For the best value, book direct with suppliers

By Joel Widzer

Travel columnist

updated 3:12 p.m. ET June 29, 2006

Joel Widzer Travel columnist • Profile • E-mail

For all their usefulness, third-party travel Web sites can be as much a burden as a boon. The conventional wisdom is to check three or four Web sites before purchasing travel services. I say: Hold on a minute. The guy who spoke to me after a speech in San Francisco would agree. He had spent six hours searching Web sites for bargain airfares and found he could save only $25.

“It’s not worth it,“ he said. In the end, he purchased the ticket directly from the airline’s Web site. In my opinion, that’s what he should have done in the first place.

The online sale of airline tickets dates back to December 1995, when Alaska Airlines sold airline tickets to a family of four over the Internet. That simple transaction changed consumers’ travel planning forever.

Before the advent of travel Web sites, it was difficult for travelers to access products, pricing and other travel information There was not a lot of marketplace transparency, i.e., customers couldn’t easily compare prices among competing airlines and other travel providers. As a result, customers leaned on travel agents and ticket sellers to guide their travel experiences.

Thanks to Web sites like Expedia, Travelocity and Orbitz, transparency is now the industry standard and consumers are both savvier and better served. Travelers literally have a world of information available through their computers.

Credit for a revolutionary change in travel booking should be given to the early trailblazers. But I’m afraid their time has passed.

According to PhoCusWright, an independent consulting firm, online bookings through a third-party agency will comprise 55 percent of all travel bookings in 2007, a market share that represents $136 billion in business. These are big numbers, and they have gotten the attention of direct service providers, e.g., airlines, hotels and car rental agencies.

These suppliers have responded with low-price guarantees, bonus miles and a seamless booking experience for customers who book directly with them, whether online or by phone. PhoCusWright reports that consumer perceptions of direct-supplier Web sites have improved in recent years; in fact, a 2004 study found that 55 percent of consumers believed that direct travel providers offer the best price. I suspect the numbers are much higher today.

It makes sense when you think about it. Whenever you have a middleman, prices are going to be higher. If I sell my used car directly, I avoid paying distribution or commission costs; if I sell it on eBay, I pay to use their services. Sometimes a broker or intermediary can provide added value, but when you’re booking a single hotel room, a car rental or a flight from point A to point B, there really isn’t much to it.

Today, third-party Web sites cannot compete with direct providers in terms of price and service. Let me give you a few recent examples.

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