Barry Diller: agents could cash in on service

There will always be plenty of people who want to talk to an agent and get professional service, according to Barry Diller, CEO and majority owner of Interactive Corp (IAC). Mr Diller said: “The answer is in service. There will always be plenty of people who want to talk to and see an agent — in other words, professional service. I do not believe that one answer ever displaces another.” Mr Diller’s comments came when he was asked about the future of agents by Philip Wolfe, CEO and president of PhoCusWright during their recent executive conference held in Orlando, Florida. His company, IAC, has a variety of businesses that range from the online travel company, Expedia, to dating services. IAC is expected to grow from $78 billion in 2002 to $149 billion in 2005, according to Forrester Research. Asked about whether travel would continue to be dominant at IAC, he said: “It is so important for IAC to get along with suppliers or there would be no product. Over time we hope the friction in our relationship with our suppliers will subside.” Asked about his plans for international expansion, Mr Diller said: “We have big plans for expansion in Europe. We will not stop with Europe, but we will only go where it’s sensible.” In a related development, Karl Peterson, CEO of Hotwire, said at the same conference that its acquisition by IAC would not mean any changes in the company’s business model. Hotwire will continue to increase segmentation while adding incremental revenue, he said. He mentioned that the opaque market is growing faster as the airline industry recovers.