We have been talking about offline travel agencies comming online to cash in on all the customers loggin in to make travel reservations online. The idea is to eat into share of travel portals and increasing existing customer base. This sounds a good strategy for business but such portals like travelotravel.com are just mere point of pressence for these offline travel agents.
This is 3500$ euro spent on creating a brand name for travel agency. Contentsutra was from where we picked up the story on Joy travel India online foray. The portal is using Amadeus IBE (Internet Booking Engine). Which allows travel agents to offer online internet reservations using their existing travel setup with Amadeus GDS and BSP. This means system allows IBE to connect to existing discount structure or BSP billing setup for offline agent. Generally based on airlines to airlines an travel agent earns around 6-7% commission. When they recieve booking through this system they are charged a fixed transaction charge by amadeus but are allowed to create and provide e-ticket then and there itself.
Online travel industries should not get worried of these ventures as they are not going to make a big impact due to lack of national brand name pressence. This sector will see more action with new travel agents signing up for IBE being pushed by Amadeus.