WHAT INNOVATION MEANS TO ONLINE SERVICES

WHAT INNOVATION MEANS TO ONLINE SERVICES 

 

If the internet is now self evidently about information, it is indelibly underlined when it comes to the distribution of travel. It has in fact become so powerful that some airlines and, of course, traditional travel agencies view it as a threat to their survival.

Webjet has in Australia, through its Travel Service Aggregator (TSA), introduced a level of innovation which has empowered consumers to such an extent that they often know more about prices and schedules than traditional travel consultants and now have at their fingertips a level of comparative information which some airlines would prefer remain inaccessible and hidden. For the first time, consumers are able to look behind the mystery of air fares and promotional offers free of travel agency and airline bias and effectively mix and match combinations of fares that suit their requirements and not the airlines' requirements.

As airlines continue to reduce distribution costs through the winding back and, in some cases, elimination of traditional travel agency commissions, Webjet's cost base driven by major investment in technology provides an ongoing competitive advantage of at least two-to-one and perhaps three-toone when contrasted with major retail distribution groups.

On a global basis, the growth in travel internet bookings is several times the underlying growth rate in the travel industry itself; it has become a tidal wave of unprecedented proportions, and Webjet's experience in Australia with a growth rate of 280% in the past year, and with an annualised total transaction value of A$150 million a year, indicates that this explosion is being replicated in the Australian Pacific market.

David Clarke, managing director,
Webjet

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