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View Article  Huh? Has SideStep exploded overnight?

Sorry, had to post this snippet from a SideStep press release this afternoon:

"SideStep, Inc. (www.sidestep.com), the Web's leading travel search engine..."

Well, hey, adding activities - which they just did - might be super-dee-duper and all as Brian says, but, um, Rob, you better gimme a puff of that when you are done, and then go check your reach numbers. It's clearly making you kids light-headed.

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View Article  Rick is trotting the globe

Dude has quite the itinerary, and is sharing his commentary around his experiences getting the travel arranged.

Apparently it can be a confusing and aggravating process, and you can't be sure that you are getting the best deal or a complete view of everything that's available right away.

GASP! Who knew? :-)

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View Article  Travel Google = Troogle

I've thought a lot about Google taking a serious run at the Travel category over the past few years. Mostly because that's part of what I was paid to do, and also because it makes a lot of sense. So I was interested to see Mathew Ingram's piece in today's Globe and Mail (which seems to have spun out of this blog posting) where he talks at length about the prospect. For the most part, I think he got it right.

For one thing, Google certainly has designs on being a portal, if their recent moves with Finance and Real Estate are any indication. Beyond that, their competitors are already there in Travel, sorta, with Yahoo!FareChase leading the way and msn Travel (in typical Microsoft fashion) representing a half-step towards a fully integrated travel "thing". As well, there is a lot of money at play, both from an ad and a distribution cost perspective, and they have reason to want to maximize it. Finally, if they have been nervous about upsetting the ad-revenue apple cart in the travel category (huge numbers) that nervousness has likely been reduced by things like IAC's purchase of Ask.com. IAC maintains a controlling interest in Expedia, and with this purchase is both a big customer of, and a direct competitor to, Google.

However, I think that there is a big difference between Google ramping up their travel "experience" and them actually fully taking on the OTAs. In terms of them having some multi-site search experience and sending traffic from that to an OTA or a supplier (airline, hotel etc.). that seems like a pretty obvious thing. Suppliers would love it, and the competitive gauntlet has already been thrown down.

But actually selling travel? Yikes. Why would they? Call centres, rules and regs, etc. etc. Easier to just further solidify their role as gate-keeper, and take advantage of the lack of loyalty and brand meaning that these guys have to crank out the ad money.

Also, worth noting that most of this applies less here in Canada. For a bunch of reasons, the OTA and Supplier landscape is different and it is less likely that the existing dominant players here (Expedia.ca, AirCanada.com and WestJet.com) would suffer or benefit much from such a move by Google. Why? Well, the competition is lighter here, they often have exclusive inventory, offer pricing of global inventory in Canadian dollars, work better and have brand meaning that brings a lot of business direct.

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View Article  Priceline Update

pricelineWe are back from our quick trip to Nova Scotia with the girls, and I said I'd let you know how the car rental from Priceline.com worked out. Well, as much as the sentimental me would like to say it was lousy, I can't. It was flawless, including us receiving an upgrade to a Ford Escape SUV.

The only issue was that when we got back to the airport for our very-early departure this morning, neither the gas station on the way in nor the Hertz counter were open, so I had to drop the keys and leave the truck with the tank half-empty. We will have to see what ultimately hits the credit card, but as I sit here today, I am a very satisfied customer.

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View Article  New Yahoo! Fare Chase kicks butt

yahoo farechaseNews today on the Yahoo! blog of the new-and-improved Yahoo! FareChase. I just checked it out and have one word: Wow.

The hotel integration is tremendous. They are pulling from snazzy tools like Flickr and various user generated reviews, are shoveling reach to multiple possible sellers, snapping in some very cool satellite imagery, and are even managing to maintain good integration with their legacy "partner," Travelocity. Lots more revenue potential for Yahoo!, more selling opportunities for others including the supplier, and a richer customer experience. A win all around.

So, where oh where is Troogle? Calling Mountainview! Jane? Hello?

More discussion here and here.

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View Article  Travelocity.ca sucks less...kinda...sorta

travelocityI took the car today for the first time in a long time, and ended up driving westbound on the Gardiner. Big news! Looks like Travelocity.ca has changed their mega-billboard down there. And now? It's almost legible! You can almost make out the name, barely read the scrolling text, and marvel at that stupid frickin' gnome  there, bigger than life. Stupid, stupid, awful, supremely-poorly-testing, ugly, obnoxious gnome.

At the exact same time I am passed by one of the gorgeous Expedia.ca buses, in all it's completely perfect, screaming yellow, crisp, clear, made-in-Canada, right-in-context, plane-and-globe branding glory.

It was one of those moments when you just sorta "get" why, in Canada, Expedia won and Travelocity lost. And soooo badly, to boot. With due respect to Sam, Michelle, and the rest of the Sabre crew in Dallas, they just pooched it royally  up here. It was theirs to lose, and they did.

And yeah, I'm biased. Proud of it. But that doesn't mean I'm wrong.

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View Article  More Online Travel News

It really isn't my plan to talk about only online travel here, but this post on The Internet Stock Blog caught my eye.

Seems Stifel Nicolaus analyst Scott Devitt downgraded Expedia Inc. (NASDAQ: EXPE) to “Hold” yesterday, due, among other things, his view that there is a revenue risk associated with their Worldspan CRS deal.

Now, going into detail around the arcane and obtuse workings of CRS agreements, kick-backs, regulations and money flows just isn't going to happen here. But, broadly speaking, is the reduction in CRS revenue, and conversely cost associated with direct-connect a real issue and challenge for any online player, especially one reliant on another party for said revenues?

Damn right it is.

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View Article  Could it be? I'm a Priceline Believer

PricelineSomebody check the weather, because it could be that Hell has frozen over. Why? Well, I just made my first purchase on Priceline.com - and I am feeling pretty good about it. Now, as the guy who wrote the business plan for Expedia.ca and then was Chief Marketing Officer for Expedia.com, that's pretty scary stuff.

Here's the deal. We are heading to Halifax for Easter with the Grandparents, and as such need flights and a car. Well, for flights we had pretty specific requirements, so we went the traditional route (which in this case meant booking directly at AirCanada.com because it was $600 cheaper than on Expedia or anywhere else, but in fairness that's not always the case. Frequently, the online agencies have better deals, depending in when and where you travel - just not this time). We don't need a hotel, but do need a car. I went to Expedia.ca, Travelocity.ca, Hotwire.com (an "opaque" or you-don't-know-what-you've-bought-until-you-buy-it part of the Expedia family) and finally, to Priceline.com.

With due respect to my friends in the business, when you are picking a rental car up at an airport for a leisure trip, a rental is a rental. Though I do value the service bells and whistles when I am on business, when I travel on my own dime I will gladly trade a little convenience for savings. And for an airport pickup, you know who the choices might be, so what's the big fear?

So, in a nutshell? Priceline beat the pants off of everybody else. By a mile. And they have a neat little tool that guides your bid into likely-to-be-accepted territory. And I ended up getting the car from Hertz.

So, what will happen when I get there? Will it all be awful? Will I regret having done this? Will I hate William Shatner more than I do now?

We shall see. I will provide a full report when I get back.

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View Article  Take a Pass

air canada passNews today the WestJet has entered the Canadian pre-paid air pass fray, in the wake of Air Canada launching a major push for their smorgasbord of passes, which have actually been around for a while now. Lot's of coverage of these moves over the last while, especially since it marks AC's first big advertising push in many years, and the first move into this space for WS.

But hold up for juuuuust a second. Despite all the gushy commentary, it's not like this idea is new. Hardly. It's been around for as long as airline bankruptcy (read: a long time). But in this case, that actually doesn't make it a bad idea.

But first, a brief walk down memory lane. Passes are a tried and true, though usually last-ditch, airline sales tactic. Some might recall how Royal Airlines went nuts selling passes just before they went out of business. Sad fact is, over the years many carriers in trouble have offered deep discounts to buyers who were willing to pay-now / fly-later, in order to add much-needed cash to their coffers. Sadly, in some cases, this effort amounted to little more than a short-term revenue infusion on the road to business failure.

Not to say that's what is happening here. In fact, in this case, this is a really smart move on the part of both AC and WS. Why? Well, it kills multiple birds with one stone. To wit:

1)     They get the revenue now. This is good.

2)     They get "breakage," or segments bought and not used. This is VERY good as it represents pure margin.

3)     The passes can only be accessed and reserved-against online at the airline's own sites. While they can be                 *purchased* from offline agents, the traveller needs to go to the carriers' site to book them, and they are not             available via online agents. This is GREAT for the carriers, who, like most travel sellers, are anxious to pull             business direct and see ring-fencing inventory as key. Given that most online sites don't get access to the                 lowest airline fares already, this just makes that problem worse.

4)     Their costs are much less. Having customers make the bookings online-direct reduces sales commissions and         CRS (reservations system) fees.

5)     They make it harder for travellers to compare alternatives, especially on US routes. If travellers buy passes in         advance for travel to the States, they are less likely to check other carrier alternatives (which most do via                 online agency sites), which may be less expensive or more convenient.

6)     For WestJet, offering a super discount on Eastern Triangle flights (Toronto/Ottawa/Montreal) enables them to         pre-buy market share, without putting a low-ball price out in the open market.


Another interesting thing about WS' move is that they raised the bar by making their passes transferable. So, it seems that a company could buy a bunch and use them for multiple travellers. Or, a family could buy them and dole them out to kids attending university in another city or to Grandparents to come in for a visit. This has definite appeal. It will be interesting to see if AC follows.

All in, this pass war raises the bar in the battle not just between the carriers themselves, but between the carriers and their online distributors.

Game on.

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View Article  Destina...tion departure

destinaWell it bloody well took them long enough. After, what, five-ish years and a rumoured $50 million, Air Canada's little dotcom pipe-dream-in-the-sky is no more. Destina.ca was to be Canada's answer to Orbitz - an airline-owned online travel service for everything in travel, selling not just Air Canada but other carriers as well as hotels, car rentals etc. Theory went, back in the heady days of dotcom mania V1, that they would Rule The World, or at least have real skin in the Canadian online travel game, and then be spun off for untold millions in IPO manna.


Riiiiight.


Well, let's recap, shall we? The site sucked, WestJet wouldn't give them inventory, the marketing was abyssmal, they relied on points-hounds for most of their business, much of their inventory came from competitors, and - oh ya - September 11th took the wind out of AC's sails, just a wee bit (CCAA, anyone? Ringing a bell?).


In some ways it's a shame.Well, for their competitors, anyway. Maintaining some effort on that piece on online silliness meant they diverted some of their under-powered-and-financially-limited-to-begin-with focus from AirCanada.com in order to keep it on life support. Seems like that is finally over.

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