A USA Today story from yesterday pretty much tells on an online travel industry that has failed on nearly every front to deliver. Let’s face it, just because you can book a plane or hotel on Expedia, this does not equal the innovation and awe so many have spoken of these last three years. Tnooz to this beleaguered writer, online travel should be farther along by now in delivering on its promise.
OTAs, failing on the promise - courtesy © Minerva Studio - Fotolia.com
No commission sites, mobile wonders the likes of which the world has never seen, Room Key, GHX, Treovi, Tripwolf, TripSay, iGottaGuide, Dopplr, Orbitz, Kayak, Priceline, Expedia, TripAdvisor, Hipmunk, Trippy, Gogobot online travel wares.
Was that not plain enough? Travel sites suck when it comes to pleasing customers (in relation to other online businesses).
What’s more, if you think anyone’s got the online travel game sewed up, think again. According to the huge survey sample these guys take, a hair’s breadth separates all the major players. Let me tell you now, I actually feel pretty bad doing this report. You know, I reported on the positives of most of those names up there. Heck, our PR firm represented some of them, and I don’t like being wrong (not for the reasons you might think either). Disappointing people is not why we got into hospitality.
That said, what’s the problem? Well, the competition itself tends to get in the way in ways you probably cannot envision. Another problem comes from the friction in between parties one would think might promote one another. As Laura Bly points out, hoteliers dissatisfied with OTAs and middle entities have thrown a monkey wrench into the mix, fragmenting the market even more than it was before OTAs.
But this is not the biggest problem in my experience. Cutthroat tactics and one heck of a lot of charlatans have a big impact too. Add to a veritable hornet’s nest of vested and greedy interests, some old fashioned stupidity, slim margins, frustrated bean counters, lip service instead of room service, and voila! Guess what? Yep, the customer suffers.
Do I sound cynical? Read some of the reviews from people who travel, you’ll feel what cynical means. As for the study, really it’s consumer perception that stagnates travel as compared (man Orbitz takes some flack) to other sectors online. Without a significant value proposition to relate, online travel businesses really cannot differentiate, not even in between themselves. This is something we have argued and argued with clients in travel, and with those we analyze. “Potential” is one thing, delivering to customers is another. This is where the author of the report Larry Freed hits the mark with:
“Mobile is key, because it can take you beyond search and purchase all the way to the travel experience itself. This is an industry begging for innovation.”
What is not said up yonder is how all this will end up paying off for travelers. When mobile negates the leverage search provides for some, when anyone innovative and light footed enough to make a perfect app, and when markets so far under-leveraged are brought into play, dinosaurs will become fuel. Excuse the metaphors please, we just got done watching several lose a ten billion dollar game because of hard hearing or threatening rumbles from way up yonder. To top this off, read Erin Griffith’s story here.
Think about what this report really says. There’s room for something that will make people “switch” – get it? Check our Argo in six months.