World Telecommunication Day 1999 |
Making travel arrangements - with all the complications of connecting planes, trains, buses and hotel and rental car reservations, etc. - has never been simple, but today, the Internet has complicated the process by offering the potential traveler an infinity of sites offering not only information about destinations, but also the ability to book and pay for their reservations on-line. Many travelers are tempted to do the work themselves by Internet-only discounts, two-for-one deals and free frequent-flier miles. They are hoping to find better deals than their travel agent might offer them.
In reality, however, it seems that potential travelers are using the Net more for dreaming and planning purposes than for actual buying. Many surf the Web for research purposes, and once they have decided on their destination, preferred method of transportation and hotels, let their travel agents handle the final booking.
Hesitation about the security of transmitting credit card numbers plays a role in this reticence to go all the way with the do-it-yourself method, but there is more to the story than that. As anyone who has done research on the Net knows, it is time-consuming and can be frustrating when the sought-after information cannot be found.
The Travel Industry Association of America's report (TIA) ''Technology and Travel 1998'' showed that 33.8 million of U.S. travelers used the Internet for travel planning in 1998, compared with 11.7 million in 1997 and 3.1 million in 1996. But only 9 percent (6.7 million) of U.S. adult Internet users actually used the Web to make reservations and pay for them, up from 5.4 million in 1997. The on-line buyers are predominantly male (68 percent) and have an average household income of $92,000, according to the study.
These figures are good news for organizations like the American Society of Travel Agents. In announcing the results of its own survey in August, ASTA said, ''Even in the face of widespread hoopla over do-it-yourself on-line booking options, when it comes to making travel arrangements, increasing numbers of consumers are turning to travel agencies for their assistance and expertise.'' Its survey of 450 agencies showed that nearly half of them reported a year-on-year increase in their customer base. Of those reporting a larger customer base, 13.2 percent reported an increase of between 21 percent and 30 percent. When asked the most common reason for losing customers, 13.3 percent cited the Internet.
Says ASTA President and Chief Executive Officer Joe Galloway: ''Despite the doomsday forecasts by many industry experts, the Internet is not carving away at travel agency profitability; in fact, the exact opposite is occurring.''
The practice of airlines' offering special discounts only on bookings made on airline Web sites has come under fire from ASTA, which has asked the U.S. Department of Transportation to investigate airline Internet ''fare wars'' to determine whether they constitute unfair and deceptive competitive practices under the Federal Aviation Act by discriminating against ''unwired'' customers. Its letter cited the U.S. Department of Commerce's July report, ''Falling Through the Net: Defining the Digital Divide,'' which found that ''the 'digital divide' between information 'haves' and 'have nots' continues to widen.''
Travelers checking into mega-on-line booking sites like Travelocity (www.travelocity.com) and Expedia (www.expedia.com) should be aware that many of these sites are created by global distribution systems owned by airlines. Travelocity, for example, by American Airlines' Sabre and Expedia by WorldSpan, owned by TWA, Delta and Northwest Airlines. This means that the on-line shopper may be getting a limited picture of what's available. In cyberspace, as in the real world, it's buyer beware!
Amadeus, located on the French Riviera, has developed central and distributed systems to provide a computerized reservation system for travel professionals throughout the world. The Côte d'Azur Economic Development Agency fosters the development of these and other high-tech and service companies in southern Europe.
Heidi Ellison