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If the airlines sell only airline tickets, travel agencies had their relevance and combine all travel products such as hotels and vacation packages to the customer’s end-to-end solutions. If Internet, provided that the distribution of spatial airlines from travel agencies located in different parts of country. Internet the game changed completely. Travel agents and airlines and other travel products owners, through their websites, they were promoting now in a position to book their products directly to customers operate anywhere in the world, if they had access and reservation of capacity in Internet transactions. Internet set the trend of disintermediation has the owners of travel products to reach customers, encouraging them to make booking online directly with them. Does this mean that online travel agencies sell unable, cheap plane tickets and hotel rooms for the customers in the long run? Their influence is on the decline and put a question mark on their future? Is that customers start to go websites of airlines, agencies and book your domestic or international flights?
The answer to the volume of sales is generated online and offline for the airline industry and its expansion plans from. Although the Internet has significant market penetration in India, it is also true that this is the most important towns and cities are limited. There are still large markets, where the latent untapped potential of the air travel market. But it is not financially feasible for airlines to establish online shops in these cities lower order. Therefore, this space is open to travel agents that can be used. This will cause major travel agencies to the fore at the expense of smaller ones. Even in major cities, the cheap air tickets remain provide the agencies and competition between airlines would mean that airlines are filling most of the relevant agencies to their seats. Anyway airlines could well in the performance management; the prospect of vacancies will be against him and continue to travel agencies them. Further relevant, should not we exclude. The perception of the customers towards the agencies with a good brand and large customer base would remain favorites with loyal clientele. Committee work and reduced margins agencies can play in volume and in part with some of their commissions to customers. Better rates than agencies However, the price war is hardly to be initiated by the airlines to agencies and organizations simply move to other airlines.