Homework 7

The travel industry was one of the earliest to go online. Since travel has few geographical
boundaries, the airlines faced none of the issues of online product retailers such as shipping and tax-collection schemes, the travel industry is uniquely suited for the Web. Websites today like Travelocity, Expedia, ORBITZ, Kayak and Fodors are examples of the industry that is always on an upward trend. These websites thrive on similar principles with all internet sites trying to grow and expand their business in the way that the internet is do-it-yourself and 24 hours a day without talking or interacting with people in the privacy of their own home. The travel industry will always be on the upward trend due to the relability and comfort the consumer has. These travel industries are easy to handle and work for your advantage in that they can do your needs 24 hours before or months before. The travel industry only expanded due to the rise of the internet because of unless ways of expansion and growth. The internet only exposed the rise of the travel industry greater and greater because of its ease of access. In 1997, it was estimated that the online travel industry made up 1 percent of the total U.S. travel market. Today it has grown to 11 percent, valued at over $20 billion. In looking at the financial results of expedia.com, revenue and costs have grown from 531.3 to 665.3, a 25% growth annually and gross profit has raised 27% in a year. North American has grown 18% while Europe has grown 47%. ORBITZ has also experienced growth 34% in a year and stands at $3.44 Billion. Kayak rose to $27 million in a year as a small company.

http://media.corporate-ir.net/media_files/irol/19/190013/4Q07Release.pdf

http://www.internetretailer.com/internet/marketing-conference/86921-orbitz-bookings-grew-34-last-year-344-billion.html

http://www.techcrunch.com/2007/12/20/breaking-kayak-raises-196-million-buys-rival-sidestep/

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