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Competition heats up in online arena
WTM Special Report: Traditional operators will start to go “radically online” as competition heats up in the web arena, Expedia has said.
The online agency predicted more companies will begin to offer full travel websites with even those from outside the industry launching into the sector.
But while the competition will rise, EMEA director of new channels Michael Anderson said co-operation will also increase with many companies choosing to use existing technology and product rather than developing from scratch.
“Building a dynamic packaging platform and sourcing inventory requires a considerable degree of investment spread over thin margins,” he told a World Travel Market seminar. “The cost of integration with existing technololgy however is low. Looking forward there will be more competition but also more co-operation.”
Anderson revealed that Expedia, under its Private Label division, will soon launch the platform for motor racing body Formula One. It will offer flights, accommodation and race tickets.
He predicted other non-travel firms will also move into travel.
“Companies are realising the value of ancillary sales,” he said.
Expedia, which also powers the websites of Eurostar and Hyatt, is expected to increase its presence in the white-label business as more online customers go direct to supplier sites.
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