Sprice: Meta Search for Static Packages

I had a great conversation this morning with Jerome Thil the CEO of the French meta-travel search company Sprice. In Europe and other parts of the world purchasing static vacation packages has been the norm long before the advent of the Web. That buyer behavior has changed a bit with the concept of dynamic packaging, but roughly 80% of travel-related searches by European consumers still focuses on static packages. The Sprice meta-search capability is currently only available on the Spice French site:



For those not up on their French the "Sejours" button starts the travel search for packages. The package meta-search capability took 4 years to develop and uses an interesting technology approach to capture the unstructured and non standardized content from package seller Websites. Rather than using intelligent agents to screen scrape the site, Sprice built an extraction application as an extension to the open source Mozilla Firefox browser. As a Sprice developer uses this modified browser to identify fields on a given site, the extension records the session and thus captures the structure of the site. When the user enters a search query, behind the scenes, the Sprice technology sends these knowledgeable browsers to the sites tracked and extracts the information. Please note that this is a fairly simplistic way to describe the technology as cleansing and parsing the data is a major step in providing consistent comparisons across sites and thus the 4 year development cycle to bring this to market.

Comparative shopping is at the heart of the Web. Rather than focusing on air or hotel shopping as many competitors are already doing (e.g. Kayak, Mobissimo, Farecast), Sprice is focused on the package segment providing important functionality to markets that still predominantly purchase pre-packed tours. User generated content and mobile applications are on the near Horizon for Sprice, particular as the company has a long standing relationship providing the travel channel for the large European Telco, Orange.

InsideTrip - A new spin on the Mega-Travel Search model

A new meta-search company, InsideTrip was mentioned today in Tech Crunch.










The model is the now familiar multi-site airline search pioneered by SideStep, Kayak, Farecast and Mobissmo (not to forget the original pioneer, FareChase which only recently was put on the front page of Yahoo! Travel ). The twist is a rating system that evaluates the quality of a given selection based on three specific categories - speed, comfort and ease and 12 so-called "pain points" such as number of stops, security wait time, legroom, aircraft type, connection time, and gate location. Users can indicate which of these pain points are most important and the service will generate a unique TripQuality score for each ticket result. Interesting concept that mirrors the corporate purchasing philosophy of "Total Cost of Ownership" which measures products and services often assigning a numeric score to a qualitative evaluation. A bigger trend is represented here as well which includes personalization techniques adopted by Kayak and Mobissimo as well as semantic search evaluations by start-ups Kango, Nile Guide and Circos. The commonality is a system that filters search results based on user designated criteria. This level of personalization applied to travel search is long overdue and can produce results that are more in sync with the user's needs. That being said, the Achilles heel for these type of personalization techniques is simply a concern that the filtering may eliminate choices that would be acceptable to the user. With gradual maturing of the market for meta-search, competitive efforts promise to continue to provide different tools to filter content to better meet a user's profile. Who owns this preference profile and whether it can be used across sites, is an emerging battle for customer ownership that is underlining the goal to position the company as the first stop in travel search.

What do the Expedia PPC agreement and the Kayak acquistion of Sidestep have in common?

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.