The end of resellers??

[BOSS]

To me, this scenario involving American Airlines, Orbitz and Expedia, sounds a bit like the flower industry. Yes they are different...but...

"In today's competitive marketplace, it is important for American to be free to customize its product offerings to improve the customer experience as well as distribute its products in a way that does not result in unnecessary costs," Derek DeCross -- AA's vice president for sales

The above quote taken from THIS ARTICLE could easily be referring to online flower resellers...

Thoughts?

 

[anytimeflowers]

I think American Airlines did the right thing. Once other airlines get a load of the power they actually have over the travel sites, they will follow suit. If in one day AA pulling out can cause Orbitz stock to plummet 6%, if all of them did it they would soon be back in the driver's seat.

The correlation between the two is eerie.

 

[Simon Says]

Similar to the floral industry insomuch as relationships between (certain) involved parties are sour and that the airline ticketing business is now heavily into on-line transactions and some way ahead of the floral industry.

But what AA are attempting to do is limit the split of the ticket sold to fly with them and cut out some of the claimed middle parties. In a way, perhaps akin to what FTD is doing by selling drop ship and selling florist arranged.

And the claimed customization AA wants to do is sell more car rental, hotels and travel insurance and reduce the opportunities for Orbitz and the like to do this. The actual airline itin. element is all ready customized.

AA has been trying to cut middle parties out to varying degrees of success in what is actually a very complex procedure with inter-line and/or code-sharing and/or fifth country rights just to muddy the waters.

 

[bootcampguy]

.........And the claimed customization AA wants to do is sell more car rental, hotels and travel insurance and reduce the opportunities for Orbitz and the like to do this. The actual airline itin. element is all ready customized.

I think they saw the loss of sales or lack of sales in the above listed areas and said "let try this". The number 3 carrier might get away with it. My fav part is:

Calling the dispute "the latest sign of strains between airlines and the companies that sell airline tickets," AP notes that "airlines have traditionally paid sellers a commission. American also pays fees to the global distribution companies that provide the flight (or flowers or serviced thereof)..............

Very similar indeed.