Travel by site

Still in its infancy, the Internet travel business is going through its first wave of consolidation. Robert LaFleur of the Bear Stearns Companies says there are about 1,000 travel sites and in five years, 800 of them will be gone. The survivors are likely to be fighting over a huge market. Forrester Research predicts that online travel sales will quadruple from last year's level to $29 billion in 2003, still only 10% of the projected total travel spending.

Currently, travel Web sites make travel not only less expensive, but easier. The online leader is Travelocity.com, which had $504 million in gross first-quarter bookings and more than eight million visitors in April, making it one of the most popular of all Internet sites. It is 70% owned by Sabre Inc., an airline reservation system company spun off from the parent of American Airlines. The site includes information on more than 300 countries and features such as Best Fare Finder, but its success is probably due more to its relationships with Internet service providers such as AOL and Yahoo!

The number two site is Expedia, who acquired discount hotel site Travelscape.com and VacationSpot.com to expand its lodgings. Expedia is 85% owned by Microsoft and has won praise for its interactivity including chat rooms, maps and information about destinations. Erik Blachford, Expedia's vice-president of marketing says, "Our biggest fear is becoming sort of an ATM for plane tickets." He adds that those who go beyond selling tickets and put together travel packages to help consumers have a better trip.

There are many discount sites such as Priceline.com, an auction site where travellers enter a price they're willing to pay, but they are committed to their bid and might not get their preferred airline or flight time. Cheaptickets.com, Bestfares.com, Flycheap.com and Lowestfare.com are other discount ticket sites to try. However some are being investigated for failing to include a $20 round-trip fuel surcharge in ticket prices advertised. LaFleur predicts the discounters will be in trouble when airlines get better at unloading cheap tickets.

Another development in the Internet travel business is to increase communication with the customer. BookTravelDirector.com/American Express teamed up with InstantService.com to furnish a solution to customers' immediate inquiries. Offering customers the means to immediately initiate live communication with an online agent will increase customer satisfaction, loyalty and overall value. David Anderson, vice-president of the site says, "Our users now expect to have instant and accurate information communicated to them for any travel request. By providing live chat we are able to give our customers the speed and quality of communication that they demand." Customers don't have to make a phone call -- they can ask their questions online.

Travellers will soon be able to book flights and hotel rooms over the Internet while they're on the fly via cellular phones and personal digital assistants (PDAs). Hotels and airlines are discovering travellers want to make online reservations anytime, from anywhere. This means companies have to build simplified sites and connect them to a wireless system. The travel industry is angling for the growing number of travellers using mobile phones and wireless hand-held computers with Web browsers. About 23 million people in the U.S. will be using such devices in 2003, according to the Gartner Group of San Jose, CA.

Internet booking agent Datalex, of Dublin, Ireland, says it was among the first to successfully test the booking of an airline reservation through a cell phone in December. It says airline, hotel and car-rental booking services should be available to consumers by the second half of 2000.

Hilton expects to begin taking reservations from wireless devices with Web browsers in the first quarter of next year. Travellers also can register personal preferences and send instant messages. U.S. users of Nokia phones, for example, will be able to make bookings with 450 airlines, 54,000 hotels and 50 car-rental companies by the second half of 2000, says Haroon Alvi of Nokia. A wireless locating system will allow travellers to search for hotels near their locations. Starwood Hotels and Resorts says its guests will be able to book rooms and check in through wireless phones and PDAs with Internet access. Personal concierge services through mobile devices will follow.

Some companies are already providing online flight information via wireless devices. Sprint lets users of its 10 models of phones with Web browsers get information for major airlines. Customers can get real-time information on flight status, lists of flights on selected routes and reasons for delays.

Delta Airlines is running a test in which 50 customers with wireless Internet access are receiving flight, gate and itinerary information. Northwest Airlines updated its Web site so that wireless devices can display flight availability and schedule information. American Airlines offers flight, gate and baggage information and Admirals Club locations through 3Com Palm VII connected organizer. United Airlines provides all flight schedules through the device. The Palm VII can retrieve flight information for 700 airlines on Travelocity.com.

Canadian Web Site Expands for Travel

A relatively new Canadian site, Canada.com, offers a wealth of resources to research, plan and book travel arrangements directly. Whether you are planning a flight to Winnipeg or Timbuktu, Canada.com gives access to tips and information, news, currency prices, maps, weather reports, specials, e-commerce, and an online travelzine. The travel channel complements a wide range of content and services already available at canada.com, including shopping, news, sports, financial services, careers and more.

Thea Partridge, travel channel producer, says the Web site offers these features and services:

- Visit Canada: get a wealth of information about transportation, dining, weather, lodging and more.

- Book a Trip: link to travel partner Tripeze.com to book air, hotels and cars.

- Travel Specials: last-minute deals.

- Travel Mall: a list of travel-product suppliers and an e-commerce directory of airlines, car rentals, and hoteliers.

- Travelzine: news, stories and articles.

- Resources: maps, news, exchanges and weather.

- Travel Bytes: interesting and unique things to do in cities around the world.

- Travel Tips: words of wisdom