100% internet-based bookings - an impossible goal?

100% internet-based bookings - that's the goal that American Airlines is pursuing.

And they're on their way.

As part of their full-year 2023 earnings they announced that 80% of bookings are coming from those channels (per https://buff.ly/3VFe71f).

It's a smart move - with increased operating costs and third parties chewing away at their margins...

We can expect to see more companies aiming for these types goals in the future.

As the big OTAs get bigger and attempt to increase their take on the direct booking market.

Why would businesses pay commission on a tourism product to international OTA's if they can invest in other areas?

If your tourism business:

- Can't contact your client directly

- Get delayed payment terms

- Are dependent on them as the majority sales channel for your business.

It's worth looking at other options.

Especially with unknown unknowns such as:

- What happens if they change their booking algorithms?

- What if they put commission up or other fees increase?

- What if they continue to build their own loyalty programmes...!

It doesn't mean ignoring trade or OTAs completely but you do need a strategy for growing direct sales and balanced sales channels.

Some starting points:

- Really, really understand your best market and focus on reaching them - https://buff.ly/4b7h93A

- Start with a great experience - https://buff.ly/46bSozw

- Be globally unique, build your niche - https://buff.ly/4bcBF2E

- Deliver unreasonable levels of service -https://buff.ly/4b1WTjM

- Define your purpose, tell your unique story and engage your people in it - https://buff.ly/2JJUHDQ

- Implement systems and leverage tech to be more productive