24 May 2011

Bad News For Agents! Good News For OTAs?

The bad news for agencies continues to come in droves from the US market. While traffic continues to show declines for the agency community the numbers look positive from a revenue perspective. And here is where the data can be misused.



The good news (well a slight bit) shows that the rot has been reversed for the OTA sector for the first time since November 2010 that the increasing percentage of decline has seen a small reversal.

We can easily conclude that the good news is that AA was back with Expedia and Priceline's direct connect was kicking in. However I remain skeptical that this will show any real improvement any time soon.

Why?

The very tepid transactions numbers forecast for the summer make this unlikely.

Cheers

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