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expedia invests million to better market air tickets.
Over the years, many on-line tourist agents such as Expedia, Orbitz and Travelocity have turned away from their earlier dependency on air ticket sales in favour of a higher-margin resort but now Expedia wants to sit back and emphasise the sales of airlines. A lot of carriers around the globe, recently included JetBlue, have decided to label or name their rates and provide various types of service, which include free check-in baggage, same-day changes or early embarkation, based on the rate bought.
Mr. Schulze says Expedia Inc. is planning to invest $700 million in technological investment in 2015, and part of this will go towards enhancing the customer buying air tickets, taking into account the whole new sophistication. EXDEDIA Inc. which switched its air ticketing operations to a sole technologies sales channel two years ago, generates less than 10 per cent of its sales with air tickets, but this figure is on the up.
For Expedias, this plateau is the basis for the improvement of air tickets sales, say civil servants. For several years now, Schulze says that on-line tourist agents will no longer concentrate on innovations in the sale of air tickets and will turn the tide, as Expedia is setting new trends. "We' re aiming to establish a new benchmark in air technology," says Schulze, and adds that Expedia is already using Routehappy's information to deliver more details on air services and will give clients the opportunity to more and more easily benchmark brand prices from carrier to carrier.
Referring to Priceline Group's Booking.com and others, Schulze says that many on-line tour operators have only one kind of products and Expedia sees itself as a true full-service on-line itinerary. They expect the competition to take Expedia as an example. Expedia is working with its three worldwide sales system vendors Amadeus, Sabre and Travelport to provide airline tariff information to help deploy a broader range of air rates, but they need to enhance their technologies, says Schulze.
And if they can't, Expedia will work with vendors other than the world' sales organizations, Schulze said. Expedia will initially work with Amadeus on the payment system pending the introduction of further airlines' rates to Expedia this year. When asked if Expedia would offer JetBlue's Blue, Blue Plus, Blue Flex and Blue Flex and Blueprint tariffs this year, Schulze did not want to say, but stated that JetBlue is an important Expedia associate.
Buying an air tickets is "a long, tough task," says Schulze, finding that clients search the Internet on the Internet on board an average of 48 times before buying a flight tickets. While Expedia aims to enhance this experience for its clients, it faces a major challenges. Concerning tariff comparison, carriers have declined to allow meta-tour search pages such as kayaks to cross-check their tariffs side by side with other carriers.
The effectiveness of Expedia in creating more visibility into the value that clients would receive when buying a trip from another trip will remain to be seen. In the second part of 2015, Expedia increased sales of air tickets by 14 per cent, but does not anticipate that air sales will exceed the hotel's key sales.
This will not happen, but the plan calls for a little more equilibrium in the coming years.