ONLINE travel agencies are losing customers to suppliers in the world's biggest travel market – a finding that has strong implications for online Asia Pacific businesses.
According to the latest report from PhoCusWright, 40% of online travel shoppers in the United States price check on web agency sites before booking direct with the supplier.
Airlines have been the big winners with "nearly half of online travel shoppers" booking air (either through the call centre or web site) after cruising retail sites.
"This compares to three out of 10 who have shopped online travel agencies but ultimately purchased direct from a hotel or car rental company," PhocusWright says.
"Low price guarantees, loyalty points and improved website navigation and services have impacted this shift."
Service is also a factor. "More than twice as many online travellers (36%) believe the supplier-direct channel provides the best customer service compared with 15% who choose the online travel agency channel."
Even traditional agencies fared badly with just 33% of respondents claiming they provided the best service.
Meanwhile, nearly four out of 10 (38%) of online travellers believe suppliers offer the lowest prices, up from just 14% in 2002 – a 24-point gain in two years.
Online shoppers also believe that suppliers offer the lowest fees (44% vs. 29%), most bonus miles/loyalty reward points (51% vs. 14%), and an easier change/cancellation policy (39% vs. 17%) compared to online travel agencies.
"Online agencies have lost their footing with leisure travelers in 2004 as a result of aggressive supplier efforts to better manage inventory and win business through online and offline direct channels," according to Susan Steinbrink, PhoCusWright analyst and author of the report.
"The key to their long-term, Internet survival will be in successfully upselling the customer with valued multiple travel components."
A total of 500 interviews were conducted via telephone from International Communications Research/ICR's centralized telephone center between Oct. 6 and Oct. 16, 2004, for the survey.
Ends.
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Events
'REAL TIME - Sydney, March 30'
- When: March 30, 2012
- Where: Amora Hotel Jamison
- Program: Real Time
- Bookings: $499 + gst Early Bird
BOOK now to get the Early Bird rate for the No Vacancy accommodation industry conference in Sydney.
Real Time is the theme of No Vacancy 2012, reflecting the fact that we live in a world where everything happens now, or not at all.
In no business is this more obvious than tourism. Booking lead times are now measured in hours not days or weeks.
To succeed requires a new way of doing business, a fresh mentality and a fair amount of nerve.
The program is packed with the information you'll need to thrive in today's just-in-time world with a focus on distribution, marketing, innovation, consumers and technology.
Speakers confirmed so far include the following, and there are a few more on the way...
- Rachel Argaman, CEO, Toga Hospitality
- Dave Audley, Heading of Consulting, Experian Hitwise
- Quentin Briard, GM Australia & NZ, Club Med
- Daniel Bridges, Head of Travel, Trade Me (NZ)
- Julio Bruno, Global Vice President Sales, TripAdvisor
- James Cassidy, HomeAway.com.au
- Robbie Cooke, CEO, Wotif.com
- Will Deague, CEO, Art Series Hotels
- Dean Dransfield, Director, Dransfield Hotels and Resorts
- Bob East, CEO, Mantra Resorts
- Leah Lipman, Area Director Reveneue Management Australasia, IHG
- Simon McGrath, CEO, Accor Australia
- Bryon Merzeo, Analyst, STR Global
- Bernard O’Keefe, Group Online Marketing Manager, Hamilton Island
- Todd Parker, Founder, Parker Travel Collection
- Nikolai Pitchforth, Head of Online Travel, Google
- Brett Pointon, Founder, Oaks Hotels and Resorts
- Anton Stanish, GM, The Stayz Group
- Janet Wilson, Managing Director, Nationwide Hospitality
It'll be a great day. As usual, the focus will be on distribution, marketing, sales, innovation and technology for both hoteliers and Online Travel Agents.
Sponsors:
Returning September 17, 2012
The date has been set for TRAVELtech 2012 - Monday, September 17.
Meanwhile, thanks to everyone who attended TRAVELtech: Best of Enemies in Sydney recently.
It was a fantastic event, lots of fun with a touch of controversy.
Please check out the photographs or use this link to see great 360 degree panorama shots of the conference from Panedia.
TRAVELtech is Australia's original web travel, marketing and distribution event, featuring a compelling program, great speakers and fantastic networking.
No Vacancy Southeast Asia
Bangkok, July 2012
No Vacancy continues to evolve. After the success of No Vacancy Thailand, the 2012 event will expand to encompass Southeast Asia.
It'll still be held in Bangkok and Thailand remains central to No Vacancy's future in the region.
More news by early February. Meanwhile, some images have been posted of No Vacancy Thailand below.
The first Destination Online TNQ half-day conference has just been held in Cairns.
It was great - thanks to everyone who came and helped out.
And a message to anyone thinking about heading to TNQ, do it.
Fantastic place and you'd have to say a little under-rated right now.
SPEAKERS INCLUDED
- Richard Eastes, Director, VroomVroomVroom.com.au
- Brad Gurrie, GM Australia and SE Asia, Travelzoo
- Martin Kelly, Director, TravelTrends.biz
- Bryon Merzeo, Australian Manager, STR Global
- Christopher Northam, Area Operations Manager, Mantra Group
- Bernard O’Keefe, Group Online Marketing Manager, Hamilton Island
- Todd Parker, Managing Director, Parker Travel Collection
- Rush Pathak, Digital Manager, Tourism Tropical North Queensland
- Richard Tribe, Director, Ski.com.au
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