Friday 16 March 2012

Why OTAs Are The Best Bet For Getting Cheap Air Tickets?


Airlines follow a complicated pricing structure which is dependent on a number of factors. Besides the operational and maintenance costs, the airlines also factor in the demand and supply for different sectors and timings, expected future demand levels, the level of competition and the need for meeting the various regulations of the government.
For this reason of a number of factors having impact on the airline prices, there could be a variation in the ticket prices on daily or even on hourly basis. Though it is possible to make advance booking of the cheap air tickets at pre-determined rates, the prices do vary from one day to the other. For the common customer, it is not easy to negotiate the best prices or deals on domestic or international flights with the airlines. If it were not for the market forces and the level of competition among the service providers, the airlines would charge the rates at their own free will. This is where the online travel agencies (OTAs) come to the help of the customers.
OTAs work on negotiated rates with the airlines. They have their commissions fixed for giving business to the airlines. By offering discounts to the customers from their commissions, they are able to provide cheap international tickets to the customers. Further, they have the price-arrangement with a number of airlines which gives them the leverage for getting the maximum possible discounts from the airlines. Further, OTAs give good volume of business to the airlines. They are the crucial intermediaries which ensure that the customers are not taken for a ride by the airlines and the international flights tickets are kept reasonable.
The online travel agencies also hold advantage over those agents who are not using the internet media for doing business. The use of online media makes it possible to reach out to different target markets while the ones who do not have the online presence have their scope of working limited geographically. Even for the customers, it is convenient to speak to or contact one credible source and get the pre-negotiated deals rather than negotiating rates with different airlines. So, the OTAs are uniquely positioned to deliver the best deals on cheap international flights to the customers. And, for this reason, these are successfully doing business by winning the customer confidence. 

No comments: