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the www part of travel – forecast May 16, 2006

Posted by Timothy Li in wind.
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I have been working on a school report regarding the online travel industry. This presentation outlines the gist of it.

First off two criteria are defined to compare online booking services, Affordability is the inverse of price, Convenience is the inverse of time spent searching for tickets.

At the top left corner are the student travelers, who spend a lot a time to look for the cheapest tickets. At the bottom right corner are the business travelers, who value research time more than the price, they go first class anyways…

Here are the placements for search engines (Kayak for example) and travel agencies (Expedia for example). Search Engines in general cover more low cost carriers than agencies. hence the higher positioning in Affordability.

How can we seize high ground?

The positioning of the High ground describes the ideal service which will turn up the cheapest tickets in the shortest time. Dream on you say.. yes, but there are many things search engines can do to gain a higher positioning in both horizontal and vertical directions.

OK, I confess.. this is just a forecast, but I really had to make a conclusion in the school report Okay? :)

I'm still collecting data for this, but meanwhile My primary basis for it is the rise in Canadian airline ticket prices after Jetsgo went down.

Now European LLC such as EasyJet are facing finacial problems too, may the episode replay?

Hey! look what happens.  the industry is moving search engines closer to a very high positioning =) vertically at least. The red line indicates that there are plenty of rooms for growth in the Convenience factor. Which leads to what I am working on at Map My Travel – save ticket searching time.

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