BA leads European airlines into potent web travel portal
May 11, 2000, 4:53 am
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BA leads European airlines into potent web travel portal
BA joined forces with 10 other airlines today to launch an Internet travel agency, in a move by the industry to slash huge ticketing and distribution costs. The project, which links Europe's largest airline with its fiercest rivals on national and European routes, is the latest effort by airlines to cut costs in a market plagued by overcapacity and high fuel costs.
US airlines launched a similar travel Website last year and BA joined 5 of the world's other largest airlines in setting up an Internet marketplace to handle some $32 billion per year in purchases and sales of supplies. ``The airline industry has been a little slow to take this on,'' BA's director for strategy Dave Spurlock. "But now we have seen two very large initiatives by the airline industry that are purely designed on working together to make the industry more efficient, which is going to produce wonderful benefits for customers," he added.
The Web travel agency- which will allow customers to tap into a one-stop shop for flights, hotels, car rentals & other travel services- will spell even more bad news for traditional travel agents who have seen much of their business snatched by Internet travel sites.
BA, which aims to sell 50% of its tickets online by 2003 from the current two percent, still plans to sell with traditional and Web-based travel agencies. But the new site will undoubtedly pose some threat to the slew of Internet intermediaries which offer tickets, packages and last-minute deals via the Web -- allowing customers to quickly find the lowest fares.
The airline portal will also advertise the lowest fares available from the partners- BA, Air France, Iberia, Lufthansa , Austrian Airlines, SAS, KLM, Alitalia, British Midland, Aer Lingus and Finnair. ``We are going to be increasing transparency to our customers. If another airline is willing to offer a lower price and a consumer is attracted to that price and brand, then it is not something we want to hide,'' Spurlock said.
BA says this portal, which was first unveiled by BA in February, will be launched toward the end of this current year.
http://www.nytimes.com/reuters/busin...lines-onl.html
UPDATE:
TA's want to pull the plug on a new e-commerce venture that is being set up by Europe's top airlines in a bid to recapture customers from discount competitors online.
Even before Thursday's announcement of the venture led by Lufthansa, BA & AF, travel agents who once had a tight grip on booking Europeans' generous vacations were getting squeezed by online travel agencies such as expedia.com and travelocity.com.
http://www.nytimes.com/aponline/f/AP...es-Online.html
[This message has been edited by doc (edited 05-12-2000).]
US airlines launched a similar travel Website last year and BA joined 5 of the world's other largest airlines in setting up an Internet marketplace to handle some $32 billion per year in purchases and sales of supplies. ``The airline industry has been a little slow to take this on,'' BA's director for strategy Dave Spurlock. "But now we have seen two very large initiatives by the airline industry that are purely designed on working together to make the industry more efficient, which is going to produce wonderful benefits for customers," he added.
The Web travel agency- which will allow customers to tap into a one-stop shop for flights, hotels, car rentals & other travel services- will spell even more bad news for traditional travel agents who have seen much of their business snatched by Internet travel sites.
BA, which aims to sell 50% of its tickets online by 2003 from the current two percent, still plans to sell with traditional and Web-based travel agencies. But the new site will undoubtedly pose some threat to the slew of Internet intermediaries which offer tickets, packages and last-minute deals via the Web -- allowing customers to quickly find the lowest fares.
The airline portal will also advertise the lowest fares available from the partners- BA, Air France, Iberia, Lufthansa , Austrian Airlines, SAS, KLM, Alitalia, British Midland, Aer Lingus and Finnair. ``We are going to be increasing transparency to our customers. If another airline is willing to offer a lower price and a consumer is attracted to that price and brand, then it is not something we want to hide,'' Spurlock said.
BA says this portal, which was first unveiled by BA in February, will be launched toward the end of this current year.
http://www.nytimes.com/reuters/busin...lines-onl.html
UPDATE:
TA's want to pull the plug on a new e-commerce venture that is being set up by Europe's top airlines in a bid to recapture customers from discount competitors online.
Even before Thursday's announcement of the venture led by Lufthansa, BA & AF, travel agents who once had a tight grip on booking Europeans' generous vacations were getting squeezed by online travel agencies such as expedia.com and travelocity.com.
http://www.nytimes.com/aponline/f/AP...es-Online.html
[This message has been edited by doc (edited 05-12-2000).]
