Contact Us          Submit a News Story          News Archives          Home

E-Commerce News

Travel websites are good ecommerce examples

February 2, 2005

American Airlines may put the squeeze on Internet travel websites, including one in which it was a founding partner, by offering a best price guarantee.

The ailing airline said Tuesday that it would refund the difference in ticket price if customers found the exact American flight for at least $5 less on another travel Web site. American, a division of AMR, will also throw in a $50 voucher for future travel on American flights.

Rob Friedman, managing director for interactive marketing at American, says the company's new plan is "absolutely" intended to lure customers from third-party sites such as Orbitz, a division of travel giant Cendant; Travelocity, a division of Sabre Holdings and Expedia, a division of InterActiveCorp.

American sells only 35% of its tickets directly, through and telephone sales. It and other major carriers have been trying to encourage customers to buy online by tacking on extra fees for issuing paper tickets and buying a ticket in person.

JetBlue Airways, a carrier born on the Internet, also credits customers the difference of a flight if it can be had cheaper. But there are two important differences. JetBlue doesn't make seats available through third-party sites, so customers are wise to check back with in the days and weeks after a purchase, to see if fares have come down. Also, the company gives a credit toward a future purchase rather than a refund.

It's in the airline's best interest to sell more tickets online. For starters, it's cheaper. Every virtual ticket sold is one less ticket sold by an expensive customer service rep. Further, online customers forfeit information about themselves, giving airlines an easy way to pitch them on fare deals, upgrades and specials.

Friedman says American will continue to do business with third party sites because it wants to maximize its reach, but it will promote as the best place to buy and fly American.

American was one of five founding companies, along with Northwest, Delta Air Lines, Continental and United of Orbitz in 2000. American and Northwest have since sold their stakes.

Source: Forbes

Advertise on E-Commerce News

Advertise on E-Commerce News and increase your site's visibility while boosting your sales.

If you have a product or service that deals with the ecommerce or ebusiness field, advertising on E-Commerce News can bring you new sales leads and close new marketing channels. This news portal is read by over 25,000 people a week.

Businessmen and woman that either own an ecommerce website, an ebusiness franchise, a B2B commercial exchange or by people in all walks of life that need to keep abreast of this fast-changing field. For more information on the many advantages of advertising on our news portal or to request pricing information, please send us an email and a marketing representative will be glad to answer you promptly.

Contact | Submit News | News Archives | Home

Copyright E-Commerce News, 2005. All rights reserved.

Avantex offers professional Web hosting services at wholesale-only prices. Get the best Linux or Windows hosting package for your eCommerce website. Learn more by clicking here.