Airlines understandably want passengers to book directly. Direct channels provide greater control over the customer relationship, reduce certain distribution costs, and create additional opportunities to sell ancillary products.

But pursuing direct sales at the expense of other channels can also limit an airline’s commercial reach.

The real question should not be whether direct sales are better than GDS, OTA, or travel agency sales. The question should be: Which combination of channels generates the most profitable incremental revenue for each market?

Different distribution channels serve different customers.

Online Travel Agencies can provide enormous visibility, particularly in markets where an airline has limited brand recognition. GDS distribution remains essential for many corporate travelers, travel management companies, and traditional agencies. Direct channels are particularly powerful among existing customers who already know and trust the airline.

A successful airline distribution strategy therefore requires balance. The most effective approach is to understand which channels perform best in each market and use that insight to determine where the airline should invest, rather than relying on a single distribution model.

Airlines should regularly analyze not only the cost of each channel, but also the revenue it generates, average fare, booking behavior, geographic origin, ancillary contribution, and whether the passengers are genuinely incremental.

This last point is particularly important. Paying a commission for a passenger who would otherwise have booked directly represents a cost. Paying a commission to acquire a passenger who would never have discovered the airline can represent an excellent investment.

Distribution decisions should consequently be based on data rather than philosophy. Airlines need to look beyond the headline cost of each channel and understand the quality and profitability of the revenue each channel generates.

There is no universally correct distribution mix. A well-established flag carrier and a relatively unknown regional airline entering a new international market may require completely different strategies.

The objective is not simply to minimize distribution cost. It is to maximize profitable revenue while ensuring the airline is present in the channels where its target customers are most likely to search, compare, and book flights.

A Real-World Perspective

In one engagement, we supported a regional Central American carrier in designing and implementing a global distribution strategy focused on maximizing the airline’s presence across multiple available sales channels. Rather than concentrating on a single distribution model, the strategy expanded the carrier’s reach through a combination of direct and indirect channels, allowing the airline to become visible and accessible to a much broader range of potential customers.

This approach to airline distribution also provided greater flexibility to respond to differences between markets, passenger segments, and booking behaviors. Instead of assuming that one channel would deliver the best results everywhere, the airline could assess where each distribution channel created the greatest commercial opportunity.

The results went beyond increased sales. Revenue grew rapidly as the airline began reaching different passenger segments and generating bookings from geographic markets that had previously been considered unlikely or had not been identified as meaningful sources of demand at all. The experience reinforced an important lesson: effective distribution is not simply about reducing the cost of selling a ticket. It is about making the airline available wherever potential customers choose to shop and, in the process, uncovering demand that the airline may not have known existed.

B+B Perspective

At B+B Solutions, we believe sustainable airline growth is achieved by combining commercial strategy, operational excellence, and practical execution. Our goal is not simply to identify opportunities. We work alongside our clients to implement solutions that deliver measurable results.

For airlines evaluating their GDS distribution strategy, OTA presence, direct sales, or broader airline retailing approach, the priority should be to build a distribution model that supports both market reach and profitable growth. The right strategy will depend on the airline’s markets, customer segments, commercial objectives, and existing technology infrastructure.