Australians are missing the boat when it comes to the benefits of booking travel online, finds Angus Kidman.

Published in The Bulletin, August 13 2002

The internet should make international travel a doddle. Web sites can provide more up-to-date and comprehensive information than a brochure-dependent agent, and since tickets and hotel bookings are virtual goods, delivery isn't a problem.

And it's not as though booking systems aren't already computerised -- most of the data is already there, so adding it to a web site should be a cinch. All the pieces are in place but Australian travellers are still not reaping the benefits.

That's not the case overseas. About 11% of all travel bookings are now made on the internet, and in the US alone online travel sales had a total value of $US22bn ($40.5bn) during 2001, according to Jupiter Media Metrix. What does that mean in practice?

If you choose to tour around the United Kingdom, then virtually every aspect of your trip can be booked and paid for online before you depart. As well as flights, accommodation and car hire, you can purchase passes for the London Underground or train tickets to Glasgow, organise admission to theme parks and get free admission to tapings at the BBC. All this can be done in the middle of the night if it suits you, and you don't pay agency commissions.

But don't try any of those things at home. David Tonkin, CEO of travel.com.au, describes the local market as "extremely immature". While most Australian travel providers now have some form of internet presence, when you actually want to make a booking you're more likely to be asked to pick up a phone than click your way through to a form.

The only internet bright spot is in domestic travel. Qantas and Virgin Blue are all too aware of the potential savings from online fare bookings (there are no tickets to print or send and no call-centre staff to pay) and are sometimes willing to pass on the benefits. Highly discounted fares from both carriers are only available to online buyers, while the upstart Virgin Blue imposes a $10 fee on any bookings taken by phone or through an agent. Largely as a result of these bargains, the two domestic airlines dominate Australian online travel traffic, jointly accounting for nearly 20% of all travel site visits, according to monitoring service Hitwise.

While both domestic airlines are encouraging net bookings, trying to snag a discount international flight is more challenging. The web site for Flight Centre, Australia's largest network of travel agents, provides representative quotes for overseas flights but won't accept actual bookings without a telephone call. Rail options are even less developed. NSW's Countrylink, Queensland Rail, Victoria's V/Line and the cross-country Great Southern Railway all offer timetables online but only the Great Southern Railway allows tickets to be booked and paid for via its site.

Even web-specific travel agents aren't as flexible as they might be. If you use the services of a consultant at travel.com.au, you have to pay a $150 quote fee on your first booking. Despite the demand for discount airfares, the number of choices online has actually reduced in some areas. The web site for TV travel program Getaway, for instance, used to offer a full airline ticket-sales service. More recently, Getaway directed customers to the Qantas site; it now promotes fare broker Best Flights.

Notably, those sites that have succeeded in the local market tend to offer reduced prices as well as online convenience. Discount hotel room provider Wotif.com began selling excess capacity hotel rooms in Australia in March 2000, and has since expanded into Europe and Asia. Tonkin of travel.com.au believes online travel sales will really pick up when flights, accommodation and extras can all be booked via a single transaction engine, something that's not possible at present.

With many e-commerce businesses falling foul of the stockmarket and the travel industry hit by a post-September 11 slump, it's tempting to see the lack of online travel options as a reflection of tough economic conditions.

"While travel has been the biggest revenue generator, it is now an expense many web buyers forgo during unfavourable economic times," notes Forrester Research analyst Christopher Kelley.

In Australia, however, the decline in travel expenditure has not been as pronounced as overseas, despite consolidation forced by the collapse of Ansett. We're as keen on travelling as ever, it seems, but someone, somewhere, is missing the point. Web sites moved beyond brochure-ware years ago. Isn't it about time that travel companies moved into the internet fast lane?