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.
For the latest travel news, deals and points and miles tips please subscribe to The Points Guy daily email newsletter.
Feature photo by Witthaya Prasongsin/Getty Images
TPG featured card
at Capital One's secure site
Terms & restrictions apply. See rates & fees.
| 5X miles | Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel |
| 2X miles | Earn unlimited 2X miles on every purchase, every day |
Pros
- Stellar welcome offer of 75,000 miles after spending $4,000 on purchases in the first three months from account opening. Plus, a $250 Capital One Travel credit to use in your first cardholder year upon account opening.
- You'll earn 2 miles per dollar on every purchase, which means you won't have to worry about memorizing bonus categories
- Rewards are versatile and can be redeemed for a statement credit or transferred to Capital One’s transfer partners
Cons
- Highest bonus-earning categories only on travel booked via Capital One Travel
- LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app