Revenue from airlines' Web sites takes off By Barbara De Lollis, USA TODAY Bargain-hunting travelers pushed airlines' Web-site sales over $6 billion=20 in 2001, giving the nation's struggling carriers a small victory in a=20 devastating year. Bookings on major airlines' Web sites rose by more than=20 $1 billion from 2000, estimates PhoCus-Wright, a consulting firm=20 specializing in Internet travel. Southwest and Delta appear to have led the= =20 industry, producing more than $3 billion in Internet revenue, based on a=20 USA TODAY survey of major carriers and PhoCusWright estimates. Southwest=20 and Delta's take was nearly half of the at least $6.4 billion in bookings=20 expected for major airlines' Web sites, PhoCus-Wright says. "It's pretty=20 amazing," says PhoCusWright analyst Lorraine Sileo. "These airlines will=20 probably have a double-digit decline for the year and a double-digit=20 increase in their Web sites." It's a welcome increase for the airlines, because they don't have to pay=20 travel-agent commissions on tickets sold directly to consumers. But their=20 Web sites produced a small slice of their $86 billion in 2001 revenue.=20 Travel agents still sell 70% of airline tickets. Comparing some results: Southwest.com, by far the most successful airline=20 Web site, delivered $2.1 billion in revenue, or 40% of Southwest's=20 passenger revenue. The site had $1.7 billion in bookings in 2000. It=20 accounted for about 10% of total revenue for all online travel services in= =20 2001, says airline analyst Susan Donofrio of Deutsche Banc Alex.=20 Brown. Delta.com broke the $1 billion mark in 2001, selling 42% more=20 tickets than the previous year. Northwest Airlines' nwa.com delivered $600= =20 million last year, up 60% from the prior year. Alaska Airlines'=20 alaskaair.com brought in $311 million in revenue last year, up 53% from=20 2000. America West Airlines' americawest.com brought in $275 million last=20 year, nearly 60% more than in 2000. "We'd be happy if we are able to see=20 our volume double again," says Lloyd Parker Jr., America West's vice=20 president of distribution. Parker expects the trend to continue this year, noting that americawest.com= =20 delivered 16% of the airline's revenue in January vs. 7% the same month=20 last year. American, United and US Airways declined to provide figures.=20 After the Sept. 11 terrorist attacks temporarily shut down the U.S. air=20 system and made many people afraid to fly, airlines began promoting=20 specials on their Web sites. "The Internet was a good way for us to get out= =20 the message that there were a lot of good airline deals out there," says=20 Bill Brunger, a Continental Airlines vice president. Southwest.com offered= =20 double miles, making it easier for frequent fliers to win free trips.=20 Alaskaair.com offered double miles, discounted frequent-flier award travel= =20 and ran special vacation packages with hotel partners. Usairways.com was=20 able to change its fares and promotions as it liked, even hourly, says=20 sales Vice President Steve Tracas. "It's a key part of our culture now," he= =20 says. Airlines' Web sales boom Major airlines' revenue from bookings made on their Web=20 sites: Airline Web site 2001 revenue % growth over 2000 Southwest southwest.com$2.1 billion24% Deltadelta.com$1.1 billion42% Americanaa.com$900 million (1)50% US Airwaysusairways.com$705 million (1)60% Northwestnwa.com$600 million60% Unitedunited.com or ual.com$530 million (1)40% Continentalcontinental.com$332 million45% Alaskaalaskaair.com$311 million53% America Westamericawest.com$275 million57% 1 =97 PhoCusWright estimate Sources: Airlines, PhoCusWright The owner of Roger's Trinbago Site: Roj (Roger James) *************************************************** escape email mailto:ejames@escape.ca yahoo email: mailto:triniroj@yahoo.com Trinbago site: http://www.tntisland.com CBSC Group on Yahoo: http://groups.yahoo.com/group/caribsocabrass CBSC Website http://www.tntisland.com/caribbeansocabrassconnection/ ******************************************************* Steel Expressions Orch http://www.escape.ca/~ejames/se/ email #1: mailto:steelexpressions@yahoo.com email #2: mailto:steelexpressions@home.com ******************************************************* The Trinbago Site of the Week: (TCL) http://www.tclgroup.com/ (TCL Group of Companies) courtesy of Roj Trinbago Website & TnT Web Directory Roj's Trinbago Website: http://www.tntisland.com TnT Web Directory: http://195.224.187.36/ *********************************************************