Company: NUTR
Filing Date: 2025-03-25
Form Type: CORRESP
Source: 0001641172-25-000449
Chunk: 109

Company: NUSATRIP Inc
Filing Date: 2025-03-25
Form: CORRESP
Chunk 109
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 7%;

(3) The distribution dynamics of the travel market
in SEA are shifting, with online travel agencies gaining share over traditional channels and mobile bookings increasing rapidly.

(4) The major travel segments in SEA are air, hotels
and lodging, car rental and ground transportation, online travel agencies and rail. Air is the largest segment, accounting for more than
half of the total market, followed by hotels and lodging; and

Source: Phocuswright by Northstar Travel Media LLC (2022). Southeast Asia Travel Market Report 2021-2025.

OTA Business Model in SEA

The current OTA business model in SEA typically involves
acting as intermediaries between travelers and various travel service providers such as airlines and hotels. OTAs offer a one-stop platform
where travelers can search, compare, and book flights, hotels, car rentals, and other travel-related services. These platforms earn revenue
through commissions, service fees, and advertising partnerships. OTAs negotiate agreements with airlines, hotels, and other travel suppliers
to access their inventory and offer competitive prices to customers. Additionally, some OTAs in SEA have expanded their services to include
holiday packages, tours, and activities to provide a comprehensive travel experience. OTAs leverage technology, digital marketing, and
customer data to attract users, enhance user experience, and drive bookings. They often invest in and partner with third party mobile
apps and user-friendly interfaces, especially payment apps, to cater to the growing mobile-savvy population in the region. Furthermore,
OTAs in SEA may also partner with banks, restaurants, malls, stores, car rental companies, airlines, hotels and other companies to offer
exclusive promotions, loyalty programs, and additional value-added services to customers.

See McKinsey & Company (2024). What is the future of travel?.

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OTAs face several challenges in the current landscape.
One of the key issues is intense competition within the OTA industry, with numerous players vying for market share. For example, three
major OTAs operate in Indonesia: Traveloka, Tiket.com, and NusaTrip. This competition creates downward pressure on profit margins and
requires continuous innovation and differentiation to stand out. Another challenge is the growing influence of direct bookings by suppliers,
such as airlines and hotels, who aim to reduce dependency on OTAs and establish direct customer relationships. This shift poses a threat
to OTA revenue streams and requires OTAs to offer unique value propositions to remain relevant. Generally, it means that an OTA must navigate