Shifting of Distribution Costs: from GDS fees to CPC

Mardi 1 mars 2011 by Julia

Internet is actually perceived as an economic and liberator distribution channel regarding to GDS. However, the cyclic effects of the travel industry are returning to the fore and the web is contributing to the installation of new monopoles. We are passing from a situation where GDS were the unique access point to offers to a situation where the web is becoming this new unique access point. Here is a short historical recap that would help you to better perceive the cyclic aspect and the stake of the current situation. The GDS era From the 80s until the beginning of the 2000s, the GDS have been... 

The last improvements in Google’s search results that impact the travel industry

Mercredi 17 novembre 2010 by Julia

These past few months Google has released several new functionalities that will improve the search process from a user point of view but that can strongly impact the travel industry. In fact, these new functionalities are supposed to help the user to find exactly what he is looking for, but they are also impacting his decision process. They bring more information in the search results and use more suggesting technologies. So the decision that is usually done when the user visits the first page of a site, now takes place at an earlier time (directly in Google). Instant previews Instant previews... 

Opaque products, a niche on the rise in the travel industry

Mardi 20 juillet 2010 by Julia

At the age of rich media, web 2.0 and (price) transparency, a business model again the grain is extending in the travel industry: the sale of opaque products. This model consists in offering products (flight, hotel, rentals…) without disclosing the identity of the supplier. It will be revealed only after making a nonrefundable commitment to buy. This model is totally consistent with the behavior of price-sensitive customer. These customers are very numerous on the web (3/4 of the Internet users according to Gregg Brockway from Hotwire.com), they are brand switcher and they are above all looking... 

Zoom on the boom of ancillary revenues and their impacts on distribution

Jeudi 17 juin 2010 by Julia

This year 2010, ancillary revenues are everywhere in the news, especially in the airline sector. In fact, at the worldwide level, airlines ancillary revenues passed from 1,72 billion in 2006 to 7,8 billion euros in 2008  (source : IdeaWorks Guide). US airlines' passenger baggage fee revenue collection (USD) - Source: Centre for Asia Pacific Aviation Introduced by low cost carriers (LCC), the rules of this model are now more and more inspiring legacy carriers. On the one hand, they are a new source of revenues for airlines, on the other hand their allow them to really enter in strategies... 

Evolution of the vacation package: from a standardized product to a personalized travel

Mardi 25 mai 2010 by Julia

The vacation package, flagship of the travel industry, ensured low risk sales to producers (airlines, hotels, cars rentals…), added value to tour-operators and guaranteed attractive prices to final customers. But since the last decade, the vacation package is encountering a significant mutation. Indeed, the Internet has changed  access to information and offers. So, studying the evolution of the packaged vacations helps us to perceive all the current issues of the travel industry: stocks accesses in real time, customer-centricity, new productions processes, semantic web for tourism… This...