Airline Travel Service Launches - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Airline Travel Service Launches

The timing couldn't have been more serendipitous for Tuesday's launch of startup Hotwire.com. Its major competitor--Priceline.com Inc.--is retreating from an unsuccessful venture, its stock is crashing, and its customers are suing it for fraud.

Much of the marketing for Hotwire was done by Priceline, which used the attention it garnered when it closed its WebHouse grocery club this month to reiterate that selling cheap airline tickets online is a much better business.

Hotwire--owned by America West, American, Continental, Northwest, United, USAirways, and Texas Pacific Group--is the first cooperative attempt by the airlines to wrest back their customers from the independent dot-coms that have stolen the show: Travelocity.com, Expedia.com, and Priceline.

Hotwire CEO Karl Peterson says he has learned from Priceline's mistakes. Priceline bidders are automatically charged for tickets that fill the bill; Hotwire will simply find the cheapest ticket out there and ask if you want it. "We're getting rid of all the hassle of bidding and waiting, and doing away with buyer remorse," he says.

That little change "makes a huge difference, and airline ownership is another big factor," says Philip Wolf, president of PhocusWright.com, a travel technology consulting firm. "Consumers have an insatiable appetite for cheaper air fares, and for the airlines, it's all about control. If flights are full, they'll give their empty seats to their own sites first."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
Commentary
Is Cloud Migration a Path to Carbon Footprint Reduction?
Joao-Pierre S. Ruth, Senior Writer,  10/5/2020
News
IT Spending, Priorities, Projects: What's Ahead in 2021
Jessica Davis, Senior Editor, Enterprise Apps,  10/2/2020
Register for InformationWeek Newsletters
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll