Does anyone have any good websites on how online travel sites (travelocity, orbitz, cheaptickets) compete with physical travel agencies?
The answer to that question is very simple. Brick and mortar – physical – travel agencies typically have to charge higher prices for vacations to cover their operating expenses and to pay their travel agents. Online travel sites have access to all of the same travel providers that brick and mortar agencies use. Because of lower overhead, the prices that are charged are lower resulting in better prices for the traveller. The most common and more successful travel portals are Expedia, Travelocity and Orbitz. Simply speaking, these sites have replaced the travel agent. What they are actually doing is purchasing “travel” at wholesale from a consolidator, marking the price up, then selling to you. Without the need for a traditional business location, and with the sales of paid advertising on their websites, allows them to pass on greater savings than the “brick and mortar” agents or the smaller offline and online travel agencies who simply cannot compete. What is a travel consolidator? At a
