I think there's HUGE potential in an online service that takes care of all the aspects of a trip. Right now you have the choice of either doing everything manually (which is a big time sink) or going on a package tour (which is bland and one-size-fits-all). In between you've got a few options like Expedia and Travelocity, but they're more like extensions of the package tour idea than a rethinking of the concept.
In my vision, you'd give it the dates you want to travel, where you want to go, your budget, and access to your social networking accounts (so it can figure out your interests/hobbies). Then it uses the data you've given it along with preexisting curated travel data (which could be based on crowdsourced info, both from previous customers and from 3rd party sources) to create an optimized & customized travel itinerary and take care of all the purchases (plane tickets, hotel reservations, Uber reservations from the airport to the hotel and between sightseeing locations (if needed), tickets for different sightseeing locations, etc.) so that you just have to pay once, to this service. You don't have to worry about when places are open/closed, how long it takes to get between them, etc. - that would be automatically calculated (should be pretty straightforward with Google Maps API access).
Then you'd want to have an associated smartphone app that will (in real-time) display the itinerary, give directions between the different places, suggest restaurants to eat at (maybe make reservations using OpenTable), etc. The itinerary could even be dynamic. For example, if there's an outdoor activity planned and it starts raining, it would automatically rearrange your itinerary as necessary, etc. You could use GPS and/or NFC at museums and other places to play back audio explanations of various exhibits (they already have this at many museums, but you have to pay extra for the privilege and wear an iPod or some other clunky device for the duration of the tour).
Why is there so much emphasis on planning a trip? What happened to mapping out a few attractions and spending the rest of the time stumbling around letting your feet and eyes be your guide? All my favourite trips have resulted from pure serendipity and the rewarding experience of discovering something purel by accident.
They say the service is completely free, which IMO is a big mistake - the right approach is to be responsible for all the payments and then charge the user just one time, which not only allows you to add a fee on top (your primary revenue source) - it removes one more pain point for the user.
Also, I probably wouldn't give several thousand dollars to an intermediary, especially when some airlines have "special" policies that apply to tickets booked by proxy (e.g. the proxy needs to request changes, not the end user).
Travelers not willing to do some legwork should not be surprised if they find themselves confined to proven tourist trails. And in fact that's what many people want.
We're exploring digital travel guides over at coolplaces.co.uk and are busy building out content (uk only for now). So it's interesting to read your ideas on this as they are close to ours. It's early days yet for us, and we have a lot of ground to cover before we get to custom travel guides created by users, but it is on the roadmap, and these are exciting times to explore travel info. Would be interested in your comments on our site.
I would like to ask you, though: do you find electronic renditions of Lonely Planet (for either e-ink reader or tablet computer) an adequate substitute for the paper version? I understand that they could be much better in theory, but are they at least not worse? I am going to go on a tour around Europe and I seriously consider buying an iPad or a e-ink reader in part for Lonely Planet, because they should be easier to carry around than even a single travel guide.
What's good about LP on Kindle? If you happen to be travelling very light to several first-world destinations which are not covered in any single book, you can definitely save space and weight. Also if you buy the book more for the prose than the maps, it could be all right (with an iPad and a local SIM card this could work well enough, again assuming you don't travel where people are very poor).
The books really could have been vastly better -- there were some clickable urls (when viewed in the iPad 3 kindle app)
Given this, it amazes me how primitive the location features of travel guides are. When I buy a Lonely Planet guide, even as an eBook, at best I get a small, low-res map with numbers that cross-reference a list of labels that cross-reference the actual blurbs about these places! This is very slow and labor-intensive to scan. What I really want is a way to overlay the travel guide on top of my phone's Google Maps, so I can easily see my current location, any markers I've added like my hotel, and travel guides all in a single map. I want to be able to click a location marker to get the travel guide's blurb. Bonus points if I can easily combine different travel guides onto a single map (Lonely Planet, Wikitravel, etc.)
One awesome thing this would allow is for people to create and curate special-interest travel guides. For example, the Puget Sound Business Journal maintains a list of attractions called "The Geek's Guide to Seattle" (http://www.bizjournals.com/seattle/blog/techflash/2009/08/Th...). I would love to be able to search for these kinds of guides when I visit a new city and combine all of them into a single map. Sort of like Amazon Listmania lists, it would give you an opportunity to find like-minded people and what they think is cool.
This is a lot like what KML allows in Google Earth (and maybe Google Maps too?) but very few people use this format and the workflows for using KML in this way don't seem to be very streamlined (for example, it appears you can "import" a KML file into maps, but you can't subscribe to one by URL).
Established content providers for travel guides might not like this approach because it commoditizes them, but I think it would help the best content to ultimately win out.