And they can sell you a hotel and car rental too….

The New, Sleek Airline Web Site – New York Times

This story underlines what has been evident to travel industry insiders for quite some time.
Suppliers are taking back their power in the marketplace and with enhanced web capabilities are able to capture a larger part of the travel pie, espcially from customer already in their loyalty programs.

The intermediaries will have their work cut out for them with agressive suppliers on one hand and increasingly savvy consumers on the other making their lives more difficult. The recent comment made by Michelle Peluso, CEO of Travelocity, that they will put more emphasis on customer service and improved purchasing experience vs. price seems to me the only strategy forward.

How successful they will be, only time will tell.

technorati tags:travel, airlines, marketing