Navigating Through The Complex World Of Airfare Distribution

The travel industry is a complex ecosystem where partnerships are crucial. With the constant rise in competition from web-based service providers, the need to grow the business network has become a key survival factor.  

The air ticketing industry is no exception. The regulations enforced by top bodies in the command chain such as the carriers, IATA and the GDSs, have added stress on ticketing agents to find new ways to access competitive fares.  

Access to cross-border airfare content is typically achieved through agreements with multiple local travel agents from different countries. This is costly and time-consuming owing to time differences, dependencies on different communication channels, etc, even when the processes and people are set up in the best possible way. The conventional two/three quote system means that the scope to add better mark-ups is very narrow.  

The primary challenge for a travel service provider is to establish a direct connect with multiple LCCs. The feasibility to integrate all LCCs into a single platform is an operational challenge, as multiple resources are required to satisfy SOTO/SITI needs. Hence, most travel service providers tend to restrict their offerings at a regional level. 

In an industry such as this, the key players are often Travel Management Companies (TMCs), Tour Operators, and Travel Agents. Tour Operators and TMCs procure airfares from airlines directly for their most ticketed sectors, whereas they are dependent on global airfare consolidators for fares that are not easily accessible via their GDS and PCC. As a result, they find it difficult to fulfil air-ticketing requests of their clients. For Group Fares, Travel Agents often reach out to consolidators because airlines do not always help them achieve their conversion rates. The biggest challenge Tour Operators face is in accessing FIT and bulk local airfares in foreign sectors with their PCCs. Large Tour Operators negotiate airfares in bulk for fixed group departures (e.g. brochure tours) well ahead of time. For any customized packaging requests, they connect with consolidators for competitive local market specific airfares, which help them in generating better revenue on their bookings.  

A travel agent who wants to go to a single point to find the best price options for their customers could find them by signing up with a consolidator. Consolidators are reliable distribution channels which are capable of achieving healthy sales volumes. They offer low net rates, make complex itineraries much simpler, provide 24/7 customer support, enable travel firms to market fares in advance, offer global content, connect with a wider network and provide negotiated fares. In simple words, a consolidator is a travel service hub that can cater to all the needs of a travel service provider.   

As a global airfare consolidator, we help travel companies offer ticketing fulfilment services across diverse geographies to their customers. Our Travel Technology Platform - MyFareBox provides global airfares at a much lower price compared to any other published fare that is available in any other country. OnePoint - our XML Web Service Solution, empowers travel firms to ticket from the largest airfare consolidation through a simple API integration. Travel service providers can utilize our products to achieve better search results every time and in the process, perk up their service offerings, reduce the average fare and improve their service quality.  

Travel technology has helped travel firms save time, reduce cost, simplify procurement processes, and do much more. Today, the travel industry has evolved into customer friendly internet tools and full-service travel firms. The former suits the self-service traveller who likes to plan his own travel while the latter is applicable for travellers who prefers human interaction by managing travel for businesses and organizations. Our travel technology offerings provide robust solutions to make the process of air ticketing a much-simplified yet effective and profitable experience for travel businesses.  

 

 

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