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Suppliers Gain from Online Travel Buyers' Promiscuity

Hotel Booking PhoCusWright Survey Finds That More Airline Shoppers Are Disloyal to Online Travel Agencies

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Travel Agency Four in 10 online travel shoppers have shopped an online travel agency site, but ultimately purchased direct from a supplier, according to a new report published by PhoCusWright Inc. This behavior is more pronounced for air than any other segment.

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Cheap Hotel Findings from the newly released The PhoCusWright Consumer Travel Trends Survey Seventh Edition, which surveys "online travelers" in the U.S., found that nearly half of online travel shoppers have looked at online travel agencies but ultimately purchased direct from an airline (either through the call center or Web site). That compares to three out of 10 who have shopped online travel agencies but ultimately purchased direct from a hotel or car rental company.

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Flight Booking Clearly loyalty remains elusive for online travel agencies and suppliers alike. But in the past two years, online travel agencies have been losing coveted customers to the supplier-direct channel, which includes the supplier Web site and call center. Low price guarantees, loyalty points, and improved Web site navigation and services have impacted this shift.

Groople In the News Groople Selected by Bizbash as Provider for Group Travel Bookings June 1, BiZBash, the preeminent resource for the event planning industry, today announces a partnership with Groople.com, making Groople the exclusive online group travel partner for BiZBash's thousands of event professionals. BiZBash users now have Groople's group travel tools, with the unique ability to research and make group travel arrangements online. While most travel booking sites don't allow for group reservations at all, through BiZBash, hotel bookings for 5 rooms or hundreds of rooms are now simple to book and include special group rates. With an initial offering of hotels, the service will expand to offer airfare, cruise, car and rail bookings online. free number ( 4316) is available for arranging air, cruise, car and rail, as well as more complicated hotel requests.

Travel Agent In fact, more than twice as many online travelers (36%) believe that the supplier-direct channel provides the best customer service compared to 15% who choose the online travel agency channel. Even offline agencies, which are coveted for their personal touch in a technology-driven world, did not fare as well, with 33% claiming they provide the best customer service.

Groople (www.groople.com), the leader in group travel planning, has partnered with Go10000, a travel focused development and hosting firm, to bring to market a new group collaboration site for the travel space. GroopVine will provide the solution to the complex communication and booking problems group travel planning can create. Enhancing the online travel space by combining the key elements of social networking such as invitations, forums, messaging, photos and video posting, with the best in online travel booking, GroopVine is the only place for group travelers to shop, plan and book together online.

Hotel Chicago An even more compelling finding is that nearly four out of 10 (38%) online travelers believe that suppliers offer the lowest prices, up from just 14% in 2002 - a 24-point gain in two years. Despite this improvement, more shoppers (45%) still think that online travel agencies offer the lowest prices - by far their largest asset in the minds of consumers. Online shoppers 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 Booking "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 a combination of 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." The PhoCusWright Consumer Travel Trends Survey Seventh Edition examines consumers' online packaging habits and compares "switchers" and "loyalists."

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