Navigating Airline Relationships as an OTA: Tips for Success

Picture of Sanjay Ghare

Sanjay Ghare

Sanjay brings over 16+ years of entrepreneurial, general management, and senior executive experience with proven expertise in business development, corporate strategy, and product & program management. Sanjay, being an Industry veteran, and an influencer, leads and drives Vervotech’s vision of “Organizing World’s Accommodation Data.” Before he founded Vervotech, he was a VP of Tavisca Solutions, where he took the started SaaS division and grown with customers in more than 15 countries.  

[vc_row type=”full_width_content” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_color=”#ffffff” scene_position=”center” top_padding=”1.5%” bottom_padding=”6%” left_padding_desktop=”2%” constrain_group_2=”yes” right_padding_desktop=”2%” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” class=”newblog1906″ overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][tabbed_section style=”vertical_scrolling” tab_color=”Accent-Color” vs_navigation_width=”narrow” vs_navigation_spacing=”30px” vs_navigation_mobile_display=”hidden” vs_tab_spacing=”10%” vs_tab_tag=”h3″ el_class=”newblogmain”][tab icon_family=”none” title=”Introduction” id=”1729251985747-4″ tab_id=”1729251985748-1″][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” top_margin_phone=”-10px” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” bg_image_animation=”none” enable_animation=”true” animation=”fade-in-from-bottom” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text css=”.vc_custom_1701167950005{padding-right: 10% !important;}” el_class=”pv1 techcv001″]Online travel agencies have been one of the primary sources of airline distribution for more than 2 decades. They account for over a third of all online airline bookings and are efficient at selling flights and reaching customers. Airlines may need help to get on their own[/vc_column_text][vc_column_text css=”.vc_custom_1701167959026{padding-right: 10% !important;}” el_class=”pv1 techcv001″]But in this state of the airline industry, with record load factors and profit margins, airlines gradually depend more on OTAs and vice versa.   [/vc_column_text][vc_column_text css=”.vc_custom_1701167968435{padding-right: 10% !important;}” el_class=”pv1 techcv001″]Many airlines need proper relationships with OTAs. In several cases, they don’t engage the OTAs for fear of getting taken advantage of. But as an OTA, the buck stops with you to manage this relationship for sustained success[/vc_column_text][/vc_column_inner][/vc_row_inner][/tab][tab icon_family=”none” title=”Seven Tips for OTAs to Manage Relationships with Airlines” id=”1729251985792-9″ tab_id=”1729251985793-6″][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” top_margin_phone=”20px” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_custom_heading text=”Seven Tips for OTAs to Manage Relationships with Airlines” font_container=”tag:h2|text_align:left|color:%231470b3″ use_theme_fonts=”yes” el_class=”techcv080″][divider line_type=”No Line” custom_height=”15px”][vc_column_text el_class=”pv1 techcv001″]As an OTA, the airlines are your strategic partners. The tactical measures won’t help the cause; you must think long-term. How you see the relationship growing over the years, there is no straight tea to it. Yet, certain denominators can go a long way in managing this relationship. Here, we talk about seven of them[/vc_column_text][divider line_type=”No Line” custom_height=”20px”][image_with_animation image_url=”19908″ animation=”None” hover_animation=”none” alignment=”center” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”100%” max_width_mobile=”default”][divider line_type=”No Line” custom_height=”35px”][vc_column_text el_class=”pv1 techcv001″]Build trust through communication:[/vc_column_text][vc_column_text el_class=”pv1 techcv001″]Effective communication forms the foundation of any successful relationship. Initiate regular and transparent contact with airline representatives. Share insights about your customer base, booking trends, and market demands. It builds trust and allows airlines to alter their services to meet their customers’ needs better.  [/vc_column_text][vc_column_text el_class=”pv1 techcv001″]Read More – Five ways OTAs should assess payment service providers[/vc_column_text][divider line_type=”No Line” custom_height=”25px”][vc_column_text el_class=”pv1 techcv001″]Understand common goals:  [/vc_column_text][vc_column_text el_class=”pv1 techcv001″]A successful partnership is one where both parties gain something. Take the time to comprehend the airline’s business objectives and communicate independently. Finding common ground can create mutually beneficial strategies that enhance your brand and the airline’s reputation.  [/vc_column_text][divider line_type=”No Line” custom_height=”25px”][vc_column_text el_class=”pv1 techcv001″]Negotiate fair terms, A win-win agreement:  [/vc_column_text][vc_column_text el_class=”pv1 techcv001″]When it comes to establishing contracts and agreements, fairness is critical. Negotiate reasonable terms that reflect the value each party brings to the table. It includes discussing commission rates, marketing support, and any exclusive offerings. A balanced agreement sets the stage for a long-lasting and fruitful partnership.  [/vc_column_text][divider line_type=”No Line” custom_height=”25px”][vc_column_text el_class=”pv1 techcv001″]Collaborate on tech to enhance common goals:[/vc_column_text][vc_column_text el_class=”pv1 techcv001″]Customer Experience is a differentiator that benefits your OTA and the airlines you work with. It’s a common goal. Collaborate on technological advancements you achieve on the front booking processes and pass on the benefits to airlines. And you can ask airlines for demand data to serve better CX through cycles.  [/vc_column_text][divider line_type=”No Line” custom_height=”25px”][vc_column_text el_class=”pv1 techcv001″]Help airlines come up with innovative offerings:  [/vc_column_text][vc_column_text el_class=”pv1 techcv001″]As an OTA, you have access to deep data on traveler preferences and behaviors. You can share this information with your airline partners to help them enhance their offerings. The customer insights you contribute to help Airlines develop more innovative offerings that ring a bell with fliers, which, apart from good marketing, also bring more bookings.  [/vc_column_text][divider line_type=”No Line” custom_height=”25px”][vc_column_text el_class=”pv1 techcv001″]Adapt to market changes together:[/vc_column_text][vc_column_text el_class=”pv1 techcv001″]The travel industry is highly susceptible to external factors, such as economic shifts, global events, and technological watersheds. Stay adaptable and work closely with your airline partners to get through these changes. Flexibility and collaboration will help both parties weather challenges and capitalize on emerging opportunities.  [/vc_column_text][divider line_type=”No Line” custom_height=”25px”][vc_column_text el_class=”pv1 techcv001″]Invest in relationship management:  [/vc_column_text][vc_column_text el_class=”pv1 techcv001″]Building and maintaining solid relationships requires ongoing effort. Dedicate resources to relationship management, ensuring you have dedicated personnel responsible for nurturing connections with airline partners. Regular check-ins, feedback sessions, and collaborative brainstorming can foster a sense of partnership that goes beyond the transactio
nal. 
 [/vc_column_text][/vc_column_inner][/vc_row_inner][/tab][tab icon_family=”none” title=”Conclusion!” id=”1729251985888-8″ tab_id=”1729251985888-5″][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” top_margin_phone=”-10px” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” bg_image_animation=”none” enable_animation=”true” animation=”fade-in-from-bottom” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text css=”.vc_custom_1700742388829{padding-right: 10% !important;}” el_class=”pv1 techcv001″]As we mentioned earlier, GDPR compliance is not a checkbox; it’s a pledge to customer data security. It’s an opportunity for OTAs to redefine their narrative, positioning themselves as compliant entities and pioneers in ethical data management. Beyond mitigating risks, GDPR compliance becomes a strategic necessity, which opens doors for OTAs to establish themselves as customer-first businesses that value their trust.  

[/vc_column_text][/vc_column_inner][/vc_row_inner][/tab][/tabbed_section][/vc_column][/vc_row][vc_row type=”full_width_background” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_color=”#fffaee” scene_position=”center” top_padding=”2%” constrain_group_1=”yes” bottom_padding=”2%” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_custom_heading text=”About Vervotech:” font_container=”tag:h3|text_align:left” use_theme_fonts=”yes” css_animation=”fadeInDown”][vc_column_text css_animation=”none”]As mentioned earlier in this piece, the relationship between OTAs and airlines is strategic. You have to approach it the same way. Come out as enablers and partners, not just a marketplace that is eying a pie of their revenue for eyeballs. The denominators we discussed could be the start of something unique and unprecedented. We are sure it will help! [/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text]

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