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How OTAs alter their business models moving forward

November 19, 2012 | Online Travel

This years PhoCusWright Conference was themed 'Pivot Points' and each presenter was tasked with outlining how they will alter their business model moving forward. Here is how Expedia, Priceline, TripAdvisor and Google view their future in online travel.

The shift from offline to online bookings has been growing over the past decade and the leading digital travel companies are reaping the benefits. But that growth could cap in the near future, according to PhoCusWright research. And online distribution players need to adapt their business models to continue growing rather than entrench themselves in battles over market share.

For that reason, the 2012 PhoCusWright Conference was themed Pivot Points and each presenter was tasked with outlining how they will alter their business model moving forward.

“The travel industry has been jolted by new threats, and there is an increasing call for strategic realignment,” said Philip Wolf, founder and chairman of PhoCusWright, who will step down after this year. “Staying the course or tweaking is not sufficient. Many of us are at a pivot point.”

Specifically, Wolf addressed the hotel-online travel agency relationship, saying it has been a tumultuous one from the get-go and continues to be so to this day. While Expedia has been berated for its margins for some time now, the onus will now shift to Booking.com as the Priceline.com darling grows its presence in the U.S., Wolf predicted.

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