The functionaliy touted by Travelocity here for vacation packages is really quite limited in terms of customer focus and flexibility. What is still missing is the possibility to combine multiple destinations in one itinerary, e.g. a European or Asian trip.
Just imagine how larger the growth and potential for margins will be once these types of tours can be booked conveniently and on one site in future!
It will be interesting to observe who will push these key features first in their marketing effort. Travelocity is well on its way on this subject.