Travelocity’s strategy seems to start to pay off….

Posted on August 12, 2005. Filed under: Travel |

Travelocity could grow market share to 23% in 2005.

Reading this in conjunction with the last post, it looks to me that the strategy of adding value and stressing customer service elements in their marketing, Travelocity recently embarked on starts to pay off in their growth prospects. If they succeed in eating into Expedia’s market share and do so in the most profitable segment, packaged tours rather than commodity components, they could really end up with a very strong market position. This latter strategy is even more useful in their overseas markets, Europe and Asia where packages have already a higher penetration rate in the off-line world and are viewed more positively by the customer than in the U.S. An interesting development to watch. So, let’s stay tuned…..

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