pressure on lower fees: increased self-booking pressure from otas pressure from competitors

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Pressure on Lower Fees: Increased self- booking Pressure from OTAs Pressure from competitors Pressure from supplier direct FEES REVENUES Pressure on Reduced Revenues Airlines target to GDS financial assistance Reduction in backend overrides Pass through of Credit Card fees Suppliers push direct channels TMCs Distribution Changes Impact on TMCs In the Face of a Dual Threat of Reduced Fees and Reduced Revenues TMCs Need to Increase Services Reduced Revenue and Changing Roles

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Distribution Changes Impact on TMCs. Reduced Revenue and Changing Roles. FEES. REVENUES. TMCs. Pressure on Lower Fees: Increased self-booking Pressure from OTAs Pressure from competitors Pressure from supplier direct. Pressure on Reduced Revenues - PowerPoint PPT Presentation

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Page 1: Pressure on Lower Fees: Increased self-booking Pressure from  OTAs Pressure from  competitors

Pressure on Lower Fees:• Increased self-booking• Pressure from OTAs• Pressure from

competitors • Pressure from supplier

direct

FEES REVENUES

Pressure on Reduced Revenues• Airlines target to GDS

financial assistance• Reduction in backend

overrides• Pass through of Credit Card

fees• Suppliers push direct channels

TMCs

Distribution Changes Impact on TMCs

In the Face of a Dual Threat of Reduced Fees and Reduced Revenues TMCs Need to Increase Services

Reduced Revenue and Changing Roles

Page 2: Pressure on Lower Fees: Increased self-booking Pressure from  OTAs Pressure from  competitors

Impact of Mobile OS on Travel Distribution

Online Travel

Web

Pre-Web

Traditional Travel Agents

Consumer Interface Intermediaries

Global Distribution Systems (GDS)

Suppliers

Smartphone

Mobile

OTAsMeta-Search

OTAs

Meta-Search

GDS

• Mobile OS providers can act as the consumer gateway to all travel transactions

GDS GNEs