New statistics show the major airlines dominate online ticket sales today, but things are likely to change, with independent travel agencies tipped to take over by 2004.
Independent travel agencies will win their battle with the major airlines for a majority of the US$18 billion in plane tickets bought over the Internet by 2004, a new study shows.
Major airline Web sites now book more than half of the flights purchased online. But by 2001, independent agencies will become the majority booker, according to International Data (IDC).
By 2004, about 55 percent of all online airline ticket purchases will be bought at independent travel sites, according to Joshua Friedman, IDC senior analyst for online air travel.
The infighting promises to shape the future of air ticketing services over the Internet. This year, about 6 percent of all airline tickets are being bought online. Within four years, however, about a fifth of all plane tickets will be bought on the Web.
Airlines going online
All sides have been jockeying for travel dollars. In the US, United, American Airlines, Delta, Northwest and Continental are all partners in a one-stop booking site called Orbitz, which recently announced a one-year launch delay.
AmericaWest, Continental, Northwest and US Airways are among the fleets that are part of a US$75 million venture called Hotwire, another one-stop site that is in beta testing.
Some airlines are already booking more flights online than off.
Travel agencies are also increasing their Web presence. Earlier this year, American Express began to move its ticketing services online, buying the domain name of GetThere.com. Two weeks ago, the world's largest travel agency, Carlson Wagonlit Travel, said it would step up its own Web presence.
Technology vs. trust
Independent travel sites include newcomers ByeByeNow.com and Vacation.com, which bills itself as a consortium that represents nearly one-third of the 35,000 travel agencies in the United States.
Friedman cited two major reasons for the shift expected in coming years: traditional travel agencies know their customers better than airlines and appear to be unbiased in the fares they offer.
"As much as Orbitz is claiming it has fabulous technology, why would anyone trust it?" Friedman said. "If you go to a travel agency, whether online or brick-and-mortar, you have access to all airlines out there."
Orbitz's biggest critic is the American Society of Travel Agents (ASTA), which asked the Department of Justice for an investigation claiming, among other things, that the site would direct travel inquiries towards its partners.
"When looking at these megasites, people aren't aware of the intricate web the airlines are involved in," said ASTA's Kristina Rundquist. "Agencies make their money off repeat customers. It is not in the travel agents' best interest to gouge your customers."
Stacey Spencer, an Orbitz spokeswoman, said the study is wrong to group Orbitz as an airline site. The company considers itself an online travel agency, which partners with about 30 different airlines.
"The biggest thing this study says is that customers like what we are doing," she said.
