Travel firms compete for online market

By Karyn Scherer

Fledgling internet e-tailer FlyingPig plans to introduce a travel service from late March, after striking a deal with Travel.co.nz.

The service will add to FlyingPig's existing line of books, videos, software and stationery, and may spark a price war between travel companies.

Travel.co.nz is the result of a merger between Jetsave Travel and Gilpin Travel.

It was bought in September by Australian company Travel.com.au, an aggressive player fighting for dominance of the Australian internet travel market.

The company plans to launch a local website next month, including a service aimed at the corporate market.

It is expected to face fierce competition from Flight Centre, which is also planning to launch an internet service this month.

Another major group, House of Travel, which in 1998 took over AA Travel, plans to go online in April.