E-business Models

Drawing on recently published data, this paper examines some of the trends in travel e-commerce. Using a case study approach, the author examines in detail some of the e-business models impacting on the travel industry both in the Business-to-Business (B2B) and Businessto-Consumer (B2C) markets. Although B2C leisure transactions currently account for just 1 per cent of the value of global travel, there is real potential for future growth. However to be successful both new entrants and existing players will need to ensure their e-business model adds value for the customer, otherwise their position in the value chain will be threatened. The most immediate potential for growth and profitability lies in the B2B market, particularly in the development of vertical portals or community extranets. These are virtual spaces enabling travel buyers and suppliers to trade online. The integration of legacy systems with Internet Protocol (IP) technology is taking place across a range of travel sectors and will provide the platform on which a wide range of e-business applications can be developed. This development will lead to the ultimate catalyst for travel e-business – the convergence of data (Internet), voice (telephone) and video (TV).