Advantages of the merchant model

The merchant model provides multiple benefits to online travel agencies:

• Enhanced business opportunities: OTAs can gain more control over travel interactions, open the door to cross-sell and upsell opportunities and deliver greater profit potential through rebates and commissions.
• Heightened brand loyalty: Customers who develop a trust relationship with their OTA may prefer to book directly with them in future.
• Improved payment protection: The merchant model allows OTAs to deliver stronger protection to their customers, including refund policies, cancellation options and customer support.

The merchant model provides powerful advantages to the end customer as well:

• Increased security and reduced risk: The OTA handles customer payment information, rather than handing it to the travel suppliers.
• Substantial savings: In addition to the price advantage delivered by bundling deals, OTAs can save customers the expense of multiple foreign-exchange charges when booking international travel.
• Simplified payment: Rather than individual charges from multiple travel providers—potentially through multiple payment methods and across several channels—OTAs can offer customers a single point of contact from booking through completion of travel. They can also offer travelers bundled deals that provide access to multiple travel services in a single booking.

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