Affiliate Programs in Travel

img src: http://www.geograph.org.uk/photo/1133475

This idea just came fleetingly to me today morning. Large ecommerce companies like Amazon and Flipkart have affiliate programs. You become an affiliate, and the platform lets you create a special URL to advertise products on their platform. You make a sale, and based on the product, and current ‘schemes’, you earn a % of the revenue. This is almost like a micro-store-front.

Large OTAs such as goibibo and yatra have b2b platforms, which they open up to travel agents. They also have APIs which third party platforms can consume and create their own booking interfaces. But these are complicated interfaces. Only a serious large player can invest in these. For instance, in the case of goibibo b2b interface, the travel agent would need to create a “wallet” like interface within goibibo, deposit a certain large amount (depends on the client – but mostly a few lakhs to begin with). Transactions that happen through the travel agent interface (or API) would consume money from the wallet (after deducting the % commission due to the travel agent).

The other class of “agent consumers” are of course, the travel agents who pose as individuals (create regular goibibo accounts) and book through these accounts. These are smaller operators, and tend to do all kinds of circus tricks such as referring their own accounts, playing with the go-cash between the accounts etc. And the OTAs hate these guys. Incentives are given, assuming, these are individual accounts, but they are not.

My question is – why haven’t the OTAs yet brought in the affiliate model for selling flight tickets and hotel rooms yet? This would have two major advantages:

  1. Bring in the above latter set of small scale travel agents to formalize on their transactions. Since they are not a separate class of consumers (affiliate partners), incentives to these guys can be controlled and distinguished from the other individual consumers.
  2. Bring in a whole new set of consumers, multiple thousand micro-store-fronts, who are not really booking tickets, but proliferating links to your deals with their affiliate codes on them, so that they can earn their commission.

The OTAs keep talking about how the online travel agent market has just touched the tip of the iceberg, and how there is a significant majority of our populace who have not even been exposed. This might be one of the ways, by which the net can be widened.

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