Internet World recently reported a story about the financial
services industry, but it could just as easily be about travel --
so it's worth retelling.
E-Trade, the
on-line brokerage house that has made quite a name for itself, is
setting up a partnership with Ernst & Young, one of the big
names in the physical world of financial services.
The intent, according to E-Trade's management, is to develop a
"sophisticated electronic advice service" that will combine
high-tech and high-touch.
E-Trade's on-line clients will have the opportunity to schedule
face-to-face meetings with financial advisers from Ernst &
Young.
One financial analyst explained the partnership by saying that
people are looking for more than just the least expensive on-line
transaction.
This partnership is one of many that we'll see between Internet
and old-line companies that will combine resources to give the
public the benefit of speedy transaction capability and prudent
advice.
The model should work well in travel where counseling is
critical to making the right buying decisions.
As Internet travel sites seek to solidify their position in the
market, the need to make travel counselors available to on-line
customers becomes more apparent.
Like financial services, travel is a highly complex product.
It's not analogous to buying a book on Amazon.com or a video
on Reel.com.
The sticker price in travel is much higher and the emotional
quotient in making the decision, particularly in the leisure market
where the customers seek to fulfill vacation dreams, is much
bigger.
It is illusory to expect that the critical mass of travel
purchasers will go from the research phase on-line to the
transactional moment of truth without wanting personal intervention
by someone with knowledge of the product.
We can expect to see more of the kind of approach announced last
week by Carlsontravel.com, wherein visitors to the site will
be able to search for a travel agent with expertise in specific
destinations and programs.
These agents will have completed certification training programs
offered by organizations such as ICTA, ASTA and CLIA.
Just as E-Trade's financial-services clients will have access to
Ernst & Young financial advisers, Carlson's on-line clients
will be able to find an agent to help them.
As Bill Van De Laarschot, Carlson's vice president of marketing
for its associates division, put it:
"Anybody can put up a site and claim to be experts in some area,
but what should set us apart is that the experts we refer consumers
to have proof, through rigorous third-party accreditation, that
they really do know the areas they specialize in."