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Technology Stocks : IFLY - travel sales on the web pure play -- Ignore unavailable to you. Want to Upgrade?


To: LAWRENCE C. who wrote (1070)5/7/1998 6:45:00 PM
From: Prophet  Respond to of 4761
 
IFLY is well positioned to become a travel consolidator for other Internet based travel agencies. They have the contracts and volume. Most of today's so called travel consolidators do not amount to more than an Internet site with a few offerings you can't get anyway. IFLY should take a hard look at the possibility of expanding their agent base on the Internet. IFLY would use that additional volume to negotiate deeper discounts with airlines and tour providers. A portion of the commissions would be passed along to the agents.



To: LAWRENCE C. who wrote (1070)5/7/1998 7:15:00 PM
From: Bill Anderson  Read Replies (1) | Respond to of 4761
 
Lucky Lawrence,

I have been reading your posts here for quite some time and while I admit they are well thought out, they are also not quite accurate. You cannot extrapolate Internet business theory, and apply it to IFLY's business without understanding their present business model.

Without going into great and boring detail let me just explain to you that whatever business they do via the internet, even if it is only a few million dollars (net) has a tremendous impact on their bottom line.

As far as the commission cut, don't worry every one thought that the airline commission cap 3 years ago would be the kiss of death for travel agencies.

By the way if you are developing an Internet service that will produce a product that could be converted into cash with relative ease do you really think that you would turn it up and find your mistakes by allowing traveler's to take advantage of it? I don't think so especially if you knew the ARC rules regarding mis-priced tickets (the agency eats the whole difference, not just their commission portion).