here are rumblings that some clients
of WWTE, Expedia's private-label
dynamic-packaging service, are looking elsewhere for a better deal
-- one where they keep more revenue. Expedia provides packaging
technology and content for the Web sites of several hotel chains
and airlines, including Wyndham, Hyatt, JetBlue and AirTran.
TC hears that some suppliers, particularly airlines, are
interested in providing their own content for packaging (for
example, an airline would negotiate its own package rate with a
resort) while hiring a technology company to provide the
functionality.
In other words, the suppliers want to be the merchandisers, not
Expedia.
• • •
Galileo's Momentum program -- under which
travel agencies were required to sacrifice 50 cents of GDS revenue
per transaction in exchange for an airline's full range of public
fares -- didn't gain much, er, momentum in the U.S., prompting
Galileo to scrap the program last year.
Now, Galileo has resurrected the program (although it's not
called Momentum anymore) in the U.K. with British
Airways as a partner. And TC hears from one of the mega
agencies that trading GDS incentives for full content is about as
popular with agencies on the other side of the Atlantic as it was
in the U.S.
"It's not a good thing," an executive at the agency told TC.
Sabre has a full-content deal with British
Airways that does not require agencies to dig into their pockets.
TC can't help but wonder: Is this is an opportunity for Sabre to
pick up market share in the U.K., where Galileo is top dog?
• • •
Sign of things to come? It may be no coincidence that
impressionist Danny Gans' show is one of two
attractions being hyped on the marquee outside the Mirage that,
until last week, was still featuring Siegfried and Roy. Sources in
Las Vegas tell TC that Siegfried and Roy's theater, which has been
dark since a tiger attacked Roy Horn last October, may become the
new home for Gans.
• • •
Ads touting the tropical appeal of the U.S. Virgin
Islands, coupled with cheeky headlines such as "Ignore
your cell phone. Hear the ocean call," apparently proved to be such
a hit in New York's 570 subway cars this winter
that many were stolen, TC hears.
It also turns out that bookings to St. Croix, St. John and St.
Thomas averaged a 5% jump in the first quarter over the same period
in 2003, perhaps proving true the adage that a picture is indeed
worth 1,000 words ... or several hundred bookings.
• • •
TC thought it was hearing things when a
Travelocity representative declared, "What we sell
in six hours on our Web site takes a travel agent one year to
sell."
The rep did point out, however, that Travelocity's $4 billion in
gross sales last year required an $80 million outlay in "Don't
forget your hat" advertising costs.
• • •
Sources involved with a consumer lawsuit brought against
Travcoa, insurance provider Trip
Assured and Tamarac, Fla.-based retailer Woodmont
Travel report this dispute is close to resolution. The
lawsuit (see article, "Lawsuit finds insurer, tour op facing off")
centers on the roughly $5,000 of a $21,000-plus trip that was not
refunded by any of the defendants after clients had to cancel
because of a health crisis. The good news is that this dispute has
not hung around in the courts very long, and TC does like to report
good news. Really.
• • •
TC hears that an unnamed entrepreneur or entrepreneurial group
is considering the possibility of launching an
all-first-class airline. It's been tried before,
so prospective investors are taking a close look at that history --
a really good idea, given those all-first-class aircraft are no
longer in our skies. Will history keep a newcomer out of this
niche? TC thinks it is too early to jump to conclusions.
• • •
How much can a $10 fare increase cost an airline in customers?
TC was wondering the very same thing. It turns out in some markets,
it can be enough to lose 100 passengers a day, at least that's what
JetBlue chairman and CEO David
Neeleman told TC.