Talking of Competition April, 2004. 2 Perceived $5 pricing has many hidden extras – Assisted:...
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Transcript of Talking of Competition April, 2004. 2 Perceived $5 pricing has many hidden extras – Assisted:...
Talking of Competition
April, 2004
2
• Perceived $5 pricing has many hidden extras – Assisted: domestic ($20), international ($30)– Changes after departure ($20 plus airline fee)– Loading negotiated rates ($500 per contract); Profile set up ($2 per profile)
• Primarily a consumer tool repurposed for corporate marketplace– Lacks features (e.g. can't inhibit displaying out-of-policy data or inhibit vendors)– Competes with consumer side for resources– Consumer style marketing tactics (cookies, pop-ups) inherent in site infrastructure
• Can it represent and protect your interests?– No control over GDS functionality– Reputation for poor/arrogant supplier relationships – Hotel content focuses on deals strategic to Expedia; Expedia and Hotels.com
controlling the market and pricing?
• Inflexible– All or nothing model – use it like this or else …
• Microsoft employees use Travelport, NOT Expedia!
3
• Airline ownership – Airline owners will ultimately work in the best interest of airlines– Is privacy of your corporate and traveler data protected?
• Suitable for corporate travel?– No experience in the space– Questionable fulfillment and service solutions; Outsourced customer service– Consumer tool repurposed for corporate marketplace– Will your employees be protected from spam and pop-ups?
• Survivability?– Rapidly declining inventory status– Questionable if has resources to invest in corporate space– Marginally profitable with questionable business model– Poor relationship with the GDS– Involved in litigation
• Perceived $5 pricing has many hidden extras – $20 assisted; $500 & up for loading of negotiated contracts– Cost to corporation due to poorly enforced travel policy and lack of meaningful reporting
4
• Perceived $5 pricing has many hidden extras – Assisted ($15.95)– Changes after departure ($30 plus airline fee)
• Uncertain future – Difficulties in technology integration, 3 different code bases– Corporate restructuring, closing of GetThere– Marginally profitable consumer model, money losing corporate model
• Vertically integrated but fulfillment is still undefined and questionable
• Considered by many to be a re-branded version of the consumer site
• Canned Reporting – little if any room for customization
5
Online Agency Pricing Comparison
Expedia Orbitz Travelocity
Registration $149 No fee No fee
Transaction Fee On-line Air Unassisted (domestic & int’l)
$5 $5 $5
On-line hotel or car unassisted $0 $0 $0
Assisted - Domestic $20 $20 $15.95
Assisted - International $30 $20 $15.95
Hotel & Car (w/o air) w/ telephonic support $10 $20 No fee
Fee for Loading Clients’ Negotiated Rates $500 $500 and up Not available
Changes to Reservation between Departure and Return Date
$20 – plus airline fee No fee – airline fees only
$30 plus airline fees
Non-Expedia air bookings
(I.e. Southwest)
$30 Southwest not available
Southwest not available
Voids $0 $0 $0
VIP Services Add $10 to any interaction
Not available Not available