Comments on: Is CEO shuffle at online travel agencies a merger warning? http://www.consumertraveler.com/today/is-ceo-shuffle-at-online-travel-agencies-a-merger-warning/ The last honest travel site Sat, 11 Feb 2012 17:13:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Joe Buhler http://www.consumertraveler.com/today/is-ceo-shuffle-at-online-travel-agencies-a-merger-warning/comment-page-1/#comment-9294 Joe Buhler Fri, 09 Jan 2009 03:09:45 +0000 http://www.tripso.com/?p=8025#comment-9294 Tend to agree with John F about pricing. The main reason the OTAs are under threat is the strong inroads suppliers have made in the business and the direct business they're getting as a result. OTAs were able to take advantage of a unique situation after 9/11 when suppliers were in a very weak position and then still rapidly growing OTAs, mainly based on their air sales, introduced the merchant model and gained near control over suppliers for some time. The last two to three years the situation has been reversed. Tend to agree with John F about pricing. The main reason the OTAs are under threat is the strong inroads suppliers have made in the business and the direct business they’re getting as a result. OTAs were able to take advantage of a unique situation after 9/11 when suppliers were in a very weak position and then still rapidly growing OTAs, mainly based on their air sales, introduced the merchant model and gained near control over suppliers for some time. The last two to three years the situation has been reversed.

]]> By: John F http://www.consumertraveler.com/today/is-ceo-shuffle-at-online-travel-agencies-a-merger-warning/comment-page-1/#comment-9288 John F Thu, 08 Jan 2009 22:55:10 +0000 http://www.tripso.com/?p=8025#comment-9288 Chris--how do you feel that pricing will go up? The agencies (for the most part) do not control the product or the pricing. If anything pricing might go down a bit. If the travel suppliers are getting more share from a single vendor that vendor's backend compensation will likely increase and allow them to compete more effectively. I do not see any prices rising in almost any market this year. Retailers in general are terrified that consumers are now used to 75% off being the standard. Chris–how do you feel that pricing will go up? The agencies (for the most part) do not control the product or the pricing. If anything pricing might go down a bit. If the travel suppliers are getting more share from a single vendor that vendor’s backend compensation will likely increase and allow them to compete more effectively.

I do not see any prices rising in almost any market this year. Retailers in general are terrified that consumers are now used to 75% off being the standard.

]]> By: Janice Hough http://www.consumertraveler.com/today/is-ceo-shuffle-at-online-travel-agencies-a-merger-warning/comment-page-1/#comment-9273 Janice Hough Thu, 08 Jan 2009 16:54:04 +0000 http://www.tripso.com/?p=8025#comment-9273 And one interesting other potential side effect of a merger...how will pending future reservations be merged? My guess is, not as well as the two agencies would hope. And one interesting other potential side effect of a merger…how will pending future reservations be merged? My guess is, not as well as the two agencies would hope.

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