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b2b or not b2b, that is the question
14 August 2000

b2b or not b2b, that is the question concerning many budding dotcom millionaires. b2c (business to consumer) is out of fashion with much of the investment community but b2b (business to business) is another matter and many entrepreneurs are busy re-writing their business plans to reflect this. If you have a good b2b e-commerce proposition that serves an industry community you might just get the necessary funding to get your business off the ground. 

As a budding b2b online travel entrepreneur you will, of course, face some stiff competition. The UK travel trade already has one of the world's most commercially advanced b2b e-commerce systems. Yes, viewdata! It is technically archaic but commercially, absolutely the bee's knees. It has been operating from a time when, if you used the terms "b2b" or "e-commerce", you would probably be thought of as having a screw loose. It serves its purpose really well, providing a no-nonsense online, real-time reservation service for travel agents wanting to book leisure product.

However, we are now in the world of the Internet and the network providers whose pipelines carry viewdata traffic (X-TANT and Telewest) would dearly love our computer systems to be communicating using IP (Internet protocol), the language of the Internet. It is a quantum leap faster and makes far more efficient use of their networks. So, how could the industry move forward? Easy, agents can re-equip, buying new PCs, and then tour operators can develop their new IP based booking systems. But why would agents invest in new technology when right now most tour operators only offer viewdata? OK, tour operators could all invest in new IP booking systems and then the agents will be delighted to buy their new IP connected PCs. But why would tour operators invest in IP systems when most agents only have viewdata connectivity? 

Both Telewest and X-TANT have been doing their best to get the industry out of this chicken and egg situation. Both now deliver viewdata over an Internet style connection. Both have also announced the launch of their Web-style travel trade portals - Telewest's is Endeavour and X-TANT's is Traveleye. These portals will combine a real-time booking capability with the "added value" of lots of useful information. Need to know the temperature in Timbuktu? Just log on and find out. Recently Energis has joined the foray, entering the market with an aggressive sales plan. 

These three companies have one thing in common. They make money by charging for the use of their networks; but do we need them anymore? Could agents not simply connect to the Internet? As every Freeserve account holder knows, it costs nothing to use apart from the cost of the local connection. Even BT's new ultra-high speed ADSL Internet connection will only cost agents £100 per month. If agents were simply connected to the Internet, a budding dotcom millionaire could launch a travel industry b2b super-portal that would not have to recover the network running costs that encumber Telewest, X-TANT and Energis. It could thus offer the travel trade its services at a more competitive rate. (Of course, Telewest, X-TANT and Energis would argue that the Internet is not reliable enough.)

What could this super-portal be like? If I were that budding dotcom millionaire I would want my super-portal to embody the spirit of sites such as TravelMole, the new online travel community Web site - providing news, discussion and information for the travel trade. I would want to provide real-time bookability as extensive as that available over viewdata, as well as providing agents with access to other products such as hotels and scheduled air. I would want it to be a marketplace, allowing travel industry players to trade with each other on an adhoc basis, saving them the need to use the phone and fax. I would like it also to be a consumer outlet like ABTA.com, so that the travel trade could ply its offers to the public.

Who will make this vision of a super-portal a commercial reality? Could it be Telewest, X-TANT or Energis, capitalising on existing relationships with the trade? Could the recently announced Fare1.com be the one, deploying the £20 million it is hoping to raise in the coming weeks? Or will it be this new start-up company planned by a budding dotcom millionaire that only a privileged few know about. Now what was its name?

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