Expect consolidation in online travel sites

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A new study by Jupiter Communications' Digital Commerce Group predicts that the online travel market will consolidate quickly as rapid growth in traffic to mega-sites combined with high operating costs make full-service travel sites a place only for the "deep-pocketed." The study says that while sites like Travelocity and Preview Travel are now experiencing growth, these sites will begin to feel a pinch from fees to the reservation services that provide travel inventory. However, the study also reported that plenty of room still exists in the online travel market for sites that serve smaller niche or affinity markets, such as eco-travel, seniors' tours or gay travel.

Copyright April 1997, Crain Communications Inc.

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