In our previous blog, we discussed how siloes in processes, technology, and resources limit OTA growth. In this article, we explore the tipping point: the path for OTAs that embrace partnership transformation versus those that hold back.
Over the past two decades, technology has revolutionised how businesses partner, engage customers, and unlock new revenue streams.
While e-commerce giants and traditional retailers have raced ahead to transform their co-marketing with retail media technology, many OTAs are still catching up. Why has travel been slower to adopt, and what’s at stake if they don’t?
Roy Stratford, Director of Retail Media at Platform 195, explains that while retail giants tap into high-margin media sales, travel businesses sit at a unique crossroads:
- Travel is high-consideration and seasonal
- Travel products are intangible and complex
- Partnerships tend to involve tourism boards, airlines, and hotels rather than typical retail brands and products
- Many OTAs operate with siloed teams, fragmented data, and legacy systems
There’s huge appetite from tourism boards, airlines, and hotel chains to partner and advertise within OTA ecosystems. But many OTAs lack the technology infrastructure to scale quickly and prove ROI.
“The travel industry is nuanced. Travel partnerships can be more complex than traditional retailer partnerships, with more variables and more components to factor in. This can make the concept of overhauling your existing way of working very daunting,” explains Roy.
The resistance is therefore not coming from a lack of appetite for scalable partnerships, but instead from a lack of dedicated expertise. And whilst the prospect of change is unnerving, the cost of inaction is significantly higher for OTAs competing in an increasingly competitive market.
What happens when systems stay fragmented?
In broader retail media news, the “race r retail media” and discussion of network “convergence,” where multiple retailers and brands share technology and data platforms, is rife. But in travel, the real downside of not transforming partnerships is the impact on business as usual and limited opportunities to scale.
“If your co-marketing and partnership efforts are being run by staff on multiple disparate teams, with different goals, using different systems, you simply will not be able to scale your partnership revenue,” says Roy.
“In addition, campaign launches will be slow and time-consuming. It will become harder and harder to attract new partners or prove ROI to existing ones, and you will likely leak revenue from underutilised inventory,” adds Roy.
Evolving co-marketing into a robust media solution helps attract partners and drive new revenue. But failing to innovate your partnership offering risks leaving you behind in a rapidly evolving market.
OTAs and tour operators who invest inbuilding robust media solutions are able to offer co-marketing packages that include digital out-of-home and proximity mobile advertising, as well as email and sponsored listings.
If your partnership offering is not modern and dynamic, and relies on manual or limited components like print and static website banners, you will end up losing partners and their budgets.
“Not evolving means you are leaving money on the table. If you’re not monetising and adding value, then your partners are doing it with your competitors,” says Roy.
The harsh reality for a non-adopting OTA is that, ultimately, they risk losing their competitive edge in what is a notoriously tight-margin industry.
What happens when OTAs embrace retail media?
The flip side of this stark warning is riddled with opportunity. Roy points to examples including Hays Travel. Having traditionally relied on print publications to fuel their partnerships, the travel retailer needed to create an attractive new proposition for tourist boards.
To achieve this, Director of Strategy Lisa McAuley knew that the Hays team had to change their way of working. Lisa enlisted Platform 195 to develop a Hays Travel tourism board partnership strategy incorporating change management and technology transformation.
“The response has been excellent. The technology and expertise we now have in-house set us apart from most travel agents. Tourist boards now see Hays Travel as a real contender for national coverage. Platform 195 opened the door for us to start the conversation,” says Lisa.
“Hays Travel took a phased and strategic approach to retail media adoption. This meant they could tackle issues like siloes and resource gaps and still allow for additional complexities,” explains Roy.
Another example of an OTA thriving as a result of a staggered approach is TUI Group. The TUI UK partnerships team had a strong proposition but were struggling with complex partner management processes, disconnected campaign workflows, and the lack of a scalable, trackable inventory.
“We didn’t launch into one big project. We started making small changes bit by bit. It’s been an iterative, constantly growing process with different projects and workstreams,” says Peter Emmerson, Head of Third-Party Marketing and Retail Media at TUI UK.
The slow and steady approach has given TUI greater ability to leverage their scale and customer data, resulting in TUI delivering more targeted and effective marketing for their partners.
Travel’s next big revenue channel
According to Roy, the real question for OTAs isn’t whether retail media will transform travel — it’s who will seize the opportunity and who will miss out.
“Retail media networks have revolutionised how organisations engage with customers, optimise partnerships, and monetise their digital real estate. The potential for the travel industry is immense; you just need to start with the right solution,” says Roy.
Retail media is the OTA’s next big revenue channel, and early adopters will be able to
- Monetise existing traffic and digital real estate
- Offer tourism boards and suppliers measurable ROI
- Drive incremental revenue in an industry where margins are under pressure
“In retail media, the difference between success and stagnation lies in choosing a system built for your industry, not just any industry,” concludes Roy.
Don’t let legacy systems hold back your OTA’s future revenue. Read about how Platform 195 has helped Hays Travel transform its partnerships.
Talk to Platform 195 today about how retail media can transform your partnership strategy. Email hello@platform195.com or visit www.platform195.com to book a call.
Next up, we look at how to choose a retail media solution built specifically for travel’s unique challenges. Keep in the loop and subscribe to our newsletter now.
