As the standard methods of doing business — bookings for OTAs, referrals for metasearch — evolve with new technology, the relationship between online travel agencies (OTAs), and metasearch continues to evolve.
Metasearch sites such as Kayak originally presented travelers with a spectrum of inventory before sending to an OTA for booking, Now, the meta model has evolved to include booking buttons directly within the results. Typically, these bookings are still transacted by a third-party merchant of record, reports Tnooz, even though metasearch now competes directly with direct-to-supplier channels.
Meanwhile, OTAs such as Orbitz and LastMinute.com have moved from showing only the prices from partner hotels and airlines to delivering a broader spectrum of metasearch results alongside commission-based listings. These agencies then earn referral fees when travelers click through on those links, following the traditional metasearch model.
What the landscape around online travel agencies, metasearch and suppliers will look like in the next several years is in flux. However, approaching challenges like “book-now,” evolving relationships with hotels and emerging competition will be essential in defining the segment’s future.
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Metasearch and online travel agencies: How the relationship is evolving
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February 15, 2016
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