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Offline agencies: we can’t live without them, airlines say

07/25/2012| 5:25:37 PM| 中文

The fact both airlines and GDSs are trying to reach out to offline agencies with new, interesting solutions exemplifies the significance of their responsibility. The role of offline agencies will continue to exist as long as they can provide services that add value for the traveller.

For years, network airlines have relied on travel agencies to sell tickets to passengers and the trend continues. Even low-cost carriers have been focusing on strengthening their offline agency distribution partnerships in order to capture a bigger share of the managed corporate travel market. EyeforTravel’s Ritesh Gupta finds out where offline agencies are placed today in airline distribution.

Offline agency distribution remains an important channel for network airlines, and has been gaining popularity with low cost airlines too. The majority of airline passenger revenues for network airlines are from tickets sold through travel agencies - both traditional brick-and-mortar agencies as well as online travel agencies (OTAs).
 
Even as network airlines attempt to sell more tickets directly via their call centres, websites and ticket offices, these sales, for the most part, remain lower than indirect channels. For instance, in the case of US-based American Airlines, last year it emerged that around 50% of the group’s revenue is generated by brick-and-mortar travel agencies, and another 10 to 15% comes from online agencies.
 
Read full story at: http://www.eyefortravel.com/distribution-strategies/offline-agencies-we-can%E2%80%99t-live-without-them-airlines-say
TAGS: GDS | ticket distribution
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