More outsiders are entering the OTA space: Phocuswright

According to Phocuswright, an increasing number of companies from outside of travel are entering the online travel agency (OTA) space. This comes ahead of the 2023 Phocuswright Conference, which will be themed around what recent powerful advances in technology could mean for the future of the industry – and how travel businesses must adapt to remain relevant. Although outside players are plugging into online travel companies’ platforms, it is mainly the OTAs that will reap the rewards of this trend, according to Phocuswright: “Historically it was travel suppliers who partnered with the OTAs in a bid to supplement their core products,” said Lorraine Sileo, senior analyst, at Phocuswright.  “However, non-travel brands, such as financial institutions, retailers and loyalty clubs, are now partnering with OTAs to sell travel. “These companies now really want to get into the travel business – and technology is enabling them to do so.  Over the past two years, several have launched travel booking platforms or announced ambitious plans to do so, even though the online travel agency market is already near saturation and uber competitive.  The goal for these companies is not to gain substantial revenue directly from travel, but to keep their customers coming back, for example by encouraging card usage and giving customers more ways to earn or redeem loyalty points.  But, for the OTAs, these partnerships can be directly profitable.”

This trend is set to benefit the big brands in the OTA space, as many “outside” companies will simply be tapping into their various plug-and-play models without needing much experience or expertise in the travel sector.  Here are three companies in the finance space that are now tapping into OTAs to drive loyalty and offer customers new experiences:

1. Citi – In March 2023 Citi officially launched Citi Travel with Booking.com, which is powered by Rocket Travel using Agoda’s technology. Citi ThankYou cardmembers can access inventory on the bank’s website or app and have the option to pay for travel with their Citi credit card, ThankYou Points, or a combination of the two.
2. Personal finance – Capital One: Many financial institutions are also attracted to the prospect of engaging customers early in the travel process. Capital One entered the booking fray in September 2021 by using Hopper Cloud to power its booking platform for travel rewards customers.
3. JPMorgan Chase: The most ambitious financial institution as it relates to travel is JPMorgan Chase & Co., which plans to operate its own OTA platform in lieu of using a private-label offering. Chase already has co-branded credit card relationships with airlines including Southwest, United, Aer Lingus and British Airways, along with hotels such as IHG, Marriott, Hyatt and Disney. In its quest to build an end-to-end travel solution, the company made two important acquisitions: proprietary travel platform cxLoyalty in 2021, and mega leisure and corporate travel agency FROSCH in 2022.

“Considering the proliferation of plug-and-play platforms, white-label offerings and API integrations, it’s no wonder that becoming an OTA is hard to resist for finance companies,” added Sileo.  “The advantages for banks, rewards programs, retailers and other membership organizations to offer additional value with little upfront cost are obvious. And we anticipate more offerings to launch in the coming months and years – particularly as AI advances and opens new possibilities.”

This year’s Phocuswright Conference, titled ‘You, Me & the Machine’, will be held from November 13-16 at the The Diplomat Beach Resort in Ft. Lauderdale, Florida, and will center around the massive implications of artificial intelligence for every aspect of travel – including how generative AI is infiltrating the traveler trip, and the early results travel leaders are seeing between AI and the travel journey.

Hospitality technology solutions providers WorldVue® and Infrateq have announced they have signed an agreement that will mark the entry of WorldVue’s full tech stack into the EMEA region powered by Infrateq. Nearly 50 years in business, WorldVue (formerly known as World Cinema) has been a trusted provider of video, digital infrastructure, wireless connectivity and professional services to hotels, residential properties and enterprises across the world. A family-owned business headquartered in the United States, WorldVue has offices in the Americas, UK, Netherlands, Mexico City, Dubai, Singapore and Australia.

Michael Vargosko, Managing Director International Operations at WorldVue commented: “This agreement couldn’t have come at a more opportune time. As we close in on managing a million rooms installed globally, the business has been focused on strategic international growth with EMEA as a top priority, which was cemented by the appointment of Julian Daniel as Vice President of Operations EMEA earlier this year.  Through our alliance with Infrateq our full offering, including IPTV, ISP and wired and wireless network solutions, will be available in EMEA and we will work closely with the team to ensure smooth and seamless operations with the goal to fully integrate the business.”

Specialized in IT infrastructure project design, deployment and management for the hospitality industry, Infrateq designed solutions are approved by leading vendors and international hotel chains, using decades of industry experience of their team plus a network of over 50 verified local partners. Infrateq has extensive coverage in the EMEA region through its hubs in the UAE, Saudi Arabia, South Africa, Europe and the UK.

“This is a very exciting milestone for the company,” said Gary Carscadden, CEO & Founder of Infrateq. “WorldVue will bring its North American pedigree and unrivalled track record to the EMEA region, which with our well-established presence and experience in hospitality technology provides immense synergies for both our current and prospective clients.”

“Our strategic alliance with Infrateq will not only further fuel our international growth and presence in the EMEA region but also enable us to gain significant operational efficiencies. After the establishment of our offices in Amsterdam and Dubai, we are currently in the process of finalizing our company formation in Saudi Arabia with plans for other hubs in the region in the near future,” added Vargosko.