Study: European online travel agencies need to diversify
08/27/2010|9:55:57 AM|

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.

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