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More executives book travel on Internet, but issues linger

May 06, 2004 |

Big corporations are shedding complicated, expensive-to-administer volume deals with travel agencies, allowing workers instead to find their own deals on the Internet.

Big corporations are shedding complicated, expensive-to-administer volume deals with travel agencies, allowing workers instead to find their own deals on the Internet.

It’s only a matter of time, Jeff Katz says, until most big corporations in the USA switch to lower-cost, Internet-based travel sellers from their current purchasing arrangements with agencies tied to the big, traditional computer reservations systems.

Katz, CEO of Orbitz, the No. 3 online travel agency behind Expedia and Travelocity, would think that.

But senior travel industry executives and consultants here last week for an annual conference sponsored by Phoenix Sky Harbor airport generally agreed, though some said substantial obstacles remain.

But the change is quickening, Katz says. About half of Orbitz’s sales involve large accounts — those spending $1 million or more on travel. For example, McDonald’s last year switched to Orbitz.Publisher Knight Ridder says it cut its travel booking fees 20% during a one-year pilot program using Orbitz.

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