OTA Online Travel AgencyA golden opportunity for anyone with large consumer footprints.
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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 ComponentsWhat Makes OTA Attractive?
Realize the Full Value of Existing Customer BaseAnyone with a large volume of consumer footprints should take advantage of the OTA business. “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.""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
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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.
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.