Opodo vows to undercut high street by 25%

On-line savings will be passed on to customers

Opodo vows to undercut high street by 25%

Report by LYDIA WILSON

Bisignani: distribution has been too costly for too long

ON-LINE travel agency Opodo is to launch in the UK in February with the promise to undercut high-street travel agent prices by up to a quarter.

Speaking at the Understanding the European e-travel marketplace seminar during World Travel Market last week, Opodo chief executive Giovanni Bisignani said traditional distribution channels had been “too costly for too long”, and claimed the site – opodo.co.uk – would host the world’s largest range of low-cost fares.

“Our cost structure is 25% lower than a traditional travel agent. We intend to share that saving with customers,” he said.

The UK website will be modelled on the German version of Opodo, which will be launched next month with 200,000 web-bookable air fares and hotels. It will also offer short breaks, car rental and insurance. Package holidays will be offered within two years.

“Opodo will provide everything travel agents do,” said Bisignani. “If the fare is restricted there will be a notice telling customers the restrictions and any other information such as the need for visas or vaccinations, or details about the weather.

“If customers want to talk to someone, they can ask one of our call-centre team to ring them,” Bisignani added.

A February launch means the company, whose shareholders are a consortium of European airlines including British Airways and Air France, will miss out on the start of next year’s peak-booking period.

Bisignani shrugged off difficulties experienced by shareholders including Aer Lingus since September 11, insisting next year’s £19 million marketing budget will still be available to promote the Opodo brand.

“Opodo shareholders are committed to this project,” he said. “September 11 has not changed our plans. Since then, use of the Internet for travel booking and information has actually risen by up to 32%.”

Bisignani also aims to offer 80% of air capacity available in the country where the website is operating, but industry observers were sceptical. One told Travel Weekly: “How could they capture 80% of the market? Regulators wouldn’t allow it.”

Recruitment and training for the UK call centre – to be based in Leicester – has already started.