Expedia??™s use of dynamic packaging is one of the best among the competition: Using
Expedia??™s Web site, consumers can book airline tickets and hotel rooms, and also
book a shuttle to pick them up at the airport and set up prepaid restaurant meals.
In this way Expedia focuses on the total journey of consumers. Expedia pioneered
dynamic packaging in 2002 and now gets almost 30% of revenue from package
buyers (Mullaney, 2004).
Travelocity provides Internet and wireless reservation information for more than 700
airlines, more than 55,000 hotels, and more than 50 car rental companies (PRNewswire,
2002). In addition, Travelocity offers more than 6,500 vacation packages, tour
and cruise departures, and a vast database of destination and interest information. It
is now the second largest online travel agency. Travelocity launched a new merchant
model hotel program offering advantages so compelling that more than 2,000 hotels
signed agreements to participate. Travelocity can pull rates and availability directly
from the hotel??™s central reservation system (CRS). This eliminates the time and
costs associated with manually allocating blocks of rooms to a separate system for
discounted sales.
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