Make no mistake - the entry of Amazon into the online travel business could have far-reaching consequences, especially for the powerful online travel agency incumbents.
It’s becoming clear that it’s no longer a question of if but rather of when and how Amazon will try to disrupt the travel industry... again.
A recent analysis of Amazon’s ability to disrupt online travel agencies by Morgan Stanley was recently in the news with a number of opinion articles on the subject being published. 'Online travel has proven immune to Amazon disruption so far. But as we have seen with other categories, that doesn’t mean Amazon won’t try again, and they should. Amazon’s focus on selection/service, pricing, and frictionless payment that drive conversion and stronger user economics also translate directly to travel,' said analyst Brian Nowak from Morgan Stanley.
The online retailer has a billion-dollar opportunity in travel.