Amazon, the world’s biggest online retailer has started domestic ticket sales in India, teaming up with OTA Cleartrip and offering better details for their Amazon Prime customers. Yet they do not own any of the expensive airline assets and regulatory problems - they just take the “cherry on the cake” and use their distribution power and offer convenience to travellers when booking with them.
According to Sebastian Mikosz, Group MD & CEO at Kenya Airways, during his keynote speech at CAPA Seoul, airlines operate in a highly regulated environment with high fixed costs. They should think more like digital retailers to achieve favourable distribution margins and customer data. “If we do not adopt an OTA (online travel agency) business model, we will become subdivision of technology companies” he said.Read More