial strategy and operational excellence. She is motivated by understanding the customers she serves, and providing value at all levels of a business while building strong relationships with her colleagues.

She is a Chartered Accountant and is responsible for driving the Vervotech’s overall financial strategy, including the growth plans. Her experience navigating high growth companies, developing new business strategies and overall operational mindset delivers meaningful results for growth stage of Vervotech.

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The 10 best online travel agencies in 2024

The top 10 online travel agencies.

• Booking.com
• Lastminute.com

Best online travel agencies for business travel

1. travelperk.

Main offerings and features:

• Industry-leading travel inventory
• Flexible booking with FlexiPerk
• Safety alerts with TravelCare
• Integrated travel policy & approval flows
• Centralized invoicing
• Easy & real-time expense reports
• Carbon offsetting with GreenPerk
• 24/7 fast customer support in target 15s
• VAT reclaim
• Integration with 3rd party tools , such as expense management or HR software like Expensify and BambooHR

Save time and money on your business travel with TravelPerk

2. sap concur.

• Works with some of the biggest brands
• Easy tracking and reporting of expenses for expense reports
• Many connected apps, such as Uber and Airbnb for cars and hotels
• One solution for a variety of business travel spending

Click below to compare both platforms’ features and benefits

• Ample integrations
• Award-winning mobile app
• Employee-centric travel management

Click below for a more detailed comparison between both platforms:

Best online travel agencies for leisure travel, 1. booking.com.

• Intuitive booking tool and website
• Flight + Hotel booking for easily planning trips with no cross-referencing travel websites
• Simple car rental options and taxi hire
• Available in over 40 different languages and offers over half a million properties across 207 countries
• You can book experiences in your destination city to entertain you on your travels
• Genius rewards program

• Simple interface and booking tool
• Deals when making more than one booking
• 38 different languages and offers a 24-hour, multilingual customer support service
• Free cancellation within 24 hours of booking
• Millions of reviews to help make your decision

3. Lastminute.com

• Filter hotels according to budgets, star ratings, guest ratings, board types, and more
• ATOL protection on flight + hotel bundles
• Flash sales for last-minute deals
• Payment plans to spread out the cost of travel
• Extra entertainment booking for your trips, like theatrical productions and day trips
• Gift cards for gifting travel

• Expedia rewards for hotels, cars, and more
• Experienced support
• Compare cruise lines
• Big savings when booking flights, hotels, and car rentals
• Operates in nearly 70 countries and in over 35 different languages
• Luxury travel options

• Book hotels, flights, cars, and bundles
• 24/7 support
• Lower prices on the app
• Great last-minute deals for spontaneous travel

6. Bookmundi

Best online travel agencies for flights

1. skyscanner.

• Super flexible booking filters
• Cheaper flights and hotels than other OTAs
• Price alerts for travel routes of interest
• Easy-to-use booking tool and UI
• Hundreds of location and currency options
• One-way, return, and multi-city travel options

2. Kiwi.com

• Simple flight booking tool
• Partnerships with Booking.com and Rentalcars.com
• Discover deals anywhere with the option to open up your search
• Easy-to-use app

How do online travel agencies work?

What are the advantages of booking through an online travel agency.

• Access to comparison tools
• Peer reviews to help you with your decisions
• Flexible cancellation policies
• All your travel in one place
• Local flights and deals

Rewards programs

Comparison tools, peer reviews, flexible cancellation.

Flexiperk: Cancel anytime, anywhere. Get a minimum of 80% of your money back.

One account for all of your travel needs, a local approach to global travel, wrapping up.

Make business travel simpler. Forever.

• See our platform in action . Trusted by thousands of companies worldwide, TravelPerk makes business travel simpler to manage with more flexibility, full control of spending with easy reporting, and options to offset your carbon footprint.
• Find hundreds of resources on all things business travel, from tips on traveling more sustainably, to advice on setting up a business travel policy, and managing your expenses. Our latest e-books and blog posts have you covered.
• Never miss another update. Stay in touch with us on social for the latest product releases, upcoming events, and articles fresh off the press.

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Online Travel Market Size, Share, Growth Analysis, By Platform Type(Mobile and Desktop), By Booking Mode(Online Travel Agencies and Direct Travel Agencies), By Region - Industry Forecast 2024-2031

Report ID: SQMIG25O2015 | Region: Global | Published Date: April, 2024 Pages: 223 | Tables: 59 | Figures: 77

• DESCRIPTION
• TABLE OF CONTENTS
• METHODOLOGY
• ANALYST SUPPORT

Online Travel Market Insights

Global Online Travel Market size was valued at USD 1105.80 billion in 2022 and is poised to grow from USD 1237.39 billion in 2023 to USD 3041.92 billion by 2031, growing at a CAGR of 11.90% during the forecast period (2024-2031).

The changing consumer habits, expanding social media influence, increased disposable income, and global trend towards adventure travel are all factors that have contributed to the market expansion. Additionally, the business has recently been driven by the rise in international travel. The United Kingdom was home to more than 605,130 students from outside the country, according to official statistics from the Higher Education Statistics Agency. According to estimates, Chinese origin made up more than 30% of all international students. Travel technology makes it possible for customers to obtain travel-related services in a far more convenient and cost-effective way than traditional offline services, which is likely to propel industry growth during the projection period. Additionally, travel companies are introducing speedy, mobile-friendly websites that are easy to use on smartphones. Travellers may plan and book their vacations online with the help of these websites, which include peer reviews, simple price comparisons, and 360-degree video tours. Throughout the forecast period, this is anticipated to accelerate growth. However, there are a few potential concerns, including erratic climate change and environmental deterioration. Expanding internet platforms and reliable providers of hotels, vacation packages, and other services around the world are creating new opportunities for the business, which is predicted to grow more quickly in the coming years.

US Online Travel Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Market Size

USD 1105.80 billion

Largest Segment

Fastest Growth

Growth Rate

11.90% CAGR

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Online Travel Market Segmental Analysis

Global Online Travel Market is segmented on the basis of platform type, booking mode, service type and region. By platform type, the market is segmented into mobile and desktop. By booking mode, the market is segmented into online travel agencies, direct travel agencies. By service type, the market is segmented into transportation, accommodation, vacation packages. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Global Online Travel Market Analysis by Booking Mode

With a revenue share of over 80% in 2022, direct travel agencies accounted for the majority of sales. This is because travel agents offer extensive excursions and holiday packages while taking their clients' comfort and financial situations into account on a global scale. The ability to book hotels and flights quickly, as well as the chance to evaluate many accessible travel options, are other reasons why individuals are urged to buy their vacation packages through online travel agencies. The industry's growth is anticipated to accelerate as consumer confidence in online payments rises.

The fastest CAGR from 2022 to 2030 will be 10.7% for the online booking segment. The market is being pushed by an increase in the number of consumers using online travel agents to book hotels, travel packages, and other services because of how convenient and personalized they are. Moreover, significant actions done by market participants, including online campaigns and social media advertising, are likely to entice potential customers to begin their bookings through the online booking method, which is anticipated to hasten industry expansion. Additionally, the market has been driven in recent years by globalization, an increase in the middle class in developing economies, and rising disposable income.

Global Online Travel Market Analysis by Platform Type

With a revenue share of over 60.10% in 2022, the desktop market commanded the biggest market share. Industry growth is being accelerated by the growing use of desktop or web browsing to get thorough information about travel and hotel bookings. Additionally, people are more comfortable using desktop computers to purchase bigger items like vacation packages and flights. Additionally, the conversion rate for desktops is higher than that for mobile devices, with 85% of customers abandoning their trip purchases, which would spur industry expansion.

The fastest CAGR from 2022 to 2030, 9.91%, will be seen in the mobile segment. This is a result of mobile and internet usage and penetration increasing globally. The busy schedules of young and working consumers as well as the existence of reputable online travel firms are further driving industry expansion. The segment has grown as a result of the quick and easy hotel and airfare bookings made possible by marketplace platforms and the large range of services made available through mobile applications. Furthermore, the market growth is being accelerated during the projection period by the advent of rapid, mobile-friendly, and user-friendly applications for smartphones by travel booking firms.

To get detailed analysis on other segments, Request For Free Sample Report

Online Travel Market Regional Insights

During the study period, the Asia Pacific online travel market is anticipated to expand significantly, reaching 451.97% in 2022. People's increased purchasing power and greater living standards are two key elements luring them into the travel & tourism industry and driving the expansion of the regional internet travel market. Furthermore, the group travel industry has been significantly accelerated and encouraged by regional economic growth, the convenience of travel restrictions, growing competition, and aggressive promotion techniques used by the sector's involved players. These factors are anticipated to accelerate the growth of the online travel industry over the course of the assessment period.

Due to rising income levels throughout the area, an improved business climate in European nations, and government programmers to promote travel and tourism, the European online travel industry is the second largest in the world. In addition, a lot of people like to travel since Europeans want to discover new places. Additionally, the rise in independent/solo travelers as well as the rise in online travel agents are anticipated to fuel growth throughout the course of the projected period. Additionally, the highest market share in the European region for online travel was held by the Italian market, while the fastest-growing market was in Germany.

To know more about the market opportunities by region and country, click here to Buy The Complete Report

Online Travel Market Dynamics

Global Online Travel Market Drivers

Mobile Applications and Technology Advancements will Aid Market Growth

• The advent of mobile applications has revolutionized the online travel market. Mobile apps allow travelers to access travel services on the go, providing real-time updates, itinerary management, and seamless booking experiences. Technological advancements such as augmented reality (AR) and virtual reality (VR) have further enhanced the online travel experience by offering immersive and interactive travel previews.
• Online travel agencies have played a pivotal role in the growth of the online travel market. These platforms act as intermediaries between travelers and travel service providers, offering a one-stop solution for booking flights, hotels, rental cars, and more. The presence of OTAs has significantly increased the visibility and accessibility of travel services, fueling market growth.

Global Online Travel Market Restraints

Dependency on Internet Connectivity to Hinder Market Growth

• The online travel market heavily relies on internet connectivity, and any disruptions or limitations in internet access can hinder the booking process and customer experience. In areas with limited or unreliable internet infrastructure, travelers may face difficulties in accessing online travel platforms and making bookings.

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Online Travel Market Competitive Landscape

To increase their market share, increase profitability, and keep their position as the dominant players in the online travel sector, these companies have adopted a variety of developmental techniques. Online travel industry participants are developing updated smartphone applications that attract millennial travelers with fantastic travel offers and simple booking. Due to its usefulness, ease, and accessibility, mobile devices are also the preferred method of trip booking for the majority of young travelers. Players in the market are offering a greater variety of hotels at reasonable rates to travelers. Customers check lodging choices on numerous websites to find the greatest cost.

Top Player’s Company Profiles in Global Online Travel Market

• Booking Holdings Inc. (United States)
• Expedia Group, Inc. (United States)
• Ctrip.com International, Ltd. (China)
• Trip.com Group Ltd. (China)
• Airbnb, Inc. (United States)
• MakeMyTrip Limited (India)
• eDreams ODIGEO (Spain)
• Despegar.com, Corp. (Argentina)
• TripAdvisor, Inc. (United States)
• Trivago N.V. (Germany)
• H.I.S. Co., Ltd. (Japan)
• Agoda Company Pte. Ltd. (Singapore)
• Rakuten Travel Inc. (Japan)
• Yatra Online, Inc. (India)
• Wotif.com Holdings Pty Ltd (Australia)
• CheapOair.com (United States)
• Traveloka (Indonesia)
• Kiwi.com (Czech Republic)
• Opodo Ltd. (United Kingdom)
• eSky Group (Poland)
• Goibibo (India)
• Lastminute.com Group (United Kingdom)

Global Online Travel Market Recent Developments

• In November 2022, A corporate self-booking facility was made available by EaseMyTrip.com, one of India's top travel technology portals. With the use of this service, business travellers and organizations may make reservations for their trips because it streamlines the booking process. To become more effective and resourceful, this tool makes use of AI technologies like machine learning and data mining.
• In October 2022, MakeMyTrip (MMT) introduced a novel payment option dubbed "Book Without Payment" that enables both domestic and international travellers to reserve lodging in India or overseas without paying anything up front.

Online Travel Key Market Trends

• The increasing social media platforms have become integral in the travel planning and decision-making process. Travelers often seek inspiration, recommendations, and reviews through social media channels. Influencers and user-generated content contribute to shaping travel preferences and influencing online bookings.

Online Travel Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analyses, the online travel market has witnessed substantial growth, driven by the increasing adoption of internet connectivity, advancements in technology, and changing consumer preferences. The market size has expanded significantly, and online travel sales continue to grow globally. There has been a significant shift from traditional offline bookings to online platforms. Consumers now prefer the convenience, accessibility, and cost-saving opportunities offered by online travel platforms. The penetration of smartphones and internet connectivity has played a crucial role in driving this shift. The global online travel market has experienced significant growth and disruption, driven by technological advancements, changing consumer preferences, and the convenience offered by online platforms. The market is poised for further expansion as travellers increasingly embrace digital channels for their travel needs. However, companies in the industry must stay agile and adapt to evolving trends and challenges to maintain a competitive edge.

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Table Of Content

Executive Summary

Market overview

• Exhibit: Executive Summary – Chart on Market Overview
• Exhibit: Executive Summary – Data Table on Market Overview
• Exhibit: Executive Summary – Chart on Online Travel Market Characteristics
• Exhibit: Executive Summary – Chart on Market by Geography
• Exhibit: Executive Summary – Chart on Market Segmentation
• Exhibit: Executive Summary – Chart on Incremental Growth
• Exhibit: Executive Summary – Data Table on Incremental Growth
• Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market size

• Opportunities
• SWOT Analysis

KEY MARKET INSIGHTS

• (Exhibit: Data Table: Name of technology and details)
• (Exhibit: Data Table: Name of technology and pricing details)
• (Exhibit: Detailed Supply Chain Presentation)
• (Exhibit: Detailed Value Chain Presentation)
• Exhibit: Parent Market Ecosystem Market Analysis
• Exhibit: Market Characteristics of Parent Market
• (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
• (Exhibit: Data Table: Import and Export data details)
• (Exhibit: Data Table: Emerging startups details)
• (Exhibit: Data Table: Mapping of key raw materials)
• (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
• (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
• Macroeconomic Indicators

COVID IMPACT

• Introduction
• Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
• Exhibit: Data Table on Online Travel Market size and forecast 2021-2027 ($ million)
• Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
• Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

• Exhibit: Data Table on regulation from different region
• Exhibit: Competitive rivalry Impact of key factors, 2021
• Exhibit: Threat of Substitute Products Impact of key factors, 2021
• Exhibit: buyers bargaining power Impact of key factors, 2021
• Exhibit: Threat of new entrants Impact of key factors, 2021
• Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
• Political Impact
• Economic impact
• Social Impact
• Technical Impact
• Environmental Impact
• Legal Impact

Market Size by Region

• Chart on Market share by geography 2021-2027 (%)
• Data Table on Market share by geography 2021-2027(%)
• Chart on Market share by country 2021-2027 (%)
• Data Table on Market share by country 2021-2027(%)
• Exhibit: Chart on Market share 2021-2027 (%)
• Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

• Exhibit: companies covered in the report, 2021
• Exhibit: company positioning matrix, 2021
• Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Online Travel Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Online Travel Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Online Travel Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Online Travel Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

Online Travel Market Report Snapshots

• Online Travel Companies
• Online Travel Market Size
• Online Travel Market Analysis
• Online Travel Geographic Analysis
• Online Travel Market News

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• Travel Tips

How Online Travel Agencies Have Changed The World

Published: November 29, 2023

Modified: December 28, 2023

by Vonny Pedersen

• Hotel Reviews
• Plan Your Trip
• Sustainability

Introduction

Traveling has always been an exhilarating experience, allowing people to explore new destinations, immerse themselves in different cultures, and create memories that last a lifetime. In the past, planning a trip involved tedious tasks such as contacting travel agents, researching accommodations, and arranging transportation. However, with the advent of online travel agencies (OTAs), the way we plan and book our adventures has undergone a dramatic transformation. OTAs have revolutionized the travel industry, providing a convenient digital platform for travelers to browse, compare, and book various travel services all in one place. These platforms offer a wide range of options, from flights and hotels to car rentals and vacation packages, allowing travelers to customize their trips according to their preferences and budget. Gone are the days when travelers had to rely solely on traditional brick-and-mortar agencies. Online travel agencies have made the process of booking travel more accessible, streamlined, and efficient. With just a few clicks, travelers can access a vast array of options, read reviews from fellow travelers, and make informed decisions about their travel plans.

Evolution of Online Travel Agencies

The rise of online travel agencies can be traced back to the late 1990s when the internet became widely accessible to the general public. The first wave of OTAs, such as Expedia and Travelocity, emerged during this time, offering users the ability to search for and book flights, hotels, and other travel services online. These early platforms laid the foundation for the online travel industry we know today. As technology advanced, OTAs evolved to meet the changing needs of travelers. They began offering more comprehensive travel services, including vacation packages, car rentals, and activities. This shift allowed users to plan and book their entire trip from a single online platform, eliminating the need to visit multiple websites or contact various service providers. Furthermore, as mobile devices became increasingly prevalent, OTAs expanded their platforms to include mobile applications, making it even more convenient for travelers to access and book their trips on the go. Today, most leading OTAs have user-friendly mobile apps that offer the same functionalities as their desktop websites, providing a seamless user experience across different devices. In recent years, OTAs have also embraced emerging technologies such as artificial intelligence (AI) and virtual reality (VR) to enhance the user experience. AI-powered chatbots and virtual assistants are now common features on OTA platforms, providing personalized recommendations, answering queries, and assisting with booking processes. VR technology allows travelers to virtually explore destinations and accommodations before making a decision, further enhancing their confidence and satisfaction with their travel choices. Overall, the evolution of online travel agencies has revolutionized the way we plan and book our trips. The convenience, accessibility, and technological advancements offered by OTAs have made travel more accessible to a wider audience, empowering individuals to embark on new adventures and explore the world in ways that were once unimaginable.

Impact on Travel Industry

The emergence of online travel agencies (OTAs) has had a profound impact on the travel industry, transforming the way people plan, book, and experience their trips. The following are some key ways in which OTAs have influenced the travel industry:

• Increased Accessibility: OTAs have made travel more accessible to a wider audience, breaking down barriers and empowering individuals to explore new destinations. With just a few clicks, travelers can access a vast array of options, compare prices, and make informed decisions about their travel plans.
• Disintermediation: OTAs have disrupted the traditional distribution channels of the travel industry. In the past, travelers relied heavily on travel agents, who acted as intermediaries between travelers and airlines, hotels, and other service providers. With the advent of OTAs, travelers can now directly book their flights, accommodations, and other services, bypassing the need for intermediaries.
• Competitive Pricing: The rise of OTAs has fostered increased competition among service providers, leading to more competitive pricing in the travel industry. OTAs allow travelers to compare prices from various providers, ensuring that they get the best deal possible. This has forced service providers to offer more competitive prices and incentives to attract customers.
• Market Transparency: OTAs have brought transparency to the travel market by providing travelers with access to information and reviews from fellow travelers. This enables travelers to make informed decisions about their travel plans and ensures that service providers maintain high standards to attract positive reviews.
• Global Reach: OTAs have expanded travel options by offering a wide range of destinations and accommodations from around the world. Travelers are no longer limited to popular tourist destinations; they can now explore lesser-known locations and discover unique experiences.

Overall, the impact of online travel agencies on the travel industry has been transformative. They have democratized travel, making it more accessible, competitive, and transparent. Travelers now have the power to plan and customize their trips according to their preferences and budget, while service providers have to adapt and innovate to meet the evolving demands of the market.

Increased Convenience for Travelers

One of the significant advantages of online travel agencies (OTAs) is the increased convenience they offer to travelers. With the click of a button, travelers can access a myriad of options, compare prices, and book their travel arrangements. Here are several ways in which OTAs have enhanced convenience for travelers:

• 24/7 Access: OTAs are available 24/7, allowing travelers to plan and book their trips at any time that is convenient for them. There is no longer a need to adhere to traditional business hours or wait for travel agencies to open.
• One-Stop Shop: OTAs serve as a one-stop-shop for all travel needs. Travelers can search for flights, accommodations, car rentals, and even activities or tours, all on the same platform. This eliminates the need to visit multiple websites or make separate inquiries for each component of the trip.
• Flexible Booking: OTAs offer flexibility in terms of booking. Travelers can easily modify their travel plans, change flight dates, or upgrade hotel rooms online without the hassle of contacting various service providers individually. This convenience makes it easier for travelers to adapt to shifts in their schedules or preferences.
• Mobile Accessibility: Most OTAs provide mobile applications, allowing travelers to access their platforms from smartphones or tablets while on the go. This makes it incredibly convenient for travelers to search for and book travel arrangements, even while in transit.
• Real-Time Updates: OTAs provide real-time updates on flight schedules, hotel availability, and other travel-related information. This ensures that travelers have the most up-to-date information at their fingertips, allowing them to make informed decisions and respond to any changes or disruptions in their travel plans.
• Secure Online Transactions: OTAs prioritize the security of online transactions, providing encrypted payment gateways and secure booking processes. This gives travelers peace of mind, knowing that their personal and financial information is protected.

Overall, the increased convenience offered by online travel agencies has transformed the way travelers plan and book their trips. With the ability to access a wide range of options, make changes on the fly, and have real-time information at their disposal, travelers can now enjoy a smoother and more convenient travel experience.

Comparison Shopping and Competitive Pricing

One of the significant advantages of using online travel agencies (OTAs) is the ability to engage in comparison shopping and take advantage of competitive pricing. OTAs have revolutionized the way travelers search for and book travel arrangements by providing a platform that allows them to compare prices from multiple service providers. Here’s how comparison shopping and competitive pricing benefit travelers:

• Wide Range of Options: OTAs aggregate a vast array of travel options, including flights, hotels, car rentals, and vacation packages, from various providers. This gives travelers access to a wide range of options in terms of destinations, dates, and amenities.
• Transparent Pricing: OTAs provide transparent pricing, allowing travelers to see the costs associated with different travel services upfront. They display the total price, including taxes and fees, making it easier for travelers to compare and evaluate the value they will receive for their money.
• Instant Price Comparison: With just a few clicks, travelers can compare prices from different providers for the same travel service, such as a flight or hotel. This saves time and effort, as they can quickly identify the most competitive options and make informed decisions.
• Bargain Hunting: OTAs often offer exclusive discounts, promotional deals, and special packages that are not available elsewhere. This allows travelers to find the best bargains and secure cost-effective travel arrangements that suit their budget.
• Dynamic Pricing: Many OTAs leverage dynamic pricing algorithms that adjust prices based on supply and demand. This means that travelers can find varying prices for the same service depending on factors such as time of booking, availability, and popularity. Keeping an eye on price fluctuations can lead to significant savings.
• User Reviews and Ratings: OTAs also provide user-generated reviews and ratings for hotels, airlines, and other services. Travelers can read these reviews to gauge the quality and value of different options, helping them make more informed decisions based on the experiences of previous customers.

Overall, the ability to compare prices and take advantage of competitive pricing offered by online travel agencies gives travelers the power to find the best deals and maximize the value of their travel budget. Whether it’s scoring discounted flights, securing affordable accommodations, or finding budget-friendly vacation packages, comparison shopping through OTAs ensures that travelers can make cost-effective choices without compromising on quality or convenience.

Expansion of Travel Options

Online travel agencies (OTAs) have greatly expanded the travel options available to travelers, offering a vast array of destinations, accommodations, and experiences that were previously difficult to access. Here are several ways in which OTAs have expanded travel options:

• Global Reach: OTAs have opened up travel opportunities to destinations all around the world. Travelers can now explore and book flights, accommodations, and activities in lesser-known or remote areas, expanding their travel horizons beyond traditional tourist hotspots.
• Diverse Accommodation Options: OTAs offer a wide range of accommodations to suit various preferences and budgets. Travelers can choose from luxury hotels, boutique bed and breakfasts, vacation rentals, hostels, and more, ensuring that there is an option available for every type of traveler.
• Unique Experiences: OTAs provide access to unique travel experiences that go beyond simply booking flights and hotels. Travelers can now discover and book activities such as guided tours, cooking classes, adventure sports, cultural immersions, and wildlife expeditions, enhancing their travel experiences and creating lasting memories.
• Package Deals: OTAs often offer packaged travel deals that combine flights, accommodations, and activities into one convenient bundle. These packages provide travelers with an all-in-one solution and sometimes include added perks, such as discounted rates, complimentary meals, or guided tours.
• Flexible Travel Planning: OTAs allow travelers to customize their itineraries and create unique travel plans. Travelers can choose the duration of their stay, select specific dates, and even tailor their activities to suit their interests and preferences. This flexibility enables travelers to plan trips that suit their individual needs and desires.
• Specialized Travel: OTAs cater to various niche markets, offering specialized travel options such as eco-tourism, adventure travel, family-friendly vacations, solo travel, and more. This ensures that travelers with specific interests can find relevant options that align with their travel preferences.

Overall, the expansion of travel options provided by online travel agencies has made it easier for travelers to explore diverse destinations, find accommodations that suit their needs, and discover unique experiences that make their trips truly memorable. Whether it’s embarking on a safari in Africa, staying in a traditional ryokan in Japan, or indulging in a culinary tour of Europe, OTAs have made it possible for travelers to create their dream trips and embark on new adventures.

Rise of User Reviews and Ratings

The rise of online travel agencies (OTAs) has coincided with the proliferation of user reviews and ratings, which play a significant role in shaping the travel industry. Travelers now have access to a wealth of information and firsthand experiences shared by fellow travelers, allowing them to make more informed decisions. Here’s how user reviews and ratings have impacted the travel industry:

• Transparency and Trust: User reviews and ratings provide transparency in the travel industry. Travelers can read about the experiences of others, gain insights into the quality of accommodations, airlines, and other services, and make informed decisions based on real-life experiences. This transparency builds trust between travelers and service providers.
• Unbiased Feedback: User-generated reviews are seen as unbiased and trustworthy because they come from real travelers who have experienced the services firsthand. This enables travelers to get a more authentic and balanced perspective on the quality of the services they are considering.
• Quality Assurance: Positive reviews and high ratings act as endorsements for service providers. Accommodations, airlines, and other travel services that consistently receive positive feedback and high ratings are perceived as offering quality experiences, which can attract more customers.
• Improving Service Quality: User reviews and ratings provide valuable feedback for service providers, highlighting areas of improvement and commendation. Service providers can analyze the feedback and make necessary adjustments to enhance the quality of their offerings, ultimately benefiting future travelers.
• Enhanced Customer Satisfaction: User reviews give travelers a platform to express their opinions and share their experiences. Positive reviews can reinforce the satisfaction and happiness experienced by travelers, while negative reviews can help address any issues or concerns and improve the overall customer experience.
• Personalized Recommendations: OTAs can use user reviews and ratings to provide travelers with personalized recommendations based on their preferences. By analyzing past reviews and understanding a traveler’s preferences, OTAs can suggest accommodations, activities, or destinations that align with their interests.

As user reviews and ratings continue to grow in importance, the travel industry is incentivized to consistently deliver exceptional customer experiences, as a negative review can have a significant impact on a service provider’s reputation and business. Travelers, on the other hand, have become more discerning and empowered, relying on user feedback to make decisions that align with their expectations and preferences.

Challenges Faced by Online Travel Agencies

While online travel agencies (OTAs) have brought significant advancements to the travel industry, they also face several challenges. These challenges can impact their operations, customer satisfaction, and overall success. Here are some key challenges faced by OTAs:

• Competition: The online travel industry is highly competitive, with numerous OTAs vying for customers’ attention. Competing with other established players, as well as emerging startups, requires OTAs to constantly innovate, provide unique offerings, and differentiate themselves to attract and retain customers.
• Price Comparison: Price comparison is both a benefit and a challenge for OTAs. While it allows travelers to find the best deals, it also makes it easier for customers to find cheaper options on different platforms. This puts pressure on OTAs to continuously offer competitive pricing and value-added services to stay ahead.
• Dependency on Suppliers: OTAs heavily rely on collaborations with airlines, hotels, car rental companies, and other service providers to offer comprehensive travel options. Changes in terms, contract disputes, or disruptions in the supplier’s operations can impact the availability and reliability of services, and consequently, the OTA’s reputation.
• Technical Challenges: OTAs need to manage complex technical infrastructure to ensure seamless booking processes, real-time inventory updates, and secure payment transactions. Managing website uptime, handling high traffic volumes, and addressing potential cybersecurity threats requires continuous investment in technology and skilled IT resources.
• Customer Service: Providing efficient and prompt customer service can be challenging for OTAs due to the volume of customers and the potential for issues with bookings, cancellations, or refunds. Ensuring customer satisfaction and resolving complaints promptly is vital to maintain a positive brand image and retain customer loyalty.
• Dependency on Online Advertising: OTAs heavily rely on online advertising channels to drive traffic to their platforms. This not only requires significant financial investment but also means competing against other companies for ad space and managing advertising costs to ensure an adequate return on investment.
• Regulatory Compliance: The travel industry is subject to various regulations and licensing requirements, which can differ across different countries and regions. Compliance with local laws, taxes, and regulations can be complex and time-consuming for OTAs operating globally.

Despite the challenges, OTAs have demonstrated their resilience and adaptability in the face of evolving market dynamics. By staying updated with the latest trends, investing in technology, offering exceptional customer service, and fostering strong partnerships with service providers, OTAs can overcome these challenges and continue to shape the travel industry.

Online travel agencies (OTAs) have revolutionized the travel industry, providing unprecedented convenience, access to a wide range of options, and the ability to make informed decisions. The evolution of OTAs has transformed the way we plan, book, and experience our trips, making travel more accessible, transparent, and tailored to individual preferences. By harnessing the power of the internet and digital technology, OTAs have expanded travel options, allowing travelers to explore destinations and accommodations beyond traditional tourist hotspots. They have also facilitated comparison shopping and competitive pricing, empowering travelers to find the best deals and make cost-effective choices. Furthermore, the rise of user reviews and ratings has brought transparency and trust to the travel industry. Travelers can now rely on the unbiased feedback of fellow travelers to make informed decisions, while service providers are incentivized to maintain high standards and continuously improve their offerings to satisfy customers. However, OTAs are not without challenges. They face fierce competition, technical complexities, and the need to ensure reliable partnerships with service providers. Additionally, customer service and regulatory compliance are vital considerations for successful operations. Despite these challenges, OTAs continue to innovate and adapt, leveraging technologies such as artificial intelligence and virtual reality to enhance the customer experience. By staying ahead of market trends and investing in customer satisfaction, OTAs can continue to shape the travel industry and provide travelers with seamless, convenient, and personalized travel solutions. In conclusion, the emergence of online travel agencies has transformed travel planning and booking, offering travelers unprecedented convenience, access to a wide range of options, and the ability to make informed decisions. As the travel industry continues to evolve, OTAs will play a crucial role in shaping the future of travel, meeting the needs and expectations of travelers around the world.

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The swot of a travel agency (with examples).

Get a watermark-free, fully customizable SWOT analysis in our business plan for a travel agency

We've drafted tons of business plans for travel agencies and, far too often, business owners neglect to dedicate time and thought to crafting a strategic vision for their new project.

It's mainly because they lack the right tools and frameworks. The SWOT analysis is one of them.

What is it? Should you make a SWOT for your travel agency?

A SWOT analysis is an invaluable tool for travel agencies to navigate the complexities of the tourism industry. It stands for Strengths, Weaknesses, Opportunities, and Threats.

Developed as a framework for strategic planning, SWOT analysis helps businesses like travel agencies to dissect their internal dynamics and the external environment. The travel industry, with its ever-changing trends and customer preferences, makes this tool particularly relevant.

If you're running or considering starting a travel agency , a SWOT analysis is a crucial step. It enables you to pinpoint what you excel at (strengths), areas needing improvement (weaknesses), potential avenues for growth (opportunities), and external challenges (threats).

For example, your travel agency's strengths might include specialized travel packages or excellent customer service, while weaknesses might be a limited online presence or dependency on seasonal tourism. Opportunities could emerge from trends like eco-tourism or wellness travel, whereas threats might include economic downturns or travel restrictions.

Travel agency owners often undertake a SWOT analysis when launching new services, responding to market shifts, or facing operational hurdles. It provides a structured way to assess both the business and the broader travel landscape.

Understanding these four aspects can lead to better strategic decisions, helping prioritize efforts and develop plans that leverage your strengths and mitigate your weaknesses.

For anyone embarking on a new travel agency venture, a SWOT analysis is not just beneficial; it's a strategic necessity. It assists in recognizing your agency's unique selling points, areas requiring more investment or improvement, and external factors to watch out for.

While a SWOT analysis doesn't assure success, it dramatically increases your chances by offering a clear, strategic direction for your travel agency.

How do you write a SWOT analysis for your travel agency?

Filling out a SWOT analysis for your travel agency can seem daunting, particularly when you're attempting to foresee potential strengths, weaknesses, opportunities, and threats in the dynamic travel industry.

Engaging in comprehensive market research and perusing travel industry reports is crucial. These resources offer valuable insights into travel trends, customer preferences, and competitive dynamics.

Interacting with other travel agency owners or travel experts is also advantageous. Their practical experiences and insights can provide perspectives that are not always evident in industry reports.

Remember, the essence of a SWOT analysis is not to predict the future with absolute certainty but to equip you with a strategic approach to face it.

Reflect on the unique elements your travel agency brings to the industry.

Perhaps you specialize in exotic destinations that are not mainstream, or you have strong partnerships with reputable travel providers. Your strength might be in an experienced team with deep knowledge of travel planning, or you may offer innovative travel packages that stand out in the market.

These are internal factors that can set your travel agency apart from others.

Identifying weaknesses demands honesty and introspection.

You might face limitations in marketing budgets, affecting your ability to reach a broader audience. Lack of experience in certain types of travel, high competition in your chosen niche, or dependency on a specific market segment could be potential weaknesses.

These areas may require strategic planning, additional resources, or diversification of your services.

Opportunities

Opportunities are external elements that your travel agency can capitalize on.

For example, a rising trend in eco-tourism or adventure travel could be an opportunity. Collaborating with local businesses for travel packages, or exploiting a gap in the market, like offering unique cultural experiences, can be advantageous. Additionally, technological advancements in booking systems or virtual travel experiences could open new avenues for your business.

Threats are external challenges that could impact your travel agency.

These might include changes in travel regulations, economic downturns affecting travel spending, increased competition, especially from online travel platforms, or shifts in travel preferences due to global events like pandemics or climate change.

Examples of Strengths, Weaknesses, Opportunities and Threats for the SWOT of a travel agency

These strengths and opportunities can be leveraged to improve the profitability of your travel agency .

More SWOT analysis examples for a travel agency

If you're creating your own SWOT analysis, these examples should be useful. For more in-depth information, you can access and download our business plan for a travel agency .

A SWOT Analysis for a Luxury Travel Agency

A luxury travel agency specializes in providing exclusive, personalized travel experiences. Its strengths include access to high-end accommodations and unique, once-in-a-lifetime activities. The agency benefits from a knowledgeable team that offers expert advice and tailors travel plans to individual preferences. Strong relationships with premium service providers ensure a high level of quality and exclusivity in its offerings.

One weakness may be the high cost of luxury travel, which can limit the agency's client base to a relatively affluent demographic. Dependence on a small, high-income market segment makes the business vulnerable to economic fluctuations. Additionally, the complexity of organizing bespoke travel experiences can be labor-intensive and time-consuming.

Expanding into emerging luxury markets, such as eco-tourism or wellness retreats, can attract new clients. Collaborating with influencers in the luxury travel sphere can enhance brand visibility. Leveraging technology to provide virtual tours or augmented reality experiences can enhance the planning process and attract tech-savvy travelers.

Economic downturns can significantly impact the luxury travel market. Competition from online travel platforms offering luxury experiences at competitive prices is a growing threat. Additionally, global events such as pandemics or political instability in popular destinations can disrupt travel plans and affect business.

A SWOT Analysis for an Adventure Travel Agency

An adventure travel agency stands out with its wide array of adrenaline-pumping activities like hiking, diving, and mountain climbing. Its strengths include expert guides, access to remote and exotic locations, and tailored adventure packages. The agency's focus on sustainable tourism practices appeals to environmentally conscious travelers.

The niche nature of adventure travel limits its appeal to a specific client base, primarily younger and physically active individuals. The risks associated with adventure activities require comprehensive safety measures and insurance, adding to operational costs. Seasonal variations in weather can impact the availability of certain activities.

Developing partnerships with local communities can create unique, authentic experiences and foster sustainable tourism. Expanding the range of activities to include less intense options can attract a broader audience. Utilizing social media to showcase thrilling travel experiences can increase brand visibility and appeal to younger demographics.

Changes in environmental conditions and natural disasters can disrupt travel plans and destinations. The rise of DIY adventure planning through online resources is a competitive challenge. Additionally, fluctuations in travel regulations and global health concerns can significantly impact the adventure travel sector.

A SWOT Analysis for a Budget Travel Agency

A budget travel agency's primary strength lies in its affordability, appealing to cost-conscious travelers. It offers a variety of budget-friendly packages, including low-cost flights, accommodations, and tours. The agency benefits from strong negotiation skills to secure deals and discounts for its clients.

The focus on low-cost options may limit the quality of travel experiences offered. The agency faces intense competition from online booking platforms and other budget travel agencies. Limited profit margins on budget travel packages can challenge the financial sustainability of the business.

Expanding services to include budget-friendly, off-the-beaten-path destinations can attract travelers looking for unique experiences. Collaborating with budget airlines and hostels for exclusive deals can enhance package attractiveness. Embracing digital marketing and online booking platforms can streamline operations and reach a wider audience.

Economic downturns can lead to reduced travel spending, even among budget-conscious travelers. The rapid change in travel trends and consumer preferences requires constant adaptation. Competition from self-booking options and travel apps offering low-cost solutions is significant.

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Advantages and Disadvantages of Online Travel Agencies (OTAs)

Table of Contents

For many travelers, Online Travel Agencies (OTAs) are the preferred way to search for and book package deals, accommodation, flights, tours, and other travel. Online travel agents like Expedia, Hotels.com and Booking.com are among some of the most popular websites in the world.

For business-savvy tour operators who recognize that organic search engine traffic alone may not generate enough revenue, OTAs are an important component of a successful distribution channel strategy. They can help you reach many more travelers and generate more bookings. However, the advantages of OTAs need to be balanced with the disadvantages, like having to pay a commission on every booking.

To help you figure out the best plan of action, here’s a rundown of the pros and cons of online travel agents, and how you can use them to benefit your business.

What is an Online Travel Agency (OTA)?

An OTA is a one-stop online travel marketplace where travelers can search for, compare, and book everything from flights and hotels, to tours and car rentals.

Think of an OTA as an Amazon.com for travel. OTAs like GetYourGuide and Expedia attract millions of visitors every day because of their convenience, price and product comparison capabilities, and their huge range of hotels, tours, and other travel.

From an OTA’s perspective, the typical business model involves making money by taking a commission from each booking. Many also offer display advertising or charge companies a “pay-per-click” fee to ensure their listing appears at the top of relevant search results. 

Advantages of Online Travel Agencies (OTAs)

Expand your reach.

The main advantage of OTAs is their huge popularity, which enables tour operators to reach more travelers. It’s no secret why OTAs attract so many people:

• Breadth of choice: Just as consumers use Amazon for buyer research and price comparison purposes, OTAs offer a huge range of experiences and price points for travelers who are shopping for something specific or looking for ideas. 
• Price comparison and deals: OTAs are also popular among price-conscious travelers and bargain hunters. They let people search for travel within a set budget, and weigh their options in one place—comparing different options side by side. 
• Convenience and ease of use: Like other online retailers, OTAs are simply an easy and convenient way to shop compared to the offline equivalent. The ability to use filters to narrow down their selection according to their preferences makes OTAs an invaluable time-saving tool when researching travel.

Create marketing efficiencies

OTAs spend enormous amounts of money promoting their websites. If you have a limited marketing budget, it’s a cost-effective way to reach a much larger audience. Listing your tours on an OTA could also increase sales through your own website—a phenomenon known as the “billboard effect” . 

Many savvy buyers use OTAs as a type of meta search engine (a search engine within a website that surfaces results from lots of different search engines).  For example, a traveler searches for “things to do Waikiki” on Expedia. To explore their options and narrow down their preferences, they’ll skim through activities, read reviews, and compare pricing before switching over to Google. Now they have a better idea of what’s out there and what they’re interested in, so their search keywords will be very specific. For example, “Atlantis Submarines Waikiki.”

So how do you benefit from this buyer behavior and make sure your business takes advantage of the billboard effect on OTA websites?

• Have a strong direct pricing strategy. Consider all of your costs, including digital marketing, resellers commission, etc. to come up with a price that works for your audience, market, and business.
• Build a strong SEO and paid-search strategy so you show up prominently in search results.
• Protect your brand name with selective organic and paid keyword combinations.
• Thoroughly read through an OTA’s terms before signing on. Make sure you own your brand name in paid search.

Generate more low season bookings

If you experience a downturn in sales during the low season , listing your tours on an OTA lets you piggyback their marketing efforts—at a time when you may need to reduce your costs—to sell tours more quickly, easily, and cost-effectively (even factoring in commissions) than you might be able to do yourself. 

Gain invaluable insights

When you list your tours on an OTA, you may receive access to the analytics and data insights generated by the platform. Carefully consider how to measure your customers’ buying patterns. You can test different pricing strategies and use the platform’s analytics to spot potential new trends and opportunities, or use these insights to make better-informed business decisions.

Done correctly, all of these things allow business-savvy tour operators to use OTAs as a valuable tool for direct business.

Disadvantages of Online Travel Agencies (OTAs)

Having to pay a commission.

While listing on an OTA is free, OTAs make their money by charging a commission on every booking. This can be as much as 20% of the cost of the sale or even higher. Of course, this cost may be offset by selling more tours, faster. 

Customer service issues and cancellation rules

One reason some travelers don’t like using OTAs is the customer service, or lack thereof. Post-sale, OTAs typically become the main contact for cancellation, booking changes, or issue resolution. If something goes wrong, such as a cancellation due to an unforeseen event, travelers can be left dealing with a large company and the impersonal and unsatisfying customer service that often goes along with that. This may also affect their impression of your business.

Risk of overbooking

Overbookings can be a common problem even if you don’t currently list on an OTA. You might already be taking bookings over the phone, at your office, on your website, and through resellers. Adding multiple online travel agents to the mix can create more work to manage overbooking your tours and activities. Doing it manually or using a number of different systems and processes can be unproductive, reducing the many benefits of selling through OTAs. The best solution for overbooking is a centralized booking system with a channel manager that lets you keep track of all your bookings.

Potential loss of business

It is actually possible to hurt revenues by using an OTA due to common OTA marketing strategies. For example, an OTA might favor some tour companies over others due to them receiving a higher commission. That means your business finds it more difficult to appear in searches, while a competitor appears prominently.

Loss of complete control

The moment you start using an OTA, you face limitations around how you can market your business on their site. This includes restrictions on how tour descriptions are presented, a limited ability to edit and update listings, and so on. The good news is that you can offset this potential disadvantage by connecting to an OTA via a centralized booking system that allows you full control over your content.

Examples of Online Travel Agencies (OTAs)

Ready to get started with OTAs? Here’s an online travel agency list to check out—from huge global brands selling everything from flights to vacation rentals and experiences, to smaller, more niche OTAs. 

A leading booking site for the Asian market in particular, offering all types of travel bookings, especially accommodation. 

Part of the Expedia Group, which owns multiple OTAs, also including Orbitz and Travelocity.

One of the largest OTAs for tours and activities in the world.

GetYourGuide

A growing OTA specializing in unique experiences, especially for millennial travelers.

A growing OTA focused on selling tickets to museums and other attractions, but that does list other local experiences.

All of these websites have a section explaining how they work with tour companies, what their commission is, and how to get started.

Already selling through OTAs? Integrate Rezgo with Expedia, Viator, and GetYourGuide to manage your availability and revenues in one place and ensure a smooth customer experience.

Editor’s Note – July 2022: Updated to reflect the current percentages charged by OTAs.

Written By | Rob Mathison

Rob Mathison is a Vancouver-based freelance writer focusing on tech, travel, digital marketing, and education. He is a co-author of The Complete Resident’s Guide to Vancouver.

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No matter what is your domain in the travel industry, there is always competition out there. There are other businesses out there that are keen to capture your target audience as well. The competition is simply cutthroat and the travel agents need to devote considerable time to competitive analysis. The advantages of competitor analysis are many but still, it is one of the neglected aspects in the travel industry.

 Apart from offering critical insights into the ways and practices of the competitors, it also helps to briefly understand their behavior which enables the travel agents to anticipate their next moves and strategies. It will further help them to stand among the competition. Today, when we look at the internet, the place is full of e-commerce sites, but only those manage to remain on top which do extensive competitor research to develop their services and promotions. 

It is important to analyze the competition at different stages of the travel business to ensure that it is providing the best possible services at remarkable prices. Competitive analysis can help the travel business to learn about the ins and outs of how the competition works and identify potential opportunities where you can out-perform them. For that, it is important to understand how to do competitive analysis in the travel industry .

Tips to Perform Effective Competitive Analysis

Competitive market research basically focuses on finding and comparing the key market metrics that help to identify the differences between the services and prices offered by the competitors. Comprehensive market research helps to establish an effective sales and marketing strategy and helps to analyze the tips to prepare a marketing plan for the travel business which further helps the travel business stand out from the crowd. 

Competitive analysis helps the travel business size up the competition by identifying their strength and weaknesses. In order to know how the competitors are performing in the travel industry, it is important to know about the tips to conduct competitor research.

Determine the Competitors

If you want to know how to become a successful travel business owner , it is important for travel agents to know more about their competitors so that they can analyze and compare the data accurately. To do so, here are following things you can do. 

Divide the competitors into two categories: Direct and Indirect. 

Direct competitors are travel businesses and companies that offer services that could pass as a similar substitute and work in the same geographical areas. 

On the other hand, indirect competitors provide products and services that are not the same but could satisfy the same customer needs and requirements and solve the problem.

When comparing the travel business, the travel agents should focus on both direct and indirect competitors. 

It is important for travel agents to frequently run the competitive analysis. The market can and will shift anytime and the trends can change, and if you are not constantly scoping it out, you won’t be aware of these changes until it’s too late.

Determine the Services Offered by Competitors

After analyzing the competitors, the next step is to determine the services they are going to provide and whether it is a good place to start. One of the best tips to introduce travel business services online is to analyze how the competitors are showcasing their business online. 

It is important to analyze the complete product line and the quality of the services the competitors are offering. 

It is also important to note how they are offering the price and discounts from time to time to the customers. It will help the travel agents to introduce the offers and remarkable costs accordingly and the business can attract potential customers as well.

Research about Competitors’ Sales Tactics and Output

Running a sales analysis on competitors is quite tricky but is one of the most effective parts of competitive analysis. It is a helpful piece of information that will give the travel agents an idea of how competitive the sales process is and analyze the effective sales tips to grow business in the travel industry . 

The travel agents can also take the feedback from their clients who mentioned they were considering the competitors before and analyze what made them choose you. 

When the travel company identifies the competitor, it becomes more important for them to know more about them and offer effective services. 

Asking open-ended questions to the prospects and getting honest feedback about what customers find appealing will lead your travel business to achieve remarkable growth.

Once you have got the answer to these questions, you can start scoping out the competitors’ marketing efforts.

Take Note of Competitor’s Content and Graphics

It is important for the travel business to analyze the quality and quantity of the content and graphics they are using in social media marketing. Depending on the topics they are discussing, the content may help the travel business to hone in on their lead generation strategies. Also, don’t forget to evaluate the quality of the content and the visuals. 

Instead of going through everything in one go, just pick a small number of the latest samples and analyze how the competitors attract more customers with visuals and graphics as well as the content. 

When you have a solid understanding of how the competitors are using content and visuals to engage the customers, you can finally customize a well-organized social media marketing plan to grow your business by facing every obstacle proficiently. 

When the travel business knows how to do competitive analysis in the travel industry , they can create a more informed and effective marketing plan to grow the business. Researching about the competitors in the travel industry can help the travel agents clearly evaluate the competitive scenarios and what your travel brand needs to stand out in the travel industry.

Published On : 03-Feb-2024

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TRAVEL INDUSTRY BIG COMPETITION ONLINE

OTA 20%  in All Worlds, where as OTA is 50% in the UK + America.

• Expedia : Generated more than $500 million in revenue in the first quarter, a 35 % jump year over year. Part of Expedia Inc.’s growth strategy is to scale the business, drive down costs, and to trim margins to attract new hotels in emerging markets. Reducing margins also convinces existing hotel customers to provide Expedia with better inventory. The way to accelerate room night growth is to increase traffic, boost conversion, accelerate bookings from repeat visitors, and “then rinse and repeat.  Expedia spends around 2.4 billion on Marketing.  Their competitive advantage is that use an opaque system and have a prestige in the mind of the customer.  Elong is the major resource for getting Expedia Jobs.
• Travelocity
• Orbitz : OTA
• Lending Tree
• Ticketmaster
• Tripadvisor : Book/Trip: Use heavily Google for PPC AND SEM; Expedia’s advertising and media businesses. Compare prices book hotels (online travel agency). 70% of tripadvisor is negative Some clients will only sell what gets good ratings on tripadvisor. Double its spending on TV; Advertising in 2015 to $60 Million
• Expedia Media Solutions
• Opentable : Expedia paid $280 Million for opentable and TUIS’s $6 Billion is up for sale.
• Priceline :   They have globally acquired Booking.com, 1.8 Billion in Kayak, Rocketmile, Agada; Agenda, ADS,  Agoda, 2 Billion in Opentable. Priceline; Opentable; OpaquE. They differentiate themselves by Bid Price, Only B2C, Unique Customers, and Higher RevPar.  By spending well over $2 billion per year on advertising on the likes of Google.
• com : The agreements , in theory at least, restore competition among online travel agencies, which until now had rate parity and most-favored nation agreements with hotels guaranteeing that competitors and the hotels’ own websites couldn’t offer lower room pricing than available through hotels’ contacts with Booking.com. Under the revised commitments, Booking.com will replace its existing price parity agreements with accommodation providers — sometimes also referred to as ‘most favored nation’ or “MFN” provisions — with ‘narrow’ price parity agreements. Under the ‘narrow’ price parity agreement, subject to certain exceptions, an accommodation provider will still be required to offer the same or better rates on Booking.com as it offers to a consumer directly, but it will no longer be required to offer the same or better rates on Booking.com as it offers to other on-line travel companies.“The revised commitments will also allow an accommodation provider to, among other things, offer different terms and conditions (e.g., free WIFI) and availability to consumers that book with on-line travel companies that offer lower rates of commission or other benefits, offer lower rates to consumers that book through off-line channels and continue to discount through, among other things, accommodation loyalty programs, as long as those rates are not published or marketed online.” In a news release, Booking.com said it is abandoning its “price, availability and booking conditions parity provisions with respect to other online travel agencies. This will create an environment that supports increased transparency and competition among OTAs which will ultimately benefit consumers, as well as hoteliers, by encouraging the freedom for properties to offer different pricing and booking policies.” Tour operators do not compete with hoteliers – they help them market and allow them the freedom to sell the rooms they keep for themselves on an ‘accommodation only’ basis. Online travel agents, because they only sell ‘accommodation only’, compete directly with the hotel. In a rather unexpected development, the online giant has agreed on a settlement with the French, Italian and Swedish Authorities, apparently sanctioned by the EU, to prevent hotels from showing lower prices on their own websites than those being featured by Booking.com! The British Hospitality Association has also said that it is deeply concerned that online travel agents were ‘stifling’ competition.  TUI is reported to be looking to offload LateRooms.com, its online hotel booking service, as it seeks to raise hundreds of millions of pounds from the sale of non-core assets.
• AirBnb : $40 Billion; It charges a percentage from hosts and renters, but it doesn’t pay accommodation taxes. Under its terms of service, it doesn’t require its accommodation members to adopt safety, privacy and cleanliness standards. It doesn’t concern itself with accommodating those with disabilities.W-Focus Buy, Sell and Give Credit; R- Larger, sell multiple
• Instant Booking: Acquired Viator ; $331 Million in acquisitions; MyTable
• Restopolis:  Leading restaurant reservation platform in Europe
• Getaroom.com
• Uber: $18Billion in Market Capitalization
• Facebook Travel
• Google Travel
• GoEuro – Travel search has traditionally been dominated by websites and apps that focus on air and accommodation bookings. However, the increased popularity of rail and coach transport within the U.K. and Europe has opened a huge gap in the market to combine all modes of transport in one place. We are offering a must-have product for anyone looking to book coaches, trains and air travel domestically or within Europe. iTunes App Store and Google Play . The app is one of a growing number of mobile travel platforms, joining the likes of Busbud (an international bus travel site), Withlocals (a travel guide app connecting users with hosts in Southeast Asia) and Sam’s Club Travel (a platform offering members-only savings on travel accommodations), among many others.

FROM PROPHECY TO PROFIT

• For Profit (Organization)
• Margins ($) + Margins (%)
• Between Cash and Profit

A deadhead is an empty leg-when a bus goes home empty with no PAX. First class is 3 stars, the Luxury class is 5 stars.

Ways to Raise Capital

• Angel Investors-80% believe in the idea because of the sweat equity you can put in
• VC-Sharks; income (15-50%); 10 years for 20 million; like converted notes; don’t want to be shareholders
• Mezonine (Crowdsource)- Charge 8-12% in interest; for example, 200 Million with 2-3% interest; only mature insurance (5%) companies and private companies will fall in this category
• Bank-Low interest (0-5%), want to see collateral 5-10 years

Company’s assets have to be the same as investment. OTA’s don’t make profits because of Turnover and they lose business fast

PROFITABLIITY

Share value goes down and the business company goes out of business; Minute you take the loan as a public company you company decreases the value. $Shares = Value in public company x #of shares.  The most important number in travle is the $MG and to keep cash flow positive.  Companies can use permanent room blocks to get a better day price. If credit is smaller give credit/receive = DOP (Day of Payable)/DOS (Day of Received). PRB help get inventory for high demand destinations. credit for suppliers.

H2H Via XML; the Internet is a vary of DNS. Exposed to all searches/Proto – Turkey; Allegia

Priceline/Expedia (Hotwire) /AMEX/JPT

Many searches from one person

160 Million Bids/Day

• Destinations
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A Montenegro Road Trip

Le mans 24 hours – then and now, rouen – the city of a hundred spires, the allure of agadir, travel competitions, win a holiday.

Enter our Travel Competitions for a Chance to Win Unforgettable Holidays and Prizes!

Discover enticing giveaways from leading names in the world of travel. Whether you crave family getaways, city escapades, thrilling adventures, or serene spa retreats, we have the perfect prize for you.

Weekly, we curate the finest holiday competitions available online. Please check individual competition terms and conditions for entry details.

Best of luck and remember “You gotta be in it to win it”.

AUGUST 2024

Win an escorted tour to iceland.

Courtesy of Saga and World of Cruising you could win this amazing four night trip to Iceland where you will go in search of the Northern Lights and much more. T&Cs Apply. Competition closes 31st August 2024

Win a 7 Night European River Cruise

Courtesy of Riviera Travel and World of Cruising you could win a 7 night European cruise for 2 people. T&Cs Apply. Competition closes 31st August 2024

Win a Scandinavian Fjordland Cruise

Courtesy of Ambassador Cruise Lines and World of Cruising you could win a 7 night cruise for two people to places including Begen, Eidfjord and Stavanger plus you get the chance to cruise Boknafjord. T&Cs Apply. Competition closes 31st August 2024

Win a Svalbard Cruise

Courtesy of Hurtigruten and World of Cruising you could win a 15 day cruise for two people aboard the MS Trollfjord, sailing along the scenic Norwegian coast north to Spitsbergen, the largest of Svalbard’s islands. T&Cs Apply. Competition closes 31st August 2024

Win an Aegean Cruise

Courtesy of Marella Cruises and World of Cruising you could win a 7 night cruise for two people sailing from Cyprus aboard the Marella discovery 2. T&Cs Apply. Competition closes 31st August 2024

Win a Break to the South of France

How about winning this 3 night break to to the Côte d’Azur on the French Riviera with The Luxury Travel Book. T&Cs Apply. Competition closes 31st August 2024.

Win a Luxury Greek Escape with Angsana Corfu Resort & Spa and Weddings and Honeymoons Magazine

Win six nights bed and breakfast at the Angsana Corfu Resort & Spa on Corfu. Travel and transfers are not included. T&Cs Apply. Competition closes 31st August 2024.

Win a Swiss Vacation with Fred Holidays

Win a rail adventure on the Gotthard Panorama Express. T&Cs Apply. Competition closes 31st August 2024.

Win a Tour of South Korea with Odynovo

A rare chance to win a trip to South Korea T&Cs Apply. Competition closes 31st August 2024.

Win a Holiday to Jamaica with Vita Coco

How about a chance to win a week on the Caribbean island of Jamaica? T&Cs Apply. Competition closes 31st August 2024.

Win a Holiday to Crete with Moonpig and Jet2Holidays

Win 7 nights for two people on the gorgeous island of Crete. T&Cs Apply. Competition closes 31st August 2024.

SEPTEMBER 2024

Win a holiday to thailand with chang beer.

Win a holiday to South East Asia T&Cs Apply. Competition closes 6th September 2024.

Win a Jet2 Holiday to Majorca

Win the headline trip of a Majorca holiday plus many other prizes T&Cs Apply. Competition closes 7th September 2024.

Win a Break to Las Vegas

Courtesy of casinos.com you could win a dream break to Las Vegas where you will stay at the MGM Grand Hotel. T&Cs Apply. Competition closes 9th September 2024.

Win a trip to Paris with President

Win 3 nights in Paris T&Cs Apply. Competition closes 11th September 2024.

Win a British Airways Holiday to the Algarve

Win a 3 night stay at Pine Cliffs Resort in the Algarve with British Airways T&Cs Apply. Competition closes 13th September 2024.

Win a Family Holiday to Spain

With this wonderful 7 night holiday with Family Traveller to the Costa Del Sol T&Cs Apply. Competition closes 13th September 2024.

Win a Holiday to Austria with Active Traveller and Obertauern Tourism

Take your chance and enter for a trip to the glorious Austrian Alps T&Cs Apply. Competition closes 13th September 2024.

Win a Break to Mauritius with Constance Hotels

Win a 4-night half board stay at either Constance Sakoa Boutik or Constance Tekoma in Mauritius! T&Cs Apply. Competition closes 14th September 2024.

Win a Family Break to New York

Win a family break for 2 adults and 2 children to New York courtesy of Kaspa Desserts. T&Cs Apply. Competition closes 14th September 2024.

Win a week in the Maldives with Weddings & Honeymoons magazine

Win a magical 7 night stay in the Maldives for you and your other half. Flights to the Maldives are not included. T&Cs Apply. Competition closes 15th September 2024.

Win a Holiday to Egypt with Red Sea Holidays

Win 7 nights in Sharm El Sheik, Egypt with the specialist tour operator Red Sea Holidays. T&Cs Apply. Competition closes 20th September 2024.

Win a Trip to Switzerland with Ricola Sweets

Win a holiday to Switzerland worth £1,300, plus a year’s supply of Ricola sweets. T&Cs Apply. Competition closes 30th September 2024.

Win an Amazing Trip to California with Monster Energy

Win four nights in California including a wellness, surf, and ski or snowboard experience. T&Cs Apply. Competition closes 30th September 2024.

Win a 7 Night Ski Holiday to Canada

Win a dream 7 night ski holiday to Canada with Panorama Ski Resort and Air Canada. T&Cs Apply. Competition closes 30th September 2024.

OCTOBER 2024

Win a holiday to whistler with whistler tourism.

Win a Summer break to the Canadian resort of Whistler T&Cs Apply. Competition closes 3rd October 2024.

Win a Maldives Holiday with County Wedding Magazine

Win 5 nights for two people in the Maldives T&Cs Apply. Competition closes 31st October 2024.

NOVEMBER 2024

Win an antarctic cruise.

Win a 12 night Antarctic Cruise with Cruise Collective and HX Hurtigruten Expeditions T&Cs Apply. Competition closes 30th November 2024.

JANUARY 2025

Win a holiday to crete with neutradol.

Win a holiday to the fabulous island of Crete in 2025 T&Cs Apply. Competition closes 10th January 2025.

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EDITOR PICKS

Popular posts, the 8 regions of northern italy, the wildlife of canada, taking my time on andros island, popular category.

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Current Processing Times (applied on or after December 18, 2023)

About our processing times.

• Include the time your application is at one of our passport agencies or centers. 
• You may get your passport on a different date than your family member or friend.
• Mailing times are not included in processing times . Consider the total time it will take to receive your passport when you are booking travel. 
• It may take two weeks for your application to get to us, and two weeks for you to get your passport after we mail it. 

Previous Processing Times

I applied between november 6, 2023 and december 17, 2023.

Routine : 7 to 10 weeks

Expedited : 3 to 5 weeks

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You can get a status on the day we received your application in our system, or the day we processed your request for expedited service.

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I need my passport sooner than i thought. what should i do.

Call the National Passport Information Center at  1-877-487-2778  ( 1-888-874-7793  TDD/TTY) to request expedited service for an extra $60. You may also add a 1-2 delivery service of your completed passport book for an extra $21.36. One-to-two day delivery is not available for passport cards. We only send cards via First Class Mail.

Can I pay for faster delivery and return shipping?

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• Delivery to us : Use Priority Mail Express for faster shipping. The price for this service depends where you live.
• Return to you : Pay $21.36 for 1-2 day delivery. This means you will receive your passport   1-2 days after we send it. Include the fee with your passport fee in your check or money order payable to the U.S. Department of State for fastest return shipping. Do not submit a return envelope to us with postage pre-paid. 

You may receive your passport and the supporting documents in separate mailings. If you are renewing a passport card, we will send it to you via First Class Mail. We do not use 1-2 day delivery services if you only applied for a passport card.

Why do your processing times change?

We change our processing times as demand for passports changes during the year. From late winter into summer, demand for passports is generally higher than other periods of the year. Plan ahead and apply during our slower season from October through December. 

What happens to my processing times if I receive a letter or email requesting more information?

If you receive a letter or email requesting more information to complete your application, respond as soon as possible. If you receive this letter or email, it may take longer to get your passport. Follow the instructions in the letter or email, and go to our Respond to a Letter or Email page for more information.    

I received an email from [email protected] reminding me to renew my passport. Is this legitimate?

Yes, this is our email and the links in the email will take you to this website. We are emailing customers who have passports expiring in the next year and reminding them to renew. The subject line of the email will be:

• Act Now - Renew Your U.S. Passport!, or
• Act Now - Renew Your Child's Passport!

Make An Appointment at a Passport Agency or Center

We have two types of appointments: Life-or-Death Emergency Service and Urgent Travel Service . You cannot walk-in. 

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Already Applied : Call  1-877-487-2778 . Se habla español.

If you are deaf or hard of hearing, call  1-888-874-7793  for TDD/TTY teletype services. 

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STAY CONNECTED

GSA’s Login.gov expands services into states

Login.gov is a shared technology service within GSA’s Technology Transformation Services (TTS) that provides authentication and identity verification capabilities to government agencies. As the public’s “one account for government,” Login.gov gives the public the opportunity to use a single account to securely access services across participating government websites. 

Login.gov supports over 10 million monthly active users and 40 million monthly sign-ins across nearly 50 agencies and states. Most Login.gov accounts are created to receive federal benefits, but in 2022, Login.gov began offering state and local governments across the country the ability to use its services. Since then, the use of Login.gov has rapidly expanded across state government programs. Federal funding is not required for state and local governments to use Login.gov.

“Whether accessing state or federal government services, the public expects and deserves secure and easy ways to get what they need,” said Robin Carnahan, GSA Administrator. “Expanding adoption of Login.gov to more states is an opportunity to demonstrate that we can deliver on that expectation and is a priority for GSA and for the country.”

Here are just a few of Login.gov’s state-level success stories.

Partnering with California to modernize transit benefits

California was one of the first states to adopt Login.gov. Riders of Monterey-Salinas Transit (MST) buses can use Login.gov to streamline access to discounted transit benefits for senior citizens and veterans through Cal-ITP Benefits , a web application designed to make bus and train transit simpler and more cost effective for California’s transit riders. 

The app’s integration with Login.gov enables transit riders to quickly and securely verify their eligibility online for discounted fare programs, including the Senior (age 65+) and Veteran Discount programs. Login.gov makes managing riders’ Personally Identifiable Information (PII) simpler, as riders consent to sharing only the information they need to, and most riders verify their eligibility in five minutes or less.

Having proven its usefulness to riders of MST, the app is now available to riders of Santa Barbara Metropolitan Transit District (SBMTD). Cal-ITP is currently scoping implementing the service for 13 more transit operators in California (as well as others in South Carolina and Connecticut) to provide contactless payment and support reduced fares.

Gillian Gillett, chief of the Data and Digital Services Division of California’s Department of Transportation, said, “Cal-ITP is thrilled to partner with Login.gov on this project. Verification using Login.gov opens the door to delivering benefits digitally, making transit more accessible and welcoming to some of the people who need it most.” 

Jonathan Porat, California State CTO, also said, “I am proud of what we have already achieved with Login.gov, and for what’s ahead. We continue to lead the nation by using technology to simplify how we deliver services to Californians.”

Partnering with the U.S. Department of Labor to reduce fraud

Cash benefits, such as unemployment insurance, are particularly subject to identity fraud. To modernize and strengthen these systems against fraud, Login.gov partnered with the U.S. Department of Labor Unemployment Insurance (UI) to provide identity verification services to states administering UI benefits. 

Arkansas was the first state to use Login.gov in its UI system, launching a pilot in 2022. The program was a success, leading to partnerships with other states: Hawaii, Utah, Massachusetts, New Hampshire and West Virginia. With the Department of Labor and Login.gov, these states were able to modernize their UI Systems to protect their programs against identity fraud while still ensuring access to Login.gov’s systems.

Providing an offline alternative through In-Person Proofing

Not every member of the public is able to verify their identity online, so Login.gov offers a unique alternative: In-Person Proofing (IPP) at a participating U.S. Postal Service (USPS) post office. Ninety-nine percent of the U.S. population lives within 10 miles of a participating USPS location. This allows Login.gov to make identity proofing as convenient as possible for as many people as possible. Thousands of USPS locations nationwide participate in Login.gov’s IPP program, making it one of the largest identity proofing programs of its kind.

How states and cities can use Login.gov

Login.gov aims to keep its services affordable while keeping them secure, and has just announced a new pricing model. Price scales are based on usage, making it easy to try Login for a limited use case or pilot. The authentication services are billed on a monthly-active user basis, and the identity verification pricing is based on a five-year “credential lifecycle” where the cost is effectively split across government agencies. 

State and city governments are eligible to partner with Login.gov through an Intergovernmental Cooperation Act (IGCA) agreement. If you’re unsure whether your project is eligible to use Login.gov or have any other questions about our services, contact our partnerships team at [email protected] .

PER DIEM LOOK-UP

1 choose a location.

Error, The Per Diem API is not responding. Please try again later.

No results could be found for the location you've entered.

Rates for Alaska, Hawaii, U.S. Territories and Possessions are set by the Department of Defense .

Rates for foreign countries are set by the State Department .

2 Choose a date

Rates are available between 10/1/2022 and 09/30/2025.

The End Date of your trip can not occur before the Start Date.

Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained.

Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries."

Per diem localities with county definitions shall include "all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately)."

When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality.

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I-131F, Application for Parole in Place for Certain Noncitizen Spouses and Stepchildren of U.S. Citizens

ALERT: On Aug. 26, 2024, the United States District Court for the Eastern District of Texas, in Texas v. Department of Homeland Security,  Case Number 24-cv-306 administratively stayed DHS from granting parole in place under Keeping Families Together for 14 days.

To comply with the district court’s administrative stay, USCIS will:

• Not grant any pending parole in place requests under Keeping Families Together.
• Continue to accept filings of Form I-131F, Application for Parole in Place for Certain Noncitizen Spouses and Stepchildren of U.S. Citizens.
• Continue to schedule biometric appointments and capture biometrics at Application Support Centers (ASCs).

The district court’s administrative stay order does not affect any applications that were approved before the administrative stay order was issued at 6:46 p.m. Eastern Time on Aug. 26, 2024.

Use this form to request a discretionary grant of parole in place under  Keeping Families Together .

What This Form Can Help You Do

• Keeping Families Together

Frequently Asked Questions About Keeping Families Together

Form Details

Form I-131F must be filed online.

File Online

You can find the filing fee for Form I-131F by visiting our  Fee Schedule  page. There is no fee waiver available for Form I-131F.

Starting Aug. 19, 2024, you may file Form I-131F, Application for Parole in Place for Certain Noncitizen Spouses and Stepchildren of U.S. Citizens, online with the applicable filing fee. There is no fee waiver available for Form I-131F.

Each requestor, including noncitizen stepchildren, must file a separate Form I-131F requesting parole in place, and each requestor must have their own USCIS online account. A parent or legal guardian may create an online account for their minor child if the purpose is to submit a form on behalf of the minor. If a parent or legal guardian is not available, a primary caregiver or legal assistance provider may also help a child create their own USCIS online account. Information on creating a USCIS online account is available on the  How to Create a USCIS Online Account page.

• Frequently Asked Questions About the Keeping Families Together Process
• Form I-131F Filing Guide (PDF, 8.95 MB)

Filing Online

• How to Create a USCIS Online Account
• Tips for Filing Forms Online
• Online Filing for Attorneys and Accredited Representatives

AAA Travel Information:

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What if Apple made a travel focused Apple Card?

Apple Card recently passed its five year anniversary , and I’ve recently been thinking about whats next for the credit card. With Apple Card not being super profitable, combined with the fact that Apple wants to position itself as more of a services company, I think it could make a lot of sense for Apple to start offering a higher end credit card.

Apple Card today

Currently, Apple Card is a simple, no annual fee credit card focused on providing 2% cash back whenever you use Apple Pay. It also has an elevated 3% category for Apple and other partner merchants, incentivizing users to spend more money at Apple. It’s not bad, but also it’s not a super exciting credit card.

Apple Card in its current form also cost Goldman Sachs (the issuing bank) over a billion dollars , and Goldman Sachs is set to exit its Apple Card partnership in the next 3-6 months. With those two things on the table, I think it might be quite interesting to see an annual fee version of the Apple Card, more focused on travel…

The competition

There are a number of banks in the general-purpose travel credit card space, such as Chase, American Express, Citi, and Capital One. When I say general-purpose, I just mean that the cards aren’t in direct partnership with one airline or hotel. However, most of these setups require multiple cards if you want to maximize value. I think Apple could simplify things, and make general-purpose travel credit cards more appealing to a wider audience.

For example, a popular setup is the Chase Trifecta, composed of the Chase Freedom Unlimited, Chase Freedom Flex, and Chase Sapphire Preferred. The first two cards are no annual fee, and the third is $95, and the three cards all earn in the same points ecosystem, allowing you to pool all of them together, and transfer them out to one of Chase’s travel partners – such as Southwest Airlines, World of Hyatt, or one of the many others.

The Chase Freedom Unlimited’s primary purpose is to earn 1.5x points on all purchases, the Freedom Flex comes in with 5x points on certain rotating categories (gas stations, grocery stores, etc), and the Sapphire Preferred comes in with 3x on dining, and 2x on travel. Sapphire Preferred also has a bunch of travel insurances, making it the go-to card for putting anything travel related on.

‘Apple Card Pro’ earnings

I think Apple could make a really good single credit card focused on travel, although it wouldn’t be easy. Apple would need to establish partnerships with a bunch of hotel and airlines to make the Apple point ecosystem worth using, which banks like Wells Fargo and Capital One have struggled with. Neither of those banks have partnerships with domestic US airlines.

With Apple’s travel credit card, I think the structure of earning 1x points with the physical card and 2x points at Apple Pay should stick around. It’d allow the card to still serve as a good catch-all. They can also keep around 3x on Apple, although they should drop all of the other partnerships. Instead, they should focus on rewarding users with 3x points for any dining or travel.

The card would probably target around a $299 annual fee, similar to the Amex Gold card. Apple could help users justify the card with one major perk: lounge access.

Travel benefits

Top comment by caesarrr.

This makes absolutely no sense from Apple’s perspective. Zero.

Apple have achieved what makes sense to their business model — a play for the transaction space that goes to their products / service.

Unless Apple are pivoting to a financial services division (GE Capital, anyone?) then this is of zero value to them at all.

Apple could establish a partnership with Priority Pass, and allow Apple Card “Pro” customers to access 1600+ airport lounges worldwide. It’d be one of the more affordable credit cards to offer this benefit, so it’d likely have a limitation on visits, perhaps 12 a year – which would still be more than enough for most people. And the great thing is, if users don’t take full advantage of those visits, Apple (and the issuing bank) gets to profit from the annual fee paid.

It’d also be pretty neat to see Apple work on a unified travel portal to search for point redemptions across all of their varying partners, similar to point.me . One of the annoyances of transferring points is that you have to search each partner individually to find the best value, and I think Apple could make that process easier.

Would a travel focused card get you to sign up for Apple Card, or would you rather see Apple take a different approach? Let us know in the comments.

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Michael is 9to5Mac’s Weekend Editor, keeping up with all of the latest Apple news on Saturday and Sunday. He got started in the world of Apple news during the pandemic, and it became a growing hobby. He’s also an indie iOS developer in his free time, and has published numerous apps over the years.

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Where Kamala Harris Stands on the Issues: Abortion, Immigration and More

She wants to protect the right to abortion nationally. Here’s what else to know about her positions.

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By Maggie Astor

• Published July 21, 2024 Updated Aug. 24, 2024

With Vice President Kamala Harris having replaced President Biden on the Democratic ticket, her stances on key issues will be scrutinized by both parties and the nation’s voters.

She has a long record in politics: as district attorney of San Francisco, as attorney general of California, as a senator, as a presidential candidate and as vice president.

Here is an overview of where she stands.

Ms. Harris supports legislation that would protect the right to abortion nationally, as Roe v. Wade did before it was overturned in 2022, in Dobbs v. Jackson Women’s Health Organization.

After the Dobbs ruling, she became central to the Biden campaign’s efforts to keep the spotlight on abortion, given that Mr. Biden — with his personal discomfort with abortion and his support for restrictions earlier in his career — was a flawed messenger. In March, she made what was believed to be the first official visit to an abortion clinic by a president or vice president.

She consistently supported abortion rights during her time in the Senate, including cosponsoring legislation that would have banned common state-level restrictions, like requiring doctors to perform specific tests or have hospital admitting privileges in order to provide abortions.

As a presidential candidate in 2019, she argued that states with a history of restricting abortion rights in violation of Roe should be subject to what is known as pre-clearance for new abortion laws — those laws would have to be federally approved before they could take effect. That proposal is not viable now that the Supreme Court has overturned Roe.

Climate change

Ms. Harris has supported the Biden administration’s climate efforts , including legislation that provided hundreds of billions of dollars in tax credits and rebates for renewable energy and electric vehicles.

“It is clear the clock is not just ticking, it is banging,” she said in a speech last year , referring to increasingly severe and frequent disasters spurred by climate change. “And that is why, one year ago, President Biden and I made the largest climate investment in America’s history.”

During her 2020 presidential campaign, she emphasized the need for environmental justice , a framework that calls for policies to address the adverse effects that climate change has on poor communities and people of color. She has emphasized that as vice president as well.

In 2019, Ms. Harris, then a senator, and Representative Alexandria Ocasio-Cortez, Democrat of New York, introduced legislation that would have evaluated environmental rules and laws by how they affected low-income communities. It would have also established an independent Office of Climate and Environmental Justice Accountability and created a “senior adviser on climate justice” within several federal agencies. In 2020, Ms. Harris introduced a more sweeping version of the bill. None of the legislation was passed.

Ms. Harris was tasked with leading the Biden administration’s efforts to secure voting rights legislation, a job she asked for . The legislation — which went through several iterations but was ultimately blocked in the Senate — would have countered voting restrictions in Republican-led states, limited gerrymandering and regulated campaign finance more strictly.

This year, she met with voting rights advocates and described a strategy that included creating a task force on threats to election workers and challenging state voting restrictions in court.

She has condemned former President Donald J. Trump’s efforts to overturn the 2020 election results. In a speech in 2022 marking the anniversary of the Jan. 6, 2021, attack on the Capitol, she said that day had showed “what our nation would look like if the forces who seek to dismantle our democracy are successful.” She added, “What was at stake then, and now, is the right to have our future decided the way the Constitution prescribes it: by we the people, all the people.”

Economic policy

In campaign events this year, Ms. Harris has promoted the Biden administration’s economic policies, including the infrastructure bill that Mr. Biden signed, funding for small businesses, a provision in the Inflation Reduction Act that capped the cost of insulin for people on Medicare and student debt forgiveness.

She indicated at an event in May that the administration’s policies to combat climate change would also bring economic benefits by creating jobs in the renewable energy industry. At another event , she promoted more than $100 million in Energy Department grants for auto parts manufacturers to pivot to electric vehicles, which she said would “help to keep our auto supply chains here in America.”

As a senator, she introduced legislation that would have provided a tax credit of up to $6,000 for middle- and low-income families, a proposal she emphasized during her presidential campaign as a way to address income inequality.

Immigration

One of Ms. Harris’s mandates as vice president has been to address the root causes of migration from Latin America, like poverty and violence in migrants’ home countries. Last year, she announced $950 million in pledges from private companies to support Central American communities. Similar commitments made previously totaled about $3 billion.

In 2021, she visited the U.S.-Mexico border and said : “This issue cannot be reduced to a political issue. We’re talking about children, we’re talking about families, we are talking about suffering.”

More recently, she backed a bipartisan border security deal that Mr. Biden endorsed but Mr. Trump, by urging Republican lawmakers to kill it , effectively torpedoed. The legislation would have closed the border if crossings reached a set threshold, and it would have funded thousands of new border security agents and asylum officers. “We are very clear, and I think most Americans are clear, that we have a broken immigration system and we need to fix it,” Ms. Harris said in March .

Israel and Gaza

Ms. Harris called in March for an “immediate cease-fire” in Gaza and described the situation there as a “humanitarian catastrophe.” She said that “the threat Hamas poses to the people of Israel must be eliminated” but also that “too many innocent Palestinians have been killed.”

In an interview later that month , she emphasized her opposition to an Israeli invasion of Rafah, the city in southern Gaza to which more than a million people had fled. “I have studied the maps,” she said. “There’s nowhere for those folks to go, and we’re looking at about 1.5 million people in Rafah who are there because they were told to go there, most of them.”

She has said on multiple occasions that she supports a two-state solution.

Racial justice

Racial justice was a theme of Ms. Harris’s presidential campaign. In a memorable debate exchange in 2019 , she denounced Mr. Biden’s past work with segregationist senators and opposition to school busing mandates.

She has called for ending mandatory minimum sentences, cash bail and the death penalty, which disproportionately affect people of color.

Amid the protests that followed the police killing of George Floyd in 2020, she was one of the senators who introduced the Justice in Policing Act, which would have made it easier to prosecute police officers, created a national registry of police misconduct and required officers to complete training on racial profiling. It was not passed.

Her record as a prosecutor also came into play during her presidential campaign. Critics noted that as attorney general of California, she had generally avoided stepping in to investigate police killings.

Maggie Astor covers politics for The New York Times, focusing on breaking news, policies, campaigns and how underrepresented or marginalized groups are affected by political systems. More about Maggie Astor

Microsoft, CrowdStrike outage disrupts travel and business worldwide

The problem was traced to an update by security company CrowdStrike, which said it had fixed the issue Friday morning.

A defective update to an obscure piece of security software knocked out computer systems around the globe Friday, causing widespread disruptions to travel, medical care and businesses of all stripes while revealing in stunning fashion the fragility of a world economy built on shared technology.

Airline passengers were stranded at airports as thousands of flights were canceled. Hospitals closed their doors to patients expecting routine appointments. Shoppers encountered self-checkout terminals showing the notorious Blue Screen of Death that pops up when Windows fails. Even the organizers of the upcoming Paris Olympics reported impacts to the delivery of uniforms.

The problem traced to an update issued for Windows computers by security firm CrowdStrike, the company said in a blog post. The company said at 6 a.m. Friday the problem had been identified and fixed, but by that point the effects had rippled around the world.

The effects of the outage were a reminder of how the global economy is dependent on computer systems that are vulnerable to everything from attacks by sophisticated hackers to bungled software updates. But while the problems were widespread, there was an element of randomness at play, too, depending on which companies in any given industry made use of the defective system.

CrowdStrike chief executive George Kurtz said he was “deeply sorry” to anyone affected by the global outage during an appearance Friday on NBC’s “Today” show and vowed to “make sure every customer is fully recovered.”

Many CrowdStrike systems are recovering and will soon be operational, Kurtz said, but “it could take some time for some systems that won’t automatically recover.”

The company’s problems follow a string of computer security incidents and service outages in recent years that have disrupted online services. Bruce Schneier, a security technologist who teaches at the Harvard Kennedy School, said the latest problem shows how brittle parts of the online world have become as companies have chased efficiency while sacrificing resiliency.

“This is one of hundreds of companies you’ve never heard of that are essential to the functioning internet,” Schneier said. He compared the situation to a house built in such a way that nailing a picture to the wall puts it at risk of collapsing.

CrowdStrike’s software is widely used around the world by businesses seeking to defend themselves from hackers. The problems Friday affected only computers running Microsoft’s Windows operating system, CrowdStrike said, leaving Apple computers and those using Linux unaffected.

While Windows is the operating system for hundreds of millions of personal PCs, it also runs on the computers behind the scenes that are vital to the operation of airlines, digital payment systems, emergency services call centers and other organizations.

Microsoft chief executive Satya Nadella said in a post on X that his company was working with CrowdStrike and Windows users “to provide customers technical guidance and support to safely bring their systems back online.”

CrowdStrike said in the blog post that the faulty file implicated in the more widespread outages had a timestamp equivalent to 12:09 a.m. Eastern time Friday. An unrelated Microsoft outage Thursday also caused problems.

Some of the most visible early effects of the outage were at airlines. Budget U.S. carriers Frontier and Sun Country disclosed in the early hours of Friday that they were experiencing disruptions, and the problems spread to major airlines and affected airlines overseas.

By 6:30 p.m. more than 4,400 flights had been canceled worldwide. Of that, more than 2,700 were flights operating into, within or out of the United States, according to FlightAware.com , an online flight-tracking website. More than 40,000 flights were delayed worldwide, with delays affecting more than 10,000 flights originating or ending in the United States.

United Airlines said the outage impacted several key systems: those used for checking in customers, calculating aircraft weight and operating call centers.

In the United States alone the impacts were similar to what might be expected during a major snowstorm. And even as airlines reported getting operations back up and running Friday morning, problems in the aviation system can take hours to fully resolve as crews and aircraft are left in the wrong cities.

John Cox and his wife found themselves spending more than a day at Reagan National Airport as they tried to get a flight home to North Carolina.

A technical issue Thursday evening prompted major airlines including Delta to delay service and reroute passengers. Then their 10:17 a.m. Friday flight to Charlotte was pushed to Saturday at noon. “It completely derailed our plans,” Cox said, slumped on a seat by the entrance of the airport.

“We’re going to end up spending a lot more money hanging around in D.C. than if we were back at home,” Cox said, before reclining in his seat and sighing. “There should be some compensation for the immense inconvenience that so many people are enduring.”

By Friday morning it had become clear that the effects were reaching a large number of industries and affecting government agencies.

The effects on medical providers stretched from the United States to Israel, with doctors losing access to electronic medical records and some hospitals postponing elective procedures.

Mass General Brigham, a nonprofit that operates one of the largest hospital systems in Massachusetts, said on its website that it was canceling all “non-urgent visits” at its hospitals and clinics Friday. The organization said its emergency departments remained open and were providing care for urgent appointments and procedures.

Alison Baulos said her father, Gary Baulos, was scheduled to have heart surgery Friday at Baptist Health Hospital in Paducah, Ky., but got a call at 3:30 a.m. that the procedure was canceled due to the outage.

Her father, a 73-year-old former Navy Seabee and AT&T technician, had just been diagnosed with eight blockages and an aneurysm, she said, and had spent Thursday night at a hotel close to the hospital.

“The doctor said he can’t be too active, he can’t raise his hands above his head,” Alison Baulos said. She said her father is taking it in stride. His reaction to the cancellation, she said, was, “all right, since we’re already out here I guess we can go to IHOP for breakfast.”

Danielle Carzell, a 35-year-old Atlanta resident, was scheduled to have her hip replaced Friday, a procedure she’s eagerly anticipated for months. Born with a genetic condition — her hips are “like mismatched puzzle pieces,” she said — she’s in constant pain and hoped the surgery would relieve it. But after waiting for hours at Emory St. Joseph’s Hospital, she was told the procedure would have to be rescheduled due to the outage.

“I have no idea when I’m going to be able to get my surgery now,” she said. “I have a 5-year-old that I just want to play with, and this outage is just ruining everything.”

Even in a sector that has suffered debilitating blows this year — notably the hacks of claims processor Change Healthcare and health system Ascension — experts were surprised by the scale of the impacts Friday.

“I was stunned to see this kind of ripple effect,” said Chris Cummiskey, a cybersecurity expert and former Department of Homeland Security official. While CrowdStrike is often seen as the gold standard in cyber protection, he said this event may call for reviewing their internal practices.

“You don’t want to hit one button and have this kind of worldwide meltdown occur,” Cummiskey said.

Television news stations in several countries were knocked off the air. In Australia, the outage left ABC News unable to deliver its usual evening news update. Instead it showed a special report on the disruption at Sydney airports.

Some emergency services also reported problems. The Alaska State Troopers reported that, starting at 9 p.m. Thursday local time, 911 call centers statewide were not working correctly. Service was restored around 4 a.m. Friday when dispatch centers switched to analog phone systems or partnered with dispatch centers that had not been impacted, according to the Alaska Department of Public Safety.

Federal officials scrambled to assess the situation and provide assistance. Anne Neuberger, a security and technology adviser to President Biden , said her day began on a call with the White House situation room at 4 a.m. as the government sought to determine the effects on its own systems and critical parts of the economy.

“It highlights both the degree to which our economies, our national security are now digital and interconnected in a fundamental way,” said Neuberger, speaking on a panel at the Aspen Security Forum in Colorado.

A White House official said that Biden himself was briefed on the outage and that the administration was in touch with CrowdStrike and affected entities. The White House will get “sector by sector updates throughout the day and is standing by to provide assistance as needed,” the official added.

Transportation Secretary Pete Buttigieg said in an interview on CNBC Friday that he expected airlines, ports and freight companies to be largely back on their feet by Friday. But he said the episode should prompt some soul searching about the vulnerability of the country to even seemingly minor technical problems.

“We’re certainly in a new era in terms of these risks,” Buttigieg said. “I think there will be a huge amount of after action assessment, after the dust settles and things get back to normal.”

Hannah Ziegler, Jeff Stein, Aaron Gregg, Adela Suliman and Julian Mark contributed to this report.

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Chapter 7. Travel Services

Heather Knowles and Morgan Westcott

Learning Objectives

• Describe the key characteristics of the travel services sector
• Define key travel services terminology
• Differentiate between types of reservation systems and booking channels
• Discuss the impacts of online travel agents on consumers and the sector
• Identify key travel services and organizations in Canada and British Columbia
• Explain the importance of additional tourism services not covered under NAICS
• Describe key trends and issues in travel services worldwide

The travel services sector is made up of a complex web of relationships between a variety of suppliers, tourism products, destination marketing organizations, tour operators, and travel agents, among many others. Under the North American Industry Classification System (NAICS), travel services comprises businesses and functions that assist with planning and reserving components of the visitor experience (Government of Canada, 2014).

Before we move on, let’s explore the term travel services a little more. As detailed in Chapter 1, Canada, the United States, and Mexico all use NAICS guidelines, which define the tourism industry as consisting of transportation, accommodation, food and beverage, recreation and entertainment, and travel services.

For many years, however, the tourism industry was classified into eight sectors: accommodations, adventure and recreation, attractions, events and conferences, food and beverage, tourism services, transportation, and travel trade (Yukon Department of Tourism and Culture, 2013). As you can see, most of these — from accommodations to food and beverage — remain virtually the same under NAICS and have been covered thus far in this textbook.

Tourism services support industry development and the delivery of guest experiences, and some of these are missing from the NAICS classification. To ensure you have a complete picture of the tourism industry in BC, this chapter will cover both the NAICS travel services activities and some additional tourism services.

First, we’ll review the components of travel services as identified under NAICS, exploring the function of each area and ways they interact:

• Travel agencies
• Online travel agencies (OTAs)
• Tour operators
• Destination marketing organizations (DMOs)
• Other organizations

Following these definitions and descriptions, we’ll take a look at some other support functions that fall under tourism services. These include sector organizations, tourism and hospitality human resources organizations, training providers, educational institutions, government branches and ministries, economic development and city planning offices, and consultants.

Finally, we’ll look at issues and trends in travel services, both at home, and abroad.

Components of Travel Services

While the application of travel services functions are structured somewhat differently around the world, there are a few core types of travel services in every destination. Essentially, travel services are those processes used by guests to book components of their trip. Let’s explore these services in more detail.

Travel Agencies

A travel agency is a business that operates as the intermediary between the travel industry (supplier) and the traveller (purchaser). Part of the role of the travel agency is to market prepackaged travel tours and holidays to potential travellers. The agency can further function as a broker between the traveller and hotels, car rentals, and tour companies (Goeldner & Ritchie, 2003). Travel agencies can be small and privately owned or part of a larger entity.

A travel agent is the direct point of contact for a traveller who is researching and intending to purchase packages and experiences through an agency. Travel agents can specialize in certain types of travel including specific destinations; outdoor adventures; and backpacking, rail, cruise, cycling, or culinary tours, to name a few. These specializations can help travellers when they require advice about their trips. Some travel agents operate at a fixed address and others offer services both online and at a bricks-and-mortar location. Travellers are then able to have face-to-face conversations with their agents and also reach them by phone or by email. Travel agents usually have a specialized diploma or certificate in travel agent/travel services (go2HR, 2014).

Today, travellers have the option of researching and booking everything they need online without the help of a travel agent. As technology and the internet are increasingly being used to market destinations, people can now choose to book tours with a particular agency or agent, or they can be fully independent travellers (FITs) , creating their own itineraries.

Online Travel Agents (OTAs)

Increasing numbers of FITs are turning to online travel agents (OTAs) , companies that aggregate accommodations and transportation options and allow users to choose one or many components of their trip based on price or other incentives. Examples of OTAs include Booking.com, Expedia.ca, Hotwire.com, and Kayak.com. OTAs are gaining popularity with the travelling public; in 2012, they reported online sales of almost $100 billion (Carey, Kang, & Zea, 2012) and almost triple that figure, upward of $278 billion, in 2013 ( The Economist , 2014).

In early 2015 Expedia purchased Travelocity for $280 million, merging two of the world’s largest travel websites. Expedia became the owner of Hotels.com, Hotwire, Egencia, and Travelocity brands, facing its major competition from Priceline (Alba, 2015).

Although OTAs can provide lower-cost travel options to travellers and the freedom to plan and reserve when they choose, they have posed challenges for the tourism industry and travel services infrastructure. As evidenced by the merger of Expedia and Travelocity, the majority of popular OTA sites are owned by just a few companies, causing some concern over lack of competition between brands. Additionally, many OTAs charge accommodation providers and operators a commission to be listed in their inventory system. Commission-based services, as applied by Kayak, Expedia, Hotwire, Hotels.com, and others, can have an impact on smaller operators who cannot afford to pay commissions for multiple online inventories (Carey, Kang & Zea, 2012). Being excluded from listings can decrease the marketing reach of the product to potential travellers, which is a challenge when many service providers in the tourism industry are small or medium-sized businesses with budgets to match.

Finally, governments are stepping in as they see OTAs as a barrier to collecting full tax revenues on accommodations and transportations sold in their jurisdictions. OTAs frequently charge taxes on the retail price of the component; however, they purchase these products at a discount, remitting only the portion collected on the lesser amount to the government. In other words, the OTA pockets the difference between taxes collected and taxes remitted (Associated Press, 2014).

Some believe this practice shortchanges the destination that is ultimately responsible for delivering the tourism experience. These communities rely on tax revenue to pay for infrastructure related to the visitor experience. Recent lawsuits, including one by the state of Montana against a group of OTAs, have highlighted this challenge. To date, the courts have sided with OTAs, sending the message that these companies are not responsible for collecting tax on behalf of government (Associated Press, 2014).

While the industry and communities struggle to keep up with the changing dynamics of travel sales, travellers are adapting to this new world order. One of these adaptations is the ever-increasing use of mobile devices for travel booking. The Expedia Future of Travel Report found that 49% of travellers from the millennial generation (which includes those born between 1980 and 1999) use mobile devices to book travel (Expedia Inc., 2014), and these numbers are expected to continue to increase. Travel agencies are reacting by developing personalized features for digital travellers and mobile user platforms (ETC Digital, 2014). With the number of smartphones users expected to reach 1.75 billion in 2014 (CWT Travel Management Institute, 2014) these agencies must adapt as demand dictates.

A key feature of travel agencies’ mobile services (and to a growing extent transportation carriers) includes the ability to have up-to-date itinerary changes and information sent directly to their phone (Amadeus, 2014). By using mobile platforms that can develop customized, up-to-date travel itineraries for clients, agencies and operators are able to provide a personal touch, ideally increasing customer satisfaction rates.

Take a Closer Look: Expedia – The Future of Travel Report

Expedia is the largest online travel agency in the world. Formed in 1996, Expedia Inc. now oversees a variety of online travel booking companies. Together they provide travellers with the option to book flights, hotels, tours, and transportation through mobile or desktop online functions. For more on Expedia’s thoughts on the future of travel, read its report at Expedia’s report on the Future of Travel : http://expediablog.co.uk/The-Future-of-Travel/

Despite the growth and demand for OTAs, travel agencies are still in demand by leisure travellers (Hotel Marketing, 2013). The same is true for business travellers, especially in markets such as China and Latin America. Business clients in these emerging markets place a premium on “high-touch” services, such as paper tickets delivered by hand, and in-person reservations services (BTN Group, 2014).

Tour Operators

A tour operator packages all or most of the components of an offered trip and then sells them to the traveller. These packages can also be sold through retail outlets or travel agencies (CATO, 2014; Goeldner & Ritchie, 2003). Tour operators work closely with hotels, transportation providers, and attractions in order to purchase large volumes of each component and package these at a better rate than the traveller could if purchasing individually. Tour operators generally sell to the leisure market.

Inbound, Outbound, and Receptive Tour Operators

Tour operators may be inbound, outbound, or receptive:

• Inbound tour operators  bring travellers into a country as a group or through individual tour packages (e.g., a package from China to visit Canada).
• Outbound tour operators work within a country to take travellers to other countries (e.g., a package from Canada to the United Kingdom).
• Receptive tour operators (RTOs) are not travel agents, and they do not operate the tours. They represent the various products of tourism suppliers to tour operators in other markets in a business-to-business (B2B) relationship. Receptive tour operators are key to selling packages to overseas markets (Destination BC, 2014) and creating awareness around possible product.

Destination Marketing Organizations

Destination marketing organizations (DMOs) include national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus around the world. DMOs promote “the long-term development and marketing of a destination, focusing on convention sales, tourism marketing and service” (DMAI, 2014).

Spotlight On: Destination Marketing Association International

Destination Marketing Association International (DMAI) is the global trade association for official DMOs. It is made up of over 600 official DMOs in 15 countries around the world. DMAI provides its members with information, resources, research, networking opportunities, professional development, and certification programs. For more information, visit the Destination Marketing Association International website : www.destinationmarketing.org

With the proliferation of other planning and booking channels, including OTAs, today’s DMOs are shifting away from travel services functions and placing a higher priority on destination management components.

Working Together

One way tour operators, DMOs, and travel agents work together is by participating in familiarization tours (FAMs for short). These are usually hosted by the local DMO and include visits to different tour operators within a region. FAM attendees can be media, travel agents, RTO representatives, and tour operator representatives. FAMs are frequently low to no cost for the guests as the purpose is to orient them to the tour product or experience so they can promote or sell it to potential guests.

Other Organizations

The majority of examples in this chapter so far have pertained to leisure travellers. There are, however, specialty organizations that deal specifically with business trips.

Spotlight On: Global Business Travel Association  Canada

Internationally, the Global Business Travel Association (GBTA) represents over 7,000 business travel agents and corporate travel and meeting managers who collectively manage over $340 billion in business travel and meetings each year (GBTA, 2014). The Canadian chapter, headquartered in Ontario, holds annual events and shares resources on its website. For more information, visit the Global Business Travel Association : www.gbta.org/Canada/

Business Travel Planning and Reservations

Unlike leisure trips, which are generally planned and booked by end consumers using their choice of tools, business travel often involves a travel management company, or its online tools. Travel managers negotiate with suppliers and ensure that all the trip components are cost effective and comply with the policies of the organization.

Many business travel planners rely on global distribution systems (GDS) to price and plan components. GDS combine information from a group of suppliers, such as airlines. In the past, this has created a chain of information from the supplier to GDS to the travel management company. Today, however, there is a push from airlines (through the International Air Transport Association’s Resolution 787) to dissolve the GDS model and forge direct relationships with buyers (BTN Group, 2014).

Destination Management Companies

According to the Association of Destination Management Executives (ADME), a destination management company (DMC)  specializes in designing and implementing corporate programs, including “events, activities, tours, transportation and program logistics” (ADME, 2014). The packages produced by DMCs are extraordinary experiences rather than general business trips. These are typically used as employee incentives, corporate retreats, product launches, and loyalty programs. DMCs are the one point of contact for the client corporation, arranging for airfare, airport transfers, ground transportation, meals, special activities, and special touches such as branded signage, gifts, and decor (ADME, 2014). The end user is simply given (or awarded) the package and then liaises with the DMC to ensure particular arrangements meet his or her needs and schedule.

As you can see, travel services range from online to personal, and from leisure to business applications. Now that you have a general sense of the components of travel services, let’s look at some examples in Canada and BC.

Travel Services in Canada and BC

In British Columbia and elsewhere in Canada, many agencies are members of the Association of Canadian Travel Agencies (ACTA) . ACTA is an industry-led, membership-based organization that aims to ensure customers have professional and meaningful counselling. Membership is optional, but it does offer the benefit of ensuring customers receive the required services and that the travel agencies have a membership board for reference and industry resources (ACTA, 2014).

Spotlight On: Travel CUTS Travel Agency

Travel CUTS is 100% Canadian owned and operated. As a student, you may have seen its locations on or around campus. With a primary audience of postsecondary students, professors, and alumni, Travel CUTS specializes in backpack-style travel to a variety of destinations. It is a full-service travel agency that can help find flights for travel, book tours with a variety of companies including GAdventures or Intrepid Travel, assist in booking hostels or hotels, and even help with the SWAP overseas VISA program. For more information, visit Travel CUTS : www.travelcuts.com

Although travel agencies may be located in a specific community, the agencies and their representatives may operate internationally, within Canada, within BC, or across regions. In Vancouver alone there are over 500 travel agencies available to the searching traveller (Travel Agents in BC, 2014). Examples of some of the more recognized larger travel agencies and agents operating in BC include the British Columbia Automobile Association (BCAA), Marlin Travel, and Flight Centre.

Many different types of tour operators work across BC and Canada. Tour operators can specialize in any sector or a combination of sectors. A company may focus on ski experiences, as is the case with Destination Snow, or perhaps wine tours in the Okanagan, which is the specialty of Distinctly Kelowna Tours. These operators specialize in one area but there are others that work with many different service providers.

Spotlight On: Canadian Association of Tour Operators

The Canadian Association of Tour Operators (CATO) is a membership-based organization that serves as the voice of the tour operator segment and engages in professional development and networking in the sector. For more information, visit the Canadian Association of Tour Operators : www.cato.ca

Tour operators can vary in size, niche market, and operation capacity (time of year). An example of a niche BC tour operator is Prince of Whales Whale Watching in Victoria. Prince of Whales offers specialty whale-watching tours year-round in a variety of boat sizes, working with the local DMO and other local booking agents to sell tours as part of packages or as a stand-alone service to travellers. It also works to sell its product directly to the potential traveller through its website, reservation number, and in-person sales agents (Prince of Whales, 2014).

Examples of large RTOs representing Canada internationally include Jonview or CanTours. Operators of all kinds frequently work closely with a number of destination marketing organizations, as evidenced during Canada’s West Marketplace, which is a trade marketplace hosted by Destination BC and Travel Alberta. Each year the location of the marketplace alternates between Alberta and BC (past locations have included Kelowna and Canmore). This event provides an opportunity for Alberta and BC sellers (tour operators, local accommodation, activities, and DMOs) to sell their products to international RTOs who in turn work with international tour operators and travel agents to repackage the travel products. In a span of 10-minute sessions, sellers market and promote their products in hopes of having an RTO pick up the package for future years.

On a national scale, Rendez-vous Canada is a tourism marketplace presented by the Canadian Tourism Commission that brings together more than 1,500 tourism professionals from around the world for a series of 12- minute sessions where they can learn more about Canadian tours and related services (Canadian Tourism Commission, 2015).

Let’s now look a little closer at the role of BC destination marketing organizations (DMOs) in providing travel services.

At the national level, the Canadian Tourism Commission (CTC) is responsible for strategic marketing of the country. It works with industry and government while providing resources for small and medium-sized businesses in the form of toolkits. In BC, there a variety of travel service providers available to help with the planning process including Destination BC/HelloBC, regional destination marketing organizations (RDMOs), and local DMOs.

Destination BC/HelloBC

HelloBC is the official travel service platform of Destination BC, British Columbia’s provincial DMO. HelloBC.com offers access to festival activities, accommodation, transportation options, and trip ideas. This website is complemented by a social media presence through Facebook, Twitter, and Instagram (HelloBC, 2014a). Although the online resources are highly detailed, visitors also have the option of ordering a paper copy of the BC Travel Guide .

To assist with trip planning, HelloBC features a booking agent system, offering discounts and special deals created in partnership with operators. Although the site can process these value-added components, it does not handle accommodation bookings, instead directing the interested party to the reservation system of a chosen provider.

In addition to operating HelloBC, Destination BC also oversees a network of 136 Visitor Centres that can be identified by the blue and yellow logo. These are a source of itinerary information for the FIT and a purchase point for travellers wishing to book trip components (HelloBC, 2014b).

Regional Destination Marketing Organizations

BC is divided into five regional destination marketing organizations, or RDMOs : Vancouver Island, Thompson Okanagan, Northern British Columbia, Cariboo Chilcotin Coast and the Kootenay Rockies (HelloBC, 2014c). Along with Destination BC, these RDMOs work to market their particular region.

Housed within the HelloBC online platform, each RDMO has an online presence and travel guide specific to the region as well as a regional social media presence. These guides are important as they allow regional operators to participate in the guide and consumer website in order to encourage visitation to the area and build their tourism operations.

Take a Closer Look: BC’s Regional DMOs

For more information on each RMDO, visit the following consumer and industry sites:

Vancouver Island Consumer: Vancouver Island : www.hellobc.com/vancouver-island.aspx Industry: Vancouver Island : www.tourismvi.ca

Thompson Okanagan Consumer: Okanagan : www.hellobc.com/thompson-okanagan.aspx Industry: Okanagan : www.totabc.org/corporateSite/

Northern British Columbia Consumer: Northern BC : www.hellobc.com/northern-british-columbia.aspx Industry: Northern BC : www.travelnbc.com/

Cariboo Chilcotin Coast Consumer: Cariboo Chilcotin Coast : www.hellobc.com/cariboo-chilcotin-coast.aspx Industry: Cariboo Chilcotin Coast : www.landwithoutlimits.com/

Kootenay Rockies Consumer: Kootenay Rockies : www.hellobc.com/kootenay-rockies.aspx Industry: Kootenay Rockies : www.krtourism.ca/

Community Destination Marketing Organizations

Community destination marketing organizations (CDMOs) are responsible for marketing a specific destination or area, such as Whistler or Kimberley. Travel services typically offered include hotel search engines, specific destination packages and offers, discounts, events and festival listings, and other information of interest to potential visitors. In the absence of a CDMO, sometimes these services are provided by the local chamber of commerce or economic development office.

Spotlight On: Tourism Tofino 

Tourism Tofino is the local DMO for the Tofino area, located on the west side of Vancouver Island. Tofino is a destination region that attracts travellers to Pacific Rim National Park, surfing opportunities, storm watching, and the Pacific Ocean. As part of its marketing tactics, Tourism Tofino offers visitors key planning tools on the landing site. To encourage shoulder season visitation, storm-watching deals are highlighted, which also allows visitors to inquire directly with the accommodation provider and/or tour operator. For more information, visit Tourism Tofino : www.tourismtofino.com

Complementing BC’s Visitor Centre network mentioned earlier, local visitor centres are managed by individual communities. Visitor centres may be housed in gateway buildings at strategic locations, in historic or cultural buildings, or at an office located in town. They are designed to provide general information to travellers and may include other services such as booking hotels, free Wi-Fi, and help from a visitor information counsellor (SGSEP, 2012).

Other Systems and Organizations

A number of customized and targeted reservation systems are used by BC DMOs and other organizations. One example is the BC campground reservation online booking systems. BC Parks, Parks Canada, and private campground operators all use different proprietary reservation systems. Both BC Parks and Parks Canada reservation systems open on a specific date in the spring for bookings later in the year. These systems let visitors review what a site looks like through photos or video and pick which site they would like to book in the campground. Many campgrounds also offer a first-come-first-served system, as well as overflow sites, to accommodate visitors who may not have reserved a site.

In the business market, there are several companies in BC and Canada that facilitate planning and booking. Concur is an example of a travel management company widely used in British Columbia and Canada by organizations including CIBC, Kellogg’s, and Pentax. It provides services including trip planning software for use by employees, expense and invoicing software for use by managers, and a mobile application that ensures clients can take the technology on the go. Its services have contributed to client savings, such as reducing the travel expenses for one client by almost one-fifth in their first year of use in Ontario (Concur, 2014).

BC is home to several DMCs including Cantrav, Pacific Destination Services, and Rare Indigo (Tourism Vancouver, 2014). All offer event services as well as turnkey operations (where all logistics are handled by the DMC and invoiced to the corporation).

So far we’ve looked at travel services as defined by NAICS. Next let’s have a closer look at additional services generally considered to be part of the tourism economy.

Tourism Services

Many organizations can have a hand in tourism development. These include:

• Sector-specific associations
• Tourism and hospitality human resources organizations
• Training providers
• Educational institutions
• Government branches and ministries in land use, planning, development, environmental, transportation, and other related fields
• Economic development and city planning offices

Consultants

The rest of this section describes Canadian and BC-based examples of these.

Sector-Specific Associations

Numerous not-for-profit and arm’s-length organizations drive the growth of specific segments of our industry. Examples of these associations can be found throughout this textbook in the Spotlight On features, and include groups like:

• BC Hotel Association
• Sea Kayak Guides Alliance of BC
• Restaurants Canada

These can serve as regulatory bodies, advocacy agencies, certification providers, and information sources.

Tourism and Hospitality Human Resource Support

The Canadian Tourism Human Resource Council (CTHRC) is a national sector council responsible for best practice research, training, and other professional development support on behalf of the 174,000 tourism businesses and the 1.75 million people employed in tourism-related occupations across the country. In BC, an organization called go2HR serves to educate employers on attracting, training, and retaining employees, as well as hosts a tourism job board to match prospective employees with job options in tourism around the province.

Training Providers

Throughout this textbook, you’ll see examples of not-for-profit industry associations that provide training and certification for industry professionals. For example, the Association of Canadian Travel Agents offers a full-time and distance program to train for the occupation of certified travel counsellor. Closer to home, an organization called WorldHost, a division of Destination BC, offers world-class customer service training.

You’ll learn more about training providers and tourism human resources development in Chapter 9: Customer Service.

Educational Institutions

British Columbia is also home to a number of high-quality public and private colleges and universities that offer tourism-related educational options. Training options at these colleges and universities include certificates, diplomas, degrees and masters-level programs in adventure tourism, outdoor recreation, hospitality management, and tourism management. Whether students are learning how to manage a restaurant at Camosun College, gaining mountain adventure skills at College of the Rockies, or exploring the world of outdoor recreation and tourism management at the University of Northern BC, tomorrow’s workforce is being prepared by skilled instructors with solid industry experience.

Spotlight On: LinkBC

LinkBC is a membership-based organization that receives funding from Destination BC to support students and instructors at postsecondary institutions in connecting with the tourism industry. It hosts an annual Student Case Competition, a networking event called Student-Industry Rendezvous, and provides students with information about education options at its study tourism in BC website. For more information, visit the LinkBC website : http://linkbc.ca or Study Tourism in BC : www.studytourisminbc.ca

Government Departments

At the time this chapter was written, there were at least eight distinct provincial government ministries that had influence on tourism and hospitality development in British Columbia. These are:

• Community, Sport and Cultural Development
• Jobs, Tourism and Skills Training
• Advanced Education
• Transportation and Infrastructure
• Environment
• Forests, Lands and Natural Resource Operations
• International Trade
• Small Business and Economic Development

Ministry names and responsibilities may change over time, but the functions performed by provincial ministries are critical to tourism operators and communities, as are the functions of similar departments at the federal level.

At the community level, tourism functions are often performed by planning officers, economic development officers, and chambers of commerce.

A final, hidden layer to the travel services sector is that of independent consultants and consulting firms. These people and companies offer services to the industry in a business-to-business format, and they vary from individuals to small-scale firms to international companies. In BC, tourism-based consulting firms include:

• IntraVISTAS: specializing in aviation and transportation logistics advising
• Chemistry Consulting: specializing in human relations and labour market development
• Tartan: a public-relations and reputation management firm

For many people trained in specific industry fields, consulting offers the opportunity to give back to the industry while maintaining workload flexibility.

Trends and Issues

Now that we have an understanding of the travel and tourism services providers in BC, let’s review some of the current trends and issues in the sector.

In the travel services sector, providers such as OTAs and business travel managers must constantly be aware of price sensitivity. Many tourism services organizations are not-for-profit entities that rely on membership dues, donations, grants, and government funding to survive. As the economic climate becomes strained and budgets are tightened, all groups are increasingly forced to demonstrate return on investment to stakeholders. As some of the benefits of travel services are difficult to define, groups must innovate or face extinction.

The challenge of budget constraints came to life in late 2014 when Destination BC announced it was shutting down its Visitor Centres at Vancouver International Airport and reviewing five other gateway locations including Peace Arch and Golden. While the airport locations welcomed over 180,000 visitors per year, analysis performed by Destination BC showed guests were asking non-tourism questions, and the centres’ value was questioned. Closing the centres at the airport, it was determined, would save $500,000 per year — but some in the industry were left wondering why they weren’t consulted prior to the announcement (Smyth, 2014).

As discussed earlier, online travel agencies have revolutionized the sector in a short span of time. Online travel bookings and marketing accounts for roughly one-third of all global e-commerce, and according to many these continue to rattle the sector.

Take a Closer Look: The Trouble with Travel Distribution

This report, by McKinsey & Company, addresses the widespread impact of technological innovations on the travel services sector. To view the report online, visit The Trouble with Travel Distribution : www.mckinsey.com/insights/travel_transportation/the_trouble_with_travel_distribution

That said, OTAs and other technology providers can benefit operators and the travel services sector as a whole. Keeping in mind that travel services pertain to the planning and reserving of trip components, recent beneficial technologic improvements include the following (Orfutt, 2013):

• Real-time and automated inventory management, ensuring operators and travellers alike are working with accurate information when planning and booking
• A pollution and weather detection chip that would help tour operators, transportation providers, and visitors anticipate, and plan for changes in conditions
• Personalized information presented to visitors to help them narrow their choices in the trip planning process, ensuring users are not overwhelmed with information, and making the most of limited screen size on mobile devices and tablets
• Social technologies and on-the-go information sharing, allowing users to plan at the last minute as they travel
• Virtual assistant holograms and tablets carrying information that can replace humans during the travel experience (for instance, at airport arrivals and visitor centres)

These innovations will likely increase as more advances are made. They also have significant implications for the marketing of travel products and experiences, which is explored more in Chapter 8.

In a time when financial resources are limited and competition for tourist dollars is strong, the travel services sector is being forced to innovate at a startling rate. With the emergence of OTAs and the rapid pace of change, it’s likely the travel services landscape will be radically different by the time you read this.

Just 20 years ago, the travel agent was paramount for booking both leisure and business travel, while today’s traveller can book a trip using a phone in a matter of minutes. This is one sector with challenging and exciting times ahead.

To this point we have learned about the five sectors of tourism: transportation, accommodation, food and beverage, recreation and entertainment, and travel services. With this foundation in place, let’s delve deeper into the industry by learning more about how these sectors are promoted to customers in Chapter 8 on services marketing.

• Association of Canadian Travel Agencies (ACTA): a trade organization established in 1977 to ensure high standards of customer service, engage in advocacy for the trade, conduct research, and facilitate travel agent training
• Canada’s West Marketplace: a partnership between Destination BC and Travel Alberta, showcasing BC travel products in a business-to-business sales environment
• Canadian Association of Tour Operators (CATO):  a membership-based organization that serves as the voice of the tour operator segment and engages in professional development and networking in the sector
• Community destination marketing organization (CDMO): a DMO that represents a city or town
• Destination management company (DMC): a company that creates and executes corporate travel and event packages designed for employee rewards or special retreats
• Destination marketing organizations (DMOs):  also known as destination management organizations; includes national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus
• Familiarization tours (FAMs):  tours provided to overseas travel agents, travel agencies, RTOs, and others to provide information about a certain product at no or minimal cost to participants — the short form is pronounced like the start of the word family (not as each individual letter)
• Fully independent traveller (FIT): a traveller who makes his or her own arrangements for accommodations, transportation, and tour components; is independent of a group
• HelloBC:  online travel services platform of Destination BC providing information to the visitor and potential visitor for trip planning purposes
• Inbound tour operator:  an operator who packages products together to bring visitors from external markets to a destination
• Online travel agent (OTA):  a service that allows the traveller to research, plan, and purchase travel without the assistance of a person, using the internet on sites such as Expedia.ca or Hotels.com
• Outbound tour operator:  an operator who packages and sells travel products to people within a destination who want to travel abroad
• Receptive tour operator (RTO):  someone who represents the products of tourism suppliers to tour operators in other markets in a business-to-business (B2B) relationship
• Regional destination marketing organization (RDMO): in BC, one of the five DMOs that represent a specific tourism region
• Tour operator:  an operator who packages suppliers together (hotel + activity) or specializes in one type of activity or product
• Tourism services: other services that work to support the development of tourism and the delivery of guest experiences
• Travel agency:  a business that provides a physical location for travel planning requirements
• Travel agent:  an individual who helps the potential traveller with trip planning and booking services, often specializing in specific types of travel
• Travel services: under NAICS, businesses and functions that assist with the planning and reserving components of the visitor experience
• Visitor centre:  a building within a community usually placed at the gateway to an area, providing information regarding the region, travel planning tools, and other services including washrooms and Wi-Fi
• Explain, either in words or with a diagram, the relationship between an RTO, tour operator, and travel agent.
• What type of services does HelloBC provide to the traveller? List regional services from your area that are currently offered.
• Who operates the provincial network of Visitor Centres? Where are these centres located?
• List the RDMOs operating within BC. How do each of these work to provide information to the traveller?
• List two positives and two negatives of OTAs within the travel services industry.
• With an increase growth in mobile technology, how are travel services adapting to suit the needs and/or demands of the traveller?
• Choose an association that is representative of the sector you might like to work in (e.g., accommodations, food and beverage, travel services). Explore the association’s website and note three key issues it has identified and how it is responding to them.
• Choose a local tourism or hospitality business and find out which associations it belongs to. List the associations and their membership benefits to answer the question, Why belong to this group?

Case Study: Online Travel Agents Sue Skiplagger.com

Hidden city tickets work when the cost to travel from point A to point B to point C is less expensive than a trip from point A to point B. Passengers book the entire flight but get off at the stopover. This practice is generally forbidden by airlines because of safety concerns and challenges to logistics as it renders passenger counts inaccurate, causing potential delays and fuel miscalculations. If discovered, it can result in a passenger having his or her ticket voided.

The lawsuit against Skiplagged founder Aktarer Zaman stated that the site “intentionally and maliciously … [promoted] prohibited forms of travel” (Harris and Sasso, 2014, ¶ 4). Orbitz (an OTA) and United Airlines claimed that Zaman’s website unfairly competed with their business, while making it appear these companies were partners and endorsing the activity by linking to their websites.

Based on this case summary, answer the following questions:

• What are the dangers and inconveniences of having passengers deplane partway through a voyage? In addition to those listed here, come up with two more.
• Could this lawsuit and the ensuing publicity result in unintended negative consequences for United and Orbitz? What might these be?
• On the other hand, could the suit have unintended positive results for Skiplagged.com? Try to name at least three.
• Should Zaman be held responsible for facilitating this type of travel already in practice? Or should passengers bear the responsibility? Why or why not?
• Imagine your flight is delayed because a passenger count is inaccurate and fuel must be recalculated. What action would you take, if any?
• Look up the case to see what updates are available ( United Airlines Inc. v. Zaman , 14-cv-9214, U.S. District Court, Northern District of Illinois (Chicago). Was the outcome what you predicted? Why or why not?

ACTA. (2014). About us . Retrieved from www.acta.ca/about-us

ADME. (2014). What is a DMC? Retrieved from www.adme.org/dmc/what-is-a-dmc.asp

Alba, Davey. (2015, January 23). Expedia buys Travelocity, merging two of the web’s biggest travel sites. WIRED . Retrieved from www.wired.com/2015/01/expedia-buys-travelocity-merging-two-webs-biggest-travel-sites/

Amadeus. (2014). Trending with NextGen travelers [PDF] . Retrieved from https://extranets.us.amadeus.com/whitepaper/nextgen/next_gen_travel_trends.pdf

Associated Press. (2014, March 17). Helena judge rejects state’s lawsuit against online travel companies. The Missoulian. Retrieved from http://missoulian.com/business/local/helena-judge-rejects-state-s-lawsuit-against-online-travel-companies/article_61b115d2-adfe-11e3-9b8d-0019bb2963f4.html

BTN Group. (2014). Global travel trends 2014. Business Travel News. [PDF] Retrieved from www.businesstravelnews.com/uploadedFiles/White_Papers/BTN_110113_Radius_1206_FINAL.pdf

Canadian Tourism Commission. (2015). Rendez-vous Canada 2015 – Welcome . Retrieved from http://rendezvouscanada.travel/

Carey, R., Kang, K., & Zea, M. (2012). The trouble with travel distribution . Retrieved from  www.mckinsey.com/insights/travel_transportation/the_trouble_with_travel_distribution

CATO. (2014). About the travel industry . Retrieved from www.cato.ca/industry.php

Concur. (2014). Concur case studies – Concur Canada . Retrieved from www.concur.ca/casestudy

CWT Travel Management Institute. (2014). Who’s equipped for mobile services .  www.cwtinsights.com/demand/whos-equipped-for-mobile-services.shtml

DMAI. (2014). The value of DMOs . Retrieved from www.destinationmarketing.org/value-dmos

Economist, The . (2014, June 21). Sun, sea and surfing. Retrieved from www.economist.com/news/business/21604598-market-booking-travel-online-rapidly-consolidating-sun-sea-and-surfing

ETC Digital. (2014). Mobile smartphones – North America . Retrieved from http://etc-digital.org/digital-trends/mobile-devices/mobile-smartphones/regional-overview/north-america/

Expedia, Inc. (2014). The future of travel report . [PDF] Retrieved from http://expediablog.co.uk/wp-content/uploads/2013/10/Future-of-Travel-Report1.pdf

GBTA. (2014). About GBTA Canada . Retrieved from www.gbta.org/Canada/about/Pages/Default.aspx

Goeldner, C. & Ritchie, B. (2003). Tourism: principles, practices, philosophies, 9th edition. Hoboken, New Jersey: John Wiley & Sons, Inc.

Government of Canada. (2014). NAICS 2007 – 5615 travel arrangement and reservation services . Retrieved from http://stds.statcan.gc.ca/naics-scian/2007/cs-rc-eng.asp?criteria=5615

go2HR. (2014). Training and education . Retrieved from www.go2hr.ca/training/training-directory?keys=travel+agent&location=&sector=All&region=All

Harris, A. & Sasso, M. (2014). United, Orbitz sue travel site over ‘hidden city’ tickets. Bloomberg Business. Retrieved from www.bloomberg.com/news/articles/2014-11-18/united-orbitz-sue-travel-site-over-hidden-city-ticketing-1-

HelloBC. (2014a). About us. Retrieved from www.hellobc.com/british-columbia.aspx

HelloBC. (2014b). Visitor information network . Retrieved from www.hellobc.com/british-columbia/about-bc/visitor-centres.aspx

HelloBC. (2014c). Regions. Retrieved from www.hellobc.com/british-columbia.aspx

Hotel Marketing. (2013). Travel agency demand . Retrieved from http://www.hotelmarketing.com/index.php/content/article/travel_agencies_versus_the_internet_global_booking_trends/

Offutt, B. (2013). PhoCusWright’s travel innovations & technology trends: 2013 and beyond. [PDF] Retrieved from www.wtmlondon.com/files/pcwi_traveltechtrends2013_worldtravel.pdf

Prince of Whales. (2014).  About us . Retrieved from http://princeofwhales.com

SGSEP. (2012). Trends in visitor information centres. [PDF] Urbecon, 1.   Retrieved from www.sgsep.com.au/assets/Urbecon-Vol-1-2012-web.pdf

Smyth, M. (2014, November 20). Why is the BC government shutting down popular tourist info without consulting industry? The Vancouver Sun. Retrieved from www.theprovince.com/life/Smyth+government+shutting+down+popular+tourist+info+centres+without+consulting+industry/10396500/story.html#__federated=1

Tourism Vancouver. (2014). Destination management companies . Retrieved from  www.tourismvancouver.com/meetings/service-your-meeting/suppliers/destination-management-companies/

Travel Agents in BC. (2014). Travel agents . Retrieved from www.yellowpages.ca/search/si/1/Travel+Agencies/Vancouver+BC

Yukon Department of Tourism and Culture. (2013). Tourism sectors.  Retrieved from www.tc.gov.yk.ca/isu_sectors.html

Attributions

Figure 7.1 HelloBC Homepage  by LinkBC is used under a CC BY-NC-ND 2.0 license.

Figure 7.2   Travels Agent, Huddersfield by Dave Collier  is used under a CC-BY-ND 2.0  license.

Figure 7.3   my AT&T PC 6300 circa 1996  by Blake Patterson  is used under a  CC-BY 2.0 license.

Figure 7.4   Up on the glacier by  Paul Gorbould is used under a CC BY NC ND 2.0 license.

Figure 7.5   Whales off Victoria, BC  by Brian Estabrooks is used under a CC-BY-SA 2.0 license.

Figure 7.6  Visitor Information  by Heather Harvey is used under a CC-BY-SA 2.0  license.

Figure 7.7   Floe Lake, Kootenay National Park 037  by Adam Kahtava  is used under a CC-BY 2.0 license.

Figure 7.8   Tourism Vancouver’s Rick Antonson addresses the audience at Rendezvous  by  LinkBC  is used under a CC-BY-NC-SA 2.0 license.

Figure 7.9   5 Top Rated Tablet PCs  by Siddartha Thota  is used under a  CC-BY 2.0 license.

Introduction to Tourism and Hospitality in BC Copyright © 2015 by Heather Knowles and Morgan Westcott is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Winner of Queen Elizabeth piano competition (Belgium)

Soloist of the Bolshoi Theatre Orchestra of Russia

Assistant Professor of Moscow State Conservatory

1st prize winner of All-Union competition of performers on percussion instruments (USSR)

Winner of the competition (as soloist-xylophonist) of brass orchestras (Poland)

Artist-in-residence of the German-Russian Institute of Culture in Dresden (Germany)

Grand Prix winner (as a harpsichord-soloist) of the Competition Music without limits (Lithuania)

Grand Prix winner of the Wanda Landowska Harpsichord competition (Italy)

Application fee: 3000 RUB (~30€ )

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