Orbitz Worldwide Competition
Now Viewing Orbitz Worldwide's competition in: Travel Agencies and Services (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Is there a dominant competitor in the agency's market? -
Does the agency market to individuals, groups, small businesses, corporations? -
What types of marketing does the agency use? - Newspaper ads are most common. Marketing to corporations and groups requires a sales staff.
How does the travel company market to the small business market? - Travel agencies, both online and traditional, court small and medium businesses by creating specialized travel management plans.
Does the agency charge service fees? - Many agencies now charge service fees for airplane tickets to make up for reduced commissions.
Does the agency use conventions and wholesalers to find new tour products? - Personal travel remains a major source of revenue for small agencies.
Has the agency developed affiliations with other travel service providers? - Specialist agencies may have affiliation agreements with other agencies.
Competitive Landscape
Demand is driven by business and tourist travel, which depends on the economy. The profitability of individual companies depends on marketing. Large companies have an advantage in being able to provide a wider range of services, especially to corporate customers, and to afford sophisticated websites. Small companies can compete effectively by providing service to a few large customers or by serving a local market. Despite automation, the industry remains labor-intensive; average annual revenue per employee at traditional travel agencies is just $75,000.
Business Challenges
CRITICAL ISSUES
Travel Sharply Affected by Economy, Terrorism Fears - Air travel is closely connected to the strength of the US economy, partly because of business travel and partly because personal travel (which accounts for about 75 percent of air travel) depends heavily on income. Terrorism or natural disaster fears can easily prompt tourists to cancel vacation plans. Annual US passenger air travel fell almost 20 percent during the last recession.
Competition from Internet Agencies - Travelers can dispense with traditional travel agents by booking flights directly at airline websites and using travel websites like Travelocity and Expedia. Even travel websites face competition directly from the originators of travel services such as Orbitz, a travel website owned by airlines. Online travel bookings have been growing by double-digits in recent years. To keep business, some travel agencies offer their own online booking.
Industries Where Orbitz Worldwide Competes
- Consumer Services
- Travel Agencies & Services(primary)
- Media
- Information Collection & Delivery
