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Direct to consumer means more margin
Excellent post. Airlines and hotels have been trying to cut out intermediaries for a long time. This is not particularly new. What is new however, is how technology has been supporting the trend of moving towards direct sales to consumers. It only makes sense that a hotel or airline would want to move towards direct sales. It means better margins for suppliers, lower costs for the consumer, and fewer steps to handle in the transaction process. There is still hope for OTAs and intermediaries and that is to focus on the value adds and the products with higher margins that cannot be sold directly or require a steep research component. I wrote about this in my blog http://tourismtechnology.rezgo.com.
2007-09-04 Stephen Joyce |
