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Technology Stocks : IFLY - travel sales on the web pure play
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To: blankmind who wrote (4127)1/30/1999 7:45:00 PM
From: IFLYer  Read Replies (2) of 4761
 
Now as your handle name implies, you have absolutely a blank mind.

The two basic advantages about the interactive site are:

- the company can quote the lowest airfare (per the restrictions of the airlines)

- the company can collect higher commissions, as much as 300% more than the competitions.

There are obviously more advantages such as provide better customer services, eliminate the fear of shopping on the internet, etc.

This company can easily build a non-interactive site, it's cheaper to build, less expensive to operate, but they don't do that obviously because of the advantages as stated above. The management guys are veterans of the airlines and travel industry and they understand clearly what they are doing. There is no reason to get rid of the reservation agents to save cost when that also reduces the profit margin and overall sales. It's the same as a department store doesn't fire all the sale agents for the sake of saving money, but at the same time cut down the sales as well. In the case of IFLY, it's not just sales, but profit margin as well.

Now, name me a travel company doing business on the internet that is profitable.

I find guys like blank mind quite disgusting. Why is the issue of interactive web site coming up now while the concept has been here all along while you still own this stock? Go back to your penny and scam stocks that cannot even release their earnings report on time.
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