The Hindu Business Line : Caught in the travel web

Budgets slashed, clients delaying payments, pay hikes put in abeyance, bonuses scrapped ... it has been a bad year alright and Yashwant Sinha did not make it any better. You've had enough and want a break during the summer?

Let's look at the options that travel Web sites have on offer.

Most Web sites offer you a mine of information regarding travel destinations and packages. They even offer you advice on the choice of destination. Then you get a complete run-down on the basics and background of each destination. As a part of their service, the packages offered include accommodation, airport transfer and a sight seeing trip. Some Web sites even have a repertoire of travel videos for a traveller to `experience the destination' before he/she decides to go there. You can even find out the facilities that the hotels offer and then take your pick. After you've made up your mind, type in your credit card number and click to `book now'.

But if you prefer the good old `offline' travel agent to surfing the Net, you can call him up. He comes armed with glossy brochures of the destination, pictures of the hotels, details of packages — the works. He also convinces you that he is getting you the best deal and that he is reliable and trustworthy and all that sales spiel.

So what's the difference? Invariably both the online and offline tour operators score over each other on three parameters: Convenience, pricing and variety.

Convenience

The greatest convenience that a Web site offers is free and easy access to information. However, Kumar of World Express, a tour operator, argues that though a traveller may use a Web site to access information, he would not entrust his travel arrangements to a faceless entity. "We offer personalised service to ensure that the traveller is having a good time," he says. In addition to this, a travel agent also does all the legwork — collecting tickets and passports, delivering them home, getting seats confirmed, and even organising your foreign exchange. He also points out that in case of a problem, for instance confirming your tickets, there will be no one to help you if you are using a online agency.

C.C. Fong, Chief Operating Officer, StarAsiatravel.com argues that with the introduction of an online ticketing facility by several airlines, re-confirmation of flights or tickets is passé. He also says since hotels assist in providing other back-up services, the customer can be assured of the quality of service.

But he admits that a Web site may not be offering the convenience of `local transfer'. For example: If you are from Nagpur and have chosen a Mumbai-Bangkok package, you have to arrange your trip from Nagpur to Mumbai and back to Nagpur. "We cannot arrange local transfers from all locations within India to an International airport," he says.

Therefore, his company has tied-up with local tour operators to offer these services.

Price

The price of a travel package is affected by cost incurred on distribution and marketing by the tour operator. Online agencies save on this front since the Internet is a low-cost medium for disseminating information.

"Compared to an offline agency, we do not carry fixed costs. We reach our customer and our associates (hotels) directly," says Fong. Now airlines too offer special prices for online booking, which are cheaper than what the travel agent offers. So a travel Web site can pass on the benefits of bigger discounts to the customer. On the other hand, the local tour operator finds himself in a tight spot whether to offer a discount or offer credit to his loyal clientele. By offering discount, he cuts on his margins and by offering credit, he eats into his cash-in-hand position.

However, Arun, Assistant Sales Manager, SOTC Sita special tours, argues that most often the customer does not read the fine print on the deal that he is offered. "An online travel package might give you breakfast free, but for a little more, we could give you free dinners too." Therefore, an extra facility offsets the price advantage. Manish Kriplani, Managing Director, Baywatch travels, an associate of Thomas Cook, believes that an `offline' tour operator can any day offer better prices. "We can beat any rate offered on the Net," he says.

Variety

Most Web sites offer a plethora of options especially for a traveller who is seeking value for money. The lower costs of maintenance allow an online tour operator to offer a wider variety. However, an offline travel agent can customise a package according to the traveller's needs. Kumar explains that tailor-made packages are best suited for a group of travellers.

But it is the customer who is having the last laugh. For instance, Ram Prasad, a Chartered Accountant, recently took a holiday with his family to Bangkok. He says that he used the Internet to gather information and then told his travel agent what he exactly wanted. Manish Kriplani admits that websites have made the customer more informed and demanding. "A customer today dictates the terms as he has all the information."

To catch up with competition, tour operators are also putting up their own Web sites to provide information on their packages to the customer. However, they do believe that the travel Web sites have not yet become a threat to their business. "The number of people clicking in are not big enough to make a difference to us," says Reshma Kriplani, Director, Leisure tours, Baywatch travels.

Whether it does make a difference or not, the traveller is bound to get a good deal. So then pack your bags and book your travel... online or offline!

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