Another online travel agency goes belly-up
It's no secret that there's a showdown between online travel agencies (OTAs) and their hotel (or airline) competitors. From no-status stays to slashed perks, the relationship between sites like Priceline and hotels is both symbiotic and tense. But what about other OTAs?
Two days ago, Spanish news agency Preferente broke the news that Amoma, one of the final independent online travel agencies, had ceased operations. In a message posted on its site, Amoma blamed noncompetitive 'price comparators' for its woes, which give preference to their own listings for booking, as opposed those cheapest or most highly rated.
Prior to its demise, Amoma was the world's third largest online reservations platform. While the news is certainly problematic for those who have booked reservations with the site, it also begs the question: What is the future of online travel agencies? Now that Amoma is gone, there are few major OTA booking platforms left. Years of consolidation and heavy undercutting has left little room for any but the most aggressive of sites. What's going to happen now that the pool is shrinking, with heavyweights like Priceline owning most of the market share?
While hoteliers may be pleased to hear about the downfall of Amoma, they're nowhere near in the clear — sites like Amoma exist using third-party wholesale rooms to offer discounted rates, and now Booking.com has gotten in on the game with Booking.basic. Their goal? Offer the absolute lowest rate possible, even if that requires outsourcing. In essence, the online travel agency has just used the services of, well, another online travel agency.
Is this the future of OTAs? One site after another cannibalizing its sales in order to capture as much of the market as possible? What does that mean for profits, for competition, and for hotel chains themselves? Though hotels are already trying their hardest to steer guests away from these agencies, they'll be hard-pressed to make a case if the big OTAs are offering rock-bottom, wholesale pricing — even at their own expense.
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Feature photo by Witthaya Prasongsin/Getty Images
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| 2X miles | 2 miles per dollar on every purchase |
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Earn 200K miles when you spend $30K in the first 3 months, and an additional 200K miles when you spend $150K in the first 6 monthsLIMITED-TIME OFFER: Earn up to 400K bonus milesAnnual Fee
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Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month