A4E study reveals high market concentration and poor consumer practices amongst online ticket intermediaries

A new study commissioned by Airlines for Europe (A4E) highlights significant market concentration within the travel intermediary sector, with consumers potentially losing out due to unfair practices by certain players. The report, conducted by economics consultancy Syntesia, outlines how ticket distribution for airlines is shifting as traditional Global Distribution Systems (GDS) lose market share to Online Travel Agents (OTAs) and Meta Search Engines.

This comes after the European Commission designated Booking.com, a leading OTA, as a gatekeeper under the EU’s Digital Markets Act (DMA). The DMA aims to ensure "more choice and freedom for end users, and fair access for business users to gatekeeper services."

Key findings from the study include:

OTA prices for identical itineraries were, on average, nearly 25% higher than booking directly with airlines

Consumers face hidden mark-ups and charges, often falsely attributed to airlines

Services offered for free by airlines, such as SMS updates, are sold by OTAs at a cost

Two OTAs control 50% of the European market for OTAs

Three companies dominate 95% of the GDS market, with one controlling 60–65% in Western Europe

 

On the publication of the report, Ourania Georgoutsakou, Managing Director of A4E, said, “The EU’s Single Market has unlocked unprecedented choice and transformed air travel for European consumers. This success is built on fairness and a level playing field. Our report shows that this is under threat from a highly concentrated digital ticket distribution market, where OTAs do not face the same consumer obligations as airlines.”

She added, “The recently proposed passenger rights legislation must prevent online freeriding and clearly allocate obligations to each player in the market. Ultimately consumers should emerge the winners, with greater clarity and transparency”