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Technology Stocks : Preview Travel (PTVL) ---- Via...Excite & AOL
PTVL 1.3900.0%Jan 21 4:00 PM EST
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To: Wolff who wrote (713)10/15/1999 10:39:00 AM
From: Wolff  Read Replies (1) of 728
 
this is from Robbie Stephens weekly report:

LOWER TRAVEL AGENCY COMMISSIONS COULD IMPROVE LANDSCAPE FOR
ONLINE PLAYERS: Last week United Airlines announced it was
reducing traditional travel agency commissions from 8% to 5%, in
level with current online commissions. Other major carriers
quickly followed this move, effectively ending rate
discrimination against online travel agents. We expect lower
commissions could lead to higher service fees from land-based
travel agents and/or a decline in customer service levels.
Historically, many people have used the Web to search for trip
information, while ultimately booking their reservations with a
local travel agency. Should more land-based agents start adding
service fees given their higher transaction processing costs
relative to online agencies, we expect more online lookers could
choose to complete their transactions online in favor of better
pricing and customer support. We believe Preview Travel, which
focuses on superior travel-related content and customer service,
and when combined with Travelocity will be in the top 10 travel
agencies, is the best-positioned eTailer to capitalize on this
potential industry shift.
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