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Online Travel: Priceline, Expedia, Orbitz

As long as all these guys are doing are selling tickets / booking hotels / etc - they are doomed. They have high customer acquisition costs, low margin and zero loyalty. And, the suppliers have been closing in on them for 10 years now.

Expedia has the best chance, because they have TripAdvisor. Brings people to the Expedia world for information. Then they book.

Disclosure: I am CEO of www.tripcart.com/

Travel Search: Hotwire Heating Up in Demographic Segment Performance

I understand that google statistics show that in the recession days - people are using the web as much to plan travel but there is a marked increase in the number of sites they visit before purchasing. I would guess the above has changed in the past half year.

Also interesting - traffic to travel planning sites like frommers, fodors,

www.tripcart.com/usa-r...

show the expected Spring seasonal increases.

Online Travel: Priceline, Expedia, Orbitz

I want to review some points that pertain to all the OTA's - not focus on the differences:
1. The public still sees the OTA's as selling commodities. Very few of the expense generating efforts to build customer loyalty really help. Customers are loyal to the suppliers (air/car/hotel) for obvious reasons, but rarely to the OTA.
2. Suppliers have been gaining share over the OTA's from day 1. Perhaps the trend changes in a challenging environment.
3. These guys have got to cut costs. Learn from Kayak and Travelzoo.
4. Search Engine optimization will bring these guys traffic without paying per click. It is a big effort but isthe gift that keeps on giving.


Disclosure:
I am CEO of www.tripcart.com , affilated with Orbitz and Expedia and others.