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Online Travel - Case Study Example
The internet has given way to efficiency and ease in many different aspects of work and lifestyle. Travel and leisure are not exempt to this as we notice the rise of much online travel companies. Comfortable and cost-effective, online travel companies have risen with the dawn of the internet in the early 1990's…
The possibility of spreading the reach of the business overseas is made possible by the practically zero marginal cost incurred by online travel companies in extending their marketing to foreign countries.
Europeans have actually been observed to travel more than their Americans counterpart, averaging four weeks of vacation annually while Asian travelers such as Chinese and Indians have posted a notable increase int heir frequency of travel due to the improved number of middle class consumers (Tracy).
Subscribers of online travel have benefitted from the dominance of market economy and market system as we observe prices become competitive due to the presence of of more online travel service suppliers such as Kayak and Sidestep (Bhargava) . This leaves an experience of intense competition for the big three companies such as Orbitz, Expedia and Travelocity, practically showing the validity of Adam Smith's theory of self-interest- that in the pursuit of business of many, self-interest can bring important sociopoliticsal evolution and economic growth (Robert B. Ekelund Jr.)
Last minute dot com resides in an industry where consumers are task-oriented and highly price conscious, with many experienced travel deal seekers searching for the best deals on air fare, hotels and car rentals with the competition being concentrated mainly in two areas-the corporate travel and the package deals(Bha ...