OTAs Pushing Just Hotels and Flights Are Missing Out On This One Key Differentiator

Online Travel Agencies (OTAs) are locked in fierce competition, primarily offering flights and hotels. However, while they compete for thin margins in this crowded space, many are overlooking a significant opportunity: visa services. With increasing demand from fast-growing markets like India and China—where travellers often require visas—OTAs that incorporate visa processing into their platforms can differentiate themselves, increase revenues, and foster stronger customer loyalty.

Key Challenges Facing OTAs

OTAs face several challenges that limit their ability to grow profitably, particularly when focusing solely on flights and hotels. Here are some of the primary issues:

1. Saturation in Flights and Hotels

The OTA market is flooded with providers offering similar inventory—flights, hotels, and car rentals—making it difficult to stand out. With little to differentiate one OTA from another, the industry has become overly price-competitive, driving down profits.

2. Rising Customer Acquisition Costs

OTAs face high costs to attract new customers, especially through paid advertising and loyalty programmes. With acquisition costs rising, maintaining profitability has become increasingly difficult for OTAs that only offer traditional travel services.

3. Lack of Unique Selling Points

When most OTAs offer the same flight and hotel options, customers have little reason to choose one over another, aside from price. This commoditisation leaves OTAs struggling to establish a unique identity or long-term customer loyalty.

4. Growing Demand from Indian and Chinese Travellers

India and China are two of the fastest-growing outbound travel markets in the world. In 2023, Indian travellers made approximately 28 million international trips, while Chinese tourism is surging post-pandemic. Both groups frequently require visas for international travel—yet many OTAs fail to offer visa services, missing a key opportunity to capture this growing demand.

Visa Services: The Differentiator OTAs Are Overlooking

While OTAs compete over hotel rooms and flights, visa services represent an untapped, high-value offering that could help OTAs attract more customers and generate additional revenue.

1. Visa Processing as a New Revenue Stream

Visa services are a critical part of international travel, especially for Indian and Chinese travellers. By incorporating visa processing into their platforms, OTAs can offer a service that most competitors do not. This not only creates a new revenue stream but also enhances the customer experience, making the OTA more of a one-stop shop.

2. Catering to Growing Markets

Indian and Chinese travellers represent two of the fastest-growing segments in global tourism, and both often require visas. Offering a streamlined visa application process directly on the OTA platform can help capture a larger share of this market, giving OTAs a competitive advantage.

3. Seamless Integration with Propellus

Propellus allows OTAs to easily add visa processing to their existing platform, giving travellers the option to apply for visas alongside booking flights and accommodation. This smooth integration improves user experience, ensuring customers stay on the platform for all their travel needs, rather than turning to third-party providers.

4. Enhancing Customer Satisfaction and Loyalty

Travellers value convenience. By providing visa services, OTAs can make their platforms more attractive, offering an end-to-end solution that simplifies the travel planning process. This boosts customer satisfaction and retention, as users are more likely to return to a platform that offers all necessary travel services in one place.

5. Building Long-Term Relationships with Propellus’s Smart Data Locker

Propellus’s Smart Data Locker securely stores customer data, streamlining future bookings and personalising the customer experience. This feature helps OTAs foster long-term relationships by simplifying repeat bookings and offering tailored recommendations based on past travel behaviour.

Visa Services: Unlocking Untapped Potential

The OTA market is highly competitive, and focusing solely on flights and hotels limits growth potential. Offering visa services—especially for high-growth markets like India and China—creates a significant opportunity to differentiate, boost revenue, and enhance customer loyalty.

Partner with Propellus and Grow Your OTA

Propellus equips OTAs with the tools to offer integrated visa services, enabling them to unlock new revenue streams and capture high-growth markets. While many OTAs continue to compete over flights and hotels, visa processing presents an untapped opportunity that can set you apart. Ready to differentiate your business? Visit Propellus.co and discover how integrating visa services can transform your OTA into a full-service travel platform.

Frequently Asked Questions (FAQs)

1. Why should OTAs offer visa services alongside flights and hotels?
Visa services are often overlooked by OTAs, but they are crucial for international travellers, particularly from high-growth markets like India and China. Offering visa services can help OTAs stand out in a crowded market, increase revenue, and improve customer loyalty by offering a one-stop solution for all travel needs.

2. How do visa services generate new revenue for OTAs?
By offering visa processing, OTAs can charge service fees, offer premium expedited processing, and create a new, high-margin revenue stream. Visa services also attract international travellers, increasing overall bookings and customer engagement.

3. How does Propellus integrate with existing OTA platforms?
Propellus seamlessly integrates with OTA platforms, allowing customers to book flights, accommodation, and visas in a single transaction. The integration is smooth and doesn’t require extensive platform changes, making it easy for OTAs to enhance their service offerings.

4. How can visa services help OTAs tap into the Indian and Chinese traveller markets?
Travellers from India and China often require visas for international travel. Offering visa services caters directly to their needs, attracting a larger share of these fast-growing markets. OTAs that provide an easy, all-in-one travel and visa solution can capture more bookings from these valuable customer segments.

5. What is the Smart Data Locker, and how does it help OTAs?
Propellus’s Smart Data Locker securely stores customer travel information, making it easier for them to book future trips. It allows OTAs to personalise the user experience, send tailored offers, and increase customer retention, building long-term relationships rather than one-off transactions.