Distribution costs becoming more direct
Travelers and intermediaries in the future will more directly bear the cost of distribution, according to Henry H. Hartveldt, vice president of travel research at Forrester Research.
He calls it the “dawn of a new era in travel distribution.”
“What’s behind this? Margins, of course. But also the internet,” he said.
Third-party travel intermediaries increasingly have more access to GDSs to access travel content, he said, such as availability, rates and other information.
“Right now, no alternative distribution solution is as extensive or comprehensive as GDS. But 40 years ago, the GDSs weren’t the powerhouses they are today, either,” he said.
He added a recent Forrester study found:
• Nearly half of 49% of all US leisure travelers are Web-oriented. They account for 55% of all leisure travel spending.
• Six in 10 consumers say their concerns about online privacy and security inhibit them from sharing credit card information online.
• Forty-six percent of US leisure hotel bookers research on a Web agency site such as Orbitz but book their stay on a hotel supplier’s site.
• Web travelers continue to use portal sites to research leisure trips, but not to book them. In 2004, research showed 26.5% of bookers used online research, but only 6.4% booked travel online.
Report by David Wilkening
David
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