Brussels, 09 October 2024 – 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”

ENDS

Notes to Editor

• A4E Commissioned Syntesia Policy & Economics to examine the subject of online intermediaries in the market for air ticket distribution.
• The scope of the study covers several types of online intermediaries, with the main priority being OTAs. To achieve sufficient depth, the study analysed a sample of OTAs, which were selected with a view to their high market share (together covering the vast majority of the EU market).
• The study combines desk research, written submissions from airlines and interviews and a mystery shopper exercise.
• The approach provided ample evidence on the issues of interest and allowed conclusions to be drawn with confidence by triangulating between evidence from different sources, including multiple airlines and the empirical observations of the study team.
• An executive summary is available here. Full study is available here.

About A4E 
Airlines for Europe (A4E) is Europe’s largest airline association. Based in Brussels, A4E works with policymakers to ensure aviation policy continues to connect Europeans with the world in a safe, competitive and sustainable manner. With a modern fleet of over 3,600 aircraft, A4E airlines carried over 718 million passengers in 2023 and served nearly 2,100 destinations. Each year, A4E members transport more than 5 million tons of vital goods and equipment to more than 360 destinations either by freighters or passenger aircraft. A4E is #Flyingforourfuture with our commitment to Europe and our call to action for incoming European policymakers. Find out more at Flyingforourfuture.eu