Company: NUTR
Filing Date: 2025-04-14
Form Type: S-1/A
Source: 0001641172-25-004581
Chunk: 88

Company: NUSATRIP Inc
Filing Date: 2025-04-14
Form: S-1/A
Chunk 88
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2030; annual growth projections for Southeast Asians and Eastern Europeans are both around 7%; 20

(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 services in SEA are air, hotels and lodging, car rental and ground transportation, online travel agencies and rail. Air is the largest service, 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.

20 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