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Tuesday, November 27, 2007

Don't be afraid, I'm a friendly gnome

Michelle Peluso of Travelocity gave a presentation about the site's new interface, without talking about the new interface. Well played.

Instead, she discussed a huge study performed by The Gnome, which indicated that over 42% of Internet consumers who start travel shopping at an OTA book at an OTA, while over 46% of consumers who start shopping with a supplier book with a supplier. The Gnome's conclusion? Internet consumers already know where they are going to book. Sure, they shop around, but it's only to avoid buyers' remorse. Therefore, channel shift is over, and OTAs and Suppliers can peacefully co-exist in a Utopian partnership.

Peace sells, but we're not buying. Consider these facts:

* Al Lenza of Northwest Airlines felt that OTAs and suppliers are not partners, rather the parties simply have a business relationship.

* In the spirit of partnership, Peluso spouted that Travelocity could terminate their business with Kayak (a succesful supplier marketing vehicle), "in about two hours". Nice.

* Further, Peluso felt that The Gnome would not acquire at-risk air inventory since it's "not good for the carriers". Exxon would say the same thing about a carrier fuel hedge.

This felt like a total schmooze play by Travelocity. Sure they're a buddy now, because they're struggling to add value over the supplier sites and meta's. But if they get a chance,they'll pounce on both with the rusty shiv hidden in their hat. Keep an eye on that Gnome.

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