Amazon has started selling tickets to Indian customers and offers them an easy payment process and cash-back offers.
With Amazon selling domestic plane tickets in India, airlines are concerned that this might spark a global battle for control of valuable traveler data.
- Amazon is integrating most of the consumer lifestyle under a single platform.
- While airlines were already having tough competition with online travel agencies like Expedia Group Inc and corporate travel agents, with the entry of Amazon there will be a dramatic change in ticket selling.
- Airlines were already offering travel and lifestyle marketplace selling flights, hotels, activities and retail product.
AirAsia and easyJet implementing the same strategy
While AirAsia’s website has launched a digital wallet business called BigPay, both these airlines are building digital travel businesses to help boost profits.
AirAsia has stated that the volume they generated from the ticket sales is much bigger than a lot of other travel agents so they would sell tickets on their own.
Europe’s easyJet is signing direct booking contracts with hotels to give it more flexibility in pricing packaged holidays on its website.
Still, Amazon and Alphabet’s Google are big names in understanding consumer behavior which gives them an edge over airlines in presenting attractive offers, travel industry.
Amazon in power packed mode
With collaborating with local online travel agency Cleartrip in India, Amazon is already moving forward in the right direction.
The simple strategy of Amazon is selling discounted flights and earn back a part of that promotion from customers that shop for other products from their Prime membership.
Already a large part of Indian consumers do movie bookings, food orders, and utility payments from them only.
We’re working closely with the online travel agents, but we will look at the possibility also of working with Amazon,” Philippine Airlines CEO Jaime Bautista said at the Paris Airshow.
It is understandable that the ones who are going to be successful are the ones who are actually going to partner with them, an Amazon or something like that.