Re: NYTimes.com Article: Online Booking Cuts Costs and Simplifies Trips

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That article is the biggest bunch of crap I have ever read.  I am =
regularly
able to match and often beat fares that are available on the net.  =
Anyone
who booked online was stranded significantly longer after the blackout &
9/11 because they were at the mercy of the oh so helpful airlines.  I =
was
able to get all of my client to their destinations much sooner than if =
they
had relied on the airlines.  A case in point, I had clients stranded in
Trinidad after the blackout.  The airline they were travelling with told
them the first available flight was five days later.  They called me and =
I
had them on a flight that evening.  Any small amount of money that may =
have
been saved by booking online was most definitely sucked up in extra =
travel
costs and lost productivity.

Just my 2 cents worth

Mark=20

Fan of booking with your friendly neighbourhood travel agent

-----Original Message-----
From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of =
Bill
Hough
Sent: Tuesday, September 02, 2003 6:47 AM
To: AIRLINE@xxxxxxxxxxxxxxxxx
Subject: NYTimes.com Article: Online Booking Cuts Costs and Simplifies =
Trips


This article from NYTimes.com
has been sent to you by psa188@xxxxxxxxx


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Online Booking Cuts Costs and Simplifies Trips

September 2, 2003
 By SUSAN STELLIN






In the digital dark ages, employees who needed to book a business trip =
would
either call a travel agent or fill out a company form with their =
itinerary
and wait for an envelope to show up on their desk with their tickets and
other documents.

The process might have required several phone calls back
and forth - say, to check a seat assignment or request a nonsmoking =
room, or
perhaps modify a single-city trip to include a sales call in a second =
city.

But just as technology has revolutionized the way leisure travel is =
booked
and sold, it is just as significantly changing the way corporate =
travelers
make airline reservations, book hotel rooms and arrange for car rentals.
Although some organizations still rely on paper forms and phone calls =
for
most of their travel planning, a growing number of businesses, large and
small, are adopting online tools to automate the process and cut costs.

"For simple trips, the traveler doesn't need a travel
priest anymore to decipher mysterious code," said Henry Harteveldt, an
analyst who follows the travel industry for Forrester Research in San
Francisco. Businesses, he says, are going online to book flights and =
hotel
rooms for the same reasons ordinary Americans do to plan vacations. "It
helps save money," Mr. Harteveldt said. "And it lets the traveler take
control."

Online booking for business trips is just getting off the ground, by
Forrester's estimate, accounting for $13 billion of the roughly $150 =
billion
that companies spent last year on travel. But Forrester expects that =
amount
to more than double by 2007, to $27 billion. That creates what Mr.
Harteveldt described as an "enormous upside in this segment," and a big
opportunity for Internet travel agencies.

In the last year, the three largest - Orbitz, Expedia and
most recently Travelocity - have created online booking
tools aimed at the corporate market. Orbitz for Business, Expedia =
Corporate
Travel and Travelocity Business are essentially souped-up versions of =
the
companies' public Web sites, customized to incorporate a client's travel
policies (for example "no five-star hotels") as well as any special =
rates it
has negotiated with travel suppliers.

Employees log on and search for flights, rental cars and
hotels much as they would plan a weekend getaway to London.
The difference is that certain flights or hotels show up in
the results as preferred, based on whatever policies or
rates the company has fed into the software.

"You get a slightly different version of Orbitz," the
company's president and chief executive, Jeffrey G. Katz,
said. "If your company has negotiated air fares, for
example, they show up in your display. The look and feel is very =
similar."

The tools also generate detailed financial information to
help travel managers get the best possible deal.
Travelocity's reports, for example, enable companies "to
fully understand how they're spending their money, what
they're saving and what they're losing if they allow their employees to =
book
outside of policy," the president of Travelocity Business, Ellen =
Keszler,
said.

It is not just finding the best air fares or hotel deals
that saves money for companies. The online travel agencies promote their =
own
low fees, which are generally a fraction of the $25 to $45 a reservation
that the traditional agencies have been charging corporate clients since =
the
airlines reduced, then eliminated the commissions they paid.

Expedia, Travelocity and Orbitz typically charge $5 a reservation booked
online and $10 to $20 for reservations that require help from an agent =
on
the phone. In some cases, there are additional fees to change a =
reservation,
set up a company account or upload the rates a company has negotiated =
with
airlines. Those fees vary slightly - for instance, Travelocity and =
Orbitz
are waiving setup fees for their service - but are generally comparable.

The old-line travel agencies are not standing idly by as
the online purveyors enter their turf. In fact, American Express, the
largest, has been serving the corporate market with online tools for =
years.

American Express's Corporate Travel Online booking engine, designed for
large companies, allows for more complex customization. A client, for
example, can set different booking policies for top managers versus
rank-and-file employees or service multinational corporations with =
offices
in many countries. The company also offers a service called RezPort =
aimed at
small businesses that do not have elaborate travel policies or their own
negotiated rates with vendors.

More sophisticated online tools can generally be integrated with a =
company's
expense report software and programmed to alert its travel managers =
about an
employee's booking plans. Tony D'Astolfo, a senior vice president with
GetThere, a company whose booking tool is used by more than 1,000 =
companies,
said the system could be configured to send a message to an employee =
saying,
"That $2,000 air fare you're taking - I want you to go back and take =
that
$1,000 air fare."

That is one way online tools can keep costs down. Another
is what Mr. D'Astolfo and others call "visual guilt," or
the impulse that overcomes some employees to take advantage
of bargains that they spot on their computer screens but probably would =
not
have learned about on the phone.

GetThere is owned by the Sabre Holding Company, which also
owns Travelocity, and focuses on large clients while Travelocity aims at
small to medium-size businesses. (GetThere's technology is also used for
some of American Express's online products.) Expedia and Orbitz say they =
are
marketing to any size company, but by most accounts, small to =
medium-size
companies are the most contested market.

Even some airlines are developing online booking tools
aimed at businesses that do not need much hand holding. Southwest =
Airlines,
for instance, has had a separate Web site for corporate booking since =
May
2000 and is one of the first carriers to focus on business travelers =
with a
dedicated online product.

But as Mr. Harteveldt, the Forrester analyst, pointed out,
it is still early in the game, and just as leisure travel booking =
services
have become much more sophisticated in the last year, corporate booking
tools have room to grow.

"The story isn't what's happening today; this is evolving,"
he said. "In a year I think we'll see very different
products."

http://www.nytimes.com/2003/09/02/business/02BOOK.html?ex=3D1063510444&ei=
=3D1&en
=3De5d789a84926ae8e


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