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CNN Live At Daybreak
Firms Can Save on Service Fees When Booking Online
Aired February 09, 2004 - 06:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little "Business Buzz" now. Are you going on a business trip this morning? Well get ready to book online.
Carrie Lee has more live from the Nasdaq market site.
Good morning -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.
This is exactly what a lot of corporate customers are doing these days. Online travel agencies, the big three, Expedia, Orbitz and Travelocity, are starting to gain more business customers, in addition to being very popular with vacation bookings. According to one industry group, these three sites have about 20 percent of the corporate travel market today. That's expected to double by 2006. And the progress is really forcing traditional travel agencies to rethink their business, lower fees, offer different types of services.
The fees is really the key here, because online bookings on Expedia, Orbitz and Travelocity cost just $5 for one trip, assuming no changes later. And that compares with about $30 to $60 for traditional travel agencies. Case in point, Travelocity has signed up about 1,000 corporate customers. Orbitz for Business has doubled its sales force since winning McDonald's U.S. account last fall.
So you see, Carol, more companies going online mainly to save money and become more efficient. Interesting change in this industry.
COSTELLO: And always a good idea.
Quick look at the futures.
LEE: Sure. Things looking pretty flat right now. We could see technology open a little bit higher. Microsoft and Disney, two Dow components in focus today. The companies have announced that Disney has agreed to use Microsoft's copy protection software in distributing films over the Internet, trying to prevent illegal use for copying and distribution. We'll watch those names -- Carol.
COSTELLO: All right, we'll catch you next half hour. Carrie Lee live from the Nasdaq market site.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired February 9, 2004 - 06:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little "Business Buzz" now. Are you going on a business trip this morning? Well get ready to book online.
Carrie Lee has more live from the Nasdaq market site.
Good morning -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.
This is exactly what a lot of corporate customers are doing these days. Online travel agencies, the big three, Expedia, Orbitz and Travelocity, are starting to gain more business customers, in addition to being very popular with vacation bookings. According to one industry group, these three sites have about 20 percent of the corporate travel market today. That's expected to double by 2006. And the progress is really forcing traditional travel agencies to rethink their business, lower fees, offer different types of services.
The fees is really the key here, because online bookings on Expedia, Orbitz and Travelocity cost just $5 for one trip, assuming no changes later. And that compares with about $30 to $60 for traditional travel agencies. Case in point, Travelocity has signed up about 1,000 corporate customers. Orbitz for Business has doubled its sales force since winning McDonald's U.S. account last fall.
So you see, Carol, more companies going online mainly to save money and become more efficient. Interesting change in this industry.
COSTELLO: And always a good idea.
Quick look at the futures.
LEE: Sure. Things looking pretty flat right now. We could see technology open a little bit higher. Microsoft and Disney, two Dow components in focus today. The companies have announced that Disney has agreed to use Microsoft's copy protection software in distributing films over the Internet, trying to prevent illegal use for copying and distribution. We'll watch those names -- Carol.
COSTELLO: All right, we'll catch you next half hour. Carrie Lee live from the Nasdaq market site.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
