DMCs threatened by online bookings
View(s):Many Destination Management companies (DMC) are changing their company profiles to accommodate the business of Online Travel Agencies (OTA) as they are facing stiff competition from online hotel / travel booking by OTAs, industry analysts say.
“DMCs handle ground handling. When the war was concluded, OTA gained in popularity. So, DMCs are facing an issue,” an owner of a DMC, which has incorporated OTA functions into his firm, told the Business Times.
Ravi Denawaka, Managing Director Olanka Travels also shared similar sentiments. “Some 10-15 years ago we only had DMCs. In my company, I have incorporated OTA as well,” he told the Business Times. Free Independent Traveller (FIT) arrivals have increased where online booking mechanisms are the key driver offering various discounts on hotels below 4-star range, analysts say.
Therefore the leisure sector at present is facing a challenge in revenue generation whilst ensuring quality standards,” the analyst said. The country saw its tourist arrivals up by 14.1 percent year on year during 1H2015 totalling 836,000 against 727,300 in 1H2014. Tourism earnings amounted to US$2.4 billion while total tourist arrivals recorded 1.5 million in 2014.