OTA  Online Travel Agency 

A golden opportunity for anyone with large consumer footprints.

What Is an OTA?

OTA, online travel agency, is a travel agency that sells products online only, without a physical presence. Globally dominant players include Booking Holdings (Priceline, Booking.com, Agoda and so on), Expedia Inc (Expedia, Hotels.com, Trivago and so on), and Ctrip (China).

OTA Components

What Makes OTA Attractive?

• Asset-light, asset-right: You don't need to hold any inventory; servers constitute the ONLY cost of goods sold.
• Highly profitable: Take Booking Holdings for example. This leading OTA generates revenue of US$12 billion at a 98% gross margin and 20%+ operating margin.
• Scalable profits: The higher the traffic, the more profit is generated.

Realize the Full Value of Existing Customer Base

Anyone with a large volume of consumer footprints should take advantage of the OTA business.

• Amazon could disrupt online travel industry next, Morgan Stanley Says, CNBC

“Amazon's ability to drive traffic…as its estimated $0.75 ad spend/ transaction is a fraction of what Booking/Expedia spends.”
"Nowak estimates Amazon could make $600 million of profits a year if it builds an online hotel business roughly half of Expedia’s size."

• Amazon’s multifaceted – and likely inevitable – path into travel

"A bigger play or more efficient advertising spending could boost that figure to more than $1.5 billion annually (while the  travel represents an annual market of  $480 billion in the U.S. alone.)"

TravelSkope All-in-One OTA Solution

• OTA by TravelSkope
• Software Infrastructure
  • Core Framework
  • Booking Engines
    • Flight Booking
    • Hotel Booking
    • Dynamic Packaging Booking
    • Car Rental Booking
    • Group Tour Booking
    • Cruise Booking
    • Attraction, Activity, Tour Booking
    • Transportation Booking
    • WIFI & SIM Card Booking
  • Dynamic Pricing Module
• Consulting
  • Operations Knowledge
  • Supplier Connections

Case Study: CostcoTravel.com

Costco Travel is one of the best examples of a wholesaler growing into an OTA player by utilizing its high volume of traffic and large consumer footprint.
For the past two years, CostcoTravel.com has received 98% of its referral traffic from Costco.com. In 2017, 890,000 visitors were directed to CostcoTravel.com every month.​

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