world is full of primary and secondary markets. Take the New York Stock
Exchange. In the securities market, the primary market is the initial or
subsequent public offering, in which companies float stock to be purchased by
professional buyers or by the general public. The secondary market is the stock
exchange where buyers and sellers complete transactions without the involvement
of the company floating the stock. Many public-offering purchases are for
long-term investments, where the buyer holds the stock while it increases in
value. Other purchases are more short term; the buyer is a speculator who
watches the stock and sells when market conditions are favorable.
travel, there are a variety of products that lend themselves to a secondary-market
approach, each with a unique set of characteristics. The challenge in travel is
that inventory is perishable. When a sporting event, flight or hotel-room stay is
over, no value is retained, which differs substantial from the stock exchange.
it may seem that the concept of secondary travel markets is new and innovative,
with several new startups in the hotel and air space, in reality, the practice
– by a different name such as a “wholesale distributor” – has been around for
years. This analysis takes a fresh look at today’s secondary markets,
highlighting opportunities as well as dead ends.
- Secondary Travel Markets
- Secondary Market by Travel Product