BRITISHAirways has acquired a minority share in on-line business travel agent Biztravel.com as part of a strategy to develop its sales over theInternet.
The airline is believed to have spent $5m on securing a stake of around 5% in the agency. It already has its own on-line booking site on the Internet.
BA said the acquisition will help the airline meet its prediction that 50% of its business will be conducted over the Internet within five years.
The carrier claims this will not be to the exclusion of agents, as part of the e-business will be generated from retailers using the site.
A spokeswoman said 80% of BA’s current business is done through agents, but it is impossible to ignore the economic benefits of e-business.
“With e-commerce it is the customer who decides which electronic shopping mall they go to and we want to be there. If we restrict it to simply our own site, then we are only on one high street,” she said.
BA head of distribution Pat Gaffey said: “It is important we work closely with the best on-line distributors so customers choosing to do business across the Net or through the TV have easy access to our products.”
Biztravel.com is one half of Rosenbluth Interactive, a subsidiary of the global business travel agent Rosenbluth International.
The second half of the site, which will go live later this year, is targeted at leisure travel.
Rosenbluth acquired an undisclosed majority stake in Biztravel.com last month with other investors including Continental Airlines and Marriott International (Travel Weekly August 16). Meanwhile, BA has upgraded its corporate Web site – www.british-airways.com – to allow five times as many people than previously to make bookings simultaneously.
BAclaims the new system, installed after 18 months research, is also more reliable.
TABLE: Net gains:although 80% of BA’s business is done through high-street agents, the airline feels it is impossible to ignore the economic benefits of the Internet