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Online Travel - Case Study Example

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Online Travel

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(Bhargava).
Currently, the way of handling the travel business have been very innovative as we see site like FlyerTal being flocked by most online travelers being consumer discussion driven, having posts from travelers helping each other, trading discount certificates and talking about customer service experiences. TravelAdvisory is also one of the most trafficked sites being due to its high rankings in a location or hotel-based keyword search (Bhargava). Obviously, the industry is taking on a different phase of competition especially as the technology develops more.
The use of dot travel domain has also been introduced recently but has been used slightly with and as the only notable sites., on the other hand, has refused to activate a dot travel domain with the belief that the dot com domain is central to its brand (Nelson). The industry is expected to tread upward in terms of usage and sales, with the many facets of technology being adapted specifically in the marketing aspect. As one of the articles in the Harvard Business Review in Management says, "if tops management wants to find ways of improving profits and growth, it must actively participate in the development of marketing plans by challenging their underlying assumptions and by contributing alternative ideas on strategy and programs (Ames).

Effect of Current Political and Economic Issues
Starting in 1998, last was well managed by owners Brent Hoberman and Martha Lane-Fox, expanding its services to holidays, hotels, car hire, restaurants, theater and spa. In 2005, it was purchased by Travelocity, becoming part of Saber family of travel companies (Last Minute Network Limited).
The buy-out of Saber Holdings of has made its share soar from "45.4 per cent, to 153.25p, putting a value of pounds 522m on the company" (Reece). The decision by Hoberman and Lane-Fox to renounce leadership of the company was made after its financial struggle, experiencing an over-all loss of pounds ...Show more


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…
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Online Travel essay example
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