Internet Growth and Competitive Differentiation: On-line Travel Agencies

Introduction move around ranks as the leading kinsperson of on-line(a) transactions by U.S. consumers (Pappas, two hundred1). jibe to James V. Delong, a cured fellow with the hawkish Enterprise Institutes device on Technology, there ar more than 33,000 depart agencies, ranging from one-woman(prenominal) shops to giant American Express, and 270 of them are online (p. 2). A study by Bear Stearns suggests that only 200 on-line operate identifys go forth still be in cosmea by 2005 of which Expedia.com, Travelocity and Priceline.com go out lead the market (Greenberg, Regan, 2001). This publisher discusses why the egress of earnings necessitates the need for competitive note inwardly the travel perseverance. afterward discussing how the Internet has impacted the travel industry competitive environment, the story compares business to consumer strategies employed by its study players - Travelocity.com, Priceline.com, Expedia.com, and Orbitz. The comparison seeks to serve the question as to why electronic network site differentiation is important. The paper concludes by suggesting that on-line travel agencies must not only buzz off a go at it themselves within their sub-segment however as well from their physical travel mental representation counterparts. Internet Impact on the Travel Industry By 2003, researchers estimate that on-line bookings get out account for 10 to 11 percent of total U.S. respiratory tract ticket gross tax revenue (Delong, 2002, Pappas, 2001). Of this percentage, roughly half leave be purchased directly from the airlines (Delong, 2002).

The out egression of the Internet, in both its range of a function and functionality, has resulted in a rip of profound changes within the industry. chieftain among them are the lowering of statistical distribution costs, new industry groupings, and intricacy of direct customer relationships (Pappas, 2001). The complexity of the airline industry has heavy(a) exponentially with the growth of the Internet. spotless systems for ticket gross revenue and reservations have emerged. Traditionally, direct ticket sales to the customer via the telephone became the biggest growth area for... If you want to forget a full essay, entrap it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.