Airline Web Sites, Poised For Takeoff?

Key pointers for competitive success: Airline Web Sites, Poised For Takeoff?: "Many carriers have started offering price guarantees. American and United are the latest, joining Continental and Northwest, to promise that no third-party site will undercut their own Web site prices. The guarantees offer to refund the price difference, plus provide a $50 voucher for future travel, to travelers who can prove that they found on the same day the same flight for at least $5 less elsewhere...

But they're walking a fine line as they try to sell more tickets directly while continuing to work with outside companies that bring in lots of business. According to PhoCus- Wright Inc., a research firm that studies tourism trends, 39 percent of the airlines' online ticket sales are made through third-party agencies, such as Travelocity and Expedia.

"On the one hand, it's clear that many airlines are trying to compete directly with third-party sites via their own branded Web sites," said William J. McGee, a consultant on online travel for the nonprofit Consumer Reports WebWatch, who has conducted several studies of booking sites. "At the same time, an awful lot of airline bookings continue to come through third-party sites."

Keynote Systems Inc., a San Mateo, Calif., company that studies e-business performance and management, recently conducted a survey that asked 2,000 consumers to use and evaluate four third-party sites and 12 airline sites. The study concluded, "Online travel agencies are outperforming airline Web sites in terms of customer experience and that is impacting their booking success."

The study ranked Expedia, Orbitz and Travelocity as the top three sites in terms of the best overall online experience for customers. Among airlines, Southwest was tops "because of its industry-leading price satisfaction and because it possessed the industry's best online booking process.""