urs and business travel) have disrupted the $ 500 billion-dollar industry, and the future business model has yet to be determined. It is becoming apparent from consumer behavior that the best place to buy a ticket is online. As open as the Internet is, the market is still dominated by the major corporations, but even their existence is threatened by new Internet upstarts (Branswell, 1999).
Currently, the major players of this expanding market are the airline carriers, information databases, traditional travel agents, and Internet only travel agents.
A March 28, 2000 report from Greenfield Online points out Business travel bookings online have doubled in the past six months, specifically, about 28 percent of business travelers (or their assistants) now make airline reservations over the Internet, as opposed to the 33 percent who book on the telephone.
The main problem facing the Internet and electronic ticketing is the reluctance of consumers to buy products and services online. The Internet airline ticket market has yet to fully mature into an on-line "buying" culture. Too many people casually surf travel sites without buying a ticket, which is due in large part to a perceived lack of secure information transfer.
A recent PhoCus Wright travel survey randomly selected 500 "wired travelers" (Defined as adult Americans who have traveled by air in the past year and visited a web site in the past month) Among these "wired travelers" 80% have looked at travel related Internet sites, 50% have checked prices, and approximately one-fifth (18 percent) have booked on-line.
Of the non-buyers, 75% say they are not likely to buy anything online in the near future. 82% of people online worry about credit card security. Nearly half (48%) resist shopping online because they have a travel agent they know and trust. These are all factors that must be addressed in order for the industry to grow.
There is potential for growth among ...