Watch out OTAs, here comes Uber!

AFTER completely
disrupting the taxi
industry, Uber may well
become a threat to OTAs. The
popular hail-riding platform
has patented a travel booking
service that seems to
signal its entry into the OTA
business.
In the patent application for
Uber Travel, the company says
it aims to provide a perfectly
timed and seamless end-toend
trip, including the booking
of flights, ground transport
and accommodation. The
system would also monitor
flight and vehicle delays,
and alert the appropriate
airline and hotel systems,
re-accommodating the traveller
when necessary.
Uber has only just registered
the patent for its new
service but Russell Jarvis,
spokesperson for Travelstart,
says if Uber goes live with its
new offering, the company
will be in a good position to
threaten the industry as it is
already known by many users,
and has built an audience
across multiple countries that
trusts and loves Uber.
“The size of the threat they
pose to the industry at large
will depend largely on where
they get their inventory from.
They might just end up being
another ‘super-affiliate’ if they
can’t implement an integration
where they control the entire,
or many parts of the supply
chain. Also, just because a
company has a reputation for
being a disruptor in a niche
does not mean they will be
successful when they try to
disrupt other niches – even
Google hasn’t quite been able
to crack travel – it’s a complex
industry with many touchpoints,”
says Russell.
Uber’s potential entry into
the OTA space, could well see
more OTAs move to address
the local transport gap in
their itineraries. Russell says
there is definitely room for
innovation and competition in
this space, which could start
happening via partnerships
and acquisitions.
OTAs who rely solely on
the traditional OTA business
models are in danger of
thinking that doing the
same thing will work year in
and year out, agrees Rian
Bornman, md of FlightSite
Agent. “At FlightSite, we see
the future of the South African
OTA in creating better access
to local content. For example,
we’re the first OTA to offer a
range of bus tickets, bookable
and payable through Pick n
Pay stores,” he says.
Travelstart has also been
focusing on niche areas
of the sector, according to
Russell. “We are localised; we
support our customers over
the Internet and phone, and
we have relationships with
suppliers. Many of the touchpoints
Uber Travel wants to
hit go far beyond the scope
of products and services
Travelstart wants to offer its
customers.”
Whether or not Uber will
disrupt the travel industry as
significantly as they have the
taxi industry remains to be
seen. “Currently the travel
industry is a multifaceted
chain affected by many
variables and whether or not
it’s something that can be
‘uberised’ as easily as one
facet of a trip (hailing a taxi)
is yet to be seen.”