| Just the
ticket?
Judy Adamson finds that online travel services
still have some way to go before driving traditional agents
from the main street.
Saturday, April 7, 2001
You could scarcely think of an industry better
suited to going online than the travel business. From
researching faraway destinations to booking tickets from your
desktop, the Net puts it all at your fingertips.
Punch in "travel" at www.google.com and it
will suggest more than 23 million references for you to
consider. Try it on the Yahoo! portal, and it will offer
everything from package deals to research options to online
ticket auctions.
There's an embarrassment of cyber riches.
But despite all this, online travel has yet to take off
with consumers in the way many observers predicted it
would.
According to Marc Phillips, chief analyst for online
research firm APT Strategies, Internet travel has simply not
lived up to expectations.
"I think the whole travel thing's been disappointing," says
Phillips. "For some reason the emotional attachment of
travelling, and the consequences attached to it, and the
empowerment that the Internet gives, just does not give
consumers a failsafe feeling.
"The main point is the elements of a travel transaction.
Domestic point-to-point business fares are fine, but the
moment you apply a little bit of sophistication ... the
functionality of the Web sites doesn't give them options. I
gave up years ago trying to book [online]. Even really simple
requests like two legs of a flight plus a hotel.
"The biggest problem - and I know this because some of my
clients are in the game - is getting [customers] to buy
online. There's no problem at all getting them to look, you
just can't get them to book."
Janet, a Sydney-based writer, recently booked two one-way
tickets, at $55 each, to Brisbane on the Net with one of our
domestic carriers. She says she found "the forms confusing,
the fields not clear, and I had to keep going back to correct
things but found it wouldn't correct".
After much pressing of the "back" button, she finally
thought all the details were right, and paid for her tickets -
only to find the computer had booked her on a flight leaving
at 6.05am, instead of the midday flight she'd selected.
Panicked calls to the airline made a change possible, but only
because her "use it or lose it" tickets had not been issued.
"Very stressful all around," she says.
However, other people we spoke to found booking flights
with airlines in Australia "very quick", with "no problems at
all" so perhaps it depends partly on how busy the site is, or
whether the surfer's browser is behaving itself.
Simon is a regular business traveller who finds it
relatively easy to book flights on overseas sites for
international trips, but usually makes a phone call when
booking in Australia. He uses an agent at travel.com.au, and
deals with her through email because he finds the site's
online services simply don't provide him with what he
needs.
Travel.com.au chief executive David Tonkin says customer
feedback over the past two or three years has left the company
well aware of its limitations, and it has regularly
streamlined and updated the site to make it as user-friendly
as possible.
"Besides a point-to-point air fare, the technology is not
really there yet to make it easy for the average person to
make a transaction," he says. "No-one has the answer yet. What
we're trying to do with the current site is offer less choice
and less complexity, but some people won't like that
either."
Tonkin believes that within three to five years there will
be a few "mega online travel companies" with access to global
databases of information. This will mean package tours of just
about anything to just about anywhere will be available online
at wholesale rates.
"It's going to get to the stage where you decide to go on a
holiday in the first week of June, want to be near a beach, a
golf course and shopping, pay around $2,000 and take less than
six hours flying, and [the Web] will come back with four or
five choices that fit your requirements, along with theatre
tickets and sporting events," he says.
So much for the future - what can the traveller do now on
the Net?
Like airlines, rental car companies are trying to direct
customers to the Web by offering deals that can save a lot of
money - easily $30 or $40 a day.
However, this shouldn't stop you using the phone to make
sure you're getting the cheapest deals available. It's not
uncommon for companies to better the online deals of rivals to
secure your business.
If you're searching for accommodation and tourism options,
a good tip is to deal directly with a reputable site in the
area you plan to visit. Anne Bruckard and her husband Ossie
visited the UK and parts of Europe last year, and while their
air fares and some extras were dealt with through their agent,
they booked all their accommodation and concert tickets
online.
The accommodation was chosen through Smooth Hound Systems,
which offers thousands of B&Bs and hotels across the UK.
You click on a map of the area you intend to visit and are
given the available options. And while you can book through
the site, Bruckard chose only B&Bs with email addresses so
she could book directly.
"We tended to go for places we could see pictures of and
find out something about them on the Web," she says. "There
were only two out of 18 that weren't so crash hot. We also
booked concert tickets and theatre tickets direct, and were
able to choose the seats we wanted."
Another traveller who's had great success dealing direct is
Tim Galvin. An enthusiastic climber for many years, he is
planning a trip to an old haunt - Yosemite National Park in
California - later this year. After queuing up for camp sites
in the past, and often being disappointed, this time he booked
a place online through the US National Parks Service.
"It's amazing," he says. "You can pull down a plan of the
camp site showing every plot. It also tells you exactly what
the plot is like: whether it has shade. whether it's stony,
what car parking it has and which way it faces. Then you can
just book the one you want with your credit card."
David Stewart-Hunter, chief executive of Internet
monitoring agency Media Metrix, says the Australians are
relatively unenthusiastic about online travel services
compared with other Internet-strong countries.
His statistics show that between October and December last
year, 14 per cent of Net users in Australia accessed a
specialist travel site such as qantas.com.au. In the US, that
figure was nearly doubled. Twenty-one per cent of users in the
UK clocked up a travel site visit, while in Japan the figure
was 17 per cent.
The most popular travel sites for Australians to visit,
during the same period, show our penchant for snapping up
cheap air fares. Ranked in order they are: Qantas (4.5 per
cent), Ansett (3.2 per cent), Impulse Airlines (2.4 per cent),
Travel.com.au (2.1 per cent) and Virgin Blue (1.8 per
cent).
The managing director of ecommerce consultancy Imagine
Online, Andrew Thompson, has researched customer perceptions
and needs about travel and the Net extensively. The same
answers keep coming back from his focus groups: researching on
the Web is great, and more fun than going to an agent, but
booking can be difficult.
"Seven out of every eight people in a focus group will say
the interfaces of travel sites are incredibly cumbersome and
frustrating," he says.
"All the sites at the moment compare air fares on specific
dates and times. It's not 'I want to go to London, with a side
trip to Germany, and if there's a better deal on another day
I'll look at it'. There's a huge market with great potential,
and if you crack it, you're the next Bill Gates ... but for
holidays nobody's within coo-ee yet."
Getting the best out of travel sites
1 Research and enjoy! This is what travel sites are best
at. You'll have a ball - discovering tiny, eccentric sites
that will provide great insights into places you plan to
visit.
2 Major travel sites often expect you to sign up as a
member after a few visits - and you usually need to be a
member to book through them. Don't sign up unless you plan to
visit the site regularly, or you'll be bombarded with a lot of
information you don't need. Alternatively, set up a separate
junk email address.
3 If your trip involves air travel, you can get quotes from
different Web sites, but most can't easily deal with a booking
more complicated than a return flight.
4 Investigate accommodation using sites based in the
country you're visiting.
5 Check the credentials of the site before you book. Larger
companies or sites that are well established are always
safer.
6 A "secure" Web booking protects your credit card data
from being tampered with in e-transit, says Ramin Marzbani, of
Net research company www.consult, but it
doesn't stop someone from hacking into the site afterwards.
Try to buy only from sites that have some sort of guarantee
for customers.
Who's buying?
The average online travel customer is 35, while the average
ticket fare is $750, according to Net research company
www.consult. With 22 per cent of all travel and event tickets
bought online, the Net has made a solid impact on ticket
sales, although not supplanting traditional means of sale.
Airline dogfights take to the Web
You'd have to have been touring Timbuktu, without a laptop,
over the past nine months to have missed the airline price
war.
Last year's entry into the Australian market of low-fare
carriers Impulse and Virgin Blue has seen one-way fares in
some sectors drop as low as $33: "At present price levels
nobody's making money," says David Huttner, Virgin Blue's head
of commercial business.
As most of the bargains are available only on the Net,
business has been brisk, so making the sites as user friendly
as possible is a goal for all the players.
Impulse's marketing manager, Adrien Baker, says between 60
per cent and 70 per cent of Impulse's sales are online, so
"it's vitally important. We put a lot into it to keep it
simple ... and that's where many of the savings are for the
customer: time."
The general manager of online sales for Qantas, John
Lonergan, says the airline is hoping all its product
information will eventually be available on the Web: from
meals and movies on flights to the location of lounges at
international airports and what power plugs you'll need in
Japan.
"If we're going to do online booking we want to do it
really well - we want to have the best in class if we can," he
says. "What we're doing, though, is trying to work from the
simple to the complex: get the simple stuff working well and
then work from there."
"We hope," says Huttner, "to move more services to the Web,
including special ordering, car rentals and holiday products
as well. But most of our customers simply want it to be quick
and efficient, so if the extras aren't related to travel,
they're not interested."
Ansett is busy with secret online innovations, but is also
making some finishing touches to updates, which are being
shown to focus groups for their opinion. These innovations,
says a spokeswoman, are part of how the airline "offers
choice" to its technology-friendly customers.
Neither Ansett nor Qantas offers email updates of their
latest deals to the public - something Virgin and Impulse both
do - but the cheaper tickets can earn frequent-flyer points.
Lonergan says that once Qantas has settled on the best way to
communicate with its frequent flyers, it will offer a service
to the wider market.
APT
Strategies
Travel.com.au
Smooth Hound
Systems
US National Parks
Service
Media
Metrix
Qantas
Ansett
Impulse
Airlines
Virgin
Blue
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