You can gradually see the rise of these meta-searchers even at CASMA as SideStep now sponsors some events and Price Grabber actually has an exhibition booth (If you get a chance, check out The Cranky Flier, which is an award winning travel blog run by Brett Snyder of Pricegrabber).
Why are airlines against this channel? I think arguments basically circle around three main themes:
1. Scrapers have a HUGE look to book ratios (we've heard anywhere from 150:1 – 350:1) and therefore they actually cost a ton as they hit an airlines' host system for every search.
This is somewhat true – and somewhat misleading. Metas DO have much higher LTB ratios than other channels, but it shouldn't be an issue for most airlines (or it can be controlled). Players like Kayak, SideStep, Farecast and others now use third party systems like ITA Software or Amadeus for a majority of their content – and therefore never hit the airlines’ host. If that's the case – the airline shouldn't care.
(Note – FMV has noticed that it's not pronounced "Am-ah-day-Us" but rather "Ah-mah-Day-Oose" – kinda like "Dr Seuss says the moose is loose")
We wonder how much longer it takes for more airlines to build out XML connections for these guys? And why aren’t major host systems’ vaunted “availability processors” gaining traction?
2. Scrapers just perpetuate the commoditization of airfares and will only lead to low-quality revenue.
We love this argument because it simply doesn't make sense. What are meta's doing that is SO different than what Expedia, Orbitz, or even Priceline and Hotwire are already doing?? Heck – "CHEAP" is even in the name of "Cheaptickets"!!
The only argument you can make is that the TYPE of customer that uses a meta is cheaper than other online users. But won't these people still have their characteristics and just be booking somewhere else? If so – wouldn't you want them to book through a meta that is still cheaper than sending an override payment to Expedia?
3. These passengers would have come to airline.com to book anyway?
Maybe. But you won't know that unless you do the study. Many of the passengers that eventually book will have a frequent flier number – and hopefully an airline can track 1) when they last flew, 2) when they last booked through the airline's website. FMV bets the results would be surprising.
CASMA takes a slanted view towards "all things distribution" and therefore looks at Metas through a distribution focus. But we bet if you went to an airline's marketing department, and told them you had an advertiser that had a 20% conversion rate (a commone characteristic for Metas) - they would be amazed.
