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B2B Pricing Wars

The travel in India is too big and is the highest job and revenue generator sector in India. It creates and deploys almost 60% of jobs in tourism sector whether it is airlines, hotels, transports, attractions, guides or travel agents or tour operators. At the same time, B2B segment is equally big where consolidators have huge budget and power to pre purchase big market share in terms of airlines or hotels.

Most of mid segment and small segment tour operators or travel agents purchase from them. Looking at it the competition is increasing and margins are decreasing. Due to this price war, the standard and quality of services get affected. This also encourage travellers to shop in market for tour packages and bargain for options resulting increasing of shopping culture

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