Delta Air Lines today said half of its bookings are being processed online through a mix of direct and third-party channels. Specifically, during the first two weeks of the year, delta.com handled 29 percent of all bookings and online travel agencies handled 21 percent, up 9 points and 8 points, respectively, year-over-year.
A Delta spokesperson said the airline's recent pricing redesign has produced "a substantial increase" in migration from offline channels, such as traditional travel agencies, to online distribution outlets. The carrier said savings generated by lower-cost distribution would help offset revenue dilution from the new SimpliFares pricing structure
(BTN, Jan. 17).
Other airlines also report growing usage of their Web sites and such online booking options as Expedia, Orbitz and Travelocity. Northwest Airlines, for example, said Internet channels now represent 37 percent of all U.S. point-of-sale bookings. Volume on nwa.com now stands at 20 percent, a 25 percent increase from August, while online agencies handle 16 percent and Northwest's WorldAgent Direct portal for travel agencies accounts for about 1 percent. Traditional travel agencies account for 43 percent of the carrier's U.S. point-of-sale bookings, down one percentage point from August.
A US Airways spokesperson said traditional travel agencies still account for more than half of total bookings on that carrier, but volume on usairways.com has grown noticeably during the past year and now accounts for 20 percent of all bookings.
Long a leader in encouraging direct online bookings, Southwest Airlines now generates 63 percent of total passenger revenues through its Web site, said CFO Laura Wright earlier this week.