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Pressure on Lower Fees: Increased self-booking Pressure from OTAs Pressure from competitors

Distribution Changes Impact on TMCs. Reduced Revenue and Changing Roles. FEES. REVENUES. TMCs. Pressure on Lower Fees: Increased self-booking Pressure from OTAs Pressure from competitors Pressure from supplier direct. Pressure on Reduced Revenues

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Pressure on Lower Fees: Increased self-booking Pressure from OTAs Pressure from competitors

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  1. Distribution Changes Impact on TMCs Reduced Revenue and Changing Roles FEES REVENUES TMCs • Pressure on Lower Fees: • Increased self-booking • Pressure from OTAs • Pressure from competitors • Pressure from supplier direct • Pressure on Reduced Revenues • Airlines target to GDS financial assistance • Reduction in backend overrides • Pass through of Credit Card fees • Suppliers push direct channels • In the Face of a Dual Threat of Reduced Fees and Reduced Revenues TMCs Need to Increase Services

  2. Impact of Mobile OS on Travel Distribution Intermediaries Consumer Interface Suppliers Pre-Web Traditional Travel Agents Online Travel Web GDS GNEs Global Distribution Systems (GDS) GDS Meta-Search OTAs Meta-Search OTAs • Mobile OS providers can act as the consumer gateway to all travel transactions Mobile Smartphone

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