Not Just Yet

Jim Hornthal, who runs an online travel company, Preview Travel, predicts the implosion of the "brick and mortar" retail travel agency business. "There might be a morning," said Hornthal, "when the agents don't answer the phone because the economics don't make sense anymore." He added that "customers don't want their information filtered...they want self-determination and full choice."

Hornthal's a bright guy but even bright people occasionally engage in self-serving generalizations. His view isn't shared by everyone in the computer industry.

No less than PC Magazine, one of the bibles of the computer business, just published a survey of the leading Internet travel booking sites and concluded that they were "useful and interesting, but a traditional travel agent handles most arrangements more effectively.

"We were disappointed in the vacation services offered," said the magazine. "Many contained the same prepackaged content licensed from Worldview Systems, and no site could give us what we truly wanted: reliable price quotes for vacations that could be purchased on line."

The magazine also pointed out that a travel agent "won't forget you after finding you a fare: If a lower fare comes along two minutes after you book yours, no travel Web site has any means of letting you know as a travel agent can."

In a cautionary note, PC advised its readers "while you may be impressed with what you can do, don't forget all you can't so don't lose your travel agent's number---at least not yet."

David Wardell, in his column in our Jan. 15 issue, noted that "most electronic booking tools lag behind performance expectations and are, on the whole, a poor alternative to existing distribution."

He also pointed out that "beyond motivated self-bookers, customers are usually quite vocal about their desire to retain a human, agent-based presence in the travel process. Those who are most enthusiastic about displacing agent-based distribution should be cautious about evaluating such a strategy through the prism of their own values."

Hornthal's Preview Travel has gotten off to a promising start, sold a bunch of travel online, and established a name for itself. That doesn't mean that online travel selling has revolutionized the industry or has any guarantee of doing so.

Anyone who believes that online travel selling isn't here to stay is foolish. Undoubtedly, it is making progress as another means of conducting travel transactions. In all likelihood, it will continue to gain market share as the Internet becomes easier to use and more universally available.

But that's a far cry from predicting the end of the traditional travel agency business. Hornthal underestimates the resilience of travel agencies. More importantly, he overestimates the number of travelers seeking "self-determination."

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