Online rivalry between airlines and travel agents is flourishing, with Air New Zealand and the House of Travel chain revamping websites in an attempt to push more business to the internet.

Air NZ said its new- look website launched last month had a record one-day turnover last month of $3 million. Airline online sales chief Chris Myers says the site generates the highest revenue of any retail e-commerce site in the country.

But the airline's online rivals are not standing still, with the House of Travel, one of New Zealand's biggest travel agency chains, also revamping its website, with 20 per cent of its business now booked online.

Air NZ, by offering holiday accommodation and rental cars online, is competing with those websites offered by the major travel agent chains.

In response to a move away from airlines paying commissions, the agencies are now selling airfares gathered from various rival carriers, charging a fee for the service.

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