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EXPEDIA SLAMS WEB PRICE RISE CLAIMS

(19 April 2002)

ON-LINE travel agency Expedia.co.uk has slammed research claiming prices for travel goods bought on-line have increased more than those on the high street.

The study, carried out on behalf of Internet bank Goldfish, found on-line prices increased by 8.4% last year, whereas those on the high street rose by 6.7%.

The study also advises Internet users to check travel sites’ credentials such as bonding and the type of consumer protection offered. If this information is not readily available, Goldfish says people should “think about booking elsewhere”.

“In other areas of e-commerce, the standard advice is to shop with reputable suppliers whose names you recognise. The main players in the on-line travel business, with some exceptions, will be names unfamiliar to you.”

The research was carried out for Goldfish by market analysts Datamonitor after it tracked 30 sites in the travel market. Goldfish started tracking on-line prices in July 2000 and has been releasing the information on a monthly basis ever since.

Expedia.co.uk tour operations manager Chris Roe hit back at the claims.

“Why is Goldfish commenting on the on-line travel business, I thought it was a credit-card company? The average air price on Expedia is 3% lower, which proves there are better prices on the web.”

Roe also pointed out the Goldfish website has extensive links to and information on travel websites.

However, Goldfish marketing director Charlie Herbert said: “Consumers hoping to save money by making late bookings on-line should consider shopping around, both on the Internet and the high street.

“The market suggests on-line retailers have carved out a niche and got the high street worried - the fact that many high-street travel agencies are cutting prices would support this view.”

Goldfish believes the price rises have been driven by the need for publicly quoted dot coms to make a profit and strong consumer demand for last-minute packages.

John Lavabre