TravelBizBuzz

While many Americans were filling up on turkey and watching football this Thanksgiving weekend, JetBlue Airways was busy hammering out the details of its agreements with online travel agencies.

In what is a sign of the new low-cost carrier presence among OTAs, JetBlue has announced partnerships with Priceline.com, Orbitz Worldwide and Travelocity. All three sites will have full access to the airline's published fares, schedules and inventory.

Friends with benefits: In addition, JetBlue will be added to the OTAs' travel-package options. Orbitz will distribute JetBlue fares through its new Orbitz for Business site as well as its CheapTickets brand, while Travelocity reported that JetBlue will soon become part of available Travelocity vacation packages.

JetBlue's emphasis on passenger extras -- satellite television and radio and name-brand snack selection among them -- may have helped the LCC appear more attractive to the sites. "JetBlue offers great in-flight amenities and additional options for our customers," said Travelocity's VP of flights Simon Bramley.

The terms of the agreements remain undisclosed, although Priceline revealed its deal with JetBlue is a multi-year one. JetBlue bookings will be available on all three sites effective immediately.

-- Scott Walker, Editor in Chief, TDR

Posted by TDR at 02:17 PM | Permalink | Comments (0)

Tongues are wagging about the prospect of a United-Delta merger that emerged from the rumor mill last week. And while there are good reasons not to believe this particular deal will actually move forward, you should expect some merger action among major carriers -- and a significant shift in the marketplace in the near future.

Of course, merger rumors have been rampant for quite a while. “Most pundits have been saying that we have a capacity problem: too many seats,” Eric Smith, co-chair of the aviation practice group at Schnader, Harrison, Segal & Lewis in Pittsburgh, tells TDR. Continental Airlines has been the focus of merger rumors for over a year, Smith points out.

But the United-Delta chatter has been the loudest. So what’s it all mean?

For the LCCs, there's potential for pricing flexibility, if not much new market share. Meanwhile, the GDSs had best prepare to face a negotiation batter, and travel agencies should get ready for some puzzled customers. Want more details on these coming industry changes? Read the cover story in TDR Vol.15 No.25. Not a subscriber? Sign up here.

-- Scott Walker, Editor in Chief, TDR

Posted by TDR at 02:09 PM | Permalink | Comments (0)

Southwest Airlines is out to win over suits with some changes to the way it serves them. Announced Nov. 7, a new "Business Select" fare guarantees customers will be first to board the plane, promises a free onboard cocktail and bestows extra Rapid Rewards credit for the flight.

"We know that our true road warriors want to make traveling on Southwest Airlines as quick and easy as possible, and providing the choice to be among the first to board is key," said Kevin Krone, Southwest's VP of of marketing, sales and distribution.

Recent changes to the Rapid Rewards program also cater to travelers looking for special attention. Now members who have flown 32 one-way flights or 16 roundtrips in a year will gain a spot on the airline's "A-List," which offers them automatic check-in in advance of flight departure, thereby giving them a fighting chance to grab an "A" boarding pass. Plus, a new "Freedom Award" promises travelers a chance to book a rewards flight with no blackout date restrictions.

"As promised Southwest has made value added improvements that will differentiate our product without changing our core business," said Gary Kelly, Southwest CEO.

-- Scott Walker, Editor in Chief, TDR

Posted by TDR at 02:08 PM | Permalink | Comments (0)

With all the media talk about the new ultra-low-cost — but bare bones — Columbus, OH-based airline, Skybus, I’m surprised I haven’t seen one consumer comment.

Every media source and airline analyst is questioning whether the Skybus business model will “take off” here in the U.S., and Skybus is telling us that its “no frills,” á la carte approach is what the consumer really wants. But until I hear from a customer, I will hold onto my skepticism — in hopes, of course, that Skybus is correct.

Here’s why: “What works in Europe won’t necessarily work in the U.S.,” airline analyst Bob Mann told me recently. I’m beginning to understand that this statement isn’t just referring to economics.

If you look at the successful European carrier, Ryanair (which Skybus is modeled after), you have to consider what makes it work culturally, as well as economically. Europe is what I would call a “railroad” culture — where people are used to no frills on their main mode of transportation, rail. So I can see why Ryanair would be a good fit in Europe.

Despite its no-frills aspect, which Americans may not take to as happily as Europeans, Skybus does offer some services that should please in an American culture: non-stop service between small cities and cheap, cheap ticket prices. In fact, other airlines — especially the low-cost carriers — are paying close attention and even appear to be covering their backs.

For example, Southwest Airlines’ radio spots in the Columbus, OH area appear to attack Skybus. Without mentioning any airline names, the ad plays a sarcastic skit where a flight attendant, during her usual announcements, mentions things like:
• Arm rests are available for $2
• You may recline your seat for $5
• Pay restrooms are available; please have exact change
• We will open your window shade for $1
• Reading lights are available for $2

In a similar television ad, Southwest visually shows the passenger encountering coin slots to open the overhead bin or to use a seatback tray.

Bottom line: Skybus is still showing good potential because these ads indicate Southwest feels somewhat threatened by the new competition. But I’m still waiting to hear the consumer’s opinion.

--Lindsey Rushmore, Editor-In-Chief, Travel Distribution Report--

Posted by TDR at 10:48 AM | Permalink | Comments (0)

I was pleased to see that American Airlines introduced a Web site (www.AA.com/women) that reaches out to the female traveler. I did a quick acid test as a traveling female myself, and the site exceeded my expectations. It featuring lots of female-focused travel tips dealing with safety, wellness, fashionable travel and “girlfriend getaways,” etc.

After exploring, I’ve got two praises and two criticisms for the site:

Praise #1: AA was very smart to put a booking engine front and center on this site. Sure, we females love to feel like someone cares, but we’re smart with our time and are ultimately there to book travel.

Praise #2: AA is also playing smart with partnerships with this new female-friendly venture. Check out the Wyndham Hotels And Resorts ad to the right of the booking engine that offers 20 percent off a hotel stay and a discounted spa package for women that fly AA.

Criticism #1: As warm and fuzzy -- and helpful -- as this site is, I could not navigate to it from the main AA Web site. If the airline wants a lot of women to visit this new site, it should be raising awareness with a banner on its home page. Very few of us will creep to the press release page to read about it, and if there is a link elsewhere, it’s too hard to find.

Criticism #2: As time-crunched as most people today are, I ask myself if women will even have the time to hang out on a site like AA.com/women and both read and submit travel tips. And if they do, will a site like this serve more as a research tool, or will it also help bump up AA conversions?

What are your opinions about AA’s women-centric Web site? Do you think it will fly? Let me know what you think.

--Lindsey Rushmore, Editor-In-Chief, Travel Distribution Report--

Posted by TDR at 03:00 PM | Permalink | Comments (0)

Most of the news and commentary I read about travel companies entering international markets is predominantly about India -- and with good reason, as multiple experts and research indicate the country’s growing middle class and discretionary income to spend on travel. (See TDR, Vol. 14, No. 22)

But now that everybody’s aware of the Indian market (and wants a piece of the pie), what’s the next big thing?

Watch for: A couple months back, Timothy O’Neil-Dunne, managing partner for T2Impact, suggested to me in an interview that the Latin American market would start turning peoples’ heads in 2007.

Well it looks like at least one company is taking notice of this market’s potential. Just last week, Wordspan announced (March 26) that Aerolineas Mesoamericanas (a Mexican low-cost carrier, better known as Alma de Mexico) signed a multi-year, full-content agreement with Worldspan. Worldspan customers and business travelers using Worldspan Trip Manager XE, have access to all of Alma de Mexico’s published fares, Web fares and related inventory.

More: Then on April 2, Worldspan announced that GOL Transportes Aereos, a Brazil-based LCC, signed a Limited Connect distribution agreement with the GDS. GOL’s schedules, availability, low fares and booking capabilities will be available to all Worldspan travel agency, corporate and online points of sale worldwide, the GDS said.

Next step: Will other GDSs and travel companies follow? And will Worldspan continue to see promise in this market, signing on more Latin American carriers? More to come in the next issue of TDR.

--Lindsey Rushmore, Editor-In-Chief, Travel Distribution Report--

Posted by TDR at 05:43 PM | Permalink | Comments (529)

Inspired by the success of KLM’s subsidiary Transavia.com in the Netherlands, the Air France KLM Group will be exploring a new market segment in France.

The Air France and Transavia.com board of directors have approved the launch of “a new French carrier on the international medium-haul leisure market,” according to a Nov. 27 press release.

The new airline’s management will be separate from Air France’s, but the commercial brand will remain Transavia.com. By summer 2007, the new airline aims to serve nine Mediterranean destinations with 67 weekly flights out of France’s Orly airport, including destinations in Morocco, Tunisia, Spain, Italy and Egypt.

The fleet will start out with four Boeing 737-800s, with plans to add five more crafts in the next three years.

“The new airline will use the operational skills and tools specific to transavia.com in the Netherlands, whose original, well-balanced model offering a mixture of scheduled flights to leisure destinations with charter flights is a proven success,” said Onno van den Brinck, president and CEO of transavia.com in the Netherlands.

Posted by TDR at 05:29 PM | Permalink | Comments (267)

One low-cost carrier has decided to put some heavy marketing weight on an online travel agency heavyweight.

AirTran Airways and Expedia announced today they inked a new four-year strategic partnership, through which AirTran’s full range of products and services, including all fares, schedules and inventory, will be marketed through Expedia.com, according to a press release.

AirTran will benefit from “the broad reach and targeted merchandising opportunities Expedia provides,” said the companies. At the same time, Expedia customers gain greater access to AirTran’s content.

Delivering the LCC’s unique services, such as XM Satellite radio and business class on every flight “hinges on our ability to efficiently distribute our product,” said Kevin Healy, VP of planning for AirTran. “By leveraging the broad customer reach and travel expertise of Expedia, AirTran will be able to offer the quality low-fare air service that our customers have come to expect as we continue to expand our route network to new cities across the U.S.”

Posted by TDR at 01:57 PM | Permalink | Comments (359)

Spectators are still waiting in earnest to see what Delta Air Lines will say after U.S. Airway’s bold proposal to merge with the carrier early Wednesday morning.

“We received a letter from U.S. Airways this morning and will of course review it,” acknowledged Delta Airlines CEO Gerald Grinstein on Nov. 15. But the carrier seems hesitant to jump at the offer as its plan “has always been to emerge from bankruptcy in the first half of 2007 as a strong, stand-alone carrier,” Grinstein said.

However, Delta has not yet made public a definite “no” –- and perhaps for some reason. According to the U.S. Airways proposal, pairing up with Delta “would create one of the world’s largest airlines.” The “New” Delta would be the number one trans-Atlantic airline and second largest airline in the Caribbean. In addition, the carrier would still operate under the Delta name and would be “uniquely positioned to compete with low cost and legacy carriers.”

In a letter to Grinstein, U.S. Airways proposes that “Delta prepetition unsecured creditors would receive $4.0 billion in cash plus $78.5 million shares of U.S. Airways common stock.” The equity component represents a value of approximately $4.0 billion based on the closing price of U.S. Airways’ common stock on Nov. 14. “As a result of this transaction, immediately following the merger, Delta unsecured creditors would own approximately 45 percent of the combined company,” the letter stated.

Posted by TDR at 06:04 PM | Permalink | Comments (0)

A better customer experience on an airline Web site could be all it takes to bump up a direct distribution channel.

At least that’s what Virgin Atlantic Airways is hoping. The carrier has inked a 5-year partnership with travel distribution software provider Datalex to spearhead its mission to improve shopping features on its site, according to a Nov. 3 press release.

Virginatlantic.com is now using the Datalex Travel Distribution Platform (TDP) to “revolutionize the way it sells online,” Datalex said.

For example, the TDP availability management system drives better response times to the consumer. In fact, already “consumer response has been very positive,” said Simon Fox, director of information technology for Virgin Atlantic.

The solution also offers opportunities for distribution cost savings “which were previously unattainable,” says the carrier. Users may now shop preferred flights using low fare shopping functions, upgrade their cabin choices for each flight and shop for available 'Flying Club' redemption fares or the cheapest flights via a calendar display.

Posted by TDR at 02:55 PM | Permalink | Comments (0)

Singapore Airlines’ corporate customers now have a “complete payment and cost analysis solution,” thanks to a recent partnership between the carrier and AirPlus International.

AirPlus International, a global business travel payment solutions provider, will now offer Singapore Airline corporate customers the AirPlus Company Account, according to an Oct. 26 press release.

The account is an air travel payment, billing and reporting system that gives the airline’s corporate customers an option to pay for travel on Singapore Airlines and more than 200 other carriers, charge other travel expenses and help manage their company’s travel budgets.

Corporate customers will also gain access to the AirPlus Information Manager, which provides a complete analysis of all travel services. “With the information that is gained, companies will recognize cost-cutting opportunities and have the optimal basis for negotiations with airlines, hotels, car rental companies and other service providers,” AirPlus said.

Posted by TDR at 02:37 PM | Permalink | Comments (0)

Travel agencies and other corporate customers who subscribe to Worldspan won’t have to jump through hoops to get JetBlue’s pricing and content.

Worldspan announced Oct. 19 that JetBlue signed a new five-year full content distribution contract with the GDS, according to a press release.

Under the agreement, all of the carrier’s published fares and inventory, including published fares JetBlue offers through other distributors, its reservation offices and its Web site, will be available today through Worldspan’s multiple booking channels.

This means Worldspan’s travel agencies and corporate customers, including business travelers who book trips online using Worldspan Trip Manager XE, as well as travel buyers who purchase opaque flights or travel packages at Worldspan-connected travel Web sites, will have full access to JetBlue’s shopping, pricing and bookings.

“Worldspan offers a broad and valuable network for delivering JetBlue inventory directly to the travel buyer’s desktop,” said Noreen Courtney-Wilds, director of sales for JetBlue Airways. “Worldspan links us to those customers we are not reaching through other channels and ensures our customers have a state-of-the-art travel buying experience.”

Posted by TDR at 04:25 PM | Permalink | Comments (80)

FareCompare’s latest innovation is putting more power -- pricing information -- in the hands of consumers.

The airfare search engine’s new alert service will send an email straight to the consumer four hours before fares for his favorite city pair are published on airline and travel agency Web sites, the company said in an Oct 11 press release.

Until now, this information was only accessible to the airlines, the company boasted. “No other subscription service provides this information,” said Rick Seaney, CEO of FareCompare.com.

For example, on August 7, the lowest fare from Cleveland to Palm Springs was $360. On August 8, the lowest fare dropped to $109 for three hours and then went back up to $320 that same day. The key: FareCompare subscribers were alerted to the price decrease as soon as it happened.

Consumers can subscribe to low fare alerts from any airport and for a specific market. Alerts indicate the savings and rate it with two to four stars, a four-star rating indicating that the fare is at or near the historical lowest fare for that particular route.

Posted by TDR at 12:59 PM | Permalink | Comments (0)

Air China customers in North America can now book airline tickets, hotel rooms, packages and in-destination activities at us.fly-airchina.com and ca.fly-airchina.com, thanks to Expedia WWTE.

Expedia announced Sept. 25 that its WWTE private label technology will power Air China Web sites, providing online booking services for Air China’s U.S. and Canadian markets.

“The U.S. and Canada are key markets for us,” said Chi Zhihang, general manager of Air China, Los Angeles office. “With Expedia’s WWTE technology, we are able to enhance our presence in these regions quickly by providing customers with a world-class shopping experience and the convenience of booking their entire trip on our site.”

The Expedia WWTE private-label service allows travel providers like Air China to use Expedia’s technology platform to provide a cost-effective and easily deployable booking platform, while maintaining the look and feel of their own brand.

WWTE is operated by Travelscape, Inc., a wholly-owned subsidiary of Expedia, Inc.

Posted by TDR at 03:06 PM | Permalink | Comments (378)

Priceline.com users will once again be able to access Northwest Airline’s content.

After two years of opting out of the Priceline program, Northwest and Priceline.com finalized a distribution agreement covering Priceline.com’s published-price and opaque airline ticket services, according to an Oct. 3 press release.

Northwest was a participant in the Priceline program from 1999-2004, and the airline will resume its participation in priceline.com and lowestfare.com immediately.

“Priceline.com has developed a supplier-friendly distribution structure and offers marketing opportunities that meet our needs and allows us to broaden the online base of travelers we serve,” said Al Lenza, Northwest’s VP of distribution and e-commerce.

Posted by TDR at 12:40 PM | Permalink | Comments (0)

Agents and travelers worldwide now have full access to all of United Airlines’ published fares, schedules and inventory through Expedia.

Expedia announced a five-year strategic partnership with United on Sept. 15 in which United’s content will be available though Expedia.com and its affiliate sites, according to a press release.

United will benefit from Expedia’s online travel expertise, broad reach and targeted merchandising opportunities, and Expedia travelers will have greater access to United’s fares, schedules and inventory.

“This renewed agreement with Expedia enables us to effectively meet our customers travel needs while allowing both of us to achieve our economic goals,” said Jeff Foland, vice president of North America Sales, United Airlines.

Posted by TDR at 03:06 PM | Permalink | Comments (0)

ITA Software will be helping Air Canada revamp its reservation management system to be more customer-friendly.

The airline signed an agreement with ITA Software on Sept. 13 to develop a new reservation management system that will upgrade reservations functionality, inventory control with seat availability, and check-in and airport operations modules, said Air Canada.

The complete solution will be deployed in late 2007 across the entire Air Canada network, including reservation call centers and airport locations worldwide. The reservation system presents itself as an application hosted by ITA Software and will simultaneously support the airline’s ongoing participation in the Star Alliance.

“This next generation reservation system will mark an end to airlines’ reliance on legacy systems and processes and the merchandising limitations that result from these archaic technologies,” said Jeremy Wertheimer, ITA Software’s President and CEO.

Posted by TDR at 02:40 PM | Permalink | Comments (40)

Both Southwest Airlines and JetBlue Airways have been heralded for their innovative service models. More recently they are offering up good examples of regional strategy that can earn points with consumers — and much-needed revenue in these cash-strapped times.

Compete, Inc.’s Regional Airline Brand Score Report highlights changes in consumer brand interest (online) over the first six months of this year. The competitive intelligence firm examined the online flight research of residents in each state and broke down the findings by carrier. As such, the results indicate the total state-wide interest each carrier attracted online from January to June 2006.

Example 1: In Louisiana, Southwest has been expanding its service out of New Orleans, explains Greg Saks, director of Compete’s Travel Practice. As such, the airline has been gaining regional interest.

Another prime market in the U.S. is New England. Since the region offers its residents a number of airport choices — such as, Boston, MA; Providence, RI; Hartford, CT; Manchester, NH; and Portland, ME — “the strategies that different carriers employ make for interesting trends,” notes Saks.

Example 2: Southwest was able to grab interest from both Maine and Massachusetts residents with its routes serving Manchester’s and Providence’s airports. And Massachusetts’ residents continue to show interest in Southwest.

However, JetBlue was able to sneak in to steal some thunder from Southwest when it began flying out of Portland. Southwest interest in Maine has actually been declining as JetBlue manages to divert a significant volume of interest, Saks notes. “While JetBlue has only limited routes out of Portland currently, this is an indication that Southwest is at risk should JetBlue expand its service,” he adds.

Example 3: JetBlue also has a good hold on Vermont, where interest in the airline popped up to 35 percent in June.

Note: For more information on this low-cost carrier strategy and the research data that highlights it, see the August 28 issue of Travel Distribution Report. Not a subscriber yet? Sign up here.

Posted by TDR at 04:56 PM | Permalink | Comments (0)

Travel companies are beefing up their online storefronts to attract self-bookers, but that doesn’t mean travel agents don’t play an important role in booking travel products.

“Travel agents are the experts on finding the best travel solution and presenting it to the consumer in a way that makes them want to buy,” says Lee Rosen, president of agent technology solutions provider TRAMS.

But agents can’t rely solely on in-demand products or sophisticated technology to lure travelers and remain important to suppliers — they must become marketing and sales dynamos, Rosen asserts. Here’s how.

Tap Into Travelers’ Histories

The greatest value that travel agents bring to the table is their past experiences with their customers, Rosen notes. Each time a traveler books a trip with an agent, the agent learns another piece of crucial information, such as where the traveler has been, what type of trips he prefers, what level of accommodation he seeks, how much he wants to spend and what his family is like.

Key: Agents must mine that information and promote travel products that make sense for the traveler. As agents make the best matches between travelers and products, they build loyalty into their client relationships, Rosen says.

That loyalty is very lucrative to travel suppliers who want a full house or sold-out flight — which means that by leveraging their own experiences with travelers, agents become the key intermediary between a supplier and the customers their businesses hinge on.

Use Web To Manage Sales

Where agencies used to need elaborate management systems, now they can rely on the Web for rapid, efficient customer management — whether they’re managing customers, suppliers or other agents.

Rosen suggests that agents “use the Internet to retrieve customer and product information, distribute and track that information as well as store it in a customer database.”

By using the Internet to manage their clients, agencies also open themselves up for incentives from suppliers who use the Web to promote their products. For example, a hotel may offer agents a steep discount for steering a client to its Web site over its competitors — or for booking that hotel over all other hotels when possible.

Lesson Learned: Though agents used to be used a basic transaction processing tool, their real value today is in knowing the customers, creating detailed databases and influencing how and where consumers purchase their travel products, Rosen claims.

For more information about how agents can remain relevant in the online travel landscape of the future, check out the current issue of Travel Distribution Report.

Posted by TDR at 12:51 PM | Permalink | Comments (0)

Worldspan has unveiled its new optional content products.

The GDS has developed Super Access Product and Subscription Access Product to help agencies and corporations maintain full access to airline inventory, according to a July 17 release.

Super Access Product protects Worldspan’s retail and corporate customers from Program Airlines’ content fees while guaranteeing full access to content. Participants will also have access to Worldspan’s merchandising and booking capabilities. Airlines will offer private and promotional fares to agencies or corporations that select this option.

Subscription Access Product also provides full content from Program Airlines, but does not protect agencies or corporations from airline content fees. The option does offer competitive financial terms.

The new options “offer the control our customers have asked for in managing their relationships with airlines,” said Rakesh Gangwal, chair, president and CEO of Worldspan.

Worldspan customers who do not select one of the new options are not guaranteed full access to airline inventory, nor are they protected from airlines’ content fees.

Program Airlines include American Airlines, Continental Airlines, Northwest Airlines, United Airlines and US Airways. The products will be available Sept. 1.

Make your voice heard: If you have something to say about the recent airline announcements or GDS optional products, leave a comment and you may become a source for the upcoming issue of Travel Distribution Report.

Posted by TDR at 04:31 PM | Permalink | Comments (0)

American Airlines and Virgin Atlantic want to broaden their distribution horizons -- now and in the long run.

The carriers have signed long-term, full-content agreements to publish their content in Travelport’s Galileo GDS, according to July 6 and July 7 releases.

The contract makes all of American’s and Virgin’s published fares and inventory available to Galileo-connected agencies and corporate customers while allowing the carriers to distribute their products through Travelport’s online channels, such as ebookers, Orbitz and CheapTickets.

Galileo’s broad base of online and offline subscribers helps the GDS provide a “cost-effective and comprehensive distribution platform over the long-term,” explained David Cush, senior VP of global sales for American Airlines.

The long-term contract is meant to help Virgin Atlantic “reach our customers in a more targeted and effective way,” explained Paul Wait, head of sales for Virgin Atlantic.

For Galileo, the agreements mean its “travel agents, corporate travelers and consumers can be assured of continuing to get the fares, convenience and service they are used to receiving,” said Kurt Ekert, senior VP of supplier services for Travelport.

Posted by TDR at 01:50 PM | Permalink | Comments (0)

Today's guest blogger is Henry Harteveldt, VP of travel research for Forrester Research. Harteveldt took a few moments to share his thoughts on the Conference Board's report that claims online travel has reached a two-year low:

It seems the Conference Board’s study may have overlooked some points that the travel industry itself is aware of:

a) Women tend to do more of the travel planning than men, unlike the results of the Conference Board study which stated the opposite to be true.

b) Most people make their travel plans before the summer, not during it. It’s almost July, so it’s likely that many travelers have already completed their summer vacation research by now.

c) And, finally, travel has not been thwarted by rising fuel costs. In fact, many flights are already sold out.

Do you have a comment about a story or news item? Tell it to us and your thoughts could become a blog feature! Simply e-mail us your ideas or leave a comment below and we'll take it from there.

Posted by TDR at 02:04 PM | Permalink | Comments (0)

TRB's first guest blogger is Ankur Bhatia, executive director of The Bird Group, an IT and travel services provider for India. Bhatia took the time to share his thoughts on the challenges online travel agencies will face as they move more deeply into online travel in India:
___________________________

Online travel players are quickly swooping into the Indian travel space, but don’t think they have an easy journey ahead.

India is being touted as the world’s fastest growing aviation market in the world. Its thriving economy and investment in aviation are contributors to India's thriving travel market, but the country can also thank its geographic size, population, lack of road infrastructure and increased consumer spending.

Bonus: The Indian online travel space has huge potential for growth. It is projected to be one of the fastest growing travel and tourism markets (behind Montenegro and China) between 2006 and 2015. And, currently only 2 percent of India’s local population travels by air, but the middle class is 10 percent of that population — which means local travel will pick up, as well.

But, online agencies have their work cut out for them. They will have to find and aggregate the content that travelers need and want. They’ll also need to invest in the technology necessary to provide high quality service. Passengers want more convenience and less cost.

Most important: To reap the benefits of India’s travel boom, online agencies must focus on innovating online travel so that they can offer the travel-related information and services that consumers need for a unique travel experience.
___________________________

For more information about online travel agencies’ expansion into India, check out the June 19 issue of Travel Distribution Report, which features a one-on-one interview with Scott Blume, CEO of ZUJI, the company spear heading Travelocity’s move into the Indian travel market with Travelocity.co.in.

Want to be a guest blogger? Simply send us an e-mail with your thoughts and we'll take it from there.

Posted by TDR at 04:31 PM | Permalink | Comments (0)