tour operator

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if im a tour operator, charging gst @ 5% in addition to 28% gst chrged by hotel
why one would buy from agent than direct hotel?
Replies (1)

Well that depends on who the agent is, how much market you want to grab, how much losses can you bear if you are an angel funded or are you a fully developed e-commerce platform going in a new market. If you are understanding what I mean let's take an example of "redbus" or "little" which have huge funds and ae owned by Naspers, ibibo Group Private Limited and Paytm communications Pvt Ltd. These guys when they just started providing hotel booking or tour operator services provided huge discounts and offers. Then a consumer like me will always chose them if they can provide me at half rates, ofcourse when a sufficient chunk of market is grabbed by them then they would lower the discounts and work on their operating profits like what Yatra is doing. 

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