Forrester Research: Forrester Retail Insights Travel First Look: Research & Event Highlights From Forrester

 07 May 2003
Web Services Grow In Travel
Web services' ability to link disparate operating platforms and applications quickly and at a relatively low cost makes them critical technologies for travel. Forrester views Cendant Corp. as travel's most comprehensive Web services provider. Cendant uses Web services to link various business units like Cheap Tickets to content and functionality within the Galileo GDS and beyond.


Record Sales At Two Web Sites
Kudos to America West Airlines and Continental Airlines -- both announced record one-day Web sales within the past two weeks.


"You've Got To Be Kidding"
Travel sure is wacky. In just the last month:
Delta Air Lines' new summer-season policies allow pet owners to carry on their guinea pigs -- but not their pot-bellied pigs.
87 people signed up for a clothing-optional charter flight to Cancun. No hot beverages were served.
Send us the kooky travel tidbits you find. We'll publish the best ones!

Can We Help You With A Custom Project?
Forrester analysts are available to provide custom consumer survey work, competitive assessments, and technology selection services. A recent project for a travel supplier helped it refocus its pricing and distribution strategies. Inquire with khorwitz@forrester.com.


Top Findings From TravelCom
More than 1,000 industry execs attended TravelCom 2003 in New York last month. Here's what created the buzz:
Merchant-rate selling is here to stay for hotels.
Orbitz will become a GDS.
There is no difference between the three top Web agencies, except their names.


Clients Question Travel Management Companies
Organizations of all sizes today rely on travel management companies (TMCs) for their business travel arrangements. TMCs' hold is at risk, though. Few travel managers see them as engaged in advising them about travel technology issues. Without change, TMCs risk losing to Web agencies like Travelocity.com that are now doing business travel, as well as new-generation providers like Sapient ClearTravel.


Do You Use A Travel Management Company?
Do You Use A Travel Management Company?

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Hello everyone,

Welcome to Forrester's new travel newsletter. Each quarter, we'll highlight findings from our most recent travel research, along with noteworthy industry events and humorous industry news.

Our newsletter will be more valuable if we know what's on your mind. Please email your comments, observations and factoids to me at henryharteveldt@forrester.com. And if there are other people in your organization who should receive our newsletter, they can subscribe via the link at the bottom of this page.




Email: Travel's Most Important Tool

Email marketing is very much in the news these days. So what do consumers think about travel-related email?

Well, nearly four in 10 US Web travelers are fed up with travel email -- but even so, they're 44% less likely to get ticked off by travel email compared with the general US online population's attitude about marketing email in general.

And, more important, one in four Web travelers reads most of the travel email she receives to see if something catches her eye. So whether it's part of your post-war recovery plans or other marketing initiatives, make email your primary marcom tool.


Email Apathy But email is no panacea, so be sure to manage your expectations -- and your manager's. Email is like the little blue crystals in detergent. By itself, it won't get you new customers. Done right, it'll make your marketing activities shine.

What is just as important as email for the travel industry these days? Distribution.

USA Interactive: Representation As Well As Distribution

Have you taken a close look at USA Interactive (USAI) lately? It's far more than a couple of Web travel agencies.

Through its business units and back-end functionality, USAI is evolving from a travel reseller into one that could represent travel firms as well. Look beyond the glow of twin orbs Expedia and Hotels.com -- USAI owns or has interests in a loyalty program (Points.com), an offline business travel agency (Metropolitan Travel), and a vacation exchange network (Interval International). USAI's operational capabilities include last-mile distribution technology (NewTrade Technologies, now part of Expedia) -- and the possibility of bypassing GDSs by building direct connections to suppliers -- as well as call centers and marketing databases.

What does this mean? USAI will be in a position to represent travel companies and sell services to them while continuing its B2C travel business. The end result: Small hotel chains, disaffected hotel franchisees, independent resort operators, and even niche cruise lines will cede their call centers, inventory management, and distribution to USAI. In exchange, they'll get top billing on USAI's Web sites and offline properties like its forthcoming cable TV travel channel. How soon? Try 18 to 24 months.

Want to learn more? Come see USAI's CEO, Barry Diller, keynote speaker at Forrester's Consumer Forum in New York, September 21-23 (but if you book on Cheap Tickets, Travelocity.com, or Orbitz, you may want to keep that to yourself).


Thanks, and enjoy.

Kind regards,



Henry H. Harteveldt
Principal Analyst

PS: Be on the lookout for a new brief about European online travelers this month and new hotel industry research in June.



Research Referenced In This Issue
If you printed this email, get links to the research featured in this week's issue by going to www.forrester.com/go and entering the five-digit number of the report you'd like to read.

Business Travel Technology Frustrates Top Clients (14531)
Exploiting Small Firms' Focused Travel Tech Needs (16738)
Highlight: Travelers' Email Marketing Apathy (15960)
Road To A Service-Based Architecture (15934)
Technology Is Key In Travel's War Planning And Recovery (16512)
Travel October 2002 Data Overview: Covers US Leisure Forecasts, Web Travel Winners, Brand Loyalty, And Channel Use (14530)
TravelCom 2003: The World Has Changed Forever (16742)
Web Travel Agencies Set To Become Marketmakers (14536)


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