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:
Post a Comment