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US’s Cheapflights finding home in US
The UK-based Cheapflights.com, which entered the US market last May, is on schedule to generate $60 million in flights next year in America, according to its president, Hugo Burge. “The reaction’s been terrific. We keep adding more and more flights and new destinations,” he told TravelMole. Cheapflights is different and unique because it is not a booking engine and does not sell tickets, according to Mr Burge. It carries out a comprehensive search to find the best flights, which may be more than a dozen or only one choice, depending on destination. Cheapflights was started in 1996 by travel journalist John Hatt in his London attic. Since then, the company, with no venture capital or advertising, has grown to 1.3 million users a month. It is now the only top 5 UK website that is profitable, according to Mr Burge. The name Cheapflights, however, is somewhat misleading. “What’s ‘cheap’ for a businessman who has to be on time for a meeting may be very different from a student who is no hurry to get back to his classes,” said Mr Burge. The company publishes deals from over 40 airlines, online agents, consolidators and discounters. Mr Burge said that while the company is consumer-oriented, it is travel agent-friendly. “We perceive ourselves as a friend of travel agents. We think they will have to reinvent their role, but their role is just as vital as ever — particularly when you need specialists,” he said. Travel agents are particularly critical in such areas as international flights where visitors might have to make several stops, he added. US airlines are also undergoing changes. How will that shape up? “The low-cost carriers have caused a revolution in how people buy flights. I don’t have a crystal ball, but I think the traditional US airlines are in the early stages of reinventing themselves,” said Mr Burge.
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