Travel search engine SideStep, Inc. is on look-out for addition of hotel and air vacation packages to strengthen its offering of price comparisons. But according to information available, online travel agencies aren't keen on joining SideStep for the

Published: 12 Jun 2005

Travel search engine SideStep, Inc. is on look-out for addition of hotel and air vacation packages to strengthen its offering of price comparisons. But according to information available, online travel agencies aren't keen on joining SideStep for the

Last month, the company had announced the Beta release of its new vacation package service, which enables consumers to search multiple sites at once for vacation escapes to more than 90 popular destinations worldwide.

“The new search function holds great promise for consumers looking for the best package deal, but it’s facing opposition from some travel companies fearful of seeing their unique hotel and air packages sold as commodities. The online travel agencies Travelocity and Expedia, two of the biggest package vendors, are refusing to participate, which means Sidestep isn't yet able to offer a comprehensive search,” says a media report.

Phil Carpenter, vice president of corporate marketing for Sidestep, reportedly said consumers are hungry for an Internet search engine that can help them narrow the field of options, whether it's a flight, a hotel or an entire vacation package and added that packages are among the most time-consuming travel searches of all.

SideStep, which stated that it is the first travel search company to offer consumers choices from a variety of providers with a single click, says new service, the Beta release of its new vacation package service, ignificantly simplifies a traditionally complex process. Referring to Gartner Group, according to which travelers check an average of 4.2 sites before booking a flight, they check 5.8 sites before booking a vacation package. With SideStep, travelers can turn to a single site to explore and book travel packages and the new vacation package service saves travelers money as well as time.

Carpenter reportedly said that travel vendors have found success with packages by shaving their profit margin on either the air or hotel portion. “That way, the price of the combined package is lower than its parts, but the overall profit margin remains pretty good because the size of each individual sale is higher (according to SideStep). SideStep has long been a sort of backstop in the travel search business, loaded onto a user's browser and used to check prices while the user is simultaneously checking a fare on another Web site. Only recently has the company launched its own stand-alone Web site and moved aggressively to become a leader among travel search engines,” says the report.

Carpenter told media that SideStep has referral deals in place with Orbitz, the National Leisure Group in Woburn, and Pleasant Holidays. Many other vacation package suppliers have so far refused to sign on. A Travelocity official responded in the same media report by saying, “We are not convinced that any of these search engines are good for consumers, suppliers or us. We see these engines as commoditizing travel at a time when we're working hard with suppliers to go in the opposite direction.”