Travel sites vie for lead
The online travel business is expected to take off this year, and companies are relying on site redesigns, partnering, and IPOs for a boost.
Hoping to take advantage of the lack of a clear leader in the online travel market, Arthur Frommer's Outspoken Encyclopedia of Travel has revamped its site to reflect a new outlook and increased functionality.
Frommer's is hoping the new community-oriented feel of the site will help earn it a bigger piece of what analysts say is the leading e-commerce category. "In terms of dollars, travel is the No. 1 consumer spending category online," said Nicole Vanderbilt, an e-commerce analyst with Jupiter Communications.
Frommer's is also playing catch-up to Microsoft, which has added new features to its travel site Expedia, and is reportedly focusing more of its vast resources on its Web-based free services such as Expedia and car-buying site CarPoint after announcing it plans to shut down Mungo Park, an adventure site that feature Internet updates on various expeditions, in February.
"It's so much easier to use now, in terms of functionality and navigation," Miller said.
Frommer's is trying to break into the top tier of players in the online travel market. According to Vanderbilt, the top three sites right now are Expedia, Travelocity, and Preview Travel (PTVL), which launched an initial public offering in November to a somewhat lackluster response. Analysts attributed Preview's somewhat poor performance on Wall Street to a general downturn in tech IPOs, rather than serious concern with the company's fundamentals.
Others vying for the top spot include CondéNet's Epicurious Travel, Internet Travel Network, and consumer services company CUC International.
Expedia, for example, has chosen to partner with suppliers such as Continental Airlines and Northwest Airlines, Vanderbilt said, while Preview has inked distribution deals with America Online and Excite that account for the majority of its revenues. Travelocity has signed a similar deal with Yahoo.