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Well summer travel season is almost -- honest and some good news for the travel industry anyway new survey from airlines for America suggests that nearly two -- nine million people are gonna fly on US based airlines this summer.
Let's bring in somebody says the industry very well the founder of travelocity.
And the current chairman of kayak dot com Terry -- Terry is good to see you most of you -- we talked up a little bit of business -- -- kayak is being sold to Priceline.
Is the -- suspected to close next week so I'll be out of a job as chairman of the board.
Alan that's it and and you found it you think he -- you're pretty good it does starting up companies and selling -- -- and congratulations on -- -- it's a great industry convenient and didn't when you look back when you found travelocity 96 elected 2002 in Redondo obviously bigger better things -- -- you think of how much competition is now out there Expedia travel Los doing is started there really wasn't that you were right and TrailBlazer in -- You win the first and Expedia came out very quickly ended Priceline.
What's amazing is the travel is larger than the next four category glories of electronic commerce combined.
Wouldn't it's huge and there's still a lot of room I mean they're still 181000 travel agents in the United States are still a lot of people who -- the all the way so.
I you know it's competitive.
Very competitive but here's -- we start at seven years ago and where the size of -- costing now with less than 10% of the people we -- -- 200 people.
I -- a very -- as a very small company -- not as -- the -- of technology you're also saying that mobile.
There's all this room to grow in mobile applications when it comes to travel -- he has the future there -- -- Actually we have -- -- five million downloads of the kind mobile app.
Which just stunned us that it's and it's growing so fast and people are actually buying I was talking to another online travel company today.
And if they're selling international tickets on mobile which surprise then that people actually buy you know a thousand or 2000 dollar ticket on another -- -- What do you think about the industry overall I mean I know that the consumers are very angry but the airline industry we just found out this year made -- this week excuse me six billion dollars.
In fees last year.
Well they did -- but they kind of had to you know remember that the price and airline take it is down substantially over the last fifteen years.
In every single airline may -- and went bankrupt so they had to fix the model it was broken.
And fees are what they've come up with and capacity right that you -- you were talking about how many people are travelman summer -- -- all going to be in the same airplane I think.
You know -- 80% load factor.
Yeah I think the forecast for the -- about 85% yet it's -- which is that's unheard it's unheard of but it's -- you know.
Take the market cap of the top six airlines is less than Starbucks and these guys aren't exactly -- and doll.
So -- coming back and this is the way they've found -- do it it's unfortunate for the consumer and irritating but it's at least getting to make a little money.
And it fuel prices are down which will help as while.
But what do you make of all the consolidation you know -- it -- the American -- US Airways for instance I mean we're -- -- -- -- in the consumers worried about -- love it but the consumers worried.
Well I that's a good thing.
Actually not only for investors but for customers you know you have to -- -- large -- today to be success we have to have a big airline to generate those miles and get people have places to -- those miles off a big network -- what makes -- competitive so I was with American for twenty years I think it's a good thing and a -- U -- you're fascinated talk to Terry division meant to give a book coming out called on innovation.
And I think -- you -- -- -- Toronto this is pretty well looks like so I think as I did read the car Jerry Jones I sat on the show anything --
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