E-Commerce Times Talkback
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Is the online travel market big enough to comfortably feed three of its giants --
Expedia, Travelocity and Orbitz -- at the same time?
According to Forrester, 18.9 million households will make their travel purchases on the
Web this year, netting US$16.7 billion in leisure travel revenues. That'll buy a lot of
peanuts, but the question is: from whom? The answer may lie in the lacework of consumer
features and technology on each site.
When grandparents wish to travel to see grandkids
they do not go to the PC to do the net. A travel
agent helps them in their plans and does not discriminate by limiting their travel options.
These companies certainly offer a wide variety of attractive travel products at competitive prices; however, to move the online travel industry to the next level the customer will increasingly demand to research and book online more complex vacation products to multiple destinations. So far none of these sites offer this functionality. I would not call the combination of an airfare with a hotel and maybe car rental dynamic packaging. True dynamic packaging is again not offered by any of these major sites and it will be interesting to see how they approach this key issue to maximize revenue.
I'm confused about counting travel revenue.
For a $100 ticket a normal commission is
about $8 (8%). Therefore the gross revenue
that I would count is $8 not $100,
(1/12th of gross). Therefore I don't
think gross sales is a very good number
to discuss in the case of travel sales.