ONLINE TRAVEL AGGREGATORS (OTA’s)

Dec. 8, 2018

The Union Ministry of Tourism have formulated the guidelines for approval /re-approval of Online Travel Aggregators (OTA’s). Guidelines will be rolled out by December end this year.

Online Travel Aggregator (OTA):

  • An Online Travel Aggregator (OTA) is an intermediary / agent selling travel products and services such as the airlines, car rental, cruise lines, Hotels / Accommodation, railways and vacation packages on behalf of suppliers using internet as a medium.

  • They establish an online market place and earn profits on the discounts commonly referred to as commission offered by the suppliers.

  • Concerns: Several players in the OTA segment operating now without any accreditation / validation. Thus, there are risks of letting the market operate unhindered leading to unethical trade practices. In this background, the guidelines have been issued.

Recent guidelines by Tourism Ministry:

  • This is a voluntary scheme open to bonafide OTA’s to bring them on a common platform in the organized sector.

  • The recognition as an approved OTA shall be granted by the Union Ministry of Tourism for 5 years, based on the Inspection Report / Recommendations of a Committee

  • The re-approval shall be granted for five years after inspection conducted by a Committee.

  • It shall be mandatory for an approved OTA to prominently display the Certificate of approval given by the Ministry in the office premises so that it is visible to a potential tourist.

  • The decision of Ministry of Tourism in the matter of approval/ re-approval shall be final.

Source : PIB

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