Online Travel Agencies (OTAs) have become a dominant force in the travel industry, making it increasingly challenging for traditional travel businesses to compete. However, there are several ways in which these businesses can compete effectively with OTAs. Here are seven strategies that travel businesses can use to compete with OTAs:
- Emphasize personalization: One of the biggest advantages that traditional travel businesses have over OTAs is their ability to personalize their services. Unlike OTAs that offer a one-size-fits-all approach, traditional travel businesses can tailor their services to meet the unique needs of their customers. For example, a travel agent can work with a customer to create a customized itinerary that includes their preferred destinations, activities, and accommodations. By emphasizing personalization, traditional travel businesses can differentiate themselves from OTAs and appeal to customers who value a more personalized experience.
- Focus on niche markets: Another way that traditional travel businesses can compete with OTAs is by focusing on niche markets. For example, a travel agency might specialize in adventure travel or luxury travel. By focusing on a specific niche, travel businesses can offer specialized expertise and services that OTAs cannot match. Customers who are looking for a unique travel experience are more likely to seek out a travel business that specializes in their area of interest.
- Offer exclusive deals and promotions: Traditional travel businesses can also compete with OTAs by offering exclusive deals and promotions to their customers. For example, a travel agent might negotiate a discounted rate with a hotel or tour operator that is not available through an OTA. By offering exclusive deals, travel businesses can incentivize customers to book through them rather than an OTA.
- Provide exceptional customer service: Customer service is another area where traditional travel businesses can differentiate themselves from OTAs. By providing exceptional customer service, travel businesses can build loyalty and establish a reputation for quality service. For example, a travel agent who is available to answer questions and provide assistance throughout a customer's trip can offer a level of service that is difficult for an OTA to match.
- Leverage social media: Social media can be a powerful tool for traditional travel businesses to compete with OTAs. By leveraging social media platforms like Instagram, Facebook, and Twitter, travel businesses can showcase their services and engage with customers. Social media can also be used to promote exclusive deals and promotions, share travel tips, and build a community of loyal customers.
- Build partnerships with suppliers: Traditional travel businesses can also compete with OTAs by building partnerships with suppliers. By working directly with hotels, airlines, and other travel suppliers, travel businesses can negotiate better rates and offer exclusive packages that are not available through OTAs. These partnerships can also help travel businesses provide a higher level of service to their customers, such as personalized recommendations for accommodations and activities.
- Offer value-added services: Traditional travel businesses can compete with OTAs by offering value-added services that go beyond booking travel. For example, a travel agent might offer travel insurance, visa assistance, or concierge services. By offering these additional services, travel businesses can provide a more comprehensive travel experience and differentiate themselves from OTAs.
Summarily, while OTAs have become a dominant force in the travel industry, traditional travel businesses can still compete effectively by emphasizing personalization, focusing on niche markets, offering exclusive deals and promotions, providing exceptional customer service, leveraging social media, building partnerships with suppliers, and offering value-added services. By adopting these strategies, travel businesses can differentiate themselves from OTAs and appeal to customers who are looking for a more personalized and comprehensive travel experience.