Contrary to popular belief, booking travel online often costs more, not less, than booking through another method, unless one is an expert. Online travel services offer shoppers a wide array of choices for hotels and airfare. But all these choices often lead to consumer confusion. Shoppers overloaded with information about airline choices, flight availability, aircraft type, and hotel options often end up basing their choices on convenience and non-price criteria. As a result, many end up paying more than they originally intended when purchasing airfare and hotel rooms online.
Brand name is often more valuable online.
The majority of online travelers won't buy from a company they don't already know, said Dr. Rangaswamy, a professor of marketing. The Internet is a new medium and even dedicated users still don't completely trust electronic information and the security of the transaction. So if travelers can't hold a brochure and see a picture of the hotel, or if they have not previously flown on an airline, they often select a familiar brand even if it costs more. Rangaswamy is currently involved in research with hotel chains and airlines about online shopping patterns.