Two stories from late 2007 and early 2008 signal a shift in the online travel model. In November 2007 at the PhoCusWright conference in Orlando, Expedia announced a new agreement with IHG that included a pay per click (PPC) compensation model. The acquisition of SideStep by Kayak this month is another significant development. How are these two announcements related? The Kayak/Sidestep merger is a clear validation of the referral model, but also demonstrates the need for scale to be an online travel player globally. The Expedia PPC contract element reflects the simple fact that many people shop OTAs and end up buying at supplier sites a phenomenon that has been validated by PhoCusWright and Forrester research. For Expedia, being paid for referrals represents a new and important revenue stream. You then add Travel 2.0 players such as Farecast, Kango and the Nile Guide, and the value of search and travel planning tools represents a major growth area for online travel here in the US and globally. As the economy softens the value of the referral model is likely to increase as suppliers scramble to fill airline seats and hotel beds.
Wednesday, January 23, 2008
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8 comments:
Your blog is great. Traveling has become an integral part of my life. I have traveled to more than 20 countries of the world and every time it was new experience. New in terms of culture, nature, people as well as a travel agency. Out of 20 agencies that I have already worked with only 4-6 were great, others- a real rip off. I have also dealt with Expedia.com, one of the most popular travel websites. I learned about it from www.pissedconsumer.com. I will not say a word about the agency go to www.pissedconsumer.com and read what customers say.
Hi. You have created an interesting and informative blog. I have heard and read about Expedia a lot. It is a great travel experience. You can easily plan your vacation sitting at home or at the office. You can never be sure 100% that everything will go right. I browsed this great site www.pissedconsumer.com and found the customers’ feedbacks on the company. Interested?
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It was rather interesting for me to read that post. Thanx for it. I like such themes and anything that is connected to this matter. I definitely want to read a bit more on that blog soon.
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