AnOld-LineAgencyFindsanOnlineNichePublishedMay15,2000page48CorrectionIn"AnOld-LineAgencyFindsanOnlineNiche"(E-Company,April3),weincorrectlyreportedthatuniglobe.comhad$47.8millionincruiserevenuesin1999.Infact,thatfigurerepresentsallofuniglobe.com'srevenuesforthatyear.Anaccompanyingchartmadethesameerrorfortheyears1997to1999.Pitythetravelagent.Notonlyhaveairlinesbeenslicingtheircommissionsthinnerthanthemysterymeatonanin-flightsandwich,they'vealsohadtocontendwithanassaultfromonlinetravelservices,whichgobbledup$11.4billionofmarketsharein1999.Whilemostofthebigpre-Internet-eratravelagencieshavehesitated,Vancouver-basedUniglobeTravelInternational--thelargestsingle-brandtravelagencyintheworld,with1,100branchesin20countries--ispursuingapromisingonlinestrategy.Uniglobeisaimingtocarveoutalucrativeonlinenichebycombiningahigh-techsitewithoneofthestrengthsofold-fashionedtravelagencies:thehumantouch.Uniglobe'sonlinesubsidiary,Uniglobe.com,isfocusingononeoftheoldcompany'sstrengths:cruisebookings.Suchbookingstypicallygenerate15%to20%commissions,comparedwiththe5%to6%commonwithair,car,andhotelbookings.Moreover,selectingacruiseinvolvesabroaderrangeofconsiderationsthan,say,pickingaflight,whichmanypeoplechoosesolelyonthebasisofprice.Thatmakescruisesanaturalforanold-linetravelagency.Uniglobe'ssitedoesallowyoutobookotherthingsaswell,likeairplanetrips,hotels,andcarrentals.SoithasmorevarietythanthesiteofitsglobalcompetitorThomasCook:Americanscan'tbookanykindoftravelthere.AndonlyinrecentmonthshasUniglobe'sothermajorrival,AmericanExpress,addedsophisticatedfeatures.Thathelpsexplainwhye-commerceanalystGomez.comranksUniglobe'ssitefourthoverallinquality,behindthebigonlineplayers:Travelocity,Microsoft'sExpedia,andPreviewTravel.ButtheUniglobesiteoutshinesallotherswhenitcomestocruises.Youcansearchbyregion,bydestination,orbycruiseline.Youcancheckreviewsfor70shipsandgetdeckplansanddetailssuchaswhethertheshiphasanItalianrestaurantorwhetheryourcabinhasabalcony.Mostimportant,Uniglobehasatechnicalcapabilitythatnoneofitscompetitorshave,onethatplaystoitsstrengths:anonlinechatfunction.Ifyoucan'tfindtheanswertoyourcruisequestion,afewkeystrokesopenawindowthatletsyouchatinrealtimewithoneof75"cruisetravelspecialists."Withinseconds,theycananswerquestionsthatwouldnormallyhaveyoucombingfruitlesslythrough"FrequentlyAskedQuestions"listsonmostWebsites.Youcanalsoe-mailquestionstoUniglobe;aresponseispromisedin20minutes.Ifyou'remoretraditionalandthinkallthisonlinechatissilly(ifthat'sso,youprobablyaren'tattemptingtobookyourtravelonlineinthefirstplace),thecompanyalsohasa24-hourhelp-line.UniglobehasbeenaggressivelypursuingpartnershipstobuilditsvisibilityintheU.S.Visa,forexample,promotesUniglobeonitssiteandisinturnpromotedonUniglobe.com.AndHow2.comhasgivenoveritstravelareatoUniglobe.Mostimportant,UniglobepersuadedmarketleaderExpediatogiveitaspecialcruisesectionwithintheExpediasite.That,naturally,leadscustomerstoUniglobe.com.(UniglobepaysExpediaanunspecifiedfeeforeachbookingthatcomesthroughthatchannel.)Thestrategymaybepayingoff.ThoughUniglobe.com'scruiserevenuesweremodest--$47.8millionin1999--thecompanyclaimsitsDecemberbookingswereup1,000%fromayearago.Uniglobe.com,whichpouredsome$10.2millionintoitssitelastyear,lostapproximately$3.8millionin'99.Butsomeanalystsbelievetheprofitpicturemaybrightenquickly.ThoughUniglobehasonlya5%shareoftheonlinecruisemarket--whichstillmakesittheleader--ForresteranalystHenryHarteveldtsaysUniglobe"couldgrab30%iftheyarefocusedandaggressive."ThatsoundsgoodtoUniglobeCEOMartinCharlwood,whosaysthecompanywill"remainfocusedonthecruiseandtoursideofthebusinessbecausewethinkit'sgothighermargins."But,headds,"Idon'twantustobepigeonholedascruiseonly.Weareafull-servicetravelWebsite."Uniglobewilltakeyourbusinessanywayitcangetit.
