Low cost airlines killing Travel Agents can travel agent promoted portal be an alternative marketing medium

Today an article in ET talked about “Low cost carriers slowly grounding travel agents” . Mainly how the revenues has fallen down by 25%-35%.  On the other hand online travel industry generated a revenue of $800 million last year and this year its expected to go upto $1.5 Billion. With air ticketing consitueting 90% of the pie.

With travel agents forced to move away from their comfort zone its time for them to take fight back to the travel portals. Which is very much possible especially with brand names can take advantage of their existing brand recognistion to keep intact their existing customer base which is turning out to be the strategy for any travel agent today. As discussed earlier on this blog all major travel agents are comming up with online travel portal strategies but its important to see how much it will effect their potential growth opportunities. Travel agents need to understand under cutting on price would not help them gain traction and they either need to upgrade themselves as tour operators or travel management organization otherwise it will not be a good strategy to even invest in comming  up with an online travel portal.

1 Response to “Low cost airlines killing Travel Agents can travel agent promoted portal be an alternative marketing medium”


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