Study says direct supplier buying trends continue

Sunday, 07 Jun, 2005 0

Four in 10 online travel shoppers have shopped an online travel agency site, but ultimately purchased directly from a supplier, says a new report.

This behavior is more evident for air than any other travel segment, said PhoCusWright Inc.

Their survey found that more than half of online travel shoppers have looked at online travel agencies but ultimately purchased directly from an airline, either through the call center or a Web site.

“Clearly, loyalty remains elusive for online travel agencies and suppliers alike,” the report concluded. “But in the past two years, online travel agencies have been losing coveted customers to the supplier-direct channel, which includes the supplier Web site and call center.”

Another finding from the study: nearly four out of ten online travelers believe that suppliers offer the lowest prices, up from just 14% in 2002.

Susan Steinbrink, PhoCusWright analyst and author of the report, said:

“Online agencies have lost their footing with leisure travelers in 2004 as a result of aggressive supplier efforts to better manage inventory and win business through a combination of online and offline direct channels.”

Report by David Wilkening



 

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