| Looking for an air ticket or hotel
room? These days, getting a good deal and just what
you want is almost as easy as a Web search on Google.
Both business and leisure travellers are increasingly
likely to start planning their trip by tapping in the
URL of an online travel company. Traditional ‘bricks
and mortar’ travel agents lacking any Web presence
are finding they’re left out of the loop.
For frequent travellers with a limited budget, doing
what used to be the travel agents’ job - checking
out a list of transport options and accommodation for
the trip - can mean bigger savings and a better end
result. Following the success of the initial ‘find
it all here’ travel websites, hotel, airline,
rail, cruise and ferry companies are all getting into
direct on-line sales. Only three or four years ago consumers
winced at the idea of exposing their credit card details
online to save a few bucks, but now the travel industry
and e-commerce are synonymous.
It’s only in recent years that the biggest players
in Asian travel have been seriously investing in their
web sites, but now they’re consistently achieving
high volumes in online trade - and attracting literally
of millions of online hits per year.
One of the best known travel sites in Asia is Zuji,
whose home page directs the visitor to one of six sub-sites
where it has offices (Hong Kong, Taiwan, Singapore,
Korea, Australia and New Zealand), though it accepts
transactions from anyone, anywhere, who has a valid
credit card. The Zuji website provides access to the
services and packages of more than 400 airlines, 60,000
hotels, 50 car hire companies and 3,000 “activities
and attractions.” In 2005, more than 7,200 readers
of TTG Media’s travel trade publications in 17
countries across the Asia Pacific region voted Zuji
the ‘Best Online Travel Agent’ in Asia Pacific.
Travelocity, the world’s first online travel
agency, acquired complete ownership of Zuji in January
2006. Travelocity itself has attracted millions of registered
members globally since it was founded in the USA, and
in 2004 it booked US$4.9 billion worth of travel - an
indication of the massive size of this sector of e-commerce.
An interesting newcomer to the world of online travel
sites is Qunar, founded in Beijing in early 2005 by
three entrepreneurs with a number of years’ experience
in Asian media, IT and advertising. The site has its
own multi-language price comparison search engine. Although
the site is too new to reasonably assess its progress,
Qunar claims to have made a “significant step
in the development of the constantly changing, albeit
rapidly growing online travel industry within the region”.
Certainly, one of its strongest selling points is offering
real-time comparisons of virtually all available prices
for air tickets, hotels, car rentals and tour packages,
which can be viewed simultaneously on one screen window.
It culls results from more than 300 Chinese-language
travel websites in the mainland, for whom it acts as
an agent. However, at present only airline searches
are up and running - though there are ad links to hotel
booking websites. Random searches for this article netted
an impressive 216 results for a return flight from Hong
Kong to Bangkok; and for Hong Kong to New York, 1,165
popped up. Results can be sorted for ease of viewing
by price, itinerary, airline, and stops en route. Some
European long-haul destinations, however, do not offer
many choices. Qunar plans to complete testing of its
Japanese and Korean versions soon.
Websites such as these require customer registration,
thereby securing personal data that is not only used
for crosschecking credit card payment details but also
for client profiling. A point to note: online travel
agents hope that customers will not tick the boxes on
their registration forms that say “No” to
receiving direct promotional emails. This is partly
because the site hopes to send the customer constant
updates, but also because it hopes to sell valuable
personal contact information, which brings further revenue.
Customer confidence and loyalty to these new travel
websites usually depends on the range of information
and choices that are offered, ease of navigation and
security of online payment. At Zuji, for instance, payment
is secured by VeriSign, a global leader in online security
for e-commerce payments. Qunar directs the customer
to other online travel Websites and then earns its cut
from any resulting transaction, so its payment guarantee
varies according to the found agent.
These two very different business models might inspire
competing businesses. Certainly the first category has
several other online operations to contend with: Asiahotels,
Asiatravel, Asiatravelmart, Asiahotelmart and Passionasia
are just some that offer further options for travel
website interface.
The chief costs for start-ups are the company and website
domain registration, website design and maintenance,
content editing and modest office space rental. ‘Web-hosting’
companies can handle all this for a retainer, allowing
venture capital partnerships to start-up a travel website
as a subsidiary business that requires no additional
office space.
Travel websites are on the increase, and with growing
numbers of punters turning to the ‘global marketplace’,
it seems that business and leisure travel will provide
much of its custom and, in turn, be provided with an
ever-improving corporate or consumer cyber-service.
As regular travel agents beef up their online presence,
the risk of encountering a fraudulent or unstable operation
becomes greater; but local consumers can establish a
Hong Kong-based travel site’s credentials by checking
the Hong Kong Association of Travel Agents’ (HATA)
website (www.hata.org.hk), which lists more than 350
approved companies. HATA has been around since 1954,
when it was launched by a group of Hong Kong International
Association of Travel Agents (IATA) accredited agents.
The government-funded Hong Kong Trade Development Council
is keen to endorse and advance the mushrooming phenomenon
of online travel commerce. It offers a very useful online
database (http://my.tdctrade.com/webdir/directory_detail.asp?catid=14&subcatid=101)
that lists authorised travel agents, tour operators,
local travel authority bodies and airline websites.
It has a separate section that targets the business
traveller coming to Hong Kong, lists local accommodation,
banking, public holiday and other useful information,
and has detailed maps.
A growing crossover into the online travel business,
allowing further competition and consumer choice, is
happening through publication websites. South China
Morning Post, for example, works with Asiahotels.com
to present the hybrid Hotels.SCMP.com; and Net Media,
whose Chinese-language publications include Apple Daily,
posts travel purchase links on their online travel pages.
In both cases, the publications stand to profit from
cyber bookings.
While several guidebook and lifestyle book publishers
in Europe and North America have teamed up with hotel,
transport and car hire companies, this has yet to happen
in Hong Kong. But just watch this space! |