Big three online agencies slipping in customer satisfaction?

Thursday, 22 Feb, 2007 0

Satisfaction with online shopping may be nearing an all-time high, but the three online travel agencies are struggling to differentiate themselves and keep customers from defecting, according to a new study.

The big three — Expedia, Orbitz and Travelocity — did not fare well in the University of Michigan’s American Customer Satisfaction Index e-commerce report, which ranks online retailers and travel companies.

Travel was the only segment that slipped from last year, earning an overall 76 points on a 100-point scale.

Online retailers ranked the highest, scoring an overall 83 points, with BarnesandNoble.com topping the list at 88 points.

Expedia led its key competitors in both market share and customer satisfaction with a score of 78 (down one point from last year).

Travelocity, with the second largest share of the online travel market, posted the lowest score, down one point to 74, while Orbitz gained a point, earning a score of 75. Another travel company surveyed in the report’s auction category, Priceline, ranked even lower with 72 points.

Once known for a “best selection, best price scenario,” the big online agencies are “getting squeezed in the middle” from airline and hotel websites on one end and travel meta-search sites such as Kayak and Sidestep on the other, said Larry Freed of ForeSee Results, an online customer satisfaction firm that helped sponsor the survey.

With many airlines and hotels offering a low-price guarantee for travelers who book at their sites, the agencies’ competitive advantage is eroding, Freed told the AP. And while agencies have stepped up their customer service efforts as a way to set themselves apart, “I’m not sure they’re executing very well,” he said. He added:

“At the end of the day, they’re still middlemen.

Report by David Wilkening

David

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