Travel Companies are being continuously marred with escalating distribution and advertising costs, high competition in the market while their margin is on the decline.

As distribution costs continue to rise because of OTAs, travel providers (hotels, airlines, car rentals and cruise lines) are challenged to win back business from third-party intermediaries and produce more bottom line profit for owners. Global travel brands are paying big shares of their already slim margins while giving up control of retail rates to merchant OTAs. Also, according to a report published by Adgooroo in 2014, there has been a 40 per cent increase since 2012 in Pay Per Click cost in advertising in travel industry which clearly shows that the heightened competition has driven up the prices for keywords. Leading travel brands are forced to pump huge amount of money in advertising, with decreasing value.