Online travel offers cheaper travel products and services, as a virtual presence reduces costs. This opens up more choice to consumer and the development of the Long Tail theory as pioneered by the likes of Amazon. Comparison websites enable consumers to obtain the lowest price easily. Research enables customers to see before they buy
Online travel is convenient accessible anytime, anywhere. There is great potential with the development of mcommerce and web-enabled travel applications. Consumers do not need to leave their house until they travel. For operators, it offers potential higher margins as payment is high and cost of delivery low.
Many consumers have shown slow adoption of online purchasing due to concerns regarding payment security. Fraud remains high in certain countries, eg Indonesia, thus restricting growth and countries such as Germany have been slow to adopt, however, security is improving.
The lack of human contact can result in a loss of flexibility and the opportunity for negotiation for consumers leading to a loss in customer relationship and loyalty. Inexperienced users will not necessarily obtain the best price or service. After-sales service can be poor. Certain consumers prefer face-to-face contact, particularly for luxury travel.