ONDC Travel: B2B ka Dhamaka!

India’s travel distribution landscape is entering a new phase of disruption. The government-backed Open Network for Digital Commerce (ONDC) is rapidly expanding into the travel sector—and it’s shaking up the traditional OTA model.

Unlike conventional online travel agencies that charge 15–20% commissions, ONDC’s travel network operates with commission rates as low as 1–2%. That dramatic difference is attracting travel agents and aggregators looking for more competitive pricing and better margins.

The travel vertical gained momentum after onboarding platforms like Cleartrip, enabling inventory access through the open network model.

For the first time, smaller travel agencies are able to tap into large-scale travel inventory without the heavy commission burden that historically favored big online travel players.

A New Model for Travel Distribution

ONDC works differently from traditional OTA platforms.

Instead of operating as a centralized marketplace, ONDC functions as an open digital network where multiple buyers and sellers interact through interoperable systems.

This means:

• Travel sellers can list inventory without being tied to a single platform
  
• Agents can access services from multiple providers through one network
  
• Pricing becomes more transparent and competitive
  

For travel agents who previously struggled with OTA commission structures, this model offers a much fairer playing field.

Small Travel Agents Are Moving Fast

The impact has been immediate.

Within just three months of launch, more than 500 small travel agents have already joined the ONDC travel network.

For independent agents who compete with major OTAs, the lower commission structure allows them to:

• Offer better prices to clients
  
• Retain higher profit margins
  
• Compete more effectively with large platforms
  

In a market where pricing is often the deciding factor for travelers, this shift is particularly significant.

A Disruption for the OTA Ecosystem

The rise of ONDC signals a potential restructuring of the travel aggregator ecosystem.

Traditional OTAs built their business models around high commissions and marketing dominance. But if inventory becomes widely accessible through open networks, the competitive advantage will shift away from distribution control.

Instead, companies may need to compete on:

• Customer service quality
  
• Personalized travel planning
  
• Value-added services
  
• Loyalty programs and partnerships
  

In other words, technology platforms alone may no longer guarantee market leadership.

B2B Takeaway

ONDC is becoming a major equalizer in India’s travel ecosystem. Smaller travel agents can now access inventory at near-zero commission rates and compete more effectively with large platforms. For established players, the strategy must shift—service quality, specialization, and value-added offerings will be key to sustaining higher margins in the new open-network economy.

Sources:     RBI, CAPA, ONDC, KPMG, Deloitte, Gartner, IBEF