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  • Writer's picturePruvo

Innovative Ancillary Services For OTAs: Increasing Revenue Beyond the Core Offerings

In today's highly competitive travel industry, Online Travel Agencies (OTAs) and bedbanks are constantly seeking new ways to drive revenue and gain a competitive edge. While the core offerings of accommodation and flights remain essential, innovative ancillary services for OTAs have emerged as a strategic approach to boost revenue and enhance the customer experience. This article explores the tactics that OTAs and bedbanks can implement to capitalize on ancillary services and achieve their revenue growth goals.

Ancillary Services For OTAs

1. Personalized Bundles and Packages

One effective tactic for increasing revenue through ancillary services is by offering personalized bundles and packages. By utilizing data analytics and customer insights, OTAs can tailor packages that cater to the preferences and travel habits of each customer. These packages might include add-ons like airport transfers, travel insurance, local tours, or dining experiences. The key is to create attractive bundles that provide convenience and value to the customer while driving additional revenue for the business. Bundling has become an increasingly popular strategy also for bedbanks as of recent.

2. Dynamic Pricing Strategies

Implementing dynamic pricing strategies can significantly impact ancillary service revenue. By analyzing real-time demand, seasonal trends, and customer behavior, OTAs and bedbanks can adjust prices for ancillary offerings accordingly. This flexibility allows them to optimize revenue by increasing prices during peak travel periods or when demand is high and lowering prices during off-peak times to entice more customers to purchase ancillary services.

3. Enhancing the Mobile Experience

Mobile devices have become an integral part of the modern traveler's journey. OTAs can capitalize on this trend by developing user-friendly, feature-rich mobile apps that offer seamless access to ancillary services. From last-minute upgrades to in-destination services, a well-designed mobile app provides a convenient platform for customers to explore and purchase additional offerings, resulting in increased revenue beyond core bookings.

4. Emphasizing Personalization and Recommendations

Personalization plays a pivotal role in driving ancillary service revenue. By leveraging customer data and preferences, OTAs can offer targeted recommendations for ancillary services that align with each traveler's interests and needs. For example, suggesting a city tour based on a customer's previous travel history or offering a spa package to a traveler who often books luxury accommodations can lead to higher conversion rates and enhanced customer satisfaction.

5. Collaborating with Local Partners

Partnering with local businesses and service providers is an effective tactic for OTAs to expand their ancillary service offerings. These partnerships can include arrangements with car rental companies, activity organizers, restaurant reservations, and more. By collaborating with trusted local partners, OTAs can curate exclusive experiences and services that are difficult to find elsewhere, enticing travelers to spend more on ancillary services.

6. Loyalty Programs and Incentives

Implementing loyalty programs and incentives can boost customer retention and encourage repeat bookings. OTAs can offer loyalty points or rewards for customers who purchase ancillary services or refer friends and family to their platform. These incentives create a win-win situation: customers enjoy added benefits, while the OTA sees increased ancillary service revenue and a more loyal customer base.

7. Upselling and Cross-Selling Techniques

Upselling and cross-selling are powerful strategies to increase ancillary service revenue. When a customer is making a core booking, OTAs can present relevant ancillary service options during the checkout process. For instance, suggesting an airport lounge pass during flight booking or offering a discounted spa package after reserving a hotel room. These strategic prompts can lead to impulse purchases, significantly impacting overall revenue.

8. Virtual Experiences and Travel Add-ons

With the rise of virtual experiences, OTAs can offer travelers unique add-ons that enhance their travel journey. From virtual city tours to cooking classes with renowned chefs, these add-ons can appeal to travelers who seek immersive experiences beyond traditional sightseeing. Virtual experiences can open up new revenue streams for OTAs while catering to a broader audience looking for novel travel offerings.


Innovative ancillary services present a lucrative opportunity for OTAs to increase revenue beyond their core offerings of accommodation and flights. By leveraging personalization, strategic pricing, mobile optimization, and partnerships with local businesses, travel intermediaries can create a seamless customer experience and drive additional revenue streams. Through these tactics, OTAs can stay ahead in the fiercely competitive travel industry and secure long-term success by providing value-added services that resonate with modern-day travelers.

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