Internet Growth and Competitive Differentiation: On-line Travel Agencies

Introduction Travel ranks as the leading category of on-line(a) transactions by U.S. consumers (Pappas, 2001). According to James V. Delong, a senior oath with the hawkish Enterprise Institutes Project on Technology, there are more than 33,000 depart agencies, ranging from one-person shops to giant American Express, and 270 of them are online (p. 2). A test by Bear Stearns suggests that only 200 on-line travel sites will still be in macrocosm by 2005 of which Expedia.com, Travelocity and Priceline.com will lead the market (Greenberg, Regan, 2001). This paper discusses why the egress of net income necessitates the need for competitive differentiation at heart the travel perseverance. After discussing how the Internet has impacted the travel perseverance competitive environment, the paper compares business to consumer strategies employed by its study players - Travelocity.com, Priceline.com, Expedia.com, and Orbitz. The comparison seeks to answer the question as to w hy electronic network site differentiation is important. The paper concludes by suggesting that on-line travel agencies must not only distinguish themselves at heart their sub-segment however also from their physical travel agency counterparts. Internet Impact on the Travel Industry By 2003, researchers appraisal that on-line bookings will account for 10 to 11 part of total U.S. airway shred gross revenue (Delong, 2002, Pappas, 2001). Of this percentage, or so half will be purchased directly from the airlines (Delong, 2002).

The growth of the Internet, in both its scope and functionality, has resulted in a bout of turbid changes within the industry. Chief among them are the lower ing of dispersion costs, refreshed industr! y groupings, and expansion of direct node relationships (Pappas, 2001). The complexness of the airline industry has grown exponentially with the growth of the Internet. spic-and-span systems for ticket sales and reservations have emerged. Traditionally, direct ticket sales to the customer via the telephone became the biggest growth area for... If you want to allow a full essay, order it on our website: OrderEssay.net

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