MIAMI -- "Disintermediation," a term that spells extinction for
traditional intermediaries like travel agents, was out of favor at
the @Travel Forum for e-commerce executives here. The new buzzword
is "convergence."
In a turn of events considered unlikely just a year or two ago,
many Internet executives here agreed that Internet and traditional
agencies are likely to morph into a kind of multitiered
"hybrid."
The new paradigm was variously described as "clicks and bricks"
or "multichannel" at the conference, sponsored by Jupiter
Communications, a leading Internet research firm.
The emerging consensus appears to be that a live, human presence
will be necessary as Internet agencies attempt to expand from
commodity air tickets into more complex and profitable leisure
products, such as cruises, tours and honeymoon travel.
Reflecting the trend of discussions over two days, Jim
Marsicano, executive vice president of Travelocity.com,
disclosed that he is thinking of operating "offices" around the
country to facilitate the sale of high-end travel. "As I get into
the higher-end business, where I think I want to go, there's got to
be more touch and feel," he said.
"I don't know if I want to have 400 offices to get to $2 billion
this year, but it may not be bad to have three or four offices in
[each of] the top 25 cities where I can sell high-end stuff. You
have to be one click away from a live agency to tell consumers [the
trip] is OK," he explained.
Andrew McKee, chairman and founder of Vacation.com, which
is operating its Web site for 8,800 traditional agencies, said the
"myth of the demise of travel agencies" arose because analysts did
not conceive that intermediaries could provide the equivalent of
traditional agency services through phones, e-mail, the Web and
other modalities.
Citing Travelocity's 700 service personnel, he said,
"Travelocity starts looking more like a real agency with a Web site
on the end."
David Near, senior vice president, E-commerce and Internet for
Galileo International, agreed that the industry is "moving into
multitier channels," citing his company's acquisition of Internet
agency Trip.com.
Near said Internet marketers, no less than traditional agencies,
will require "superior frontline support" and "the basics of world
class service." But he added: "While there's a lot of agreement on
convergence between clicks and bricks, the question is who gets
there first."
On another conference panel dealing with complex products, such
as cruises and tours, Cheryl Van Horn, president of Vacations by
Globetrotters, noted that her company offers clients a choice of
booking on line or dealing with a travel agent. She added that the
Internet still lacks the "warm and fuzzy" feeling needed in
"consultative" sales.
Pete Peterson, chief marketing officer of iExplore reported:
"We've hired experts so you can talk to someone who's been to
Botswana on a safari." Jack Anderson, vice president of marketing
for Carnival Corp., said: "I still believe there are a significant
number [of consumers] who need eye-to-eye contact. So agents could
add to your effectiveness."