Faculty & Research
Travel Packaging: An Internet Frontier
Vol 7 No 17
By: Bill Carroll Ph.D., Robert J. Kwortnik Ph.D., and Norman L. Rose
Executive Summary: The internet has revolutionized travel packaging, in terms of both travel package development and distribution. Although tour packages are still assembled and sold in the traditional fashion by tour operators, customers who use the web have access not only to assembled tour products, but also to an array of travel-element bundles. These offers take various forms, depending on the approach of the many suppliers and intermediaries who sell directly to customers via the internet.
Packaging travel elements benefits suppliers by reducing the price transparency created by the internet, because the prices of those individual travel elements are bundled and therefore difficult for the package buyer to discern. Moreover, with the growth of online communities, suppliers can observe consumers' stated desires for travel and make proposals for travel packages, rather than wait for consumers to search out the packagers. A notable development is consumers' creation of their own packages in real time, based on changes in vendors' inventories and revenue management pricing. The efficacy of this process depends on the connectivity and computing power of the suppliers, packagers, and intermediaries. A framework presented here assesses value-creation aspects of the following package value drivers: component quality levels, reductions in the opportunity cost of time, flexibility of time and destination choice, and risk management. Based on the value-creation assessment, the report suggests a research agenda and a checklist for
package value creation.
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- Travel Packaging: An Internet Frontier By: Bill Carroll Ph.D., Robert J. Kwortnik Ph.D., and Norman L. Rose
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About Bill Carroll Ph.D.
Bill Carroll is a senior lecturer at the School of Hotel Administration. He teaches courses in economics, yield management, pricing and marketing distribution. He is also CEO of Marketing Economics, a consulting firm specializing in travel industry pricing, distribution, yield management and strategic planning. For over 25 years Carroll held a variety of senior positions in the travel industry. He was division vice president for Global Marketing Planning at Hertz, where he was responsible for global pricing, yield management, marketing information systems, and counter sales. He implemented the first decentralized yield management system in the car rental industry and a comprehensive Executive Information System that gained national recognition. Carroll later served as the global vice president for Reed Elsevier’s Travel Group, overseeing Travel Weekly, the Hotel and Travel Index, the Official Hotel Guide, and the Official Meetings and Facilities Guide. As CEO of Marketing Economics, Carroll works with clients across the travel industry including global distribution systems, hotel service companies and travel intermediaries. He also works closely with PhoCusWright, Inc. a travel industry research, consulting and publishing company. In collaboration with PhoCusWright, Carroll writes often on the evolution of hotel distribution and its impact on major chains and intermediaries. He has also written numerous articles on economics and travel industry topics. Prior to his work in the travel industry, Carroll was an assistant professor of Economics at Drew University. He also served as a member of the economics staff at AT where he was an expert witness before state regulatory bodies and prepared filings on pricing and forecasting with the Federal Communications Commission. In addition to his business and academic career, Carroll is a retired U.S. Army Lieutenant Colonel and was a university lacrosse coach for over 10 years. Carroll holds a B.A. degree in economics from Rutgers, an M.S. in labor studies from the University of Massachusetts, and a Ph.D. in economics from Penn State.
For more information visit http://www.hotelschool.cornell.edu/research/facultybios/faculty.html?id=149
About Robert J. Kwortnik Ph.D.
Rob Kwortnik, Assistant Professor of Services Marketing, joined Cornell's faculty after earning his Ph.D. in Business Administration from Temple University in 2003. He also earned a BA in Journalism from Temple and an MBA from California State University, Northridge. Kwortnik’s research focuses on consumer behavior in service contexts, with special attention to customer experience management. He has published in the Journal of Service Research, The International Journal of Research in Marketing, Psychology & Marketing, and the Cornell Hospitality Quarterly, among others. He has been honored five times as a Teacher of the Year by students at the Cornell Hotel School. Prior to his career in academics, Kwortnik held several professional positions in marketing and was a travel industry consultant. He is a recognized expert on the leisure cruise industry and is a contributing writer to Cruise Industry News.
For more information visit http://www.hotelschool.cornell.edu/research/facultybios/faculty.html?id=105
