European online travel agencies need to wean themselves away from the air business.
That’s one of the conclusions of an Amadeus-commissioned study conducted by Hermes Management Consulting.
The study, Understanding Online Travel Agencies’ Cost Drivers and Ways to Optimise Business in Europe, examined five mid-size OTAs from Scandinavia, France, Germany and the Netherlands and found that nonair products account for only 14% of their gross bookings on average.
Hence, European OTAs are grappling with a problem that leisure travel agencies, wracked by airline commissions cuts, understood years ago — there’s little money in the flight business.
Read the full story at:http://www.tnooz.com/2010/08/24/news/study-european-online-travel-agencies-need-to-diversify/