opodo will undercut travel agents

ONLINE travel agency Opodo is to launch in the UK in February with the promise that it will undercut high street travel agent prices by up to a quarter.

Speaking at World Travel Market seminar Understanding the European e-travel market place, chief executive Giovanni Bisignani insisted that traditional distribution channels had been ‘too costly for too long’, and claimed the new site – opodo.co.uk – would host the biggest range of low-cost fares of any marketplace worldwide.

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

The UK website will be modelled on the German version of Opodo – launching next month – which will have around 200,000 web-bookable air fares and hotels. It will also offer short-breaks, car rental bookings and insurance, and is planning package holidays for a second phase development in the next two years.

“Opodo will provide everything the travel agent does,” said Giovanni. “If the fare is restricted, then there will be a notice for the customer telling him about the restrictions and any other information he needs like visas, weather and vaccinations.

“If the customer wants to talk to someone, they can ask one of our call centre team to call them.”

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 lucrative peak booking period.

Bisignani shrugged off difficulties experienced by shareholders including Aer Lingus since September 11, insisting next year’s £19 million marketing budget would be spent as planned 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%, even in the US.”

Bisignani also aims to offer 80% of air capacity available in the country where the website is operating, but seminar delegates 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 – which will be based in Leicester – has already started. The French version of Opodo will be launched in April.