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Be your own travel agent
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Comparison shopping for airfares, hotels and vacation packages has become more common with Internet use. Web-only discount prices, last-minute deals and online one-stop consolidators offer many options, and savvy travellers are reaping the benefits.
Of households that regularly use the Internet from home, 62% reported searching for travel information or making travel arrangements in 2003. Five million households window-shopped or made purchases online; of that number, 23% used the Internet for travel arrangements. Though many book tickets online, more use the Internet to investigate travel options before purchase.
The impact of do-it-yourself booking on the travel industry is unclear. From 1997 to 2002, the number of travel agencies actually increased to a high of 5,397 establishments. Revenues also increased, though this was offset by rising expenditures. Profit margins dropped, however, as airlines decreased or even eliminated agency commissions.
In
2002, more than 63% of travel agencies reported that Internet reservations
have either very negatively or somewhat negatively affected their
business growth. However, only 14% of tour operators—those
who arrange and assemble tourism products—agreed, and more
than 42% reported that Internet reservations have somewhat positively
or very positively affected their growth. And the success of Internet
sales varied widely. Among travel industry companies using the Internet
to generate sales, 3% of travel agencies’revenues and 31% of
tour operators’revenues were generated via the company website.
Internet travel booking has changed dramatically since Alaska Airlines sold the first ticket online in 1995. Though Canadians have been slower to adopt e‑commerce, primarily due to privacy concerns, researchers expect that it will continue to grow as part of a worldwide trend.
