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Tue, Nov 20, 2001 - Page 24 News List

Signs of life in online traveling

BUCKING THE TREND The industry is growing much faster than other forms of electronic commerce as customers are lured by the convenience and, often, the lower prices offered by travel service Web sites

By Saul Hansell  /  NY TIMES NEWS SERVICE , NEW YORK

Another issue for the online travel agents is that the airlines, which have been cutting commissions for the last year, are cutting them more. Continental Airlines, for example, recently said it would eliminate commissions altogether for tickets sold online, matching an earlier move by Northwest Airlines. But both airlines have cut deals with several of the biggest online travel agents, in which they still pay some sort of commission and also receive marketing support, such as the ability to send e-mail promotions to the sites' clients.

"We want more bang for our buck," said Jim Young, vice president for distribution strategy at Continental.

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