Question

Topic: Other

Value Chain In The Travel Industry

Posted by Anonymous on 8/2/2004 at 4:50 AM ET 250 Points
As part of a white paper in the travel industry, I would like information on the Value Chain in the Travel Industry.
I have perused generic articles on the Value Chain which though informative may not be applicable to the this industry. Harrells Report does have some facts and figures, but a recently updated (2004) version is not available.
What I would like to know is for every $1 the customer spends on an online booking, how much goes to the travel agency, the airline, the hotel, the car rental, the GDS, airport fees, credit card co., payment gateway, taxes, eventual revenues, etc.....
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RESPONSES

  • Posted by Chris Blackman on 8/9/2004 at 9:44 AM Accepted
    Not sure where you would go for this. My SOP would be to make some assumptions and draw out the approximate value chain, then test the assumptions against other available data, e.g. by value chunk. I can give som examples if that would help...

    BTW it will vary dependent upon the type of travel you are talking about - backpackers for example is going to look rather different than say business travel. Destinations where public transport will be used will have a diferent split versus those where a rental car is essential, and so on.

    I'm interested in the aviation business - but I'm not aware of Harrells report - can you give more info on this one please?

    ChrisB
  • Posted by Blaine Wilkerson on 8/9/2004 at 10:44 AM Accepted
    Try contacting www.onetravel.com . They are very responsive to questions of this nature.

    The US Census Bureau may be another avenue to take.

    Generally, the pirices/commissions vary from conract to contract. Travel agencies get a small % for some flights and a large % for others. Some airlines pay big, some small, some, not at all.

    Regarding ariport fees, just call up the administration of several airports in the guise of starting a new airline and/or a private pilot looking for clearance, fees, etc associated with using the airport.

    I hope this helps!
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