Long launches attack on Internet start-ups

Internet travel

Long launches attack on Internet start-ups

Report by LISAJAMES

FIRST Choice Group chief executive Peter Long has hit out at Internet start-ups that sell travel, calling them “parasites”.

In a hard-hitting speech, Long said most start-ups would be short-lived and were fronted by people who had no idea of how to run a business.

He said: “Nine months ago, us old-economy companies were all going to die because we were all going to be taken over by the Internet companies.

“The whole thing is just a complete nonsense. Some of the business plans of Internet start-ups are unbelievable – these guys must be smoking dope when they put them together. There is no foreseeable reason why they are going to work. They are wasting their time.

“These parasites are coming into our industry and adding absolutely no value whatsoever,” he added.

He also hit out at the idea that companies that are first on the Internet are the ones that will survive.

He said: “There is no advantage in being out there first. In the early part of the year, priceline.com was worth more than the whole of the US airline industry. Now it’s currently worth 10% of that value.”

He said the way forward is by working with industry partners.

“Most of the winners will be old economy because we will embrace this technology and we will have control over something that is very valuable and fundamental to our customers and we also have the fulfilment capability.

“The Internet per se is not the way that business will be transacted. A lot of customers for many years will access the Internet for information but will want to talk to someone.

“We have been building sites for all of our tour operating businesses but we do not expect to sell a lot of holidays. We do expect to sell flights and car rental because that part is easy.

“We want to work with all of our key partners in the travel industry and that is generally the view of our competitors.”