Some online travel agencies are now bringing in between 10%-15% in incremental revenue, after watching from the sidelines until very recently.
That's the claim from Amadeus which this week will outline the progress the OTA sector is now making in finally waking up to the concept of selling additional services being offered by airlines.
Associate director for merchandising and personalisation, Pedro Espin, says previously airlines were the main sellers of ancillary services but in recent years the number of OTAs now in a position, both commercially and technically, to up-sell such products has increased massively.
Espin argues that many OTAs started off with as few as 0.5% in every 100 bookings including an ancillary sale, but the figure has now jumped to as high as 15% within months and some carriers up to 30 or 40.
Espin argues:
"They [OTAs] didn't see the value in having the content as it was seen as somehow limited."
But travellers could see that such services could be bought elsewhere, such as other providers or direct with the airlines, so essentially the eureka moment has now taken place.
Coinciding with this move, but not an exclusive factor, is the realisation as well that OTAs can make money on ancillary services fees by introducing their "mark ups" on some of the products.
Most importantly, perhaps, is the idea that OTAs are seeing that being able to offer ancillary services is the gradual opening of a door to introducing personalisation for travellers.
For example, knowing that a previous customer had bought an upgrade to business class, or extra legroom, meal or extra baggage allowance, will mean the same type of product can be presented during the booking flow on a future trip.
NB:Airline meal image via Shutterstock.