Competition is high and continues to intensify for intermediaries as a shift towards online purchases widens options for consumers, particularly via apps. Leading travel intermediaries are thus continuing to push their technological boundaries as they seek to attract customers. Booking.com for example launched its Passion Search option in 2016, with this enabling users to access personalised searches based on their interests.
Intermediaries are likely to face a challenging time over the forecast period, with subdued demand and growing competition from outside the channel. Brexit-related economic uncertainty will encourage many consumers to economise when spending on travel, while many businesses will also be keen to minimise travel costs. Simultaneously, there will be growing competition from direct sales within air. British Airways introduced a GBP8 fee for those booking its flights via intermediaries in 2017 and other airlines are likely to follow suit. Intermediaries car rental sales are likely to be impacted by competition from corporate leasing and car sharing platforms.
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