Retailing is Retailing

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There is so much to learn about the Web and what it will mean to the business that it is dangerous to form conclusions at this stage, but with that in mind I think it's safe to say that as the Web evolves, one principle is becoming clear: Retailing is retailing.

The brick-and-mortar world looks very different than the on-line selling world but as e-commerce evolves, e-tailers are learning that while they can use the capabilities of the Web to their advantage, they also must abide by the tried-and-true practices of good retailing.

At the Jupiter @travel meeting in Miami last week, Rich Barton, the president and CEO of Expedia.com, said "Expedia really is a huge store and we have to think about establishing loyalty the same way any store establishes loyalty."

Later that day, Michael Dauberman, senior vice president of Uniglobe.com, said the role of the on-line travel retailer is to "work on interpreting the alternatives" available to shoppers. Isn't that the same thing brick-and-mortar agencies do every day?

Building loyalty to a retail store can be accomplished in a variety of ways. Good prices are one way to do it but there are many retail niches where price is not the principal consideration.

One common denominator among all successful retailers, whatever their price policy, is good service and Web sellers are rapidly learning that service factors may be the single most important consideration for shoppers seeking to differentiate among sites.

Just as shoppers in physical locations want good customer service, including return policies, on-line shoppers want the same kind of assurances.

Phil Bakes, the chairman and CEO of Far & Wide Travel, which has bought a number of tour operators, said at the Jupiter meeting that on-line shoppers need to develop "confidence in vendors."

That confidence comes from experience with the quality of service provided. The quality of service is a far greater consideration than price or reward programs for frequent shoppers.

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