October 18, 2005

Who Books With The Big Three Web Agencies?

Exploring Expedia, Travelocity, And Orbitz Leisure Travel Buyers

by Henry H. Harteveldt

with Carrie Johnson, Chloe Stromberg, Sean Meyer

Executive Summary (This is a document excerpt)

Twenty-eight percent of North American leisure Bookers buy from one of the "Big Three" Web travel agencies: Expedia, Travelocity, and Orbitz. But their Bookers aren't exactly faithful: At least one-third of each agency's group of Bookers shops on one of the other two. Each agency's client base has a distinct personality and slightly different travel and buying habits. Orbitz's Bookers, for example, like "cheap chic" travel; Travelocity's Bookers can afford a better experience; and Expedia serves a diverse crowd that values a wide selection of products. To increase share and revenues from each agency, travel suppliers must recognize the distinctions among each agency's Bookers, and create relevant product offerings rather than giving each agency the same thing and just cutting prices.

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