Manufacturing Industry
Qantas' online travel agency approved by analysts - Brief Article
Airline Industry Information, June 8, 2000
AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD
Airline industry analysts have viewed Qantas Airways Ltd's plans to establish an online travel agency with six other Asia-Pacific airlines favourably.
The Australian carrier made the announcement yesterday (7 June) and indicated that several carriers, including Singapore Airlines and Cathay Pacific Airways had already shown some interest.
Reuters reported that analysts see the online venture as saving the carrier money since commissions currently paid to travel agents 'will eventually flow up to the companies themselves.'
The venture, while perhaps providing cheaper fares for consumers in the long run, may have a costly affect on traditional travel agents and some newer online agents analysts warned. Qantas currently pays travel agents a 15% commission on tickets sold.
Other benefits for Qantas however include deeper market penetration and better monitoring and development of customer relationships.
((Comments on this story may be sent to aii.feedback@m2.com))
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