|
Both companies are fighting for leadership in the e-travel business, and each has an entirely different approach. Nouvelles Frontières, which mainly sells customized trips from its brick-and-mortar offices, took advantage of the Web to offer last-minute services. The company also was the first, in October, 1998, to launch online travel auctions, which offer discounts of up to 75%. Newcomer Travelprice.com, on the other hand, offers an array of services and competes directly with traditional travel agencies. Half its business comes from basic flights, the rest from package deals. What the two sites do have in common, however, is the ambition they share to grow internationally. Nouvelles Frontières is adding to its strong base with the help of the Web. According to Internet research group NetValue, the company's French Web site welcomed 180,000 visitors in July alone and expects this year's earnings in France to reach $39 million. Today, 80% of sales from its French site, www.nouvelles-frontieres.fr, are for simple flights and promotions, including auctions. GLOBAL AMBITIONS. The average purchase on the site is $240, compared with $500 in its storefronts. And the site, which spent only $660,000 last year on advertising, has been profitable for two years in France. The company's American and Italian sites are also close to being profitable. "We have attracted new customers," says Michel Bré, president of the Nouvelles-Frontières Online subsidiary. "Ninety percent of the site's customers had never come to us before. We are seeking to outdo price-slashers like Degriftour and Promvacances." Travelprice is still building its foundations. The company, which invested a total of $19 million this year -- including $6.6 million for marketing in France alone -- will not see any profits for a couple more years. But excluding marketing costs in its homeland, the French site is beginning to make money. In July, 152,000 people in France visited the site, and sales for 2000 are projected at over $21 million, according to Net Value. Seventy percent of sales come from individual customers and 30% from small companies. Average consumer spending at the site is $553. Travelprice is looking to expand in all sectors. "We offer simple flights, as well as full packages, cruises, car rentals, and hotel reservations. And we are developing services for business travel," says Travelprice President Roland Coutas. Nouvelles Frontières and Travelprice are both present internationally -- and each wants to expand beyond its current markets. Nouvelles Frontières already has sites in America, Belgium, Spain, Italy, and Greece. By launching the travel portal Filfog.com on Oct. 2 in France, Belgium, and Spain, Nouvelles Frontières plans to create an online federation of tour operators and already counts agencies like Marmara and Maeva among its partners. As new strategies unfold in the coming months, the battle between old and new will have only just begun. By Gaëlle Macke Translated by Inka Resch |
